UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





Form
10-K





R
            ANNUAL
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the
fiscal year ended September 30, 2009





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





Commission
file number 000-17750





RECEIVABLE
      ACQUISITION & MANAGEMENT CORPORATION(Name
      of Small Business Issuer in its
Charter)





Delaware
                
                13-3186327(State
      or other jurisdiction of
                  incorporation
      or organization)
                
                (I.R.S.
      Employer
                  Identification
      No.)2500
      Plaza 5 Harborside Financial
                  CenterJersey
      City, New Jersey
                
                07311(Address
      of principal Executive
                  Offices)
                
                (Zip
      Code)





201-633-4715


(Registrant’s telephone number,
including area code)





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
Per Share





Indicate
by check mark whether the registrant is a well-known seasoned issuer as defined
in Rule 405 of the Securities Act.  Yes £     No
R





Indicate
by check mark if the registrant is not required to file reports pursuant to
Section 13 or Section 15(d) of the Act.  Yes £     No
R





Indicate
by check mark whether the registrant (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 R     No
£





Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not 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-K or any amendment to this
Form 10-K.  £





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of
“accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange
Act.   (Check one):





Large
accelerated filer £               Accelerated
filer £             Non-accelerated
filer £





Smaller
reporting company x





Indicate
by check mark whether the registrant is a shell company (as defined by Rule
12b-2 of the Exchange Act) Yes £     No
R




The
number of shares outstanding of each of the Registrant’s classes of common
stock, as of January 11, 2010 is 16,052,896 shares, all of one class, $.001 par
value per share.  Of this number, 9,231,962 shares were held by
non-affiliates of the Registrant.





The
Company’s common stock has been trading on the OTCBB since October 2004 and,
accordingly, the aggregate “market value” of such shares is approximately
$100,000.  The “value” of the 9,239,514 shares held by non-affiliates,
based upon the book value as of September 30, 2009 is less than $0.024per
share.





*Affiliates
for the purpose of this item refers to the Registrant’s officers and directors
and/or any persons or firms (excluding those brokerage firms and/or clearing
houses and/or depository companies holding Registrant’s securities as record
holders only for their respective clienteles’ beneficial interest) owning 5% or
more of the Registrant’s common stock, both of record and
beneficially.





DOCUMENTS INCORPORATED BY
REFERENCE – None





TABLE
OF CONTENTS
 
 PageStatement
      Regarding Forward-Looking Statements
                                                    
                                                    
                                                    3PART
      I
                                                    
                                                    
                                                    4Item
      1.
                                                    
                                                    Business
                                                    
                                                    
                                                    4Item
      1A.
                                                    
                                                    Risk
      Factors
                                                    
                                                    
                                                    8Item
      1B.
                                                    
                                                    Unresolved
      Staff Comments
                                                    
                                                    
                                                    12Item
      2.
                                                    
                                                    Properties
                                                    
                                                    
                                                    12Item
      3.
                                                    
                                                    Legal
      Proceedings
                                                    
                                                    
                                                    12Item
      4.
                                                    
                                                    Submission
      of Matters to a Vote of Security Holders
                                                    
                                                    
                                                    12PART
      II
                                                    
                                                    
                                                    13Item
      5.
                                                    
                                                    Market
      for Registrant’s Common Equity, Related Stockholder Matters and and Issuer
      Purchases of Equity Securities
                                                    
                                                    
                                                    13Item
      6.
                                                    
                                                    Selected
      Financial Data
                                                    
                                                    
                                                    14Item
      7.
                                                    
                                                    Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
                                                    
                                                    
                                                    15Item
      7A.
                                                    
                                                    Quantitative
      and Qualitative Disclosures About Market Risk
                                                    
                                                    
                                                    18Item
      8.
                                                    
                                                    Financial
      Statements and Supplementary Data
                                                    
                                                    
                                                    18Item
      8A.
                                                    
                                                    Changes
      in and Disagreements with Accountants on Accounting and Financial
      Disclosure
                                                    
                                                    
                                                    36Item
      9A.
                                                    
                                                    Controls
      and Procedures
                                                    
                                                    
                                                    36Item
      9B.
                                                    
                                                    Other
      Information
                                                    
                                                    
                                                    37PART III
                                                    
                                                    
                                                    38Item
      10.
                                                    
                                                    Directors,
      Officers and Corporate Governance
                                                    
                                                    
                                                    38Item
      11.
                                                    
                                                    Executive
      Compensation
                                                    
                                                    
                                                    39Item
      12.
                                                    
                                                    Equity
      Compensation Plan Inform and Security Ownership of Certain Beneficial
      Owners and Management and Related Stockholder Matter
                                                    
                                                    
                                                    40Item
      13.
                                                    
                                                    Certain
      Relationships and Related Transactions and Director
      independence
                                                    
                                                    
                                                    40Item
      14.
                                                    
                                                    Principal
      Accounting Fees and Services
                                                    
                                                    
                                                    41Item
      15.
                                                    
                                                    Exhibits
      and Financial Statement Schedules
                                                    
                                                    
                                                    42




2




STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS





In this
annual report, references to "Receivable Acquisition & Management
Corporation," "RAMC," "the Company," "we," "us," and "our" refer to Receivable
Acquisition & Management Corporation and its wholly owned
subsidiary.





Except
for the historical information contained herein, some of the statements in this
Report contain forward-looking statements that involve risks and uncertainties.
These statements are found in the sections entitled "Business," "Management's
Discussion and Analysis of Financial Condition and Results of Operation," and
"Risk Factors." They include statements concerning: our business strategy;
expectations of market and customer response; liquidity and capital
expenditures; future sources of revenues; expansion of our proposed product
line; and trends in industry activity generally. In some cases, you can identify
forward-looking statements by words such as "may," "will," "should," "expect,"
"plan," "could," "anticipate," "intend," "believe," "estimate," "predict,"
"potential," "goal," or "continue" or similar terminology. These statements are
only predictions and involve known and unknown risks, uncertainties and other
factors, including, but not limited to, the risks outlined under "Risk Factors,"
that may cause our or our industry's actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. For example, assumptions that could cause actual
results to vary materially from future results include, but are not limited to:
our ability to successfully develop and market our products to customers; our
ability to generate customer demand for our products in our target markets; the
development of our target markets and market opportunities; our ability to
manufacture suitable products at competitive cost; market pricing for our
products and for competing products; the extent of increasing competition;
technological developments in our target markets and the development of
alternate, competing technologies in them; and sales of shares by existing
shareholders. Although we believe that the expectations reflected in the forward
looking statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Unless we are required to do so under
federal securities laws or other applicable laws, we do not intend to update or
revise any forward-looking statements.


3


Part
I





ITEM
1.  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.





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.





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.





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.





For the
years ended September 30, 2009 and September 30, 2008, our revenues were
approximately $246,558 and $608,204, and our net loss was ($134,540) and net
income was $168,659, respectively. During these same years our cash collections
were approximately $ 282,229 and $582,341 respectively and servicing incomes
were approximately $32,267 and $89,551 respectively. The Company has
discontinued making new investments and is seeking to merge with or acquire
another company seeking to go public via reverse merger.


4





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.





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.





Consumer
Receivables Business





Due to
capital constraint, the Company has not been able to purchase additional
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
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;




5




·
            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.





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;





·
            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:




6





·
            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.





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.





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, 2009, we had 2 full-time employees.




7





ITEM
1A. RISK FACTORS





You
should carefully consider the risks described below as well as other information
provided to you in this document, including information in the section of this
annual report entitled “Information Regarding Forward Looking Statements.” The
risks and uncertainties described below are not the only ones facing us.
Additional risks and uncertainties not presently known to us or that we
currently believes are immaterial may also impair our business operations. If
any of the following risks actually occur, the Company’s businesses, financial
condition or results of operations could be materially adversely affected, the
value of the common stock could decline, and you may lose all or part of your
investment.





The
Company has ceased making portfolio purchases since October 2007.





Due to
inability to raise capital and deep recession, the Company decided to make new
investments and has subsequently been in a run-off mode. The management is
focused on merging with or acquiring another operating company that may be
seeking to go public via reverse merger. There is no assurance that the
management will succeed and as a result, shareholders may be adversely
affected.





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




·
            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




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.





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;





·
            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.




10




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
16,052,896 shares of common stock issued and outstanding as of the date hereof.
In addition, approximately 946,000 warrants to purchase our common stock were
outstanding as of the date hereof. 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, 2009 there were 946,000 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.





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.




11





ITEM
1B. UNRESOLVED STAFF COMMENTS





Not
applicable.





ITEM
2. PROPERTIES





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 lease our New Jersey facility at
approximately $3,200 per month and such lease expires on February 28, 2010. The
Company is in the process of relocating and currently negotiating a lease. We
lease our California facilities at $1,250 per month and is on a month-to-month
basis.




ITEM 3. LEGAL PROCEEDINGS


Not
applicable.
  ITEM
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS
 
 None.
  12
  PART
II
 
 ITEM
5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STAREHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
 
 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 October 2004, there
was no market for our common stock. The last reported price as of December 31,
2009 was $0.01per share.
 
 Quarter
      Ended
                        
                        High ($)
                        
                        
                        Low ($)March
      31, 2008
                        
                        
                        .02
                        
                        
                        
                        .02June
      30, 2008
                        
                        
                        .02
                        
                        
                        
                        .02September
      30, 2008
                        
                        
                        .01
                        
                        
                        
                        .01December
      31, 2008
                        
                        
                        .006
                        
                        
                        
                        .006March
      31, 2009
                        
                        
                        .02
                        
                        
                        
                        .03June
      30, 2009
                        
                        
                        .01
                        
                        
                        
                        .06September
      30, 2009
                        
                        
                        .01
                        
                        
                        
                        .02December
      31, 2009
                        
                        
                        .01
                        
                        
                        
                        .02
  Holders
 
 As of
December 31, 2009 we had approximately 270 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, 2009, 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
                            
                            
                            $
                            0.01
                            
                            
                            
                            946,000Equity
      compensation plans not approved by security holders
                            
                            
                            —
                            
                            
                            
                            —
                            
                            
                            
                            —Total
                            
                            
                            2,500,000
                            
                            
                            $
                            0.01
                            
                            
                            
                            946,000
  13
  ITEM
6.  SELECTED FINANCIAL DATA
 
 The following selected consolidated
financial data should be read in conjunction with our consolidated
financial statements and related notes and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations”. The statements of operations
data for the years ended September 30, 2009 and 2008 are derived from our
audited financial statements which are included elsewhere in this Form
10-K.  The historical results are not necessarily indicative of
results to be expected for future periods.
 
 Consolidated
Statements of Operations Data:
 
 For the Year Ended September
    302009
                      
                      
                      2008Revenue
                      
                      $
                      246,558
                      
                      
                      $
                      608,204Cost
      of goods soldGross
      profit (loss)
                      
                      $
                      (109,937
                      )
                      
                      $
                      608,204Operating
      expensesResearch
      and developmentSelling,
      general and administrative
                      
                      $
                      356,495
                      
                      
                      $
                      523,056Total
      operating expenses
                      
                      $
                      356,495
                      
                      
                      $
                      523,056Income
      (loss) from operations
                      
                      $
                      (109,937
                      )
                      
                      $
                      85,148Other
      (expense) income, net
                      
                      $
                      (24,603
                      )
                      
                      $
                      83,511Net
      income (loss)
                      
                      $
                      (134,540
                      )
                      
                      $
                      168,659Basic  income
      (loss) per share
                      
                      $
                      (
      0.01
                      )
                      
                      $
                      0.01Diluted
      income (loss) per share
                      
                      $
                      (
      0.01
                      )
                      
                      $
                      0.01Shares
      used in calculation of loss per share
                      
                      
                      16,052,896
                      
                      
                      
                      17,108,901Diluted
                      
                      
                      16,052,896
                      
                      
                      
                      19,004,901
 
 Consolidated
Balance Sheet Data:
 
 For the Year Ended September
    302009
                          
                          
                          2008Cash
      and cash equivalents
                          
                          $
                          196,443
                          
                          
                          $
                          233,450Working
      Capital
                          
                          $
                          206,634
                          
                          
                          $
                          276,349Total
      assets
                          
                          $
                          338,545
                          
                          
                          $
                          472,784Long-term
      obligations
                          
                          
                          —
                          
                          
                          
                          —Total
      Stockholder’s equity
                          
                          $
                          300,747
                          
                          
                          $
                          435,287
 14
  ITEM
7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION
 
 Introduction
 
 The
following discussion should be read in conjunction with the Financial Statements
and Notes thereto. Our fiscal year ends September 30. This document contains
certain forward-looking statements including, among others, anticipated trends
in our financial condition and results of operations and our business strategy.
(See Part I, Item 1A, "Risk Factors"). These forward-looking statements are
based largely on our current expectations and are subject to a number of risks
and uncertainties. Actual results could differ materially from these
forward-looking statements. Important factors to consider in evaluating such
forward-looking statements include (i) changes in external factors or in our
internal budgeting process which might impact trends in our results of
operations; (ii) unanticipated working capital or other cash requirements; (iii)
changes in our business strategy or an inability to execute our strategy due to
unanticipated changes in the industries in which we operate; and (iv) various
competitive market factors that may prevent us from competing successfully in
the marketplace.
 
 Results
of Operations
  Year
Ended September 30, 2009 Compared to Year Ended September 30, 2008
  Revenues
  Total
revenue for the twelve months ended September 30, 2009 declined by approximately
59% to $246,558 from $608,204 for the year ended September 30,
2008.  The Company had a net loss of ($134,540) for the year ended
September 2009 versus net income of $168,659 for the year ended September 30,
2008.  Servicing income was generated from Ramco Income Fund Ltd and
one other investment vehicle 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, 2009, the Company did not invest in any
portfolio compared to $201,982 in one portfolio with a face value of $5,770,917
during the year ended September 30, 2008.  The Company has stopped
purchasing portfolios after October 2007 due to the inability to raise
additional capital. 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.   In 2009, the Company
used the recovery method only for all portfolios.
  During
the year ended September 30, 2009, we serviced a pool of charged-off consumer
accounts on behalf of Ramco Income Fund Limited and from another investment
vehicle. Servicing fees received under this arrangement declined by
approximately 64% to $32,267 from $89,551 in the year ended September 30, 2009.
The Fund has been redeeming investors and stopped making fresh investments since
January 2007, which has resulted in sharp decline in servicing fees from the
Fund. 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 and is not expected to be material.
  Total
operating expenses
  Total
operating expenses in the year ended September 30, 2009 declined by
approximately 32% or $166,561 to $356,495 compared to $523,056 for the year
ended September 30, 2008. The Company expects the overall expenses to decline
further next year.
 
 Other
income and expense
 
 For the
year ended September 30, 2009, the Company had interest and other loss of $2,360
and ($26,963), respectively, compared to interest income of $8,193, interest
expense of ($19,921), $32,340 gain on sale of receivables and $62,899 from debt
forgiveness for the year ended September 30, 2008. The Company has no other
contingent expense.
  Income
taxes
  For the
year ended September 30, 2009, the Company has not recorded any income tax
liability.
 
 15
 
 Net
Income (loss)
 
 Net loss
for the twelve months ended September 30, 2009 was ($134,540) versus net income
of $168,659 for the twelve months ended September 30, 2008.
 
 Liquidity
and Capital Resources
  Liquidity
  For the
year ended September 30, 2009 the Company had working capital of $206,634 versus
$276,349 versus for the year ended September 30, 2008. Working capital for year
ended September 30, 2009 declined by approximately 25% or $69,715 from $276,349
for the year ended September 30, 2008. The decline was largely due to declining
collections and lack of investments into new portfolios. At the year ended
September 30, 2009, the Company had $196,443 in cash and continues to generate
sufficient cash to fund operations for the foreseeable future.  The
Company is seeking to merger with another company seeking to go public but
timing and type of company cannot be ascertained at this time.
  Cash
Flows and Expenditures
  Year
ended September 30, 2009 compared to September 30, 2008
  During
the year ended September 30, 2009, the Company did not purchase any portfolio
compared to $201,982 on portfolio acquisitions during year ended September 30,
2008. Total cash collected during the year ended September 30, 2009 was $282,229
versus $582,341 during the year ended September 30, 2008.
  During
the year we generated $32,267 in servicing revenue compared to $89,551during
2008 primarily from Ramco Income Fund, Ltd and another investment vehicle.
Servicing fees from the Fund has declined due to redemptions and lack of
additional investments.
  We
currently utilize various business channels for the collection of charged off
credit cards and other receivables. The Company is currently using seven (7)
collection agencies and several law firms on a contingency basis.
  Cash used
from operations was ($37,007) versus cash flow provided by operations $231,388
during the year ended September 30, 2008.
  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,
2009 and all purchases of capital expenditures were funded with internal cash
flow.
  Net cash
(used) from financing activities was $0 during the year ended September 30, 2009
versus ($284,468) during the year ended September 30, 2008.
  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, 2009.
  Purchase Period
                      
                      Purchase
                        Price(1)
                      
                      
                      Actual Cash
                        Collection (2)
                      
                      
                      Estimated (3)12/31/2003
                      
                      $
                      569,070
                      
                      
                      $
                      1,820,680
                      
                      
                      $
                      15,2684/11/2005
                      
                      $
                      375,000
                      
                      
                      $
                      517,835
                      
                      
                      $
                      26,0007/25/2005
                      
                      $
                      177,668
                      
                      
                      $
                      314,137
                      
                      
                      $
                      4,0003/9/2006
                      
                      $
                      191,992
                      
                      
                      $
                      248,647
                      
                      
                      $
                      3,0004/7/2006
                      
                      $
                      331,974
                      
                      
                      $
                      388,318
                      
                      
                      $
                      22,00012/31/04-12/20/06
                      
                      $
                      780,875
                      
                      
                      $
                      1,271,177
                      
                      
                      $
                      89,0001/7/2007
                      
                      $
                      324,248
                      
                      
                      $
                      402,736
                      
                      
                      $
                      29,00010/4/2007
                      
                      $
                      201,982
                      
                      
                      $
                      34,078
                      
                      
                      $
                      44,000
 
 16
 
 (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-compliant accounts (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.
  Capital Resources
  The cash
flow from portfolios currently owned would be adequate to meet our operating
expenses for the foreseeable future.
  Inflation
 
 We
believe that inflation has not had a material impact on our results of
operations for the year ended September 30, 2008.
 
 Critical
Accounting Policies
 
 The
Company utilizes the interest method under guidance provided by the Financial
Accounting Standards Board Accounting Standards Certification (“ASC”) 310-30 to
determine income recognized on finance receivables
  In
October 2003, ASC 310-30, “Accounting for Loans or Certain Securities
Acquired in a Transfer” was issued. This ASC 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 ASC is
effective for loans acquired in fiscal years beginning after December 15,
2004. The ASC 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 ASC 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 ASC 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 ASC
provides that previously issued annual financial statements would not need to be
restated. Management is in the process of evaluating the application of this
ASC. In accordance with ASC 310-30, the Company is currently is using the cost
recovery method for revenue recognition for all its current
portfolios.
  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.”
 
 17
  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.
 
 ITEM
7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
 
 Market
rate risk
 
 We are
exposed to market risk related to changes in interest rates and foreign currency
exchanges rates.
 
 Interest
rate risk
 
 We hold
our assets in cash and cash equivalents.  We do not hold derivative
financial instruments or equity securities.
 
 Foreign
currency exchange rate risk
 
 Our
revenue and expenses are denominated in U.S. dollars.  We currently
own one portfolio in United Kingdom; we do not anticipate that foreign exchange
gains or losses will be significant.  We have not engaged in foreign
currency hedging to date.
 
 Our
international business is subject to risks typical of international activity,
including, but not limited to, differing economic conditions; change in
political climates; differing tax structures; and other regulations and
restrictions.  Accordingly, our future results could be impacted by
changes in these or other factors.
 
 ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 
 18
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT
 CORPORATION
AND SUBSIDIARIES
 
 CONSOLIDATED
 FINANCIAL
STATEMENTS
 
 YEARS
ENDED SEPTEMBER 30, 2009 AND 2008
 
 19
  RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 INDEX
TO CONSOLIDATED FINANCIAL STATEMENTS
 YEARS
ENDED SEPTEMBER 30, 2009 AND 2008
 
 PAGE(S)FINANCIAL
      STATEMENTS:REPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
                      23-24Consolidated
      Balance Sheets as of September 30, 2009 and 2008
                      25Consolidated
      Statements of Operations for the Years Ended September 30, 2009 and
      2008
                      26Consolidated
      Statements of Stockholders’ Equity for the Years Ended September 30, 2009
      and 2008
                      27Consolidated
      Statements of Cash Flows for the Years Ended September 30, 2009 and
      2008
                      28Notes
      to Consolidated Financial Statements
                      26-36
 
 20
 
 
 
 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 consolidated balance sheet of Receivable Acquisition
and Management Corporation and Subsidiaries (the “Company”) as of September 30,
2009, and the related consolidated statements of operations, stockholders’
equity and cash flows for the year ended September 30, 2009. These consolidated
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audit.
 
 We
conducted our audit 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 consolidated
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 audit 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 consolidated 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 audit provides 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, 2009, and the
results of its operations and its cash flows for the year ended September 30,
2009 in conformity with accounting principles generally accepted in the United
States of America.
 
 /s/
      Friedman LLPMarlton,
      New JerseyJanuary
      13, 2010
 
 406
LIPPINCOTT DRIVE, SUITE J, MARLTON, NJ 08053 T 856.355.5900 F
856.396.0022
 OFFICES
IN NEW YORK CITY | LONG ISLAND AND AN INDEPENDENT MEMBER FIRM OF DFK WITH
OFFICES WORLDWIDE
 
 21
 
 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 consolidated balance sheets of Receivable Acquisition
and Management Corporation and Subsidiaries (the “Company”) as of September 30,
2008and 2007, and the related consolidated statements of operations,
stockholders’ equity and cash flows for each of the years in the two-year period
ended September 30, 2008. 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 consolidated 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, 2008and 2007, and
the results of its operations and its cash flows for each of the years in the
two-year period ended September 30, 2008 in conformity with accounting
principles generally accepted in the United States of America.
 
 BAGELL, JOSEPHS, LEVINE &
      COMPANY, L.L.C.BAGELL,
      JOSEPHS, LEVINE & COMPANY, L.L.C.Certified
      Public AccountantsMarlton,
      New Jersey 08053Marlton,
      New JerseyJanuary
      13, 2010
 
 22
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED
BALANCE SHEETS
 SEPTEMBER
30, 2009 AND 2008
  2009
                        
                        
                        2008ASSETSCURRENT
      ASSETSCash
                        
                        $
                        196,443
                        
                        
                        $
                        233,450Prepaid
      Expenses
                        
                        
                        939
                        
                        
                        
                        939Finance
      receivables - short term
                        
                        
                        47,050
                        
                        
                        
                        79,457Total
      current assets
                        
                        
                        244,432
                        
                        
                        
                        313,846OTHER
      ASSETSFinance
      receivables - long-term
                        
                        
                        94,113
                        
                        
                        
                        158,938Total
      other assets
                        
                        
                        94,113
                        
                        
                        
                        158,938TOTAL
      ASSETS
                        
                        $
                        338,545
                        
                        
                        $
                        472,784LIABILITIES
      AND STOCKHOLDERS' EQUITYCURRENT
      LIABILITIESAccrued
      and other expenses
                        
                        $
                        37,798
                        
                        
                        $
                        37,497Total
      current liabilities
                        
                        
                        37,798
                        
                        
                        
                        37,497STOCKHOLDERS'  EQUITYPreferred
      stock, par value $10 per share; 10,000,000 shares authorized in 2009 and
      2008 and 0 shares issued and outstanding at September 30, 2009 and 2008,
      respectively
                        
                        
                        -
                        
                        
                        
                        -Common
      stock, par value $.001 per share; 325,000,000 shares authorized in 2008
      and 2007 and 16,052,896 and 17,122,896 shares issued and 16,052,896 shares
      outstanding at September 30, 2009 and 2008, respectively
                        
                        
                        16,053
                        
                        
                        
                        17,123Additional
      paid-in capital
                        
                        
                        614,566
                        
                        
                        
                        628,535Retained
      earnings (accumulated deficit)
                        
                        
                        (329,872
                        )
                        
                        
                        (195,332
                        )300,747
                        
                        
                        
                        450,326Less:
      Cost of treasury stock, 1,070,000 shares
                        
                        
                        -
                        
                        
                        
                        (15,039
                        )Total
      stockholders' equity
                        
                        
                        300,747
                        
                        
                        
                        435,287TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
                        
                        $
                        338,545
                        
                        
                        $
                        472,784
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
 23
 
 RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND
SUBSIDIARIES
 CONSOLIDATED
STATEMENTS OF OPERATIONS
 FOR
THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
 
 2009
                    
                    
                    2008REVENUESFinancing
      income
                    
                    $
                    214,291
                    
                    
                    $
                    481,743Gain
      on sale of finance receivables
                    
                    
                    -
                    
                    
                    
                    36,910Service
      income and other
                    
                    
                    32,267
                    
                    
                    
                    89,551Total
      revenues
                    
                    
                    246,558
                    
                    
                    
                    608,204COSTS
      AND EXPENSESSelling,
      general and administrative
                    
                    
                    356,495
                    
                    
                    
                    523,056Total
      costs and expenses
                    
                    
                    356,495
                    
                    
                    
                    523,056INCOME
      (LOSS) FROM OPERATIONS
                    
                    
                    (109,937
                    )
                    
                    
                    85,148OTHER
      INCOME (EXPENSES)Other
      income (loss)
                    
                    
                    (26,963
                    )
                    
                    
                    32,340Forgiveness
      of debt
                    
                    
                    -
                    
                    
                    
                    62,899Interest
      income
                    
                    
                    2,360
                    
                    
                    
                    8,193Interest
      expense
                    
                    
                    -
                    
                    
                    
                    (19,921
                    )Total
      other income (expenses)
                    
                    
                    (24,603
                    )
                    
                    
                    83,511INCOME
      (LOSS) BEFORE PROVISION FOR INCOME TAXES
                    
                    
                    (134,540
                    )
                    
                    
                    168,659PROVISION
      FOR INCOME TAXES
                    
                    
                    -
                    
                    
                    
                    -NET
      INCOME (LOSS) APPLICABLE TO COMMON STOCK
                    
                    $
                    (134,540
                    )
                    
                    $
                    168,659INCOME
      (LOSS) PER COMMON SHARE, BASIC
                    
                    $
                    (0.01
                    )
                    
                    $
                    0.01INCOME
      (LOSS)PER COMMON SHARE, FULLY DILUTED
                    
                    $
                    (0.01
                    )
                    
                    $
                    0.01WEIGHTED
      AVERAGE SHARES OUTSTANDING, BASIC
                    
                    
                    16,052,896
                    
                    
                    
                    17,108,901WEIGHTED
      AVERAGE SHARES OUTSTANDING, DILUTED
                    
                    
                    16,052,896
                    
                    
                    
                    19,004,901
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
 24
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED
STATEMENTS OF STOCKHOLDERS' EQUITY
 FOR
THE YEARS ENDED SEPTEMBER 30, 2009 and 2008
 
 AdditionalCommon Stock
                          
                          
                          Paid-In
                          
                          
                          Treasury Stock
                          
                          
                          AccumulatedShares
                          
                          
                          Amount
                          
                          
                          Capital
                          
                          
                          Shares
                          
                          
                          Amount
                          
                          
                          Deficit
                          
                          
                          TotalBALANCE,
      SEPTEMBER 30, 2007
                          
                          
                          16,928,917
                          
                          
                          $
                          16,929
                          
                          
                          $
                          627,380
                          
                          
                          
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          (363,991
                          )
                          
                          $
                          280,318Issuance
      of common stock - exercise of warrants (200,000 shares issued at $.0075
      per shares)
                          
                          
                          200,000
                          
                          
                          
                          200
                          
                          
                          
                          1,300
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          1,500Repurchase
      and cancellation of 6,021 shares of common stock for $ .025 per
      share
                          
                          
                          (6,021
                          )
                          
                          
                          (6
                          )
                          
                          
                          (145
                          )
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          (151
                          )Repurchase
      of  1,070,000  shares of common stock for $ .014 per
      share
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          1,070,000
                          
                          
                          
                          (15,039
                          )
                          
                          
                          
                          
                          
                          
                          (15,039
                          )Net
      income (loss) for the year ended September 30, 2008
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          168,659
                          
                          
                          
                          168,659BALANCE,
      SEPTEMBER 30, 2008
                          
                          
                          17,122,896
                          
                          
                          $
                          17,123
                          
                          
                          $
                          628,535
                          
                          
                          
                          1,070,000
                          
                          
                          $
                          (15,039
                          )
                          
                          $
                          (195,332
                          )
                          
                          $
                          435,287Retirement
      of Treasury stock
                          
                          
                          (1,070,000
                          )
                          
                          
                          (1,070
                          )
                          
                          
                          (13,969
                          )
                          
                          
                          (1,070,000
                          )
                          
                          
                          15,039
                          
                          
                          
                          -
                          
                          
                          
                          -Net
      income (loss) for the year ended September 30, 2009
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          
                          (134,540
                          )
                          
                          
                          (134,540
                          )BALANCE,
      SEPTEMBER 30, 2009
                          
                          
                          16,052,896
                          
                          
                          $
                          16,053
                          
                          
                          $
                          614,566
                          
                          
                          
                          -
                          
                          
                          $
                          -
                          
                          
                          $
                          (329,872
                          )
                          
                          $
                          300,747
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
 25
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 CONSOLIDATED
STATEMENTS OF CASH FLOWS
 FOR
THE YEARS ENDED SEPTEMBER 30, 2009 AND 2008
 
 2009
                    
                    
                    2008CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      income (loss)
                    
                    $
                    (134,540
                    )
                    
                    $
                    168,659Adjustments
      to reconcile net income (loss) to net cash provided by (used in) operating
      activities:Changes
      in Operating Assets and LiabilitiesProceeds
      from sale of portfolio - net of gain
                    
                    
                    -
                    
                    
                    
                    177,545Acquisition
      of finance receivables, net of buybacks
                    
                    
                    -
                    
                    
                    
                    (201,982
                    )Collections
      applied to principal on finance receivables
                    
                    
                    97,231
                    
                    
                    
                    158,291Decrease
      in prepaid expenses
                    
                    
                    -
                    
                    
                    
                    302Increase
      (Decrease) accrued expenses
                    
                    
                    302
                    
                    
                    
                    (71,427
                    )Net
      cash provided by  (used in) operating activities
                    
                    
                    (37,007
                    )
                    
                    
                    231,388CASH
      FLOWS FROM FINANCING ACTIVITIESPayments
      on notes payable
                    
                    
                    -
                    
                    
                    
                    (269,278
                    )Purchase
      of retired common stock
                    
                    
                    -
                    
                    
                    
                    (150
                    )Repurchase
      of treasury stock
                    
                    
                    -
                    
                    
                    
                    (15,040
                    )Net
      cash (used in) financing activities
                    
                    
                    -
                    
                    
                    
                    (284,468
                    )NET
      (DECREASE) IN CASH
                    
                    
                    (37,007
                    )
                    
                    
                    (53,080
                    )CASH
      AND CASH EQUIVALENTS - BEGINNING OF YEAR
                    
                    
                    233,450
                    
                    
                    
                    286,530CASH
      AND CASH EQUIVALENTS - END OF PERIOD
                    
                    $
                    196,443
                    
                    
                    $
                    233,450SUPPLEMENTAL
      DISCLOSURE OF CASH FLOW INFORMATIONCASH
      PAID DURING THE YEARInterest
      expense
                    
                    $
                    -
                    
                    
                    $
                    19,121Income
      taxes
                    
                    
                    -
                    
                    
                    
                    -
 
 The
accompanying notes are an integral part of the consolidated financial
statements.
 
 26
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS
 SEPTEMBER
30, 2009 AND 2008
 
 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 has adopted the provisions of Financial Accounting Standards Board
Accounting Standards Codification (FASB ASC) 310-30 for its investment in
finance receivables, “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.
 
 During
the quarter ended December 31, 2007, the Company acquired total portfolios for
$201,982. The Company recognizes revenue using the "Recovery Method" for revenue
recognition under which no revenue is recognized until the investment amount of
$201,982 has been recovered.
 
 During
the quarter ended December 31, 2007 the Company sold several portfolios for a
total sales price of $224,489. The Company recognized a net gain of $46,944 on
these sales. During the quarter ended June 30, 2008 the Company was required to
refund to the purchaser of these portfolios $11,034. Therefore the gain was
adjusted to $35,910 as of September 30, 2008.
 
 During
the year ended September 30, 2009, the Company neither acquired nor sold any
finance receivables.
 
 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.
 
 27
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
1-             SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 B.           FINANCE
RECEIVABLES (CONTINUED)
 
 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 years ended September 30, 2009 and 2008 were as
follows:
 
 *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 $214,292 and $481,743 for the years ended September 30, 2009 and 2008
respectively.
 
 Under ASC
310-30 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.
 
 C.           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.
 
 D.           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, 2009 and
2008.
 
 The
Company maintains cash and cash equivalents balances at financial institutions
that are insured by the Federal Deposit Insurance Corporation up to
$250,000.
 
 E.           INCOME
TAXES
 
 The
Company accounts for income taxes pursuant to the provisions of the ASC 740,
Accounting for Income Taxes, which requires an asset and liability approach to
calculating deferred income taxes. The asset and liability approach requires the
recognition of deferred tax liabilities and assets for the expected future tax
consequences of temporary differences between the carrying amounts and the tax
basis of assets and liabilities.
 
 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.
 
 28
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
1-             SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 G.           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:
 
 For the
year ended September 30, 2009 warrants were not included in the computation of
diluted EPS because inclusion would have been antidilutive. There were 946,000
warrants outstanding at September 30, 2009.
 
 H.           RECENT
ACCOUNT PRONOUNCEMENTS
 
 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.
 
 29
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
1-             SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 H.           RECENT
ACCOUNT PRONOUNCEMENTS (CONTINUED)
 
 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.
 The
adoption of FASB No. 156 did not have a material impact on the Company’s results
or financial statements.
 
 In
September 2006, the FASB issued ASC 820-10, 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.
 
 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.
ASC 820-10 will be effective for our financial statements issued for our fiscal
year beginning October 1, 2008. The adoption of FASB Statement No. 157 did not
have a material impact on the Company's results of operations or financial
statements.
 
 In
February 2008, FASB Staff Position ("FSP") FAS No. 157-2, "Effective Date of
FASB Statement No. 157" ("FSP No. 157-2") was issued. FSP No. 157-2 defers the
effective date of ASC 820-10 to fiscal years beginning after December 15, 2008,
and interim periods within those fiscal years, for all nonfinancial assets and
liabilities, except those that are recognized or disclosed at fair value in the
financial statements on a recurring basis (at least annually). Examples of items
within the scope of FSP No. 157-2 are nonfinancial assets and nonfinancial
liabilities initially measured at fair value in a business combination (but not
measured at fair value in subsequent periods), and long-lived assets, such as
property, plant and equipment and intangible assets measured at fair value for
an impairment assessment under ASC 360-10 and 360-20.
 
 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.The adoption of FIN 48 did not have a material impact on our financial
reporting and disclosure.
 
 In
September 2006, the FASB issued ASC 715 and 958, “Employers’ Accounting for
Defined Benefit Pension and Other Postretirement Plans”, which amends SFAS No.
87 “Employers’ Accounting for Pensions” (SFAS No. 87), SFAS No. 88 “Employers’
Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and
for Termination Benefits” (SFAS No. 88), FASB ASC 715-60, “Employers’ Accounting
for Postretirement Benefits Other Than Pensions” (FASB ASC 715-60), and SFAS No.
132R “Employers’ Disclosures about Pensions and Other Postretirement Benefits
(revised 2003)” (SFAS No. 132R). This Statement requires companies to recognize
an asset or liability for the overfunded or underfunded status of their benefit
plans in their financial statements. FASB ASC 715 & 958 also requires the
measurement date for plan assets and liabilities to coincide with the sponsor’s
year end. The standard provides two transition alternatives related to the
change in measurement date provisions. The recognition of an asset and liability
related to the funded status provision is effective for fiscal year ending after
December 15, 2006 and the change in measurement date provisions is effective for
fiscal years ending after December 15, 2008. This pronouncement has no effect on
the Company at this time.
 
 30
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
1-             SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 H.           RECENT
ACCOUNT PRONOUNCEMENTS (CONTINUED)
 
 In
February 2007, the FASB issued FASB ASC 825-10, “The Fair Value Option for
Financial Assets and Liabilities, including an amendment of FASB Statement No.
115” (“FASB ASC 825-10”). FASB ASC 825-10 permits entities to choose, at
specified election dates, to measure many financial instruments and certain
other items at fair value that are not currently required to be measured at fair
value. Unrealized gains and losses shall be reported on items for which the fair
value option has been elected in earnings at each subsequent reporting date.
FASB ASC 825-10 is effective for fiscal years beginning after November 15, 2007.
Early adoption is permitted as of the beginning of a fiscal year that begins on
or before November 15, 2007, provided the entity also elects to apply the
provisions of FASB ASC 820-10 “Fair Value Measurements” (“FASB ASC 820-10”). The
Company is currently assessing the impact that FASB ASC 825-10 will have on its
financial statements.
 
 In
December 2007, the FASB issued FASB ASC 810-10, “Noncontrolling Interest in
Consolidated Financial Statements” (“FASB ASC 810-10”).  This
Statement amends ARB 51 to establish accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an
ownership interest in the consolidated entity that should be reported as equity
in the consolidated financial statements. Before this Statement was issued,
limited guidance existed for reporting noncontrolling interests. As a result,
considerable diversity in practice existed. So-called minority interests were
reported in the consolidated statement of financial position as liabilities or
in the mezzanine section between liabilities and equity. This Statement improves
comparability by eliminating that diversity. FASB ASC 810-10 is effective for
fiscal years, and interim periods within those fiscal years, beginning on or
after December 15, 2008. Earlier adoption is prohibited. This pronouncement has
no effect on the Company at this time.
 
 In March
of 2008 the Financial Accounting Standards Board (FASB) issued FASB ASC
815-10,  about Derivative Instruments and Hedging Activities—an
amendment of FASB ASC 815, “Accounting for Derivatives and Hedging
Activities.”  FASB ASC 815-10 has the same scope as FASB ASC 815 but
requires enhanced disclosures about (a) how and why an entity uses derivative
instruments, (b) how derivative instruments and related hedged items are
accounted for under FASB 815 and its related interpretations, and (c) how
derivative instruments and related hedged items affect an entity’s financial
position, financial performance, and cash flows.  FASB ASC 815-10 is
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008, with early application
encouraged.  The statement encourages, but does not require, comparative
disclosures for earlier periods at initial adoption.  FASB ASC 815-10
has no effect on the Company’s financial position, statements of operations, or
cash flows at this time.
 
 In May of
2008, the FASB issued Statement No. 162, “The Hierarchy of Generally Accepted
Accounting Principles.” SFAS No. 162 has not yet been superseded by FASB
Accounting Standards Codification (ASC) Topic 105. This statement identifies
literature established by the FASB as the source for accounting principles to be
applied by entities which prepare financial statements presented in conformity
with generally accepted accounting
principles (GAAP) in the United States.  This statement is effective
60 days following approval by the SEC of the Public Company Accounting Oversight
Board amendments to AU Section 411, “The Meaning of Present Fairly in Conformity
With Generally Accepted Accounting Principles.”  This statement will
require no changes in the Company’s financial reporting
practices.
  31
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
1-             SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 H.           RECENT
ACCOUNT PRONOUNCEMENTS (CONTINUED)
 
 In May of
2008 the Financial Accounting Standards Board (FASB) issued FASB ASC 944,
“Accounting for Financial Guarantee Insurance – an interpretation of FASB
Statement No. 60, Accounting and Reporting by Insurance
Enterprises.  This statement requires that an insurance enterprise
recognize a claim liability prior to an event of default (insured event) when
there is evidence that credit deterioration has occurred in an insured financial
obligation.  This statement also clarifies how Statement 60 applies to
financial guarantee insurance contracts.  This statement is effective
for fiscal years beginning after December 15, 2008.  This statement
has no effect on the Company’s financial reporting at this time.
 
 In May of
2009, the Financial Accounting Standards Board (FASB) issued FASB ASC 855-10,
“Subsequent Events”. This Statement is intended to establish general standards
of accounting for and disclosures of events that occur after the balance sheet
date but before financial statements are issued or are available to be
issued.  It requires the disclosure of the date through which an
entity has evaluated subsequent events and the basis for that date—that is,
whether that date represents the date the financial statements were issued or
were available to be issued.  This Statement is effective for interim
and annual periods ending after June 15, 2009. The adoption of FASB ASC 855-10
will not have a material impact on its financial position or results of
operations.
 
 In June
2009, the FASB issued SFAS No. 166, “Accounting for Transfers of Financial
Assets, an amendment of SFAS No. 140” (SFAS 166). SFAS No. 166 has not yet been
superseded by FASB Accounting Standards Codification Topic 105. SFAS 166 amends
SFAS No. 140 to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial reports about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and a
transferor’s continuing involvement in transferred financial assets. This
Statement is effective as of the beginning of each reporting entity’s first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period, and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this Statement shall be applied to transfers that
occur on or after the effective date. The Company is currently assessing the
impact of the adoption of SFAS 166.
 
 In June
2009, the FASB issued SFAS No. 167, “Amendments to FASB Interpretation No.
46(R)” (SFAS 167). SFAS No. 167 has not yet been superseded by FASB Accounting
Standards Codification Topic 105. SFAS 167 amends certain requirements of FASB
Interpretation No. 46 (revised December 2003), Consolidation of Variable
Interest Entities, to improve financial reporting by enterprises involved with
variable interest entities and to provide more relevant and reliable information
to users of financial statements.This
 
 Statement
is effective as of the beginning of each reporting entity’s first annual
reporting period that begins after November 15, 2009, for interim periods within
that first annual reporting period, and for interim and annual reporting periods
thereafter. Earlier application is prohibited. The Company is currently
assessing the impact of the adoption of SFAS 167.
 
 32
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
1-            
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 H.           RECENT
ACCOUNT PRONOUNCEMENTS (CONTINUED)
 On June
2009, the FASB issued ASC 105-10, “The FASB Accounting Standards Codification TM
and the Hierarchy of Generally Accepted Accounting Principles—a replacement of
FASB Statement No. 162” (“SFAS 162”). Under ASC 105-10, the FASB Accounting
Standards Codification will become the source of authoritative U.S. generally
accepted accounting principles (“GAAP”) recognized by the FASB to be applied by
nongovernmental entities. On the effective date of this statement, the
Codification will supersede all existing non-SEC accounting and reporting
standards. This standard is effective for financial statements issued for
interim and annual periods ending after September 15, 2009. The adoption of ASC
105-10 will not have a material impact on its financial position or results of
operations.
 
 NOTE
2-             NOTES
PAYABLE
 
 A.
                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 note had an outstanding balance
      of $102,899 as of December 31, 2007. During the month of January 2008 the
      note was repaid in full for a discounted value of $40,000. The amount of
      $62,899 was recognized as income.
 
 B.
                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 note was repaid in full during the year ended September 30,
      2008.
 
 NOTE
3-             STOCK
OPTIONS
 
 In April
2004, the Company adopted a stock option plan upon approval by the shareholders
at 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 as long as that person continues to be
employed or serve on the on the Board of Directors, whichever is shorter. At
September 30, 2009 and 2008, the Company had -0- and 950,000 options outstanding
under this plan.
 
 NOTE
4-             WARRANTS
 
 The
Company issued warrants during the year 2004. At September 30, 2009 and
September 30, 2008, respectively, the Company had 946,000 warrants outstanding
exercisable at approximately $.01 per warrant per share. The warrants expire on
December 31, 2010.
 
 NOTE
5-             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
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
5-             INCOME
TAXES (CONTINUED)
 
 There was
no provision for income tax for the years ended September 30, 2009 and
2008.
 
 Due to
the uncertainty of utilizing the approximate $329,872 and $195,352 in net
operating losses, for the years ended September 30, 2009 and 2008 respectively,
and recognizing the deferred tax assets, an offsetting valuation allowance has
been established. The losses are available to offset future taxable income
through 2029.
 
 NOTE
6-             STOCK
HOLDERS’ EQUITY
 
 COMMON STOCK
 
 There
were 325,000,000 shares of common stock authorized, with 16,052,896 and
17,122,896 shares issued and outstanding at September 30, 2009 and 2008,
respectively.  The par value for the common stock is $.001 per
share.
 
 The
following details the stock transactions for the years ended September 30, 2009
and 2008.
 
 The
Company received $1,500 for the exercise of 200,000 warrants at $.0075 per share
in May 2007. During the month of October 2007 the Company issued 200,000 common
shares in exchange for the warrants exercised in May 2007 for $.0075 per share.
The Company was carrying the unissued shares as a liability for stock to be
issued until the date of issuance.
 
 During
the month ended December 31, 2007 the Company repurchased 6,021 shares of common
stock at $.025 per share for a total amount of $151. The stock purchase was
completed at December 31, 2007. These shares were cancelled.
 
 During
the quarter ended September 30, 2008 the Company repurchased 1,070,000 shares of
common stock at a market price of approximately $ .014 per share. The total
purchase price was $15,039. The shares were accounted for as treasury stock as
of September 30, 2008.  During the quarter ended December 31, 2008 the
Company retired these treasury.
 
 PREFERRED
STOCK
 
 There
were 10,000,000 shares of preferred stock authorized, no shares issued and
outstanding as of September 30, 2009 and 2008.
 
 NOTE
7-             RELATED
PARTY
 
 The
Company receives fees from Ramco Income Fund Limited (“Fund”) a Bermuda entity.
The Company is the investment manager of the Fund.  The servicing fees
for the year ended September 30, 2009 and 2008 were $32,267 and $89,551
respectively.
 
 NOTE
8-             FAIR
VALUE MEASUREMENTS
  On
January 1, 2009, the Company adopted SFAS No. 157 “Fair Value Measurements”
(“SFAS 157”). SFAS 157 defines fair value, provides a consistent framework for
measuring fair value under Generally Accepted Accounting Principles and expands
fair value financial statement disclosure requirements. SFAS 157’s valuation
techniques are based on observable and unobservable inputs. Observable inputs
reflect readily obtainable data from independent sources, while unobservable
inputs reflect our market assumptions. SFAS 157 classifies these inputs into the
following hierarchy:
 
 34
 
 RECEIVABLE
ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES
 NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 SEPTEMBER
30, 2009 AND 2008
 
 NOTE
8-             FAIR
VALUE MEASUREMENTS (CONTINUED)
 
 Level 1
Inputs– Quoted prices for identical instruments in active markets.
 
 Level 2
Inputs– Quoted prices for similar instruments in active markets; quoted prices
for identical or similar instruments in markets that are not active; and
model-derived valuations whose inputs are observable or whose significant value
drivers are observable.
 
 Level 3
Inputs– Instruments with primarily unobservable value drivers.
 
 The
following table represents the fair value hierarchy for those financial assets
and liabilities measured at fair value on a recurring basis as of September 30,
2009.
 
 NOTE
9-             SUBSEQUENT
EVENTS
 
 Management
has evaluated all subsequent events occurring since September 30, 2009 through
January 13, 2009, the date of the independent registered public accounting
firm’s report. There have been no subsequent events that would require changes
to the accompanying financial statements or disclosure therein other than what
is noted above.
 
 35
  ITEM
8A. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
 
 None.
 
 ITEM
9A. CONTROLS AND PROCEDURES
 
 (a)
Disclosure Controls and Procedures
 
 Our
principal executive and principal financial officer has evaluated the
effectiveness of our disclosure controls and procedures, as defined in Rules 13a
– 15(e) and 15d – 15(e) under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), as of the end of the period covered by this annual
report.  He has concluded that, based on such evaluation, our
disclosure controls and procedures were effective as of September 30, 2008, as
further described below.
 
 (b)
Management’s Annual Report on Internal Control Over Financial
Reporting
 
 Overview
 
 Internal
control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f)
refers to the process designed by, or under the supervision of, our principal
executive officer and principal financial officer, and effected by our board of
directors, management and other personnel, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles.  Management is responsible for establishing and
maintaining adequate internal control over financial reporting for the
Company.
 
 Internal
control over financial reporting cannot provide absolute assurance of achieving
financial reporting objectives because of its inherent
limitations.  Internal control over financial reporting is a process
that involves human diligence and compliance and is subject to lapses in
judgment and breakdowns resulting from human failures.  Internal
control over financial reporting also can be circumvented by collusion or
improper management override.  Because of such limitations, there is a
risk that material misstatements may not be prevented or detected on a timely
basis by internal control over financial reporting.  However, these
inherent limitations are known features of the financial reporting
process.  Therefore, it is possible to design into the process
safeguards to reduce, though not eliminate, this risk.
 
 Management
has used the framework set forth in the report entitled “Internal Control —
Integrated Framework” published by the Committee of Sponsoring Organizations
(“COSO”) of the Treadway Commission to evaluate the effectiveness of RAMC’s
internal control over financial reporting.  As a result of the
material weaknesses described below, management has concluded that the Company’s
internal control over financial reporting was effective as of September 30,
2009.
 
 Management’s
Assessment
 
 Management
has determined that, as of the September 30, 2009 measurement date, there were
no material weaknesses in both the design and effectiveness of our internal
control over financial reporting.
 
 Human Resources: The Company
has an outsourcing model whereby all collections functions are outsourced to
external collection agencies and law firms. Each agency and law firm is required
to send remittances along with detailed collections report at least once a
month. Our collections manager handles receipt of checks and reports. She has a
supervisor to review all data entered into our software system. The data is
further verified by the CEO who receives independent reports from agencies and
law firms.
 
 Collections:All remittances
are received as checks along with remittance report from all our collection
agencies. Collections are entirely handled by our operations center in Rancho
Santa Fe, California. The reports are entered into our software system
“Collect”.  The checks are then deposited by our New Jersey office.
The checks are posted into our accounting records upon receipt of reports from
California office and independent reports from the Collection Agencies. Receipt,
depositing and recording functions are completely delineated. To date we have
not had an incidence of theft or leakage.
 
 Internal Accounting:Our
internal accounting is done by a CPA firm before financials are submitted to our
auditors.
 
 Financial Reporting:The
Company does not deal with any inventories or receivables. Our reporting is
based on actual collections. Receivables are rarely created. The Company pays
most of its bills upon receipt.
 
 Revenue Recognition:The
Company currently uses “Recovery Method” instead of Interest Method for
recognizing finance income. Finance income is only recognized when the
investment cost has been fully recognized.
 
 Portfolio Impairment and Accretion:The Company assesses each portfolio for possible impairment or accretion
at the end of each fiscal year based on actual collections at the time of
determination.
 
 This
annual report does not include an attestation report of the Company’s registered
accounting firm regarding internal control over financial reporting.
Management’s report was not subject to attestation by the Company’s registered
public accounting firm pursuant to temporary rules of the Securities and
Exchange Commission
 
 36
 
 (c)
Changes in Internal Control over Financial Reporting
 
 There has
been no change in our internal control over financial reporting, as defined in
Rules 13a-15(f) of the Exchange Act, during our most recent fiscal quarter that
has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.
 
 ITEM
9B. OTHER INFORMATION
 
 None.
 
 37
 
 PART
III
 
 ITEM
10.  DIRECTORS, OFFICERS AND CORPORATE GOVERNANCE.
 
 The
following table sets forth the names, age, and position of each of our directors
and executive officers.
  Name
                    
                    Age
                    
                    Present Principal
  EmploymentMax
      Khan
                    
                    43
                    
                    Director,
      President, CEO and CFOGobind
      Sahney
                    
                    48
                    
                    ChairmanSteven
      Lowe
                    
                    49
                    
                    Director
      and Secretary
  Set forth
below is biographical information for each officer and director.
 
 GOBIND
SAHNEY, age 48, 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 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 43, 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
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 Jersey.
 
 Steven
Lowe, age 49, 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, 2009 all Section 16(a) filing requirements applicable to our
directors, officers, and greater than 10% beneficial owners were complied
with.
 
 38
 
 ITEM
11. EXECUTIVE COMPENSATION
 
 Summary
Compensation Table
 
 The
following table sets forth information regarding compensation paid to our
principal executive officer, principal financial officer, and our highest paid
executive officer, all of whose total annual salary and bonus for the years
ended September 30, 200 and 2008 exceeded $100,000.
 
 SUMMARY
      COMPENSATION TABLESalary
                                                              
                                                              
                                                              Bonus
                                                              
                                                              
                                                              Stock
                                                                Awards
                                                              
                                                              
                                                              Option
                                                                awards
                                                              
                                                              
                                                              Non-equity
                                                                incentive
                                                                plan
                                                                compensation
                                                              
                                                              
                                                              Change in
                                                                pension value
                                                                and non
                                                                qualified
                                                                deferred
                                                                compensation
                                                              
                                                              
                                                              All Other
                                                                Compensation
                                                              
                                                              
                                                              TotalName and principal
                                                                position
                                                              
                                                              Year
                                                              
                                                              ($)
                                                              
                                                              
                                                              ($)
                                                              
                                                              
                                                              ($)
                                                              
                                                              
                                                              ($), (a)
                                                              
                                                              
                                                              ($)
                                                              
                                                              
                                                              ($)
                                                              
                                                              
                                                              ($)
                                                              
                                                              
                                                              ($)Max
      Kahn, President, Chief Executive Officer, Chief Financial Officer
      (1)
                                                              
                                                              2009
                                                              
                                                              $
                                                              75,000
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              $
                                                              75,0002008
                                                              
                                                              $
                                                              100,000
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              $
                                                              100,0002007
                                                              
                                                              $
                                                              100,000
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              $
                                                              100,000Steven
      Lowe
                                                                Director
      and Secretary (2)
                                                              
                                                              2009
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-2008
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-2007
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-Gobind
      Sahney
                                                                Chairman
      of the Board (3)
                                                              
                                                              2009
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-2008
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-2007
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
                                                              
                                                              
                                                              
                                                              -0-
 
 Grants
of Plan-Based Awards
 
 There
were no grants of plan-based awards to named executive officers for the year
ended September 30, 2009.
 
 Outstanding
Equity Awards at Fiscal Year-End
 
 None.
 
 Option
Exercises and Stock Vested
 
 No
executive officer identified in the Summary Compensation Table above exercised
an option in fiscal year 2009.  There were no shares of stock awarded
or vested with respect to any of those executive officers.
 
 Pension
Benefits
 
 None.
 
 Non-qualified
Deferred Compensation
 
 The
Company does not have any defined contribution or other plan which provides for
the deferral of compensation on a basis that is not tax-qualified.
 
 39
 
 Employment
Agreements
 
 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 and he has been serving the company
without an employment agreement.
 
 Potential
Payments Upon Termination or Change-in-Control
 
 None.
 
 Director
Compensation Arrangements
 
 None
 
 ITEM 12. EQUITY COMPENSATION PLAN
INFORM AND SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS.
 
 Equity
Compensation Plan Information
 
 Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
 
 The  following table sets
forth the number of shares known to be owned by all persons who own at least 5%
of RAMC’soutstanding common stock, the Company's directors, the
executive officers, and the directors and executive officers as a group as of
December 1, 2009, unless otherwise noted. Unless otherwise indicated, the
stockholders listed in the table have sole voting and investment power with
respect to the shares indicated.
  NAME
      AND ADDRESS
                                    
                                    AMOUNT AND
                                      NATURE
      OFBENEFICIAL OWNER
                                    
                                    BENEFICAL
                                      OWNERSHIP
                                    
                                    
                                    PERCENT OF
                                      CLASSGobind
      Sahney
                                    
                                    
                                    870,000
                                    
                                    
                                    
                                    5.08
                                    %Lisa
      Sahney Trust
                                    
                                    
                                    1,740,000
                                    
                                    
                                    
                                    10.17
                                    %Max
      Khan
                                    
                                    
                                    2,900,000
                                    
                                    
                                    
                                    16.95
                                    %Mehtab
      Sultana
                                    
                                    
                                    1,300,000
                                    
                                    
                                    
                                    7.59
                                    %Steven
      Lowe (1)
                                    
                                    
                                    50,000All
      Directors and Officers as a group (3 persons)
                                    
                                    
                                    3,820,000
                                    
                                    
                                    
                                    22.03
                                    %
 
 (1)
                Represents fully vested options
      granted in 2005.
 
 *Less
than 1*% of the outstanding common stock
 
 **
Beneficial Ownership is determined in accordance with the rules of the
Securities and Exchange Commission and generally includes voting or investment
power with respect to securities. Shares of common stock subject to options,
warrants, or convertible debt currently exercisable or convertible, or
exercisable or convertible within 60 days of December 1, 2009 are deemed
outstanding for computing the percentage of the person holding such option or
warrant.  Percentages are based on a total of 16,052,896 shares of
common stock outstanding on December 1, 2009, and the shares issuable upon the
exercise of options, warrants exercisable, and debt convertible on or within 60
days of December 1, 2009, as described herein.
 
 ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR
INDEPENDENCE
 
 There has
not been any related transaction during the year ended September 30, 2009. Mr.
Steven Lowe remains the only independent director of the board.
 40
  ITEM
14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
 
 Audit and
Non-Audit Fees
 Aggregate
fees for professional services rendered for the Company by Friedman LLP and
Bagell, Josephs Levine & Company, L.L.C for the fiscal years ended September
30, 2009 and 2008 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,
                          2009
                        
                        
                        September 30,
                          2008Audit
      Fees
                        
                        $
                        20,000
                        
                        
                        $
                        27,500Audit
      Related Fees
                        
                        $
                        
                        
                        
                        $
                        5,000Tax
      Fees
                        
                        $
                        1,500
                        
                        
                        $
                        1,500All
      Other Fees
                        
                        $
                        0
                        
                        
                        $
                        0Total
                        
                        $
                        21,500
                        
                        
                        $
                        32,000
  Audit
Fees for the fiscal years ended September 30, 2009 and 2008 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-Q, 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, 2009 and 2008 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 year ended September 30, 2009 and 2008 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, 2009 and 2008.
 
 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.
 
 41
 
 ITEM
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 
 (a)  Financial
Statements and Schedules
 
 1.  Financial
Statements
 
 The
following consolidated financial statements are filed as part of this report
under Item 8 of Part II “Financial Statements and Supplementary
Data.:
 
 A.  Consolidated
Balance Sheets at September 30, 2009 and 2008.
 B.  Consolidated
Statements of Operations for the Years Ended September 30, 2009 and
2008.
 C.  Consolidated
Statements of Changes in Shareholders’ Equity (Capital Deficit) for the Years
Ended September 30, 2009 and 2008.
 D.  Consolidated
Statements of Cash Flows for the Years Ended September 30, 2009 and
2008.
 
 (b)  Exhibits
 
 The
exhibits listed in the accompanying Index to Exhibits on pages 46  to
47 are filed or incorporated by reference as part of this Annual Report on Form
10-K.
 
 42
 
 SIGNATURES
 
 In
accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized on this 13th day of January 2010.
  RECEIVABLE
      ACQUISITION & MANAGEMENT
                    CORPORATION/s/ Max KhanBy:  Max
      KhanChief
      Executive Officer, Chief Financial/Accounting Officer,
                    and
      DirectorDate:
      January 13, 2010
  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 KhanBy:
      Max KhanChief
      Executive/Accounting Officer, Chief Financial Officer and
      DirectorDate:
      January 13, 2010/s/ Gobind SahneyBy:
      Gobind SahneyChairman
      of the BoardDate:
      January 13, 2010/s/Steven
    LoweBy:
      Steven LoweDirectorDate:
      January 13, 2010
 
 43