UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


Mark one

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934
                       For the period ended March 31, 2003


[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OF 15 (d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934 For the transition period from          to
                                                        ----------  ----------

                                    000-49679
                             ---------------------
                             Commission File Number


            LITFUNDING CORP.  formerly known as RP ENTERTAINMENT, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)


          Nevada                                                  95-4834266
          ------                                                  ----------
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


                                 LITFUNDING CORP
                      5757 Wilshire Boulevard, Suite PH 10
                          Los Angeles, California 90036
               --------------------------------------------------
               (Address of principal executive office) (Zip Code)

                                 (323) 857-0448
                                 --------------
              (Registrant's telephone number, including area code)


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 (X) No ( )

The number of shares outstanding of the registrant's common stock as of March
31, 2003 was 8,270,000.


                                       1
<PAGE>


                                LITFUNDING CORP.
                   (Formerly Known as RP Entertainment, Inc.)
                                   FORM 10-QSB



                                Table of Contents
                                -----------------



ITEM NO.  DESCRIPTION                                                      PAGE
--------  -----------                                                      ----

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

        Balance Sheets as of March 31, 2003 .............................3

        Statements of Operations for the Three Months Periods Ended
        March 31, 2003 and 2002..........................................4
        Statements of Cash Flows for the Three Months Periods Ended
        March 31, 2003 and 2002..........................................5

        Notes to Financial Statements....................................6


Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations..............................7-12

Item 3. Controls and Procedures..........................................13

                           PART II - OTHER INFORMATION


Item 1. Legal Proceedings................................................13

Item 2. Changes in Securities and Use of Proceeds........................13

Item 3. Defaults Upon Senior Securities..................................13

Item 4. Submission of Matters to a Vote of Security Holder...............13

Item 5. Other Information................................................13

Item 6. Exhibits and Reports on Form 8-K.................................13

Signatures...............................................................14



                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION



ITEM 1.   FINANCIAL STATEMENTS
------------------------------



                                LIFTFUNDING CORP.
                       (Formerly, RP Entertaintment, Inc.)
                                  BALANCE SHEET
                                 MARCH 31, 2003
                                   (Unaudited)

                                     ASSETS

<TABLE>
<CAPTION>
<S>                                                                          <C>
  Cash & cash equivalents                                           $       117,013
  Accounts receivable                                                       875,205
  Other receivables                                                               -
  Contigent advances less reserve for unsucceeful resolution of
       lawsuit of $2,094,612                                             11,869,466
  Prepaid commision on contigent advances                                   685,911
  Property and equipment, net                                                83,914
  Other assets                                                               21,950

                                                                    ----------------
                                                                    $    13,653,459
                                                                    ================


   LIABILITIES AND STOCKHOLDERS' DEFICIT

  Accounts payable and accrued expenses                             $        77,586
  Investor deposit                                                                -
  Debenture deposits                                                        200,000
  Interest payable                                                        2,802,608
  Investor participation                                                 18,738,931
                                                                    ----------------
            Total  liabilities                                           21,819,125

  Redeemable stock                                                                -

  COMMITMENTS

  STOCKHOLDERS' DEFICIT
  Common stock, no par value;
  Authorized shares 25,000,000,  8,270,250 shares
  issued and outstanding                                                      8,270
  Additional paid in capital                                              3,441,052
  Accumulated deficit                                                   (11,614,988)
                                                                    ----------------
            Total stockholders' deficit                                  (8,165,666)

                                                                    ----------------
                                                                    $    13,653,459
                                                                    ================
</TABLE>




The accompanying notes are an integral part of these financial statements.
                                       3
<PAGE>


                                LIFTFUNDING CORP.
                            STATEMENTS OF OPERATIONS
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2003 AND 2002
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                             <C>                        <C>
                                                              2003                       2002
                                                       -------------------        -------------------
Net revenue                                            $          162,495         $          283,444

Operating expenses:
      Sellimg                                                     288,366                    348,772
      Reserve for unsucceful resolution of lawsuits               184,847                    579,044
      General and administrative                                  521,178                    543,970
                                                       -------------------        -------------------
             Total operating expenses                             994,391                  1,471,786
                                                       -------------------        -------------------

Loss from operations                                             (831,896)                (1,188,342)

Non-operating income (expense):
      Interest expense, net of interest income                   (932,711)                  (436,218)
                                                       -------------------        -------------------

Loss before income taxes                                       (1,764,607)                (1,624,560)

Provision for income tax                                            1,600                        800

                                                       -------------------        -------------------
Net loss                                               $       (1,766,207)        $       (1,625,360)
                                                       ===================        ===================

Basic and diluted weighted average number of
                                                       -------------------        -------------------
    common stock outstanding                                    6,380,542                  6,380,542
                                                       ===================        ===================

                                                       -------------------        -------------------
Basic and diluted net Income/(loss) per share          $            (0.28)        $            (0.25)
                                                       ===================        ===================
</TABLE>



The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>


                                LIFTFUNDING CORP.
                            STATEMENTS OF CASH FLOWS
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2003 AND 2002
                                   (Unaudited)
<TABLE>
<CAPTION>
<S>                                                                               <C>                   <C>
                                                                                  2003                 2002
                                                                            -----------------    -----------------
 CASH FLOWS FROM OPERATING ACTIVITIES:
            Net loss                                                        $     (1,766,207)    $     (1,625,360)
            Adjustments to reconcile loss to net cash used in
            operating activities:
                  Depreciation and amortization                                        6,637                2,867
                  Reserve for unsuccessful resolution of lawsuits                    184,847                    -
                  Deferred compensation                                                9,750                9,913
                  (Increase) / decrease in current assets:
                             Accounts receivable                                     308,741             (253,000)
                             Other receivable                                              -                6,748
                             Contingent advances                                     (47,001)          (2,913,492)
                             Prepaid commissions on contingent advances              197,720             (757,587)
                             Deposits                                                  3,089                    -
                  Increase / (decrease) in current liabilities:
                             Interest payable                                        846,107              426,548
                             Accounts payable and accrued expense                    (59,970)             (95,527)
                                                                            -----------------    -----------------
                  Total adjustments                                                1,449,920           (3,573,530)
                                                                            -----------------    -----------------
            Net cash used in operating activities                                   (316,287)          (5,198,890)
                                                                            -----------------    -----------------

 CASH FLOWS FROM INVESTING ACTIVITIES
                  Acquisition of treasury stock                                       (7,000)                   -
                  Acquisition of property & equipment                                 (8,181)              (7,517)
                                                                            -----------------    -----------------
            Net cash used in investing activities                                    (15,181)              (7,517)
                                                                            -----------------    -----------------

 CASH FLOWS FROM FINANCING ACTIVITIES:
                  Proceeds from investor participation                                78,766            4,564,986
                  Issuance/purchase of redeemable common stock                             -           (1,000,000)
                  Proceeds from issuance of common stock                                   -              134,286
                  Investor deposits                                                                      (823,750)
                  Debenture deposits                                                  70,000                    -
                  Receipt of cash on acquisition                                      25,000                    -
                  Payment for common stock repurchase                                      -
                  Shares issued on exercise of options                                     -               20,000
                                                                            -----------------    -----------------
            Net cash provided by financing activities                                173,766            2,895,522
                                                                            -----------------    -----------------

 NET DECREASE IN CASH & CASH EQUIVALENTS                                            (157,702)          (2,310,885)

CASH & CASH EQUIVALENTS, BEGINNING BALANCE                                           274,715            2,649,032
                                                                            -----------------    -----------------

CASH & CASH EQUIVALENTS, ENDING BALANCE                                     $        117,013     $        338,147
                                                                            =================    =================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
           Interest paid                                                    $        118,000     $              -
                                                                            =================    =================
           Income tax paid                                                  $          1,600     $              -
                                                                            =================    =================

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES
           Common stock options issued for services                         $              -     $        741,275
                                                                            =================    =================
</TABLE>


The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>


                                LITFUNDING CORP.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS
                                LIFTFUNDING CORP.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

1.       ORGANIZATIONS AND DESCRIPTION OF BUSINESS

LitFunding Corp. formerly, RP Entertainment, Inc. (the "Company") was
incorporated in the State of California in July 1966 as a C corporation and in
1996 subsequently filed as a Nevada corporation.

On February 25, 2003, the Company entered into an Agreement of Merger with
LitFunding Corporation (LFC), a California corporation. LFC became a subsidiary
when the Articles of Merger between RP Acquisition Corp., the Registrant's
wholly owned subsidiary that was formed to facilitate the merger, and LFC were
filed with the Nevada Secretary of State. The charter documents of the Company
are the charter documents of the surviving corporation. Pursuant to the Merger
Agreement, the Company issued 7,592,250 shares of its common stock to the LFC
shareholders in exchange for all the issued and outstanding shares of LFC common
stock.

Pursuant to the Merger Agreement, the current officers of the Company resigned
and the officers of LFC were appointed as officers of the merged company. Upon
the closing of the merger, the current officers of the Company agreed to have
their 4,500,000 shares of the Company's common stock cancelled.

On March 3, 2003, the Company changed its name from RP Entertainment, Inc. to
LitFunding Corp.

LitFunding Corp. (the Company) was incorporated in California on November 17,
2000. The Company is in the business of funding individuals and/or entities that
are in the process of litigating as plaintiff in civil cases. Law case financing
is a program under which a non-recourse advance is made to a plaintiff, or to an
attorney for the purpose of covering the ongoing costs of the case (contingent
advances). The Company receives a fee for advancing the funding, which is based
on the length of time the funds are outstanding. If the recovery (amount of
settlement or award) is less than the aggregate fee (the contingent advance plus
the fees earned through repayment date), the aggregate fee will be reduced to
the amount of the recovery.

The acquisition of LitFunding Corp. has been accounted for as a reverse
acquisition under the purchase method of accounting since the shareholders of
LitFunding Corp. obtained control of the consolidated entity. Accordingly, the
merger of the two companies has been recorded as a recapitalization of
LitFunding Corp., with LitFunding Corp. being treated as the continuing entity.
The historical financial statements to be presented will be those of LitFunding
Corp. The continuing company has retained December 31 as its fiscal year end.
The financial statements of legal acquirer are not significant; therefore, no
pro forma financial information is submitted. The financial statements for the
period ended March 31, 2003, include financial statements of the Company and LFC
whereas, the financial statements for the period ended March 31, 2002 comprised
of the financial statements of LFC.


                                       6
<PAGE>



SEGMENT REPORTING

During the periods ended March 31, 2003 and 2002, the Company only operated in
one segment. Therefore, segment disclosure has not been presented.

2.       BASIS OF PREPARATION

The accompanying Interim Condensed Financial Statements are prepared in
accordance with rules set forth in Regulation SB of the Securities and Exchange
Commission. As said, these statements do not include all disclosures required
under generally accepted principles and should be read in conjunction with the
audited financial statements for the year ended December 31, 2002. In the
opinion of management, all adjustments consisting of normal reoccurring accruals
have been made to the financial statements. The results of operation for the
three months ended March 31, 2003 are not necessarily indicative of the results
to be expected for the fiscal year ending December 31, 2003.

3.       RECENT PRONOUNCEMENTS

In May 2002, the Board issued SFAS No. 145, Rescission of FASB Statements No. 4,
44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections ("SFAS
145"). SFAS 145 rescinds the automatic treatment of gains or losses from
extinguishments of debt as extraordinary unless they meet the criteria for
extraordinary items as outlined in APB Opinion No. 30, Reporting the Results of
Operations, Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions. SFAS
145 also requires sale-leaseback accounting for certain lease modifications that
have economic effects that are similar to sale-leaseback transactions and makes
various technical corrections to existing pronouncements. The provisions of SFAS
145 related to the rescission of FASB Statement 4 are effective for fiscal years
beginning after May 15, 2002, with early adoption encouraged. All other
provisions of SFAS 145 are effective for transactions occurring after May 15,
2002, with early adoption encouraged. The adoption of SFAS 145 does not have a
material effect on the earnings or financial position of the Company.

In June 2002, the FASB issued SFAS No. 146 "Accounting for Costs Associated with
exit or Disposal Activities." This Statement addresses financial accounting and
reporting for costs associated with exit or disposal activities and nullifies
Emerging Issues Task Force (EITF) Issue No. 94-3, "Liability Recognition for
Certain Employee Termination Benefits and Other Costs to Exit an Activity
(including Certain Costs Incurred in a Restructuring)." This Statement requires
that a liability for a cost associated with an exit or disposal activity be
recognized when the liability is incurred. Under Issue 94-3 a liability for an
exit cost as defined, was recognized at the date of an entity's commitment to an
exit plan. . The adoption of SFAS 146 does not have a material effect on the
earnings or financial position of the Company.

In October 2002, the FASB issued SFAS No. 147, "Acquisitions of Certain
Financial Institutions." SFAS No. 147 removes the requirement in SFAS No. 72 and
Interpretation 9 thereto, to recognize and amortize any excess of the fair value
of liabilities assumed over the fair value of tangible and identifiable
intangible assets acquired as an unidentifiable intangible asset. This statement
requires that those transactions be accounted for in accordance with SFAS No.
141, "Business Combinations," and SFAS No. 142, "Goodwill and Other Intangible
Assets." In addition, this statement amends SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets," to include certain financial
institution-related intangible assets. . The adoption of SFAS 147 does not have
a material effect on the earnings or financial position of the Company.


                                       7
<PAGE>


In November 2002, the FASB issued FASB Interpretation No. 45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others" (FIN 45). FIN 45 requires that upon
issuance of a guarantee, a guarantor must recognize a liability for the fair
value of an obligation assumed under a guarantee. FIN 45 also requires
additional disclosures by a guarantor in its interim and annual financial
statements about the obligations associated with guarantees issued. The
recognition provisions of FIN 45 are effective for any guarantees issued or
modified after December 31, 2002. The disclosure requirements are effective for
financial statements of interim or annual periods ending after December 15,
2002. . The adoption of this pronouncement does not have a material effect on
the earnings or financial position of the Company.

On April 30, the FASB issued FASB Statement No. 149 (FAS 149), Amendment of
Statement 133 on Derivative Instruments and Hedging Activities. FAS 149 amends
and clarifies the accounting guidance on (1) derivative instruments (including
certain derivative instruments embedded in other contracts) and (2) hedging
activities that fall within the scope of FASB Statement No. 133 (FAS 133),
Accounting for Derivative Instruments and Hedging Activities. FAS 149 also
amends certain other existing pronouncements, which will result in more
consistent reporting of contracts that are derivatives in their entirety or that
contain embedded derivatives that warrant separate accounting. FAS 149 is
effective (1) for contracts entered into or modified after June 30, 2003, with
certain exceptions, and (2) for hedging relationships designated after June 30,
2003. The guidance is to be applied prospectively. The Company does not expect
the adoption of SFAS No. 149 to have a material impact on its financial position
or results of operations or cash flows.

In December 2002, the FASB issued FAS No. 148, "Accounting for Stock-Based
Compensation Transition and Disclosure", which amended FAS No. 123, "Accounting
for Stock-Based Compensation." The new standard provides alternative methods of
transition for a voluntary change to the fair market value based method for
accounting for stock-based employee compensation. Additionally, the statement
amends the disclosure requirements of FAS No. 123 to require prominent
disclosures in both annual and interim financial statements about the method of
accounting for stock-based employee compensation and the effect of the method
used on reported results. This statement is effective for financial statements
for the year ended December 31, 2002. In compliance with FAS No. 148, the
Company has elected to continue to follow the intrinsic value method in
accounting for its stock-based employee compensation plan as defined by APB No.
25 and has made the applicable disclosures below.


                                       8
<PAGE>


Had the Company determined employee stock based compensation cost based on a
fair value model at the grant date for its stock options under SFAS 123, the
Company's net earnings per share would have been adjusted to the pro forma
amounts for the three months ended March 31, 2003 (no options were issued in the
period ended March 31, 2002) as follows ($ in thousands, except per share
amounts). :


            Net income - as reported                    $      1,766
            Stock-Based employee compensation
              expense included in reported net
              income, net of tax
                                                                   -
            Total stock-based employee
              compensation expense determined
              under fair-value-based method for all
              rewards, net of tax                                  -
                                                        -------------
            Pro forma net income                        $      1,766
                                                        =============

            Earnings per share:
            Basic, as reported                                  0.28
            Diluted, as reported                                0.28
            Basic, pro forma                                    0.28
            Diluted, pro forma                                  0.28


4.       INCOME TAXES

The company accounts for income taxes under the provisions of Statement of
Financial Accounting Standards No. 109, " Accounting for Income Taxes," under
which the liability method is used to calculate deferred income taxes. Under
this method, deferred tax assets and liabilities are determined based on the
differences between financial reporting and income tax basis of assets and
liabilities and are measured using enacted tax rates and laws that will be in
effect when the differences are expected to reverse.

No provision was made for Federal income tax since the Company has significant
net operating loss carryforwards. Through March 31, 2003, the Company incurred
net operating losses for tax purposes of approximately $6,600,000. Differences
between financial statement and tax losses consist primarily of amortization
allowance, was immaterial at March 31, 2003. The net operating loss
carryforwards may be used to reduce taxable income through the year 2022. Net
operating losses for carry-forwards for the State of California are generally
available to reduce taxable income through the year 2007. The availability of
the Company's net operating loss carryforwards are subject to limitation if
there is a 50% or more positive change in the ownership of the Company's stock.
The provision for income taxes consists of the state minimum tax imposed on
corporations.


                                       9
<PAGE>


The net deferred tax asset balance, due to net operating loss carryforwards, as
of March 31, 2003 and 2002 were approximately $2,900,000 and 1,400,000,
respectively. A 100% valuation allowance has been established against the
deferred tax assets, as the utilization of the loss carrytforwards cannot
reasonably be assured.

5.       EARNING PER SHARE

Earnings per share for the three month periods ended March 31, 2003 and 2002
were determined by dividing net income for the periods by the weighted average
number of both basic and diluted shares of common stock and common stock
equivalents outstanding. Stocks to be issued are regarded as common stock
equivalents and are considered in diluted earnings per share calculations.
Weighted average number of shares used to compute basic and diluted loss per
share is the same since the effect of dilutive securities is anti-dilutive.

6.       COMMITMENTS

The company leases its office space under a non-cancelable operating lease,
which expired on November 30, 2002. The Company entered into an amendment of
lease agreement which extended the lease to January 14, 2006. Minimum annual
rentals for twelve-month periods ended, subsequent to March 31, 2003 are as
follows:

                 Year                            Amount
                 ----                          ---------
                 2004                          $ 142,956
                 2005                            154,648
                 2006                            158,117
                 ----                          ---------
                 Total                         $ 455,721
                 =====                         =========


Rent expense amounted to $23,000 and $15,200 for the three month period ended
March 31, 2003 and 2002, respectively.

7.       DEBENTURES

During the year ended December 31, 2002, LFC issued 5-year 9% convertible
debentures amounting $ 130,000, due January 1, 2007. The interest is due
semi-annually on the first day of June and December of each year, commencing
June 1, 2003 until fully paid. LFC issued additional debentures amounting
$70,000 in the three month period ended March 31, 2003.

The registered holders of the debentures has the right, after one year prior to
maturity, to convert the principal at the original conversion price of $10 for
one Common share or at the adjusted conversion price. If and whenever on or
after the date of this debenture, LFC issues or sells any share of common stock
for a consideration per share less than the initial conversion rate, then upon
such issue or sale, the initial conversion rate shall be reduced to the lowest
net price per share at which such share of common stock have been issued. The
debentures are subordinated to all the senior indebtedness, including debts
under Equity Participation Agreement.

8.       SUPPLEMENTAL DISCLOSURE OF CASH FLOWS

The Company prepares its statements of cash flows using the indirect method as
defined under the Financial Accounting Standard No. 95.

The Company paid $ 1,600 for income tax and $118,000 interest during the three
month period ended March 31, 2003. The Company paid $ 0 for income tax and
interest during the three month period ended March 31, 2002. .


                                       10
<PAGE>


9.       GOING CONCERN

The Company's consolidated financial statements are prepared using the generally
accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business. However, the Company has accumulated deficit of $12,014,988 on March
31, 2003 including a net loss of $1,766,207 during the three month period ended
March 31, 2003. The Company's total liabilities exceeded the total assets by
$8,565,666 as of March 31, 2003. In view of the matters described above,
recoverability of a major portion of the recorded asset amounts shown in the
accompanying balance sheets is dependent upon continued operations of the
Company, which in turn is dependent upon the Company's ability to raise
additional capital, obtain financing and to succeed in its future operations.
The financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or amounts and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.

Management plans to take the following steps that it believes will be sufficient
to provide the Company with the ability to continue in existence. (i) Management
intends to continue to raise additional financing through private equity or debt
financing to pay down Company debt and/or reduce the cost of debt service. (ii)
In that regard, the Company consummated a reverse acquisition on February 25,
2003 (note 1). The financial statements do not include any adjustments relating
to the recoverability and classification of recorded asset amounts, or amounts
and classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.

10.      LITIGATION

The Company is defendant in several litigations in normal course of business,
including litigation for return of investments. The Company believes this suits
are without merit and intends to defend these litigations in court of law.


                                       11
<PAGE>


11.      SUBSEQUENT EVENTS

On April 2, 2003 an involuntary bankruptcy petition was filed in the United
States Bankruptcy Court, Central District of California, and Case No.
LA03-19005ES by nine petitioners who maintain that they are joint venturers,
three of whom are former directors who claim that they are owed fees and three
of whom also claim to be "service providers." The Company believes that filing
of the Petition is wholly without merit, baseless and without grounds or facts
to support it. The Company intends to vigorously contest this Petition, seek to
have the Petition summarily dismissed, and seek to recover all damages caused by
the filing of the Petition in separate proceedings in both the Bankruptcy Court
and in the State Court.

The Company believes it has meritorious defenses to the Petition intends to
fight vigorously.

12.      RECLASSIFICATIONS

Certain prior period amounts have been reclassified to conform to the
three-month period ended March 31, 2003 presentation.



                                       12
<PAGE>



ITEM 2.

MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION:
--------------------------------------------------------

The following discussion and analysis of the Company's financial condition and
results of operations should be read in conjunction with the Company's financial
statements and the related notes thereto appearing elsewhere herein.

The following "Management's Discussion and Analysis or Plan of Operation"
includes "forward looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). The Act provides a "safe
harbor" for forward-looking statements to encourage companies to provide
prospective information about themselves so long as they identify these
statements as forward-looking and provide meaningful cautionary statements
identifying important factors that could cause actual results to differ from the
projected results. All statements other than statements of historical fact made
in this Form 10-QSB are forward-looking and are made pursuant to the Act. In
particular, any statements made in this Form 10-QSB regarding industry prospects
or the Company's future results of operations or financial position are
forward-looking statements. Forward-looking statements reflect the Company's
current expectations and are inherently uncertain. The forward-looking
statements contained herein are subject to a variety of risks and uncertainties,
including those discussed below under the heading "Factors That May Affect
Future Results" and elsewhere in this Quarterly Report on Form 10-QSB, that
could cause actual results to differ materially from those anticipated by the
Company's management. The Company's actual results may differ significantly from
the Company's expectations.

The Company is in the business of funding individuals and/or entities that are
in the process of litigating as plaintiff in civil cases. Law case financing is
a program under which a non-recourse advance is made to a plaintiff for living
expenses, or to an attorney for the purpose of covering the ongoing costs of the
case (contingent advances). The Company receives a fee for advancing the
funding, which is based on the length of time the funds are outstanding. If the
recovery (amount of settlement or award) is less than the aggregate fee (the
contingent advance plus the fees earned through repayment date), the aggregate
fee will be reduced to the amount of the recovery.

Pursuant to an Agreement of Merger with LitFunding Corporation (LFC), a
California corporation, the Company acquired 100% outstanding shares of LFC.
LitFunding Corporation (the Company) was incorporated in California on November
17, 2000. Pursuant to the Merger Agreement, the Company issued 7,592,250 shares
of its common stock to the LFC shareholders in exchange for all the issued and
outstanding shares of LFC common stock. As per the Merger Agreement, the current
officers of the Company resigned and the officers of LFC were appointed as
officers of the combined company. Upon the closing of the merger, the former
officers of the Company agreed to have their 4,500,000 shares of the Company's
common stock cancelled. On March 3, 2003, the Company changed its name from RP
Entertainment, Inc. to LitFunding Corp. (LF).

The acquisition of LitFunding Corp. has been accounted for as a reverse
acquisition under the purchase method of accounting since the shareholders of
LitFunding Corp. obtained control of the consolidated entity. Accordingly, the
merger of the two companies has been recorded as a recapitalization of
LitFunding Corp., with LitFunding Corp. being treated as the continuing entity.


                                       13
<PAGE>

RESULTS OF OPERATIONS:

The results of operations of the Company for the three months ended March 31,
2003 consisted of primarily the operations of LF and its 100% owned subsidiary
LFC. The results of operations for the three months ended March 31, 2002
consisted of 100% the operations of LFC.

REVENUES AND COST OF REVENUES: The Company reported revenues of $162,495 and
$283,444 during the three months ended March 31, 2003 and 2002, respectively.
The decrease in revenue in the first quarter of 2003 was primarily due to
protracted settlement negotiations on several cases taking longer to resolve
than initially expected. Selling costs were $288,366 and $348,772 during the
three months ended March 31, 2003 and 2002, respectively. The decrease was
directly co-related to decrease in revenues. General and administrative expenses
were $521,178 and $543,970 during the three months ended March 31, 2003 and
2002, respectively. Reserve for unsuccessful resolution of lawsuits went down to
$184,847 in the quarter ended March 31, 2003 as compared $579,044 in the quarter
ended March 31, 2002. Loss from operations was $831,896 and $1,188,342 during
the three months ended March 31, 2003 and 2002, respectively. The decrease in
losses was primarily due to decrease in activities and resultant decrease in
Reserve for unsuccessful resolution of lawsuits of $394,197 from the same period
in last year.

Interest expenses were $932,711 during the three month period ended March 31,
2003 as compared to $436,218 in the three month period ended March 31, 2002. The
increase in interest expenses was due to increase in investor participation
debts to $18,738,931 at March 31, 2003 from $$11,433,960 as of March 31, 2002.

Net loss for the period ended March 31, 2003 was $1,766,207 as compared to
$1,625,360. Although the Company had 30% decrease in loss from operations in the
period ended March 2003 as compared to the period ended March 31, 2002, the
increase in interest by 114% in the period ended March 31, 2003 as compared to
the period ended March 31, 2002, resulted in an increase of 8.67% in net loss
for the current period as compared to net loss from the corresponding period in
the last year. The basic and diluted net losses per share were $0.28 and $0.25
during the three months ended March 31, 2003 and 2002, respectively.

LIQUIDITY AND CAPITAL RESOURCES: The Company's principal capital requirements
during the year 2003 are to fund the internal operations and fund the increase
in advances activity. The Company plans to raise necessary funds by selling its
own common shares or through the sale of interest bearing debentures to selected
investors. The Company will also consider establishing relationships with
selected business partners whose contributions include necessary cash.

As shown in the accompanying financial statements, the Company incurred a net
loss of $1,766,207 for the three months ended March 31, 2003 as compared to a
net loss of $1,625,360 for the same period in 2002. Additionally, in accordance
with GAAP, the Company's total liabilities exceeded its total assets by
$8,165,666 at March 31, 2003. In the ordinary course of events, this would raise
substantial doubt about the company's ability to continue as a going concern. .
However, it is important to note that the company recognizes revenue from
advances only when a case has been resolved and when it is confident that fees
calculated will in fact be realized. As of March 31, 2003, if the company made
no further advances to plaintiff's or their attorneys', the company can
reasonably expect to collect approximately $24 million in fees and return of
principal over the next 12 months and approximately $19 from open cases with
expected resolution beyond the 12 months. The estimate is based on historical
performance and other factors affecting each case.


                                       14
<PAGE>

OPERATING ACTIVITIES: During the three months ended March 31, 2003, net cash
used in operating activities decreased to $316,287 compared to net cash used in
operating activities of $5,198,890 during the same period in 2002. The decrease
in net cash used from operating activities resulted primarily from fewer funds
being available for advances to plaintiffs and their attorneys as the company
devoted its energy to the reverse merger discussed above and began the process
of seeking new more affordable capital. Other factors include the positive cash
flow from prepaid commission of $197,720 in the current quarter as compared to
usage of cash from prepaid commission of $757,587 in the same period last year.
Also, the cash inflow from accounts receivable was $308,741 in the period ended
March 31, 2003 as compared to usage of $253,000. Cash outflow from Interest
payable was $846,107 as compared to $426,548.

INVESTING ACTIVITIES: Net cash used in investing activities during the three
months ended March 31, 2003, was $15,181 as compared to $7,517 for the same
period in 2002.

FINANCING ACTIVITIES: Net cash provided by financing activities during the three
months ended March 31, 2002 was $173,766 as compared to cash provided by the
financing activities of $2,895,522 during the same period in 2002. Decrease in
cash flow from financing activities was mainly due to decrease in proceeds from
investor participation to $78,766 as compared to $4,564,986 in the corresponding
period last year.

As a result of the above activities, the Company experienced a net decrease in
cash of $157,702 for the three months ended March 31, 2003 as compared to a net
decrease of $2,310,885 in the period ended March 31, 2002.

The Company does not have any material capital expenditure commitments as of
March 31, 2003.

The Company fully expects that the current cash balances should, when combined
with the anticipated contract fee income on the Company's portfolio of advances,
be sufficient to finance the Company's operations for at least the next 12
months.

The Company is actively pursuing additional institutional, private banking and
other investment opportunities.


FACTORS THAT MAY AFFECT FUTURE RESULTS:

The Company's cash flow is dependant on a lengthy collection cycle and factors
beyond its control that may require the company to obtain interim financing.

The Company collection cycle on advances made is lengthy. Based on the Company's
experience, cases may take between 12 and 24 months to reach resolution. The
larger cases may take longer than that. Once the Company advances the money, the
collection cycle is out of the Company's control. This may force the company to
seek other sources of capital to fund its overhead expenses. There can be no
assurance that in such an event the Company could find such financing or that,
if it could, the financing would be available on satisfactory terms.


                                       15
<PAGE>

THE COMPANY HAS A LIMITED OPERATING HISTORY AND LACK OF PROFITABILITY:

The Company began business in late 2000 and has a limited operating history.
During that time, the company has incurred losses in every quarter since
inception and is subject to the risks and uncertainties usually encountered by
early stage companies.

Although the Company has and continues to attract large well known firms of
attorneys as clients, and has not yet experienced an appreciable inability to
attract the talent that it needs, there are and remain risks that the Company
will not attract, train or integrate into the business organization qualified
personnel. Additionally, it is fair to expect that that fluctuations in
operating results may be significant as the Company develops and tests business
practices. There is also the risk that the Company will fail to properly manage
growth and expansion, if and when it occurs.

THE COMPANY'S ABILITY TO EXPAND IS LIMITED BY JURISDICTIONAL LIMITATIONS:

Not all states allow advances to plaintiffs' attorneys and plaintiffs. Some
jurisdictions do not allow maintaining, supporting, promoting or assisting
another person, with money or otherwise, to prosecute a lawsuit.

The Company is of the opinion that there is more than enough business to pursue
in those states that do allow these advances but also acknowledges that at some
indeterminate time in the future, an inability to expand beyond such
jurisdictions may negatively impact its business, prospects and results of
operations. The company will continue to relocate business operations to its
Nevada headquarters to take advantage of laws in that state.

COMPANY COMMON STOCK IS LISTED ON THE OVER-THE COUNTER (OTC) BULLETIN BOARD
WHICH MAY MAKE IT MORE DIFFICULT FOR STOCKHOLDERS TO SELL THEIR SHARES AND MAY
CAUSE THE MARKET PRICE OF COMPANY COMMON STOCK TO DECREASE:

The Company's common stock is listed on the OTC Bulletin Board. Factors that may
affect potential liquidity include limited coverage by security analysts and the
news media. This may negatively affect the prices for shares of the Company's
common stock.

THE COMPANY'S STOCK PRICE MAY BE VOLATILE AND AN INVESTMENT IN SUCH COMMON STOCK
COULD SUFFER A DECLINE IN VALUE:

The market price of the Company's common stock may fluctuate significantly in
response to a number of factors, some of which are beyond the Company's control.
These factors include:

     o    government regulatory action affecting the Company's services or
          competitors' services;
     o    actual or anticipated fluctuations in operating results;
     o    the loss of key management or other personnel;
     o    the loss of major customers;
     o    the outcome of any future litigation;
     o    broad market fluctuations; and economic conditions in the United
          States or abroad.



                                       16
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES
-------------------------------

         Evaluation of disclosure controls and procedures. We maintain controls
and procedures designed to ensure that information required to be disclosed in
this report is recorded, processed, accumulated and communicated to our
management, including our chief executive officer and our chief financial
officer, to allow timely decisions regarding the required disclosure. Within the
90 days prior to the filing date of this report, our management, with the
participation of our chief executive officer and chief financial officer,
carried out an evaluation of the effectiveness of the design and operation of
these disclosure controls and procedures. Our chief executive officer and chief
financial officer concluded, as of fifteen days prior to the filing date of this
report, that these disclosure controls and procedures are effective.

         Changes in internal controls. Subsequent to the date of the above
evaluation, we made no significant changes in our internal controls or in other
factors that could significantly affect these controls, nor did we take any
corrective action, as the evaluation revealed no significant deficiencies or
material weaknesses.


                                     PART II


ITEM 1. LEGAL PROCEEDINGS
-------------------------

The Company is party to several legal proceedings during the period of this
report.

BANKRUPTCY OR RECEIVERSHIP

    o    On April 2, 2003 an involuntary bankruptcy petition was filed in the
         United States Bankruptcy Court, Central District of California, Case
         No. LA03-19005ES by nine petitioners who maintain that they are joint
         venturers, three of whom are former directors who claim that they are
         owed fees and three of whom also claim to be "service providers." The
         Company believes that filing of the Petition is wholly without merit,
         baseless and without grounds or facts to support it. The Company
         intends to vigorously contest this Petition, seek to have the Petition
         summarily dismissed, and seek to recover all damages caused by the
         filing of the Petition in separate proceedings in both the Bankruptcy
         Court and in the State Court.

The Company believes it has meritorious defenses to the Petition, including
among others:

    o    the filing of the Petition by the three former directors was motivated
         by self-interest and a desire to take over control of the Company by
         impeding normal business operations;
    o    the Company is not insolvent; to the contrary, the Company is current
         with all of its creditors and has substantial remaining cash on hand
         and fully expects to collect the more than $40.0 million it is owed in
         fees and advances; and
    o    but for the filing of the Petition, the Company would have entered into
         a transaction with one of four offerors of $20.0 million to refinance
         the Company's debt.
    o    The Company is continuing to conduct its business and to advance funds
         to its clients.



ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

The Company made no amendments or modifications of any instruments governing or
affecting the rights of any security holders during the period of this report.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There were no defaults in the payment of any indebtedness during the period of
this report.


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDER

No matters were submitted to a vote of security holders during the period of
this report.

ITEM 5. OTHER INFORMATION.

The registrant does not elect to state any other information in this report.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

Form 8-K filed April 17, 2003



                                       17
<PAGE>


                                   SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                          LITFUNDING CORP.
                                          (Registrant)



Date:    May 19, 2003                     By:  /s/  Morton Reed
                                          --------------------------------
                                          Morton Reed
                                          President and Chief Executive Officer

Date:    May 19, 2003                     By:  /s/  David Cohen
                                          --------------------------------
                                          David Cohen
                                          Chief Financial Officer




                                       18
<PAGE>


                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)

I, Morton Reed, President and Chief Executive Officer of the registrant, certify
that:

         1. I have reviewed this quarterly report on Form 10-QSB of LitFunding
Corp.;

         2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

                  a. designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

                  b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

                  c. presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

                  a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

                  b. any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal controls; and

         6. The registrant's other certifying officers and I have indicated in
this quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.



Date:  May 19, 2003                       /s/ Morton Reed
                                          -------------------------------------
                                          Morton Reed
                                          President and Chief Executive Officer



                                       19
<PAGE>


                            CERTIFICATION PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
                            (18 U.S.C. SECTION 1350)

I, David Cohen, Chief Financial Officer of the registrant, certify that:

         1. I have reviewed this quarterly report on Form 10-QSB of LitFunding
Corp.;

         2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

         4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

                  a. designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

                  b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

                  c. presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;

         5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):

                  a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

                  b. any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal controls; and

         6. The registrant's other certifying officers and I have indicated in
this quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.



Date:  May 19, 2003                     /s/ David Cohen
                                        ----------------------------------
                                        David Cohen
                                        Chief Financial Officer