================================================================================

--------------------------------------------------------------------------------

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                            -------------------------

                                   FORM 10-QSB

|X|   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

                  For the quarterly period ended March 31, 2006

|_|   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                        Commission File Number: 0-21419

                             clickNsettle.com, Inc.
                             ----------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)

           Delaware                                       23-2753988
           --------                                       ----------
  (State or Other Jurisdiction                         (I.R.S. Employer
of Incorporation or Organization)                     Identification No.)


                         990 Stewart Avenue, First Floor
                           GARDEN CITY, NEW YORK 11530
                           ---------------------------
                    (Address of Principal Executive Offices)

                                 (516) 794-8950
                                 --------------
                (Issuer's Telephone Number, Including Area Code)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 |_|

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) . Yes |X|  No |_|

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest  practicable date. As of May 9, 2006,  9,929,056 shares
of common stock of the issuer were outstanding.

Transitional Small Business Disclosure Format   Yes |_|  No |X|


                                       1
<PAGE>

                             CLICKNSETTLE.COM, INC.
                                      INDEX

PART I.   FINANCIAL INFORMATION                                             Page
                                                                             ---

ITEM 1. FINANCIAL STATEMENTS

            Consolidated Balance Sheets at
             March 31, 2006 (unaudited)
             and June 30, 2005                                                3

            Consolidated Statements of Operations
             for the three and nine month periods ended
             March 31, 2006 and 2005 (unaudited)                              4

            Consolidated Statements of Changes in
             Stockholders' Equity and Comprehensive
             Loss for the nine month periods ended
             March 31, 2006 and 2005 (unaudited)                              5

            Consolidated Statements of Cash Flows
             for the nine month periods ended
             March 31, 2006 and 2005 (unaudited)                              6

            Notes to Consolidated Financial Statements                        7

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF
                  OPERATIONS                                                  12

ITEM 3.  CONTROLS AND PROCEDURES                                              16

PART II.  OTHER INFORMATION

            Item 6.  Exhibits and Reports on Form 8-K                         18

            Signatures                                                        20


                                       2
<PAGE>
                                     clickNsettle.com, Inc. and Subsidiaries
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                        March 31,           June 30,
                                                                           2006               2005
                                                                       ------------       ------------
                                                                                         (derived from
                                                                                        audited financial
                                                                                           statements)
                                     ASSETS
<S>                                                                    <C>                <C>
CURRENT ASSETS
  Cash and cash equivalents including amount to pay related party
        buyer of $0 and $620,798, respectively                         $    133,048       $    870,684
  Due from related party buyer of discontinued operations                     1,285                 --
  Prepaid expenses and other current assets                                  17,466             26,588
                                                                       ------------       ------------

                                                                       $    151,799       $    897,272
                                                                       ============       ============


             LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable                                                     $        352       $     11,655
  Due to related party buyer of discontinued operations                          --            620,798
  Accrued expenses and other liabilities                                     28,584             88,090
                                                                       ------------       ------------

     Total current liabilities                                               28,936            720,543
                                                                       ------------       ------------

COMMITMENTS AND CONTINGENCIES (See Notes)

STOCKHOLDERS' EQUITY
  Preferred stock - $.001 par value; 5,000,000 shares authorized;
     0 shares issued
  Common stock - $.001 par value; 25,000,000 shares authorized;
    10,181,554 shares issued                                                 10,182             10,182
  Additional paid-in capital                                             10,208,757         10,179,757
  Accumulated deficit                                                   (10,012,158)        (9,929,292)
  Common stock in treasury at cost,  252,498 shares                         (83,918)           (83,918)
                                                                       ------------       ------------

     Total stockholders' equity                                             122,863            176,729
                                                                       ------------       ------------

                                                                       $    151,799       $    897,272
                                                                       ============       ============
</TABLE>

The accompanying notes are an integral part of these statements.


                                       3
<PAGE>

                     clickNsettle.com, Inc. and Subsidiaries
                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                    Three months ended March 31,       Nine months ended March 31,
                                                                       2006             2005*            2006            2005*
                                                                    -----------      -----------      -----------      -----------
<S>                                                                 <C>              <C>              <C>              <C>
Net revenues                                                                 --               --               --               --

General and administrative expenses                                 $    24,034           50,533      $    86,811      $    50,533

Interest income, net                                                      1,348              611            3,945              611
                                                                    -----------      -----------      -----------      -----------

      Loss from continuing operations                               $   (22,686)         (49,922)     $   (82,866)         (49,922)

Discontinued operations
      Loss from operations of discontinued business, including
        loss on disposal of $424,923 and $531,294, respectively              --      $  (473,614)                      $  (713,186)
                                                                    -----------      -----------      -----------      -----------

                    NET LOSS                                        $   (22,686)     $  (523,536)     $   (82,866)     $  (763,108)
                                                                    ===========      ===========      ===========      ===========

Net loss per common share - basic and diluted
      From continuing operations                                    $     (0.00)     $     (0.01)     $     (0.01)     $     (0.01)
      From discontinued operations                                           --            (0.05)              --            (0.08)
                                                                    -----------      -----------      -----------      -----------
                     NET LOSS                                       $     (0.00)     $     (0.06)     $     (0.01)     $     (0.09)
                                                                    ===========      ===========      ===========      ===========

Weighted-average shares outstanding - basic and diluted               9,929,056        8,969,056        9,929,056        8,619,859
                                                                    ===========      ===========      ===========      ===========
</TABLE>

*Reclassified. See Note 2.

The accompanying notes are an integral part of these statements.


                                       4
<PAGE>
                     clickNsettle.com, Inc. and Subsidiaries
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                             AND COMPREHENSIVE LOSS
              Nine Months Ended March 31, 2006 and 2005 (unaudited)

<TABLE>
<CAPTION>
                                                                                                Accumulated
                                        Common stock            Additional                         other
                                        ------------              paid-in       Accumulated    comprehensive
                                   Shares         Amount          capital         deficit      income (loss)
                               -------------   -------------   -------------   -------------   -------------
<S>                            <C>             <C>             <C>             <C>             <C>
Balances at July 1, 2004           8,701,554   $       8,702   $  10,104,325   $  (9,116,951)  $      51,422
Exercise of stock options            600,000             600          24,396
Net loss                                                                            (763,108)
Change in unrealized gain on
  marketable securities                                                                              (51,422)


Comprehensive loss


                               -------------   -------------   -------------   -------------   -------------
Balances at March 31, 2005         9,301,554           9,302      10,128,721      (9,880,059)             --
                               =============   =============   =============   =============   =============

Balances at July 1, 2005          10,181,554          10,182      10,179,757      (9,929,292)
Imputed contribution to
  capital for accounting
  services provided by Buyer                                          29,000
Net loss                                                                             (82,866)


Comprehensive loss


                               -------------   -------------   -------------   -------------   -------------
Balances at March 31, 2006        10,181,554   $      10,182   $  10,208,757   $ (10,012,158)  $          --
                               =============   =============   =============   =============   =============

<CAPTION>

                                  Common           Total           Compre-
                                 stock in       stockholders'      hensive
                                 treasury          equity           loss
                               -------------    -------------   -------------
<S>                            <C>              <C>             <C>
Balances at July 1, 2004       $     (83,918)   $     963,580
Exercise of stock options                              24,996
Net loss                                             (763,108)  $    (763,108)
Change in unrealized gain on
  marketable securities                               (51,422)        (51,422)
                                                                -------------

Comprehensive loss                                              $    (814,530)
                                                                =============

                               -------------    -------------
Balances at March 31, 2005           (83,918)         174,046
                               =============    =============

Balances at July 1, 2005             (83,918)         176,729
Imputed contribution to
  capital for accounting
  services provided by Buyer                           29,000
Net loss                                              (82,866)  $     (82,866)

                                                                -------------
Comprehensive loss                                              $     (82,866)
                                                                =============

                               -------------    -------------
Balances at March 31, 2006     $     (83,918)   $     122,863
                               =============    =============
</TABLE>

The accompanying notes are an integral part of these statements.

                                       5
<PAGE>

                     clickNsettle.com, Inc. and Subsidiaries
                CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
                           Nine months ended March 31,

<TABLE>
<CAPTION>
                                                                                                2006            2005*
                                                                                             -----------    -----------
<S>                                                                                          <C>            <C>
Cash flows from operating activities
   Net loss                                                                                  $   (82,866)   $  (763,108)
   Loss from discontinued operations                                                                  --        713,186
                                                                                             -----------    -----------
   Loss from continuing operations                                                               (82,866        (49,922)
   Adjustments to reconcile net loss from continuing operations to net cash used in
    operating activities
      Imputed contribution to capital for accounting services provided by Buyer                   29,000
      Changes in operating assets and liabilities
         Decrease (increase) in prepaid expenses and other current assets                          9,122        (42,038)
         (Decrease) in amount due to related party buyer of discontinued operations             (622,083)
         (Decrease) increase in accounts payable, accrued expenses and other liabilities         (70,809)        90,209
                                                                                             -----------    -----------
      Net cash used in continuing operations                                                    (737,636)        (1,751)
      Net cash used in discontinued operations                                                        --       (445,413)
                                                                                             -----------    -----------
      Net cash used in operating activities                                                     (737,636)      (447,164)
                                                                                             -----------    -----------

Cash flows from investing activities
   Net cash provided by investing activities of discontinued operations                               --        531,470
                                                                                             -----------    -----------
       Net cash provided by investing activities                                                      --        531,470
                                                                                             -----------    -----------

Cash flows from financing activities
   Procceds from exercise of stock options                                                                       24,996
                                                                                             -----------    -----------
       Net cash provided by financing activities                                                      --         24,996
                                                                                             -----------    -----------

       NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                     (737,636)       109,302

Cash and cash equivalents at beginning of period                                                 870,684        730,869

                                                                                             -----------    -----------
Cash and cash equivalents at end of period                                                   $   133,048    $   840,171
                                                                                             ===========    ===========

Non-cash investing and financing activities
     Loss on sale of discontinued operations (See Note 2)                                    $        --    $   419,768
</TABLE>

*Revised. See Note 2.

The accompanying notes are an integral part of these statements.


                                       6
<PAGE>

                     CLICKNSETTLE.COM, INC. and Subsidiaries

                   Notes to Consolidated Financial Statements
                        Nine months ended March 31, 2006
                                   (Unaudited)

1.  The  consolidated  balance  sheet  as of  March  31,  2006  and the  related
consolidated statements of operations for the three and nine month periods ended
March 31,  2006 and 2005 have been  prepared  by  clickNsettle.com,  Inc. In the
opinion of management, all adjustments necessary to present fairly the financial
statements  as of March 31, 2006 and for all periods  presented,  consisting  of
normal  recurring  adjustments,  have been made.  Results of operations  for the
three and nine month periods ended March 31, 2006 are not necessarily indicative
of the operating results expected for the full year.

These consolidated  financial  statements should be read in conjunction with the
consolidated  financial statements and notes thereto for the year ended June 30,
2005 included in the  Company's  Annual  Report on Form 10-KSB.  The  accounting
policies used in preparing these consolidated  financial statements are the same
as those described in the June 30, 2005 consolidated financial statements.

As of  January 1, 2006,  the  Company  transferred  ownership  of its  remaining
wholly-owned  subsidiary,  Michael  Marketing LLC, to National  Arbitration  and
Mediation,  Inc.  (see Note 2 below).  Such  subsidiary  was inactive and had no
operations  or  net  assets.   Previously,   the  Company  dissolved  its  other
wholly-owned  subsidiary,  clickNsettle.com LLC, as it also was inactive and had
no  operations  or  net  assets.  As  such,  the  Company  no  longer  owns  any
subsidiaries.

As a result of continued  losses,  the use of cash to operate as a publicly-held
shell company and the uncertainty as to the Company's ability to effect a merger
or a similar  transaction  with the  intent to  acquire  a  different  operating
business (see Note 2), there is substantial doubt about the Company's ability to
continue as a going concern. The Company's  independent auditors have included a
going  concern  paragraph  in their  report  on the June 30,  2005  consolidated
financial statements which have been prepared assuming the Company will continue
as a going concern.  The accompanying  consolidated  financial statements do not
include any adjustments that may result should the Company be unable to continue
as a going concern.

2. On January 13, 2005,  at the annual  meeting of  shareholders,  the Company's
shareholders approved the sale of the assets of the Company's dispute resolution
business  (the "ADR  business")  and the  assumption  of all  current and future
liabilities  and  commitments  of the ADR business to National  Arbitration  and
Mediation,  Inc. (the "Buyer"), a company owned by the Company's Chief Executive
Officer, Roy Israel. Specifically,  the Company has been released from its lease
agreements  for office space in Great Neck and  Brooklyn,  New York and from its
employment   agreements  with  its  President  and  Chief   Financial   Officer.
Additionally,  the Buyer has guaranteed the payments due on the remainder of the
Company's  automobile lease (which  approximated $8,800 in total as of March 31,
2006). Also, as of March 31, 2006, the Company remained  contingently liable for
additional  payables and other items of  approximately  $249,400  assumed by the
Buyer but not paid as of that date.

The loss from  discontinued  operations,  including  the loss on disposal of the
discontinued  operations,  for the three and nine  months  ended  March 31, 2005
includes the following:

                                       7
<PAGE>

                                                 Three months    Nine months
                                                Ended 3/31/05   Ended 3/31/05
                                                  ---------      ---------
Loss from operations of discontinued business     ($ 48,691)     ($181,892)

Loss from disposal:
    Loss on sale*                                 ($419,768)     ($419,768)
    Transaction costs of sale                        (5,155)      (111,526)
                                                  ---------      ---------
    Loss from disposal                            ($424,923)     ($531,294)
                                                  ---------      ---------

Loss from discontinued operations                 ($473,614)     ($713,186)
                                                  =========      =========

*The loss on the sale was calculated as follows:

      Book value of liabilities assumed     $      667,438
      Book value of assets sold                 (1,087,206)
                                            --------------
      Loss on transaction                   $      419,768
                                            --------------

The results  from  discontinued  operations  for the three and nine months ended
March 31, 2005 follow:

<TABLE>
<CAPTION>
                                                         Three months ended   Nine months ended
                                                           March 31, 2005       March 31, 2005
                                                             -----------         -----------
<S>                                                          <C>                 <C>
Net Revenues                                                 $    58,649         $ 1,807,570
                                                             -----------         -----------


Operating costs and expenses
     Costs of services                                            12,693             395,554
     Sales and marketing expenses                                 30,951             593,027
     General and administrative expenses                          64,163           1,037,600
     Loss on impairment of furniture and equipment                     0              15,885
                                                             -----------         -----------
                                                                 107,807           2,042,066
                                                             -----------         -----------
           Loss from operations                                  (49,158)           (234,496)
                                                             -----------         -----------
Other Income
     Investment income                                                                45,701
     Interest and dividends                                          376               5,777
     Other income                                                     91               1,126
                                                             -----------         -----------
                                                                     467              52,604
                                                             -----------         -----------

           Loss from operations of discontinued business     $   (48,691)        $  (181,892)
                                                             ===========         ===========
</TABLE>

Pursuant to the asset purchase agreement, as of January 13, 2005, the total cash
to be retained by the Company was  $254,331  before  unpaid  transaction  costs,
taxes, other payables and accrued liabilities.  This amount was determined based
upon the Company's  financial  statements as of that date without adjustment for
any subsequent  realization of assets,  incurrence of any additional liabilities
or resolution of  contingencies  by the Buyer.  The liabilities and assets other
than cash were  transferred to the Buyer as of January 13, 2005,  while the cash
balances were transferred  thereafter.  As such, the Company  incurred  interest
expense  on the unpaid  balance.  The  interest  rate  charged  was equal to the
interest  rate earned on invested  balances.  The interest  charge for the three
months  ended  March  31,  2006 and 2005 was $0 and  $1,892,  respectively.  The
interest charge for the nine months ended March 31, 2006 and 2005 was $3,250 and
$1,892,  respectively.  Interest  expense is netted against  interest  income in
continuing  operations on the  accompanying  statement of  operations.  The cash
balances were fully  transferred from the Company to the Buyer during the period
from August 2005 through February 2006.


                                       8
<PAGE>

The costs of the  transaction,  which  have been paid by the  Company,  included
legal,  accounting,  tax advice and the cost of the fairness opinion. During the
three and nine months  ended March 31,  2005,  the Company  incurred  $5,155 and
$111,526, respectively, of such costs, which are included in the loss on sale of
discontinued operations on the accompanying statement of operations.

Since the  consummation  of the sale,  the  Company has no  operating  business.
Currently,  the Company is actively  searching for a new  operating  business to
acquire or to enter into a merger  transaction.  There can be no assurances that
an  operating  entity  will be  acquired  or that a merger  transaction  will be
consummated.

The prior period financial statements have been reclassified to show the assets,
liabilities and results of operations as discontinued operations.  Additionally,
the Company has revised the statement of cash flows to  separately  disclose the
operating,  investing and financing  portions of the cash flows  attributable to
the discontinued operations,  which in prior periods were reported on a combined
basis.

3. Basic  earnings per share are based on the weighted  average number of common
shares  outstanding  without  consideration of potential  common stock.  Diluted
earnings  per  share  are based on the  weighted-average  number  of common  and
potential  common shares  outstanding.  The  calculation  takes into account the
shares that may be issued upon exercise of stock  options and warrants,  reduced
by the shares that may be repurchased with the funds received from the exercise,
based on the average price during the period.  Diluted earnings per share is the
same as basic  earnings  per share as  potential  common  shares of 448,990  and
5,322,888, at March 31, 2006 and 2005, respectively,  would be antidilutive,  as
the Company incurred net losses for the three and nine month periods ended March
31, 2006 and 2005.

4. In December 2002, the Financial  Accounting  Standards  Board ("FASB") issued
Statement of Financial  Accounting Standards No. 148 "Accounting for Stock-Based
Compensation  - Transition  and  Disclosure,  an amendment of FASB Statement No.
123" ("SFAS No. 148"). SFAS No. 148 encourages,  but does not require, companies
to record  compensation costs for stock-based  compensation plans at fair value.
In  addition,  SFAS No. 148 provides  alternative  methods of  transition  for a
voluntary  change to the fair value based method of accounting  for  stock-based
employee  compensation  and amends the disclosure  requirements  of Statement of
Financial Accounting Standards No. 123 "Accounting for Stock-Based Compensation"
("SFAS  No.  123").  SFAS  No.  148  requires  disclosures  in  the  summary  of
significant  accounting policies 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.


                                       9
<PAGE>

                                            Three months ended March 31,
                                               2006            2005
                                            ----------      ---------
Net loss, as reported                       $  (22,686)     $(523,536)
Deduct:  Total stock-based employee
compensation expense determined under
fair value-based method for all awards,
net of related tax effects                          --        (37,462)
                                            ----------      ---------

Proforma net loss                           $  (22,686)     $(560,998)
                                            ==========      =========

Net loss per common share:
   Basic and diluted - as reported          $   (0.00)      $   (0.06)
   Basic and diluted - pro forma            $   (0.00)      $   (0.06)
                                            ==========      =========

                                            Nine months ended March 31,
                                               2006            2005
                                            ----------      ---------
Net loss, as reported                       $  (82,866)     $(763,108)
Deduct:  Total stock-based employee
compensation expense determined under
fair value-based method for all awards,
net of related tax effects                          --        (63,448)
                                            ----------      ---------

Proforma net loss                           $  (82,866)     $(826,556)
                                            ==========      =========

Net loss per common share:
   Basic and diluted - as reported          $   (0.01)      $   (0.09)
   Basic and diluted - pro forma            $   (0.01)      $   (0.10)
                                            ==========      =========

The Company adopted,  effective December 31, 2002, the disclosure  provisions of
SFAS No. 148 and  continues to account for  stock-based  compensation  using the
intrinsic value method prescribed in Accounting Principles Board Opinion No. 25,
"Accounting  for  Stock  Issued  to  Employees"  and  related   interpretations.
Accordingly,  compensation expense cost is not recognized for options granted to
employees and to members of the board of directors when such options are granted
to board members in their  capacity as directors.  The fair value of each option
grant is estimated on the date of grant using the  Black-Scholes  option-pricing
model. The above table  illustrates the effect on net loss and loss per share if
the Company had applied the fair value recognition provisions of SFAS No. 123 to
stock-based employee compensation.  As of January 13, 2005, upon the sale of the
Company's  operating  business,  in accordance with the Company's  Incentive and
Nonqualified  Stock Option Plan (the "Stock  Plan"),  all  outstanding  unvested
employee stock options vested as of that date. As the Company did not retain any
employees  subsequent to the sale, all employee  options expired at the close of
business on April 13, 2005 unless they were exercised prior thereto.

During the three and nine  month  periods  ended  March 31,  2006 and 2005,  the
Company did not grant any options.  During those same periods,  600,000  options
were  exercised  during the three and nine month  periods  ended March 31, 2005.
Additionally,  as of April 1, 2006, the Stock Plan  automatically  terminated in
accordance with its original plan document.  The outstanding stock options as of
April 1,  2006 are  exercisable  through  the  termination  date of each  option
agreement.


                                       10
<PAGE>

In December 2004, the FASB issued Statement of Financial Accounting Standard No.
123 (R),  "Share-based  Payment" ("SFAS No. 123R"). SFAS No. 123 (R) establishes
standards for the accounting for  transactions in which an entity  exchanges its
equity  instruments for goods or services.  This statement  focuses primarily on
accounting  for  transactions  in which an entity obtains  employee  services in
share-based payment transactions.  SFAS No. 123 (R) requires that the fair value
of such  equity  instruments  be  recognized  as an  expense  in the  historical
financial statements as services are performed.  Prior to SFAS No. 123 (R), only
certain pro forma  disclosures of fair value were required.  SFAS No. 123 (R) is
effective  for public  entities  that file as small  business  issuers as of the
beginning of the annual  reporting  period that begins  after  December 15, 2005
and,  thus,  will be effective for us beginning with the first quarter of fiscal
year 2007.  The  adoption of this  statement  is not expected to have a material
impact on the financial statements of the Company.

5. The components of comprehensive loss are as follows:

                                     Three months ended March 31,
                                          2006          2005
                                       ---------      ---------
Net loss                               $ (22,686)     $(523,536)
Change in unrealized gain (loss)
   on marketable securities
                                       ---------      ---------

Comprehensive loss                     $ (22,686)     $(523,536)
                                       =========      =========

                                     Nine months ended March 31,
                                         2006            2005
                                       ---------      ---------
Net loss                               $ (82,866)     $(763,108)
Change in unrealized gain (loss)
   on marketable securities
Reclassification adjustment - loss
    included in net loss                                (51,422)
                                       ---------      ---------

Comprehensive loss                     $ (82,866)     $(814,530)
                                       =========      =========


                                       11
\
<PAGE>

Item 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
            AND RESULTS OF OPERATIONS

      From time to time,  including  in this  quarterly  report on Form  10-QSB,
clickNsettle.com,  Inc.  (the  "Company"  or "we") may  publish  forward-looking
statements  relating  to such  matters  as  anticipated  financial  performance,
business prospects,  future operations,  new products,  research and development
activities and similar matters. The Private Securities  Litigation Reform Act of
1995 provides a safe harbor for forward-looking  statements.  In order to comply
with the terms of the safe harbor, we note that a variety of factors could cause
our actual results to differ  materially from the  anticipated  results or other
expectations expressed in our forward-looking statements.

                                  RISK FACTORS

      We face risks.  These risks include those  described below and may include
additional  risks of which we are not  currently  aware or which we currently do
not believe are material. If any of the events or circumstances described in the
following  risks  actually  occurs,  our  financial   condition  or  results  of
operations  could  be  adversely  affected.   These  risks  should  be  read  in
conjunction with the other information set forth in this report.

We do Not have an Operating Business and if the Company Acquires a New Business,
the Shareholders Shall Suffer Significant Dilution

      On January 13, 2005, the Company sold its dispute resolution business (the
"ADR business").  The Company is searching for an operating entity to acquire or
to enter into a merger transaction. There can be no assurances that an operating
entity will be acquired or that a merger transaction will be consummated.  Also,
the cash  retained  by the Company  may not be  sufficient  to pay for the costs
associated  with continued  public  reporting  obligations  and to acquire a new
operating business or to enter into a merger  transaction.  In addition,  if the
Company  does  acquire  a  new  operating  business  or  enters  into  a  merger
transaction,  it is expected that such  transaction  will be accomplished by the
issuance  of stock of the  Company,  resulting  in  significant  dilution to the
current stockholders.

We have  Recent,  and  Anticipate  Continuing,  Losses  and have  Going  Concern
Considerations

      We have incurred  operating  losses during the last nine years and through
March 31, 2006. Going forward,  if we do not acquire another operating business,
there will be no future  revenues  being  generated.  However,  the Company will
continue to incur costs for continued public reporting obligations.  Also, it is
likely  that in order to  acquire a new  operating  business  or to enter into a
merger transaction,  costs will be incurred. There can be no assurances that the
cash on hand will be sufficient to cover such costs.  Therefore,  the results of
our  operations  and our financial  condition  may be  materially  and adversely
affected.

      The Company's independent auditors have included a going concern paragraph
in their report on the June 30, 2005  consolidated  financial  statements  which
have been prepared  assuming the Company will continue as a going concern.  As a
result of continued losses, the use of cash to operate as a publicly-held  shell
company and the uncertainty as to the Company's  ability to effect a merger or a
similar transaction with the intent to acquire a new operating  business,  there
is substantial doubt about the Company's ability to continue as a going concern.


                                       12
<PAGE>

Our Current Stockholders Have the Ability to Exert Significant Control

      Our executive officers,  directors,  and their affiliates beneficially own
5,148,646 shares or approximately  51.85% of the common stock  outstanding based
on  9,929,056  shares of common  stock  outstanding  as of May 9, 2006.  Of that
number, Mr. Israel, our CEO, beneficially owns 3,525,788 shares or approximately
35.5% of the common stock. As a result, these stockholders acting in concert may
have  significant  influence  on  votes to  elect  or  remove  any or all of our
directors and to control  substantially all corporate activities in which we are
involved, including tender offers, mergers, proxy contests or other purchases of
common stock.

Our  Common  Stock is Traded on the NASD OTC  Electronic  Bulletin  Board and is
subject to the Penny Stock Rules

            Trading in our securities has been conducted in the over-the-counter
market in the NASD's OTC Electronic Bulletin Board. As a result, an investor may
find it more difficult to purchase, dispose of and obtain accurate quotations as
to the value of our securities.

            In addition,  as the trading price of our common stock has been less
than  $5.00 per  share,  trading  in our  common  stock is also  subject  to the
requirements of Rule 15g-9 under the Securities Exchange Act of 1934. Under that
rule,  broker/dealers who recommend such low-priced  securities to persons other
than established  customers and accredited  investors must satisfy special sales
practice   requirements,   including  (a)  a  requirement   that  they  make  an
individualized  written  suitability  determination  for the  purchaser  and (b)
receive the purchaser's written consent prior to the transaction.

            The  Securities  Enforcement  Remedies and Penny Stock Reform Act of
1990 also requires additional disclosure in connection with any trades involving
a stock defined as a penny stock  (generally,  any equity security not traded on
an exchange or quoted on The NASDAQ  SmallCap  Market that has a market price of
less than $5.00 per share),  including  the  delivery,  prior to any penny stock
transaction,  of a disclosure schedule explaining the penny stock market and the
risks associated  therewith.  Such requirements  could severely limit the market
liquidity  of our  securities  and the  ability  of  stockholders  to sell their
securities in the secondary market.

                              RESULTS OF OPERATIONS

Overview

      Since the consummation of the sale, the Company has no operating business.
Currently,  the Company is actively  searching for a new  operating  business to
acquire or to enter into a merger  transaction.  There can be no assurances that
an  operating  entity  will be  acquired  or that a merger  transaction  will be
consummated.

Selection of a Business

      The Company is now considering business opportunities to combine with that
might create value for our stockholders. We have no day-to-day operations at the
present time.  The officers and directors of the Company devote limited time and
attention to the affairs of the Company.  The Company may have to wait some time
before  consummating  a suitable  transaction.  The  Company  does not intend to
restrict its consideration to any particular business or industry segment.

      However, due to the Company's limited financial  resources,  the scope and
number of  suitable  candidate  business  ventures  available  is  limited.  The
decision to participate  in a specific  business  opportunity  will be made upon


                                       13
<PAGE>

management's  analysis  of  the  quality  of the  other  firm's  management  and
personnel, the anticipated  acceptability of its products or marketing concepts,
the merits of its technology  and numerous other factors.  Since the Company may
participate in a business  opportunity with a newly organized business or with a
business which is entering a new phase of growth, the Company may incur risk due
to the failure of the  target's  management  to be  effective  or the failure to
establish  a market for the  target's  products  or  services  or the failure to
realize profits.

Acquisition of a Business

      With  respect  to  any  transaction,   negotiations  with  target  company
management  will be expected  to focus on the  percentage  of the  Company  that
target company stockholders would acquire in exchange for their stockholdings in
the target company.  Depending upon,  among other things,  the target  company's
assets and liabilities, the Company's stockholders will in all likelihood hold a
substantially  lesser percentage ownership interest in the Company following any
transaction. Typically, in these transactions, which are commonly called reverse
merger  acquisitions,  voting  control of the merged  company  changes  from the
stockholders of the pre-existing  public company to those of the target company.
Any  transaction  effected by the Company can be expected to have a  significant
dilutive  effect on the percentage of shares held by the Company's  stockholders
immediately preceding the transaction.

Third  Quarter  Ended March 31, 2006  Compared to Third  Quarter Ended March 31,
2005

      The Company sold its sole operating business, ADR services, on January 13,
2005.  Since that time,  the  Company  has not had an  operating  business.  The
financial statements for the quarter ended March 31, 2005 have been reclassified
to show the results of operations as  discontinued  operations.  Currently,  the
Company is actively  searching  for a new  operating  business to combine  with.
There can be no assurances that any such transaction will be consummated.

      Loss from continuing  operations.  The loss from continuing operations was
$22,686 for the three months  ended March 31, 2006 versus  $49,922 for the three
months ended March 31, 2005. Loss from continuing  operations primarily reflects
expenses  incurred by the Company to maintain its existence as a publicly traded
entity including its public reporting obligations  subsequent to the sale of its
operating  business.  Such  expenses  include  insurance,  audit and legal fees.
Continuing  operations  in fiscal year 2006 also reflects the cost of accounting
services that were contributed by National Arbitration and Mediation, Inc. ("the
Buyer")  pursuant to the asset  purchase  agreement.  Such  services,  valued at
$4,000,  were performed from January 1, 2006 through March 31, 2006 and included
the  preparation  of the December 31, 2005  quarterly  financial  statements and
related Securities and Exchange  Commission (the "SEC") filings.  Such value has
been  recorded  as an imputed  charge on the  statement  of  operations  with an
equivalent  offset to  additional  paid-in  capital.  The loss  from  continuing
operations in the prior period reflects similar expenses  incurred after January
13,  2005 (the date of the sale of the  operating  business)  through  March 31,
2005. Such expenses declined in the current year period as compared to the prior
year  period as the  Company was able to secure  reduced  fees for  professional
services, etc., as there is no operating business in the current fiscal year.

      Loss from discontinued  operations.  Loss from discontinued operations was
$0 for the three  months  ended  March 31, 2006  versus  $473,614  for the three
months ended March 31, 2005.  The loss for the three months ended March 31, 2005
includes  the loss on the sale of the ADR  business  as well as the  transaction
costs  incurred to affect the sale.  The loss on the sale was  $419,768  and the


                                       14
<PAGE>

transaction  costs  incurred  were  $5,155,  totaling  $424,923.  The loss  from
operations  of the  discontinued  business  for the three months ended March 31,
2005 was $48,691  and  includes  net  revenues  and net  expenses of $58,649 and
$107,807,  respectively.  Offsetting this loss was interest, dividends and other
income of $467.

      Income  Taxes.  Tax benefits  resulting  from net losses  incurred for the
three months ended March 31, 2006 and 2005 were not  recognized as the Company's
annual  effective tax rate for each of these interim periods was estimated to be
0%.

      Net Loss.  For the three months ended March 31, 2006, we had a net loss of
$22,686 as compared to a net loss of $523,536  for the three  months ended March
31,  2005.  The loss  decreased  as the Company is no longer  operating  the ADR
business  which  had  not  been  profitable  in  the  prior  quarterly   period.
Additionally,  the loss in the three  months  ended March 31, 2005  included the
loss on the sale of the ADR business and related transaction costs of $424,923.

Nine months Ended March 31, 2006 Compared to Nine months Ended March 31, 2005

      Loss from continuing  operations.  The loss from continuing operations was
$82,866  for the nine months  ended  March 31, 2006 versus  $49,922 for the nine
months ended March 31, 2005. Loss from continuing  operations primarily reflects
expenses  incurred by the Company to maintain its existence as a publicly traded
entity including its public reporting obligations  subsequent to the sale of its
operating  business.  Such expenses include insurance,  audit and legal fees and
the cost of an  advertisement  to publicize  the  availability  of the Company's
publicly traded shell.  Continuing  operations in fiscal year 2006 also reflects
the cost of accounting  services that were  contributed by the Buyer pursuant to
the asset purchase agreement.  Such services,  valued at $29,000, were performed
from July 1, 2005 through  March 31, 2006 and included  the  preparation  of the
June 30, 2005 annual financial  statements and the September 30 and December 31,
2005 quarterly financial statements and related SEC filings. Such value has been
recorded as an imputed charge on the statement of operations  with an equivalent
offset to additional paid-in capital. The loss from continuing operations in the
prior period reflects similar expenses incurred after January 13, 2005 (the date
of the sale of the  operating  business)  through  March 31,  2005,  a period of
approximately  two and one-half  months.  Such  expenses were lower in the prior
year period as compared to the current year  period,  as the current year period
reflects  nine months of such  activity  versus two and  one-half  months in the
prior year period.

      Loss from discontinued  operations.  Loss from discontinued operations was
$0 for the nine months ended March 31, 2006 versus  $713,186 for the nine months
ended March 31, 2005. The loss for the nine months ended March 31, 2005 includes
the  loss on the  sale  of the ADR  business  as well as the  transaction  costs
incurred  to  affect  the  sale.  The  loss on the  sale  was  $419,768  and the
transaction  costs incurred were $111,526,  totaling  $531,294.  The transaction
costs incurred during the nine months ended March 31, 2005 included professional
fees to an  investment-banking  firm and  accounting,  tax advice and legal fees
related to services  rendered in  connection  with the sale of the Company's ADR
business.  The loss from  operations of the  discontinued  business for the nine
months  ended March 31, 2005 was  $181,892  and  includes  net  revenues and net
expenses of $1,807,570 and  $2,042,066,  respectively.  Offsetting this loss was
gains on  sales of  investments  of  $45,701,  as the  Company  sold its  entire
portfolio of marketable  securities during the first quarter of fiscal year 2005
and interest, dividends and other income of $6,903.

      Income Taxes. Tax benefits resulting from net losses incurred for the nine
months  ended  March 31,  2006 and 2005  were not  recognized  as the  Company's
effective tax rate for each of these interim periods was estimated to be 0%.


                                       15
<PAGE>

      Net Loss.  For the nine months ended March 31, 2006,  we had a net loss of
$82,866 as compared to a net loss of  $763,108  for the nine months  ended March
31, 2005.  The loss  decreased,  as the Company is no longer  operating  the ADR
business  which  had  not  been  profitable  in  the  prior  nine-month  period.
Additionally, the loss in the nine months ended March 31, 2005 included the loss
on the sale of the ADR business and related transaction costs of $531,294.

Liquidity and Capital Resources

      At March 31, 2006, the Company had a working  capital  surplus of $122,863
as  compared  to  $176,729 at June 30,  2005.  The  decrease in working  capital
occurred  primarily  as a result of the net loss.  The Company has no  operating
business.

      Net cash used in  operating  activities  was  $737,636 for the nine months
ended March 31, 2006 versus  $447,164  for the nine months ended March 31, 2005.
Cash used in continuing operations increased by $735,885 principally because the
Company  paid all of the amount due the Buyer of the ADR  operations  during the
period from August 2005 through  February 2006.  Offsetting  this increase was a
decline of $445,413 as such amount was used by  discontinued  operations  in the
prior year period.

      Net cash provided by investing activities was $0 for the nine months ended
March 31, 2006 versus  $531,470 for the nine months ended March 31, 2005.  There
was no cash provided from investing  activities  from  continuing  operations in
both  periods.  The change in cash from  investing  activities  of  discontinued
operations was  principally due to the fact that during the first half of fiscal
year 2005, the Company sold its marketable  securities and its  certificates  of
deposit matured,  the proceeds of which were invested  primarily in money market
funds.

      Net cash  provided by  financing  activities  during the nine months ended
March 31,  2006 was $0 versus  $24,996  during the nine  months  ended March 31,
2005.  In the prior year period,  the President of the Company  exercised  stock
options in January 2005.

      Since the consummation of the sale, the Company has no operating business.
Currently,  the Company is actively  searching for a new  operating  business to
acquire or to enter into a merger  transaction.  There can be no assurances that
an  operating  entity  will be  acquired  or that a merger  transaction  will be
consummated.

      As a  result  of  continued  losses,  the  use of  cash  to  operate  as a
publicly-held  shell company and the uncertainty as to the Company's  ability to
effect a merger  or a  similar  transaction  with the  intent  to  acquire a new
operating  business,  there is substantial  doubt about the Company's ability to
continue as a going concern. The Company's  independent auditors have included a
going  concern  paragraph  in their  report  on the June 30,  2005  consolidated
financial statements which have been prepared assuming the Company will continue
as a going concern.  The accompanying  consolidated  financial statements do not
include any adjustments that may result should the Company be unable to continue
as a going concern.

Item 3.     CONTROLS AND PROCEDURES

            Our  disclosure  controls and procedures are designed to ensure that
material  information  relating  to the  Company  are made  known  to our  Chief
Executive  Officer  ("CEO"),  Chief Financial  Officer ("CFO") and others in the


                                       16
<PAGE>

Company involved in the preparation of this quarterly  report,  by others within
the  Company.  Our  CEO  and CFO  have  reviewed  our  disclosure  controls  and
procedures  within 90 days prior to the filing of this quarterly report and have
concluded  that they are  effective.  There were no  significant  changes in our
internal controls or other factors that could significantly  affect our internal
controls subsequent to the last date they were reviewed by our CEO and CFO.


                                       17
<PAGE>

                                     PART II
                                OTHER INFORMATION


Item 1.     Legal Proceedings.
            None.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds
            None.

Item 3.     Defaults upon Senior Securities
            None.

Item 4.     Submission of Matters to a Vote of Security Holders
            None.

Item 5.     Other Information.
            None.

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

            (a)  Exhibits.

Exhibit
Number      Description of Document
------      -----------------------

3.1 (a)     Certificate of Incorporation, as amended  (1)
3.1 (d)     Certificate of Amendment of Certificate of Incorporation (3)
3.1 (e)     Certificate of Amendment of Certificate of Incorporation,
              as amended (4)
3.1 (f)     Certificate of Amendment of Certificate of Incorporation, second
              amendment (5)
3.2         By-Laws of the Company, as amended (2)
10.1        1996 Stock Option Plan, amended and restated (2)
31.1        Rule 13a-14(a)/15d-14(a) Certification (CEO)**
31.2        Rule 13a-14(a)/15d-14(a) Certification (CFO)**
32.1        Section 1350 Certification (CEO)**
32.2        Section 1350 Certification (CFO)**


                                       18
<PAGE>

----------
      (1)   Incorporated  herein in its entirety by  reference to the  Company's
            Registration  Statement on Form SB-2,  Registration No. 333-9493, as
            filed with the Securities and Exchange Commission on August 2, 1996.

      (2)   Incorporated  herein in its entirety by  reference to the  Company's
            1998 Annual Report on Form 10-KSB.

      (3)   Incorporated  herein in its entirety by  reference to the  Company's
            Form 8-K filed on June 21, 2000.

      (4)   Incorporated  herein in its entirety by  reference to the  Company's
            2001 Annual Report on Form 10-KSB.

      (5)   Incorporated  herein in its entirety by  reference to the  Company's
            2004 Annual Report on Form 10-KSB.


      **    Filed herewith.

B. Reports on Form 8-K:

      None.


                                       19
<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.

                                  clickNsettle.com, Inc.


Date: May 11, 2006                By: /s/ Roy Israel
                                      Roy Israel, Chairman of the
                                      Board, CEO and President

Date: May 11, 2006                By: /s/ Patricia Giuliani-Rheaume
                                      ------------------------------------------
                                      Patricia Giuliani-Rheaume, Vice President,
                                      Chief Financial Officer and Treasurer

                                       20