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SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 FORM 10-QSB
 (Mark One)
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2005
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
 For the transition period from  to.
 Commission file number: 333-113034
 COLLINS RECEIVABLES, LLC
 (Exact name of small business issuer as specified in its charter)
 Delaware
    
    20-0620580State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization
    
    Identification No.)
 2101 W. Ben White Blvd., Suite 103, Austin, TX 78704
 (800) 570-5007
 o þ
 o o
  o þ




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COLLINS RECEIVABLES, LLC
 TABLE OF CONTENTS
 PagePART I. FINANCIAL INFORMATIONItem 1. Financial Statements
    
    
    1Item 2. Plan of Operation
    
    
    13Item 3. Controls and Procedures
    
    
    15PART II. OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    16Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    16Item 3. Defaults Upon Senior Securities
    
    
    16Item 4. Submission of Matters to a Vote of Security Holders
    
    
    16Item 5. Other Information
    
    
    16Item 6. Exhibits and Reports on Form 8-K
    
    
    16Section 302 Certifications of CEOSection 302 Certifications of CFOSection 906 Certifications of CEOSection 906 Certifications of CFO




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 COLLINS RECEIVABLES, LLC
BALANCE SHEET
As of June 30, 2005 and December 31, 2004
 June 30,
    
    
    December 31,2005
    
    
    2004ASSETSCash and cash equivalents
    
    $
    1,109,167
    
    
    $
    108,036Current Assets
    
    
    1,109,167
    
    
    
    108,036TOTAL ASSETS
    
    $
    1,109,167
    
    
    $
    108,036LIABILITIES AND MEMBERS EQUITYAccounts payable- Collins
Financial Services, Inc.
    
    $
    257,454
    
    
    $
    245,106Members units subscribed
    
    
    1,101,452
    
    
    
    107,000Total liabilities
    
    
    1,358,906
    
    
    
    352,106Members capital
    
    $
    (249,739
    )
    
    $
    (244,070
    )Total members equity
    
    
    (249,739
    )
    
    
    (244,070
    )TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    1,109,167
    
    
    $
    108,036
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COLLINS RECEIVABLES, LLC
STATEMENT OF OPERATIONS
 Three months ended June 30, 2005 and 2004
 2005
    
    
    2004REVENUESSales proceeds on owned
receivables
    
    $
    
    
    
    $
    Collections on owned
receivables
    
    
    
    
    
    
    Less: Basis in owned
receivable sales and
collection proceeds
    
    
    
    
    
    
    Net Revenues
    
    
    
    
    
    
    OPERATING COSTS AND EXPENSESCollection services
    
    
    
    
    
    
    Communication costs
    
    
    
    
    
    
    Professional fees
    
    
    
    
    
    
    Postage and delivery
    
    
    
    
    
    
    General and administrative
expense
    
    
    25
    
    
    
    71,919Total operating costs and
expenses
    
    
    25
    
    
    
    71,919OTHER INCOME AND EXPENSEInterest income
    
    
    5,022
    
    
    
    1Total other income and expense
    
    
    5,022
    
    
    
    1INCOME TAX EXPENSE
    
    
    
    
    
    
    NET INCOME (LOSS)
    
    $
    4,997
    
    
    $
    (71,918
    )
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COLLINS RECEIVABLES, LLC
STATEMENT OF OPERATIONS
Six months ended June 30, 2005 and the
Period from January 8, 2004 (Inception) through June 30, 2004
 2005
    
    
    2004REVENUESSales proceeds on owned
receivables
    
    $
    
    
    
    $
    Collections on owned
receivables
    
    
    
    
    
    
    Less: Basis in owned
receivable sales and
collection proceeds
    
    
    
    
    
    
    Net Revenues
    
    
    
    
    
    
    OPERATING COSTS AND EXPENSESCollection services
    
    
    
    
    
    
    Communication costs
    
    
    
    
    
    
    Professional fees
    
    
    
    
    
    
    Postage and delivery
    
    
    
    
    
    
    General and administrative
expense
    
    
    12,378
    
    
    
    159,389Total operating costs and
expenses
    
    
    12,378
    
    
    
    159,389OTHER INCOME AND EXPENSEInterest Income
    
    
    6,708
    
    
    
    1Total other income and expense
    
    
    6,708
    
    
    
    1INCOME TAX EXPENSE
    
    
    
    
    
    
    NET INCOME (LOSS)
    
    $
    (5,670
    )
    
    $
    (159,388
    )
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COLLINS RECEIVABLES, LLC
STATEMENT OF CASH FLOWS
Six Months Ended June 30, 2005 and the
Period from January 8, 2004 (Inception) through June 30, 2004
 2005
    
    
    2004CASH FLOWS FROM OPERATING ACTIVITIESNet Income (Loss)
    
    $
    (5,670
    )
    
    $
    (159,388
    )Increase in accounts payable-
Collins Financial Services, Inc.
    
    
    12,348
    
    
    
    159,369Cash flows from (used in) operating
activities
    
    
    6,679
    
    
    
    (19
    )CASH FLOWS FROM INVESTING ACTIVITIES
    
    
    
    
    
    
    CASH FLOWS FROM FINANCING ACTIVITIESMembers contributed capital
    
    
    994,452
    
    
    
    1,000Cash flows from financing activities
    
    
    994,452
    
    
    
    1,000NET INCREASE IN CASH
    
    
    1,001,131
    
    
    
    981CASH AT BEGINNING OF PERIOD
    
    
    108,036
    
    
    
    0CASH AT END OF PERIOD
    
    $
    1,109,167
    
    
    $
    981SUPPLEMENTAL DISCLOSUREIncome taxes paid
    
    $
    
    
    
    $
    Interest paid
    
    $
    
    
    
    $
    
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 1  ORGANIZATION AND BACKGROUND
 Organization
   Nature of Operations
  NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Purchase of Defaulted Receivables
 Accounting for Nonrefundable
Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases Accounting for Certain Loans or Debt Securities Acquired in a Transfer, Amortization of
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
 Purchase of Defaulted Receivables (continued)
 Discounts on Certain Acquired Loans
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Purchase of Defaulted Receivables (continued)
  Allowance for Losses on Receivables
   Sale of Receivables with Recourse
  Use of Estimates
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Use of Estimates (continued)
  Cash and Cash Equivalents
  Financial instruments and credit risk
   Income Taxes
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Income Taxes (continued)
   Comprehensive Income
  NOTE 3
 INVESTMENT IN DEFAULTED RECEIVABLES
  NOTE 4  INCOME TAXES
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 5
 MEMBERSHIP UNITS
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 6
 COMMITMENTS
 Litigation
  Repurchase Commitments
  Repayment of Funds Advanced by CFSI
  NOTE 7  RELATED PARTY TRANSACTIONS
    (1)
    
    An Acquisition Fee in an amount deemed by the Company to be appropriate, but
in no event to exceed 5% of the purchase price of Receivables identified by CFSI and
acquired for the Company paid simultaneously with the acquisition of such Receivables.
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COLLINS RECEIVABLES, LLC
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 7  RELATED PARTY TRANSACTIONS (continued)
 (2)
    
    A Sales Fee in an amount deemed by the Company to be appropriate, but in no
event to exceed 20% of the gross proceeds received from sale, on a retail or wholesale
basis, of Receivables resulting from the efforts of CFSI (whether paid in cash or
property other than cash), payable immediately upon receipt of such proceeds.(3)
    
    A Collections Fee in an amount deemed by the Company to be appropriate, but
in no event to exceed 50% of the gross proceeds resulting from efforts of CFSI to
collect the Receivables (whether paid in cash or property other than cash) owned by the
Company other than as a result of third party collection efforts. The Collections Fee
shall be payable immediately upon receipt of such gross proceeds.
  NOTE 8  LIQUIDITY
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Item 2. Plan of Operation
         13




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14




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Item 3. Controls and Procedures.
  15




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PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits and Reports on Form 8-K
  NO.
    
    DESCRIPTION OF EXHIBIT31.1
    
    Certification of Chief Executive Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 200231.2
    
    Certification of Principal Accounting Officer Pursuant to Section 302
of the Sarbanes-Oxley Act of 200232.1
    
    Certification of Chief Executive Officer Pursuant to Section 906
of the Sarbanes-Oxley Act of 200232.2
    
    Certification of Principal Accounting Officer Pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
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SIGNATURE
  COLLINS RECEIVABLES, LLCBy:
    
    /s/ Walt CollinsChief Executive OfficerBy:
    
    /s/ Larry VasbinderChief Financial Officer,
Principal Accounting Officer
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