PINX:RCVA Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM 10-Q


[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934


1-9370


(COMMISSION FILE NUMBER)


FOR THE QUARTERLY PERIOD JUNE 30, 2012


FOR


RECEIVABLE ACQUISITION & MANAGEMENT CORPORATION


(Exact Name of Registrant as Specified in the Charter)


DELAWARE

13-3186327

(State of Other Jurisdiction

(I.R.S. Employer

of Incorporation)

Identification Number)


2 Executive Drive

Fort Lee, NJ 07024

201-677-8904


Check whether the Registrant (1) has filed all reports required 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 __


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes __  No__


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


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

 

Large accelerated filer ___   Accelerated filer ____   Non-accelerated filer  ___   Small reporting company X

 

Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date: Aug 7, 2012, Common Stock:  17,948,896











TABLE OF CONTENTS



PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

3

 

CONDENSED CONSOLIDATED  BALANCE SHEETS AT SEPTEMBER 30, 2011 AND JUNE 30, 2012 - UNAUDITED

4

 

CONDENSED CONSOLIDATED  STATEMENTS OF OPERATIONS FOR NINE & THREE MONTHS ENDED JUNE 30,  2012  AND 2011- UNAUDITED

5

 

CONDENSED CONSOLIDATED  STATEMENTS  OF CASH FLOW FOR THE NINE MONTHS ENDED JUNE 30, 2012 - UNAUDITED

6

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

7-13

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION & RESULTS OF OPERATIONS

14

 

RISK FACTORS

17

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

18

ITEM 4T. CONTROLS AND PROCEDURES

18

PART II. OTHER INFORMATION

19

ITEM 1A. LEGAL PROCEEDINGS

19

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

19

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

19

ITEM 4. MINE SAFETY DISCLOSURES

19

ITEM 5. OTHER INFORMATION

19

ITEM 6. EXHIBITS

19

SIGNATURES

20



 









2





RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES



INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

FOR THE NINE AND THREE MONTHS ENDED JUNE 30, 20012 AND 2011




FINANCIAL STATEMENTS:


 

PAGE(S)

 

 

Condensed Consolidated Balance Sheets as of June 30, 2012 and Year Ended September 30, 2011 (Unaudited)

4

 

 

Condensed Consolidated Statements of Operations for the nine months and three months ended June 30, 2012 and 2011 (Unaudited)

5

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2012 and 2011 (Unaudited)

6

 

 

Notes to Condensed Consolidated Financial Statements

7-14




















3




RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

ASSETS

 

 

 

 

June 30,

 

September 30,

 

2012

 

2011

 

 

 

 

CURRENT ASSETS

 

 

 

  Cash

$      60,197

 

$         178,318

  Notes receivable

165,000

 

165,000

  Finance receivables - short term

-

 

432

 

 

 

 

          Total current assets

225,197

 

343,750

 

 

 

 

OTHER ASSETS

 

 

 

  Finance receivables - long-term

-

 

865

 

 

 

 

          Total other assets

-

 

865

 

 

 

 

TOTAL ASSETS

$     225,197

 

$         344,615

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

   Accrued and other expenses

$      40,960

 

$           34,289

Officer loan

-

 

2,782

   Notes payable

50,000

 

170,000

 

 

 

 

          Total current liabilities

90,960

 

207,071

 

 

 

 

COMMITMENT & CONTINGENCIES  

 

 

 

   

 

 

 

STOCKHOLDERS'  EQUITY

 

 

 

   Preferred stock, par value $10 per share;

 

 

 

     10,000,000 shares authorized and 0 shares issued

 

 

 

      and outstanding at June 30, 2012 and September 30, 2011

-

 

-

   Common stock, par value $.001 per share;

 

 

 

       325,000,000 shares authorized and 17,948,896 shares

 

 

 

       issued and outstanding  at  June 30, 2012 and September 30, 2011

17,949

 

17,949

   Additional paid-in capital

667,597

 

667,597

   Accumulated deficit

(551,309)

 

(548,002)

 

 

 

 

 Total stockholders' equity

134,237

 

137,544

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$     225,197

 

$         344,615


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



4




RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME OPERATIONS

FOR THE NINE AND THREE MONTHS ENDED JUNE 30, 2012 AND 2011

(UNAUDITED)

 

 

 

 

 

 

 

 

 

FOR THE NINE MONTHS ENDED

 

FOR THE THREE MONTHS ENDED

 

JUNE 30,

 

JUNE 30,

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

 

    Financing income

$              66,663

 

$            33,966

 

$                  35,821

 

$            10,855

    Service income and other

560

 

874

 

-

 

463

Total revenues

67,223

 

34,840

 

35,821

 

11,318

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

    Selling, general and administrative

70,606

 

107,518

 

21,164

 

50,097

Total costs and expenses

70,606

 

107,518

 

21,164

 

50,097

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

(3,383)

 

(72,678)

 

14,657

 

(38,779)

 

 

 

 

 

 

 

 

OTHER INCOME

 

 

 

 

 

 

 

    Interest income

76

 

17,235

 

11

 

17,107

Total other income

76

 

17,235

 

11

 

17,107

 

 

 

 

 

 

 

 

NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX

$              (3,307)

 

$          (55,443)

 

$                  14,668

 

$           (21,672)

 

 

 

 

 

 

 

 

PROVISION FOR INCOME TAXES

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

NET INCOME (LOSS) APPLICABLE TO COMMON STOCK

$              (3,307)

 

$          (55,443)

 

$                  14,668

 

$           (21,672)

 

 

 

 

 

 

 

 

(LOSS) PER COMMON SHARE, BASIC AND DILUTED

$                (0.00)

 

$              (0.00)

 

$                     0.00

 

$              (0.00)

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE OUTSTANDING SHARES

 

 

 

 

 

 

 

OF COMMON STOCK - BASIC

17,948,896

 

17,770,698

 

17,948,896

 

17,918,127



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




5




RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED JUNE 30, 2012 AND 2011

(UNAUDITED)

 

 

 

 

 

 

 

 

 

2012

 

2011

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

  Net (Loss)

$     (3,307)

 

$   (55,443)

Adjustments to reconcile net (loss) to

 

 

 

net cash  (used in) operating activities:

 

 

 

Issuance stock for services

-

 

10,000

 

 

 

 

Changes in Certain Assets and Liabilities

 

 

 

Collections applied to principal on finance receivables

1,297

 

48,797

Decrease prepaid expenses

-

 

(160)

Decrease  interest receivable

-

 

(17,066)

Decrease in accrued expenses

6,671

 

39

 

 

 

 

          Net cash (used in) operating activities

4,661

 

(13,833)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

Proceeds from exercise of stock options

-

 

7,095

Payment on notes payable

(120,000)

 

(165,000)

Payment on notes payable

-

 

99,890

Payment on officer loan

(2,782)

 

-

 

 

 

 

          Net cash (used in) financing activities

(122,782)

 

(58,015)

 

 

 

 

NET (DECREASE) IN CASH

(118,121)

 

(71,848)

 

 

 

 

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD

178,318

 

186,401

 

 

 

 

CASH AND CASH EQUIVALENTS - END OF PERIOD

$    60,197

 

$   114,553

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 

 

 

 

 

 

  CASH PAID DURING THE PERIOD

 

 

 

       Interest expense

$           -

 

$           -

       Income taxes

$           -

 

$           -



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




6






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


A. THE COMPANY AND PRESENTATION


The condensed consolidated unaudited interim financial statements included herein have been prepared by Receivable Acquisition and Management Corporation and Subsidiaries (the "Company"), formerly Feminique Corporation and Subsidiaries without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted as allowed by such rules and regulations, and the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction with the September 30, 2011 audited consolidated financial statements and the accompanying notes thereto. While management believes the procedures followed in preparing these condensed consolidated financial statements are reasonable, the accuracy of the amounts are in some respects dependent upon the facts that will exist, and procedures that will be accomplished by the Company later in the year.


The management of the Company believes that the accompanying unaudited condensed consolidated financial statements contain all adjustments (including normal recurring adjustments) necessary to present fairly the operations, changes in stockholders' equity (deficit), and cash flows for the periods presented.


B.  FINANCE RECEIVABLES


The Company has adopted the provisions of Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 310-30 for its investment in finance receivables, “Accounting for Loans or Certain Debt Securities Acquired in a Transfer.” This SOP limits the yield that may be accreted (accretable yield) to the excess of the Company’s estimate of undiscounted expected principal, interest and other cash flows (cash flows expected at the acquisition to be collected) over the Company’s initial investment in the finance receivables.  Subsequent increases in cash flows expected to be collected are recognized prospectively through adjustment of the finance receivables yield over its remaining life. Decreases in cash flows expected to be collected are recognized as impairment to the finance receivable portfolios. The Company’s proprietary collections model is designed to track and adjust the yield and carrying value of the finance receivables based on the actual cash flows received in relation to the expected cash flows.


During the nine months ended June 30, 2012 and 2011, the Company neither acquired nor sold any finance receivables.




7






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



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


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


Changes in finance receivables for the nine months ended June 30, 2012 ended were as follows:


 

2012

 

 

Balance at beginning of year October 1,

$ 1,297

Cash collections applied to principal

(1,297)

Balance at the end of the year

$ -

Estimated Remaining Collections ("ERC")*

$ -



*Estimated remaining collection refers to the sum of all future projected cash collections from acquired portfolios. ERC is not a balance sheet item, however, it is provided for informational purposes. Income recognized on finance receivables was $66,663 and $33,966 for the periods ended June 30, 2012 and 2011, respectively.


Under ASC 310-30 debt security impairment is recognized only if the fair market value of the debt has declined below its amortized costs. Currently no amortized costs are below fair market value. Therefore, the Company has not recognized any impairment for the finance receivables.


Under ASC 310-30 debt security impairment is recognized only if the fair market value of the debt has declined below its amortized costs. Currently no amortized costs are below fair market value. Therefore, the Company has not recognized any impairment for the finance receivables.


C.  PRINCIPLES OF CONSOLIDATION


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



8






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



D.  CASH AND CASH EQUIVALENTS


The Company considers all highly liquid debt instruments and other short-term investments with an initial maturity of three months or less to be cash or cash equivalents. There were no cash equivalents as of June 30, 2012 and September 30, 2011.


The Company maintains cash and cash equivalents balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000.


E.  INCOME TAXES


The Company accounts for income taxes pursuant to the provisions of the ASC 740, Accounting for Income Taxes, which requires an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities.


F.  USE OF ESTIMATES


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


G.  EARNINGS (LOSS) PER SHARE OF COMMON STOCK


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






9






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



H.  RECENT ACCOUNT PRONOUNCEMENTS (CONTINUED)


In January 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-06, “Improving Disclosures about Fair Value Measurements” (the “Update”). The Update provides amendments to FASB Accounting Standards Codification (“ASC”) 820-10 that require entities to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. In addition the Update requires entities to present separately information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). The disclosures related to Level 1 and Level 2 fair value measurements are effective for the Company in 2011 and the disclosures related to Level 3 fair value measurements are effective for the Company in 2012. The Update requires new disclosures only, and has no impact on our consolidated financial position, results of operations, or cash flow.



NOTE 2 - STOCK OPTIONS


In April 2004, the Company adopted a stock option plan upon approval by the shareholders at the Annual General Meeting under which selected eligible key employees of the Company are granted the opportunity to purchase shares of the Company’s common stock. The plan provides that 37,500,000 shares of the Company’s authorized common stock be reserved for issuance under the plan as either incentive stock options or non-qualified options. Options are granted at prices not less than 100 percent of the fair market value at the end of the date of grant and are exercisable over a period of ten years or as long as that person continues to be employed or serve on the on the Board of Directors, whichever is shorter. At June 30, 2012 and September 30, 2011, the Company had no options outstanding under this plan.



NOTE 3 - WARRANTS


The Company issued warrants during the year 2004 with an exercise price of $0.0075 and a 10 year term. During 2011 all of the outstanding warrants were exercised and the company received proceeds of $7,095. At June 30, 2012 and September 30, 2011, respectively, the Company had -0- warrants outstanding.



NOTE 4 - INCOME TAXES


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



10






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



There was no provision for income tax for the nine months ended June 30, 2012 and 2011.


Due to the uncertainty of utilizing the approximate $551,309 and $521,633 in net operating loss carryforwards for the six months ended June 30, 2012 and 2011 respectively, and realizing the deferred tax assets in the future, an offsetting valuation allowance has been established for the full amount of the deferred tax assets.


The losses are available to offset future taxable income through 2032.


 

June 30,

2012

September 30,

2011

 

 

 

Deferred tax assets

$ 192,958

$ 174,896

Less: valuation allowance

(192,958)

( 174,896)

Totals

$ -

$ -



NOTE 5 - STOCK HOLDERS’ EQUITY


COMMON STOCK


There were 325,000,000 shares of common stock authorized, with 17,948,896 shares issued and outstanding at June 30, 2012 and September 30, 2011, respectively. The par value for the common stock is $.001 per share.


There were no common stock transactions for the nine months ended June 30, 2012.


The following is a list of the common stock transactions during the nine months ended June 30, 2011:


The Company issued 946,000 shares for cash of $7,095.


NOTE 7 - FAIR VALUE MEASUREMENTS


The Company has categorized its financial assets and liabilities based  upon the fair value hierarchy specified by FASB Accounting Standards Codification   (“ASC “) Topic 820, Fair Value Measurement and Disclosures (“ASC 820”) This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurement, but discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost).  This standard provides for a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:



11






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



Level 1 - Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.


Level 2 - Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active


Level 3 - Unobservable inputs that reflect the Company’s own assumptions.


The following table represents the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2012.


Assets

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

Finance receivables

 

-

 

-

 

$-

 

$-

 

 

 

 

 

 

 

 

 

Total Assets

 

-

 

-

 

$-

 

$-

 

 

 

 

 

 

 

 

 

Liabilities

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

Total Liabilities

 

-

 

-

 

-

 

-



The following table represents the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2010:


Assets

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

Finance receivables

 

-

 

-

 

$1,297

 

$1,297

 

 

 

 

 

 

 

 

 

Total Assets

 

-

 

-

 

$1,297

 

$1,297

 

 

 

 

 

 

 

 

 

Liabilities

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

Total Liabilities

 

-

 

-

 

-

 

-





12






RECEIVABLE ACQUISITION AND MANAGEMENT CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

JUNE 30, 2012 AND 2011 (UNAUDITED)



NOTE 8 - NOTES RECEIVABLE


On April 27, 2011 the Company has notes receivable from Airbak Technologies, LLC. The principal balances of these notes are $165,000 at June 30, 2012. These notes bear interest at a rate of 15% or maximum of $24,000. Airbak defaulted on the Note Company has a default judgment outstanding and the highest permitted default interest rate continues. In the event a merger with Airbak is not completed the Company will enforce the judgment and pursue claims agaist the members of Airbak Technologies, LLC.



NOTE 9 - NOTES PAYABLE


On May 4, 2011, the Company issued a convertible note payable in the amounts of $50,000 to Brent Grady and $50,000 to Dr. Rizwan Chaudhry, at an annual interest rate of 5%. The note is due on November 4, 2012. On August 10, 2011, the Company issued a convertible note payable in the amounts of $40,000 and $30,000 to BMS Associates and Farheen Shadab, at an annual interest rate of 5%. The note is due on February 10, 2013.


Brent Grady note of $50,000, BMS Associates note of $40,000 and the Farheen Shadab note of $30,000 have been paid back without interest and penalty and the Company continues to accrue interest on the remaining notes.



NOTE 10 - GOING CONCERN


The Company has incurred operating losses since inception, has limited working capital, and its operating activities may require financing from outside institutions and/or related parties. The accompanying consolidated financial statements have been prepared assuming that the company will continue as a going concern. The Company will need outside financing to support its continued operations or may need to seek a merger with another company in order to survive.



NOTE 11 - SUBSEQUENT EVENTS


In accordance with ASC Topic 855-10, The Company has analyzed its operations subsequent to June 30, 2012 to the date these financial statements were issued, and has determined that it does not have material subsequent events to disclose in these financial statements.








13






ITEM 2. MANAGEMENTS’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Annual Report on Form 10-K as of and for the year ended September 30, 2011 as filed with the Securities and Exchange Commission.   Cautionary Statements Pursuant to Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995:


This report contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks, uncertainties and assumptions that, if they never materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements, including statements regarding overall trends, gross margin trends, operating cost trends, liquidity and capital needs and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts.  



RESULTS OF OPERATIONS

 

Overview


The Company is engaged in the purchase and recovery of defaulted consumer receivables. These receivables are acquired at deep discounts and outsourced for collections on a contingency basis. The Company is no longer acquiring any portfolios and is seeking to merge with or acquire another operating entity seeking to go public via reverse merger. There is no assurance that the company will succeed in such a merger or acquisition.


Revenue


The Company generated $35,821 in revenue and net profit of $14,668 during the quarter ended June 30, 2012 versus $11,318 in revenue and net loss of ($21,672) during the quarter ended June 30, 2011. For the nine months ended June 30, 2012, the Company had a net loss of ($3,307) on revenue of $67,223 versus a net loss of ($55,443) on revenue of $34,840 during the nine months ended June 30, 2011. The Company has not invested in new portfolios since September 2007 and is essentially in a run-off mode with respect to current receivables.   


Operating Expenses


During the quarter ended June 30, 2012, total operating expenses declined by approximately 58% or $28,933 to $21,164 from $50,097 during the quarter ended June 30, 2011. The Company expects to maintain the current level of expenses going forward.  


Rent and Occupancy


Rent and occupancy expenses were $6,000 during the quarter ended June 30, 2012.


Depreciation


The Company did not record any depreciation expense for the nine months ended June 30, 2012.



14






Recovery Partners


The Company outsources all its recovery activities to carefully selected debt collection agencies and network of collection attorneys with specific collection expertise. The Company is currently using six collection agencies in the U.S. and U.K.


Seasonality


Collections tend to be higher in the first and second quarters of the year and lower in the third and fourth quarter of the year, due to consumer payment patterns in connection with seasonal employment, income tax refunds and holiday spending habits.


Liquidity and Capital Resources


As of June 30, 2012, the Company had working capital of $134,237 versus $158,217 at the end of quarter ended June 30, 2011. The decline is in line with declining collections due to lack of new investments and declining collections from remaining portfolios. The Company believes that funds generated from operations, together with existing cash will be sufficient to finance its operations for the next twelve months. For the nine months ended June 30, 2012, the Company had net cash of $60,197 versus net cash of $114,553 at the end of nine months ended June 30, 2011. At the end of nine months ended June 30, 2012, net cash provided from operating activities was $4,661 versus net cash used in operating activities of ($13,833) during the nine months ended June 30, 2011. Net cash used in financing activities was ($122,782) at the end of nine months ended June 30, 2012 versus ($58,015) during the nine months ended June 30, 2011.  


Cash generated from operations is depended upon the Company’s ability to collect on its defaulted consumer receivables. Many factors, including the economy, purchase price and the Company’s ability to retain the services of its recovery partners, are essential to generate cash flows. Fluctuations in these factors that cause a negative impact on the Company’s business could have a material negative impact on its expected future cash flows.  


The Company believes that funds generated from operations, together with existing cash will be sufficient to finance its operations for the foreseeable future.


Income Taxes


The Company did not record any provision for taxes for the nine month ended June 30, 2012.  

 

Contractual Obligation


The Company is currently paying at $2,000 per month which includes broadband and telephone.  The lease expires on March 31, 2013.





15






Critical Accounting Policy & Estimates

 

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in this discussion and analysis and in the condensed consolidated financial statements included in this quarterly report.


The Company utilizes the interest method under guidance provided by the Financial Accounting Standards Board Accounting Standards Certification (“ASC”) 310-30 to determine income recognized on finance receivables

 

In October 2003, ASC 310-30, “Accounting for Loans or Certain Securities Acquired in a Transfer” was issued. This ASC proposes guidance on accounting for differences between contractual and expected cash flows from an investor’s initial investment in loans or debt securities acquired in a transfer if those differences are attributable, at least in part, to credit quality. This ASC is effective for loans acquired in fiscal years beginning after December 15, 2004. The ASC would limit the revenue that may be accrued to the excess of the estimate of expected future cash flows over a portfolio’s initial cost of accounts receivable acquired. The ASC would require that the excess of the contractual cash flows over expected cash flows not be recognized as an adjustment of revenue, expense, or on the balance sheet. The ASC would freeze the internal rate of return, referred to as IRR, originally estimated when the accounts receivable are purchased for subsequent impairment testing. Rather than lower the estimated IRR if the original collection estimates are not received, the carrying value of a portfolio would be written down to maintain the original IRR. Increases in expected future cash flows would be recognized prospectively through adjustment of the IRR over a portfolio’s remaining life. The ASC provides that previously issued annual financial statements would not need to be restated. Management is in the process of evaluating the application of this ASC. In accordance with ASC 310-30, the Company is currently is using the cost recovery method for revenue recognition for all its current portfolios.


OFF-BALANCE SHEET ARRANGEMENTS

 

The Company has no off-balance sheet arrangements.







16






RISK FACTORS


IN ADDITION TO OTHER INFORMATION IN THIS REPORT, YOU SHOULD CONSIDER THE FOLLOWING RISK FACTORS CAREFULLY.  THESE RISKS MAY IMPAIR THE COMPANY'S OPERATING RESULTS AND BUSINESS PROSPECTS AS WELL AS THE MARKET PRICE OF THE COMPANY'S COMMON STOCK.


PENNY STOCK REGULATIONS AND REQUIREMENTS FOR LOW PRICED STOCK


The SEC adopted regulations which generally define a "penny stock" to be any non-Nasdaq equity security that has a market price of less than $5.00 per share, subject to certain exceptions.  Based upon the price of the Common Stock as currently traded on the NASDAQ Bulletin Board, the Company's Common Stock is subject to Rule 15g-9 under the Exchange Act which imposes additional sales practice requirements on broker-dealers which sell securities to persons other than established customers and "accredited investors."  For transactions covered by this rule, a broker-dealer must make a special suitability determination for the purchaser and have received a purchaser's written consent to the transaction prior to sale.  Consequently, this rule may have a negative effect on the ability of stockholders to sell common shares of the Company in the secondary market.

The risks, uncertainties and assumptions may include the following:


§

Due to an inability to raise capital and a deep recession, the Company decided not to make new investments and has subsequently been in a run-off mode. The management is focused on merging with or acquiring another operating company that may be seeking to go public via reverse merger. There is no assurance that the management will succeed and as a result, shareholders may be adversely affected.


§

ability to acquire sufficient portfolios;


§

ability to recover sufficient amounts on acquired portfolios;


§

a decrease in collections if bankruptcy filings increase or if bankruptcy laws or other debt collection laws change;


§

changes in government regulations that affect the Companys ability to collect sufficient amounts on its acquired or serviced receivables;


§

the Companys ability to retain the services of recovery partners;


§

changes in the credit or capital markets, which affect the Companys ability to borrow money or raise capital to purchase or service defaulted consumer receivables;


§

the risk factors listed from time to time in the Companys filings with the Securities and Exchange Commission.







17






ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


The Registrant is not required to provide the information called for in this Item 3 due to its status as a Smaller Reporting Company.



ITEM 4T. CONTROLS AND PROCEDURES.


Evaluation of disclosure controls and procedures


The term “ disclosure controls and procedures “ is defined in Rules 13(a)-15e and 15(d) - 15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). Our principal executive officer and principal financial officer have evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2012. They have concluded that, as of June 30, 2012 that our disclosures were effective to ensure that:

 

(1)  

That information required to be disclosed by the Company in reports that it files or submits under the act is recorded, processed, summarized and reported, within the time periods specified in the Commissions’ rules and forms, and

(2)  

Controls and procedures are designed by the Company to ensure that information required to be disclosed by Receivable Acquisition & Management Corporation Inc. in the reports it files or submits under the Act is accumulated and communicated to the issuer’s management including the principal executive and principal financial officers or persons performing similar functions, as appropriate to allow timely decisions regarding financial disclosure.


This term refers to the controls and procedures of a Company that are designed to ensure that information required to be disclosed by a Company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the required time periods. Our principal executive officer and principal financial officer have evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report. They have concluded that, as of June 30, 2011 our disclosure and procedures were effective in ensuring that required information will be disclosed on a timely basis in our reports filed under the exchange act.



CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING


No changes in the Company’s internal control over financial reporting have come to management’s attention during the Company’s last fiscal quarter that have materially affected, or are likely to materially affect, the Company’s internal control over financial reporting.





 

18





PART II


OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS


The Company is not a party to any pending legal proceedings or a proceeding being contemplated by a governmental authority nor is any of the Company’s property the subject of any pending legal proceedings or a proceeding being contemplated by a governmental authority except for the following:


On July 28, 2011, the Company filed a complaint with the United States District Court, District of New Jersey against Philip Troy Christ and Airbak Technologies LLC for breach of contract, false representations, dual pledging of collateral and default of certain Promissory Notes issued under a Master Loan Agreement. The Company and an investor introduced by the Company had advanced $165,000 to Airbak and an investor introduced by the Company advanced $100,000 under a Secured Master Loan Agreement with the intent of concluding a merger. However, Mr. Philip Troy Christy individually and concurrently entered into merger negotiations with another company and Airbak failed to repay the Promissory Notes that became due. The Company is seeking an amount no less than $165,000 plus accrued interest, cost of litigation and other legal costs incurred while negotiating a merger with Airbak and an additional $100,000 plus accrued interest on behalf of the investor. The Company has received a certified judgment against Airbak and it intends to pursue against Airbak LLC and its members to the full extent of the law. The Company continues to work with Airbak to achieve a favorable outcome which cannot be determined at this point.


ITEM 2.  UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS


Not Applicable


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES


Not Applicable.


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


Not Applicable.

 

ITEM 5.  OTHER INFORMATION


Not Applicable


ITEM 6.  EXHIBITS


Exhibit

 

Number

Description

 

 

31.1

Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 

 

32.1

Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.





19






SIGNATURES


In accordance with the requirements of the Exchange Act, the Company has caused this report to be signed by the undersigned, thereunto duly authorized.



 

RECEIVABLE ACQUISITION & MANAGEMENT CORPORATION

 

 

 

 

Date:  Aug 7, 2012

 

 

By:  /s/ Max Khan

 

Max Khan

 

Chief Executive Officer

 

Chief Financial Officer

 

Director



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



 

/s/    Max Khan

 

By:  Max Khan

 

Chief Executive Officer,

 

Chief Financial Officer and Director

 

 

 

Date:  Aug 7, 2012

 

 




















20


PINX:RCVA Quarterly Report 10-Q Filling

PINX:RCVA Stock - Get Quarterly Report SEC Filing of PINX:RCVA stocks, including company profile, shares outstanding, strategy, business segments, operations, officers, consolidated financial statements, financial notes and ownership information.

Content Partners
PINX:RCVA Quarterly Report 10-Q Filing - 6/30/2012
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Title |  Date |  Author |  Collection |  Interest |  Popularity Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity

Previous: PINX:RCVA Quarterly Report 10-Q Filing - 3/31/2012  |  Next: PINX:RDGA Ridgefield Acquisition Corporation Quarterly Report 10-Q Filing - 3/31/2012