RecycleNet Corporation Financial

RECYCLENET CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the 12 months ended December 31st
	2006	2005
Cash Flows From Operating Activities
Net Income (loss)	$122,400	(58,613)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	9,651	5,761
Foreign currency net exchange (gain) loss	(1,680)	(3,788)
Issuance of common shares for marketing services	-	1,250
Changes in assets and liabilities:
Accounts and other receivables	7,347	(17,964)
Prepaid expenses	(5,615)	(5,267)
Accrued liabilities	6,779	34,055
Deferred revenue	30,801	5,025
Net Cash Provided By (Used In) Operating Activities	169,683	(39,541)
Cash Flows From Investing Activities:
Advances to related party	(110,957)	-
Advances to affiliates	(5,000)	-
Collection of advances to related party	-	4,573
Purchase of property and equipment	(25,339)	(5,004)
Net Cash Provided By (Used In) Investing Activities	(141,296)	(431)
Cash Flows from Financing Activities:
Contribution from spin off of Scrap China	58,624	-
Net Cash Provided By (Used In) Financing Activities:	58,624	-
Effect of Exchange Rate Changes on Cash	1,314	(7,293)
Net Change in Cash	88,325	(47,265)
Cash at Beginning of Period	226,979	274,244
Cash at End of Period	315,304	226,979

File No.: 741