The Company experienced rapid growth since its inception. Our four (4) year average Internal Rate of Return is Sixty-Six (66%) Percent. Since its inception, ARM has invested approximately $900,000.00 in portfolio acquisitions.

Debt is purchased for pennies on the dollar which, based upon realistic and historic collection rates, affords ARM the opportunity to obtain an excellent return on its distressed debt investment. Through April, 2005, the Company owned and managed eighteen (18) portfolios that comprised approximately 11,200 accounts. ARM's working inventory had a retail face value of approximately Twenty-Eight Million ($28,000,000.00) Dollars. This amount excludes all accounts that have been paid off, discharged in bankruptcy, uncollected due to fraud, repurchased or closed.

ARM needs new funding to position itself to buy larger portfolios directly from credit grantors. We categorize the purchased debt as inventory and account for it as cost of goods sold. Inventory costs are affected by a number of factors including portfolio size, age, geographic scope, and documentation. Purchasing directly from the financial institutions and buying national portfolios will reduce inventory costs. Additional cost savings may be achieved if we commit to a monthly forward flow agreement. The debt portfolios offered to ARM have ranged in size from a face value of $50,000.00 to $100,000,000.00.

In 2000, Mr. Bovarnick raised the start-up capital ($175,000.00) by granting a second mortgage on his personal residence. Today, the Company's capital requirements are Ten Million ($10,000,000.00) Dollars. Approximately $9,500,000.00 will be used to purchase national portfolios of charged-off consumer debt. The remaining approximate amount of $500,000.00 will be used to pay operating, administrative and interest expenses, salaries, commissions, and litigation expenses.

Each investor has three (3) options from which to choose when classifying the nature of the investment. One, the investor elects to be treated as a lender and will be repaid with payments comprising of principal and interest. Interest will paid at the rate of twelve (12%) percent per annum until the principal is repaid. Two, the investor chooses to take an equity position. The investor will receive a fifty (50%) percent membership interest in a special purpose vehicle ("SPV"), created specifically for this round of funding. This will entitle the investor to 50% of the SPV's net income generated from the purchased portfolio(s). Three, the investor chooses a hybrid investment approach. The SPV will pay a preferred rate of return of six (6%) percent per annum for twelve (12) months. In addition, the investor will receive a thirty (30%) membership interest in the SPV. The investor will receive thirty (30%) percent of the SPV's net income in addition to the preferred return.

Depending upon market variables, the Company will need approximately 6 months to absorb the capital set aside for purchasing debt. ARM will hire an additional employee within a few months after funding. At this time, our desire is to hire an experienced attorney or a full-time collector. The new employee will learn our collection and litigation strategy, which will enable him/her to handle a number of ARM's cases. We will continue to outsource more of the collection work to collection agencies as we purchase more accounts. Outsourcing collection work maximizes net recoveries and minimizes internal operating costs.