SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2010

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from __________ to __________

COMMISSION FILE NUMBER: 0-27615

FIRST TRANSACTION MANAGEMENT, INC.

(Exact Name of Small Business Issuer as Specified in its Charter)

DELAWARE		000-27615		52-2158936
(State or Other Jurisdiction Incorporation or Organization)		(Commission File Number)		(IRS Employer Identification No.)

c/o Castle Bison, Inc.

31200 ViaColinas, Suite 200

Westlake Village, CA

Attn: Raul Silvestre, Esq.

(Address of principal executive offices)

(Registrant's telephone number, including area code) (818) 597-7552

(Former Name or Former Address, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed 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 Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T 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 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 ¨		Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES x NO ¨

Indicate the number of shares outstanding of each of the issuer’s classes of common equity as of the latest practicable date: As of October 31, 2010 the issuer had 1,515,920 shares of common stock, par value $.01 per share, outstanding.

FIRST TRANSACTION MANAGEMENT, INC.

FORM 10-Q

For the quarterly period ended September 30, 2010

INDEX

		Page

PART I	FINANCIAL INFORMATION

Item 1	Condensed Balance Sheets at December 31, 2009 and September 30, 2010 (unaudited at September 30, 2010)		4

	Condensed Statements of Operations for the three and nine months ended September 30, 2010 and 2009 and for the period March 25, 1999 (inception) to September 30, 2010 (unaudited)		5

	Condensed Statement of Changes in Stockholders’ Equity for the period from March 25, 1999 (inception) to September 30, 2010 (unaudited)		6

	Condensed Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 and for the period March 25, 1999 (inception) to September 30, 2010 (unaudited)		7

	Notes to Condensed Financial Statements (unaudited)		8

Item 2	Management’s Discussion and Analysis or Plan of Operation		10

Item 3	Quantitative and Qualitative Disclosures About Market Risk		14

Item 4	Controls and Procedures		14

PART II	Other Information		15

Item 1	Legal Proceedings		15

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds		15

Item 3	Defaults Upon Senior Securities		15

Item 4	(Removed and Reserved)		15

Item 5	Other Information		15

Item 6	Exhibits		15

Signatures			15

ADVISEMENT

Unless the context requires otherwise , “First Transaction” , “the company”, “we”, “us”, “our” and similar terms refer to First Transaction Management, Inc. Our common stock, par value $.01 per share is commonly referred to in this quarterly report as our “common shares” or “common stock .” The information in this quarterly report is current as of the date of this quarterly report (September 30, 2010), unless another date is specified.

We prepare our interim financial statements in accordance with United States generally accepted accounting principles. Our financial condition and results of operations for the nine-month interim period ended September 30, 2010 are not necessarily indicative of our prospective financial condition and results of operations for the pending full fiscal year ended December 31, 2010. The interim financial statements presented in this quarterly report as well as other information relating to our company contained in this quarterly report should be read in conjunction and together with any reports, statements and information filed with the SEC.

FORWARD LOOKING STATEMENTS

In this quarterly report we make a number of statements, referred to as “forward-looking statements”, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), which are intended to convey our expectations or predictions regarding the occurrence of possible future events or the existence of trends and factors that may impact our future plans and operating results. These forward-looking statements are derived, in part, from various assumptions and analyses we have made in the context of our current business plan and information currently available to use and in light of our experience and perceptions of historical trends, current conditions and expected future developments and other factors we believe are appropriate in the circumstances. You can generally identify forward looking statements through words and phrases such as “believe”, “expect”, “seek”, “estimate”, “anticipate”, “intend”, “plan”, “budget”, “project”, “may likely result”, “may be”, “may continue” and other similar expressions.

Each forward-looking statement should be read in context with and in understanding of the various other disclosures concerning our company and our business made elsewhere in this report as well as our public filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statement as a prediction of actual results or developments. We are not obligated to update or revise any forward-looking statements contained in this report or any other filing to reflect new events or circumstances unless and to the extent required by applicable law.

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FIRST TRANSACTION MANAGEMENT, INC.

(A Development Stage Company)

CONDENSED BALANCE SHEETS

	September 30,			December 31,
	2010			2009
	(Unaudited)
Assets

Current assets:
Cash	$	9,857		$	14,185

Total assets	$	9,857		$	14,185

Liabilities and deficiency in stockholders' equity

Current liabilities:

Accounts payable and accrued expenses	$	123,325		$	84,752
Accrued interest - stockholder		1,460			459
Advance payable		3,600			-
Note payable - stockholder		25,000			-

Total current liabilities		153,385			85,211

Note payable - stockholder		10,000			25,000

Total liabilities		163,385			110,211

Deficiency in stockholders' equity:

Preferred stock, par value $.01 per share; 25,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, par value $.01 per share; 125,000,000 shares authorized, 1,515,920 shares issued and outstanding, respectively		15,159			15,159
Additional paid-in capital		2,479,961			2,479,961
Deficit accumulated during the development stage		(2,648,648	)		(2,591,146	)

Total deficiency in stockholders' equity		(153,528	)		(96,026	)

Total liabilities and deficiency in stockholders' equity	$	9,857		$	14,185

The accompanying notes are an integral part of these unaudited condensed financial statements.

FIRST TRANSACTION MANAGEMENT, INC.

(A Development Stage Company)

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

													For the Period
													March 25, 1999
													(Inception) to
	Three Months ended September 30,						Nine Months ended September 30,						September 30,
	2010			2009			2010			2009			2010

Fees - consulting	$	-		$	-		$	-		$	-		$	534,634

Operating expenses		18,185			20,180			56,501			58,380			1,691,752
Depreciation and amortization		-			-			-			-			277,177
Write-off of intangibles		-			-			-			-			776,065

Total expense		18,185			20,180			56,501			58,380			2,744,994

Loss from operations before other income and interest expense		(18,185	)		(20,180	)		(56,501	)		(58,380	)		(2,210,360	)

Gain on distribution of shares		-			-			-			-			1,750
Other income		-			-			-			-			5,879
Interest expense, net		(381	)		(144	)		(1,001	)		(144	)		(445,917	)

Loss before income taxes		(18,566	)		(20,324	)		(57,502	)		(58,524	)		(2,648,648	)

Provision for income taxes		-			-			-			-			-

Net loss	$	(18,566	)	$	(20,324	)		(57,502	)	$	(58,524	)		(2,648,648	)

Net loss per basic and diluted share	$	(0.01	)	$	(0.01	)	$	(0.04	)	$	(0.04	)

Weighted average shares outstanding, basic and diluted		1,515,920			1,515,920			1,515,920			1,515,920

The accompanying notes are an integral part of these unaudited condensed financial statements.

FIRST TRANSACTION MANAGEMENT, INC.

(A Development Stage Company)

CONDENSED STATEMENT OF DEFICIENCY IN STOCKHOLDERS' EQUITY

MARCH 25, 1999 (INCEPTION) to SEPTEMBER 30, 2010

								Deficit
								Accumulated
						Additional		During the
		Common Stock				Paid-in		Development			Stockholders'
		Shares		Amount		Capital		Stage			Deficiency

Common stock sold for cash	March 25, 1999		1	$	-	$	50,000	$	-		$	50,000

Intangible assets contributed in spin-off transaction	June 30, 1999		-		-		165,652		-			165,652

Common stock sold for cash	September 27, 1999		76,410		764		299,236		-			300,000

Common stock sold for cash	October 4, 1999		19,200		192		19,008		-			19,200

Net loss			-		-		-		(33,139	)		(33,139	)

Balance, December 31, 1999			95,611		956		533,896		(33,139	)		501,713

Common stock sold for cash	December 4, 2000		18,750		188		374,812		-			375,000

Net loss			-		-		-		(1,211,910	)		(1,211,910	)

Balance, December 31, 2000			114,361		1,144		908,708		(1,245,049	)		(335,197	)

Common stock issued for services	June 11, 2001		2,500		25		15,975		-			16,000

Common stock issued for services	December 31, 2001		4,250		42		27,158		-			27,200

Common stock issued for debt	December 31, 2001		234,444		2,344		372,656		-			375,000

Net loss			-		-		-		(262,970	)		(262,970	)

Balance, December 31, 2001			355,555		3,555		1,324,497		(1,508,019	)		(179,967	)

Common stock issued for services	March 31, 2002		4,950		50		31,630		-			31,680

Common stock issued for services	June 30, 2002		2,500		25		15,975		-			16,000

Net loss			-		-		-		(533,871	)		(533,871	)

Balance, December 31, 2002			363,005		3,630		1,372,102		(2,041,890	)		(666,158	)

Net loss			-		-		-		(121,281	)		(121,281	)

Balance, December 31, 2003			363,005		3,630		1,372,102		(2,163,171	)		(787,439	)

Net loss			-		-		-		(127,030	)		(127,030	)

Balance, December 31, 2004			363,005		3,630		1,372,102		(2,290,201	)		(914,469	)

Net income			-		-		-		28,686			28,686

Balance, December 31, 2005			363,005		3,630		1,372,102		(2,261,515	)		(885,783	)

Net loss			-		-		-		(91,829	)		(91,829	)

Balance, December 31, 2006			363,005		3,630		1,372,102		(2,353,344	)		(977,612	)

Net income			-		-		-		28,115			28,115

Balance, December 31, 2007			363,005		3,630		1,372,102		(2,325,229	)		(949,497	)

Common stock issued for services	April 21, 2008		36,250		362		17,763		-			18,125

Common stock issued upon conversion of debt and accrued interest	August 14,2008		656,665		6,567		1,044,096		-			1,050,663

Common stock sold for cash	October 20, 2008		450,000		4,500		45,000		-			49,500

Common stock issued for services	October 20, 2008		10,000		100		1,000		-			1,100

Net loss			-		-		-		(180,229	)		(180,229	)

Balance, December 31, 2008			1,515,920		15,159		2,479,961		(2,505,458	)		(10,338	)

Net loss			-		-		-		(85,688	)		(85,688	)

Balance, December 31, 2009			1,515,920		15,159		2,479,961		(2,591,146	)		(96,026	)

Net loss (Unaudited)			-		-		-		(57,502	)		(57,502	)

Balance, September 30, 2010 (Unaudited)			1,515,920	$	15,159	$	2,479,961	$	(2,648,648	)	$	(153,528	)

The accompanying notes are an integral part of these unaudited condensed financial statements.

FIRST TRANSACTION MANAGEMENT, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

							For the Period
							March 25, 1999
							(Inception) to
	Nine Months ended September 30,						September 30,
	2010			2009			2010

Cash flows from operating activities:
Net loss	$	(57,502	)	$	(58,524	)	$	(2,648,648	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		-			-			424,160
Stock based compensation		-			-			66,905
Gain on reduction of stockholder loan		-			-			(1,750	)
Write off of intangibles		-			-			645,631
Change in operating assets and liabilities
Accounts payable and accrued expenses		38,573			36,506			123,325
Accrued interest		1,001			-			280,332

Net cash used in operating activities		(17,928	)		(22,018	)		(1,110,045	)

Cash flows from investing activities:
Purchase of intangible assets and equipment		-			-			(904,139	)

Net cash used by investing activities		-			-			(904,139	)

Cash flows from financing activities:
Debt conversion to equity		-			-			(34,264	)
Proceed from the sale of common stock		-			-			841,925
Advance payable		3,600						3,600
Proceeds from stockholder note		10,000			25,000			1,212,780

Net cash provided by financing activities		13,600			25,000			2,024,041

Net increase (decrease) in cash		(4,328	)		2,982			9,857
Cash, beginning of period		14,185			17,144			-
Cash, end of period	$	9,857		$	20,126		$	9,857

Supplemental cash flow information:

Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

The accompanying notes are an intrgral part of these unaudited condensed financial statements.

FIRST TRANSACTION MANAGEMENT, INC.

(A Development Stage Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2010

(UNAUDITED)

NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

First Transaction Management, Inc. ( “we”, “us”, “our company”, “our”, “First Transaction” or the “ the Company” ) was incorporated in the State of Delaware on March 25, 1999 as Creative Products International, Inc. The Company was a subsidiary of another corporation until December 23, 1999, when it was spun-off. In 2002, we changed our name to First Transaction Management, Inc. to more directly reflect our business interests in web based promotion and transaction processing management services. Effective December 31, 2004, we discontinued our efforts in those areas and are currently seeking new economic opportunities, including a merger transaction.

We are a development stage entity, as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915.

We are pursuing an acquisition strategy whereby we will seek to acquire businesses with a history of operating revenues in markets that provide room for growth. We are engaged in identifying, investigating and, if warranted, acquiring companies that will enhance revenues and increase shareholder value. In the event that our limited financial resources prove to be insufficient to implement our acquisition strategy, we will be required to seek additional financing, through either equity or debt financing.

Basis of Presentation

The accompanying unaudited condensed financial statements as of September 30, 2010 and for the three and nine month periods ended September 30, 2010 and 2009 have been prepared by First Transaction Management, Inc. pursuant to the rules and regulations of the Securities and Exchange Commission, including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. The company believes that the disclosures provided are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the audited financial statements and explanatory notes for the year ended December 31, 2009 as disclosed in the company's 10-K for that year as filed with the SEC, as it may be amended.

The results of the nine months ended September 30, 2010 are not necessarily indicative of the results to be expected for the pending full year ending December 31, 2010.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Although these estimates are based on management's best knowledge of current events and actions the Company may undertake in the future, actual results may differ from those estimates.

Going Concern

The financial statements have been prepared on a going concern basis, and do not reflect any adjustments related to the uncertainty surrounding our recurring losses or accumulated deficit

We currently have no revenue source and are incurring losses. These factors raise substantial doubt about our ability to continue as a going concern.

We will pursue an acquisition strategy whereby we will seek to acquire businesses with a history of operating revenues in markets that provide room for growth. We are engaged in identifying, investigating and, if warranted, acquiring companies that will enhance revenues and increase shareholder value. In the event that our limited financial resources prove to be insufficient to implement our acquisition strategy, we will be required to seek additional financing, through either equity or debt financing.

Loss Per Share

We use ASC 260, “Earnings Per Share” for calculating the basic and diluted loss per share. We compute basic loss per share by dividing net loss and net loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. Common equivalent shares are excluded from the computation of net loss per share if their effect is anti-dilutive. There were 13,750 common share equivalents at September 30, 2010 and 2009. These potential shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would reduce net loss per share or increase net income per share.

Fair value of financial instruments

Our short-term financial instruments, including cash, accounts payable and note payable, consist primarily of instruments without extended maturities, the fair value of which, based on management’s estimates, reasonably approximate their book value. The fair value of our long term note is based on management estimates and reasonably approximates its book value after comparison to obligations with similar interest rates and maturities.

Recent Accounting Pronouncements

Recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company's present or future financial statements.

NOTE 2 - CAPITAL STOCK AND STOCKHOLDER’S EQUITY

We are authorized to issue 125,000,000 shares of common stock with a par value of $.01 per share and 25,000,000 shares of preferred stock with a par value of $.01 per share.

NOTE 3 – NOTE PAYABLE – STOCKHOLDER

On August 13, 2010 we executed a $10,000 promissory note with a stockholder. The note bears interest at 5% per year and matures on August 13, 2012. Interest is payable at maturity.

Item 2. Management's Discussion and Analysis or Plan of Operation

Overview

First Transaction Management, Inc. (the “Company”), a development stage company, was incorporated in the State of Delaware on March 25, 1999 to develop certain consumer products and web based promotion and transaction processing management services. Effective December 31, 2004, we discontinued our business efforts related to web based promotion management services and are currently seeking new economic opportunities, including a merger transaction. From 2002 to 2007, we generated ancillary revenues from general business consulting services to support its nominal operations. We currently have no revenue generating activities.

On August 1, 2008 we effected a 1 for 20 reverse split of our common stock. All share and per share amounts have been retroactively adjusted to reflect this reverse split.

On August 14, 2008, one of our shareholders (the “Seller”) sold 262,798 previously issued and outstanding post-split shares of our common stock, comprising approximately 65.82% of our post-split issued and outstanding capital stock, and a Secured Promissory Note (the “Note”) payable to the Seller that was convertible into 656,665 post-split shares of our common stock, for the aggregate purchase price of $600,000 (for the outstanding shares and the Note). The Note and related accrued interest was converted into 656,665 shares of common stock during August 2008. As a result of the sale, our officers and board of directors resigned and our current officer and director was appointed.

We are pursuing an acquisition strategy, whereby we will seek to acquire undervalued businesses in markets that provide room for growth ("Acquisition Strategy"). We will engage in identifying, investigating and, if warranted, acquiring companies that will enhance our revenues and increase shareholder value.

Our Acquisition Strategy is focused on pursuing a strategy of growth by acquiring undervalued businesses. We will utilize several criteria to evaluate prospective acquisitions including whether the business to be acquired (1) is an established business with viable services or products, (2) has an experienced and qualified management team, (3) has room for growth and/or expansion into other markets, (4) offers the opportunity to achieve and/or enhance profitability, and (5) increases shareholder value.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and notes thereto and other financial information included elsewhere in this report.

Critical Accounting Policies

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities. We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a number of significant accounting policies affecting our financial statements; we believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments:

Use of Estimates - These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and, accordingly, require 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 amounts of revenues and expenses during the reporting period. Specifically, our management has estimated the value of our shares issued for compensation and our net operating loss for tax purposes. Actual results could differ from those estimates.

Going Concern - The financial statements have been prepared on a going concern basis, and do not reflect any adjustments related to the uncertainty surrounding our recurring losses or accumulated deficit

We are currently in the process of implementing our new business plan, focusing on our acquisition strategy. At present, we have sufficient capital on hand to fund our operations only through March of 2011. There can be no assurance that upon implementing our new business plan, we will be successful or that we will start producing sufficient revenues to maintain our operations. The foregoing matters raise substantial doubt about our ability to continue as a going concern.

Results of Operations

Comparison of the Three Month Period Ended September 30, 2010 to the Three Month Period Ended September 30, 2009

We had no revenue in the quarters ended September 30, 2010 or 2009. Operating expenses decreased from $20,180 in 2009 to $18,185 in 2010, a decrease of $1,995, or 10%. The decrease results from a decrease in administrative expenses. The primary components of our current operating expenses are compensation and professional fees.

Interest expense was $381 in 2010 and $144 in 2009. The increase results from a loan received from a stockholder during the third quarter of 2010.

As our current focus is on our Acquisition Strategy, we do not believe that quarter to quarter and year to year comparisons of our historical results of operations are meaningful in predicting our future financial performance. We currently have no revenue generating activities. Accordingly, it is anticipated that our results of operations will fluctuate from quarter to quarter and from fiscal year to fiscal year.

Comparison of the Nine Month Period Ended September 30, 2010 to the Nine Month Period Ended September 30, 2009

We had no revenue in the nine month periods ended September 30, 2010 or 2009. Operating expenses decreased from $58,380 in 2009 to $56,501 in 2010, a decrease of $1,879, or 3%. The decrease results from a decrease in administrative expenses. The primary components of our current operating expenses are compensation and professional fees.

Interest expense was $1,001 in 2010 and $144 in 2009. The increase results from loans received from a stockholder during each of the third quarters of 2010 and 2009.

As our focus is on our Acquisition Strategy, we do not believe that quarter to quarter and year to year comparisons of our historical results of operations are meaningful in predicting our future financial performance. We currently have no revenue generating activities. Accordingly, it is anticipated that our results of operations will fluctuate from quarter to quarter and from fiscal year to fiscal year.

Plan of Operation

We are pursuing an Acquisition Strategy, whereby we will seek to acquire undervalued businesses in markets that provide room for growth. We will primarily engage in identifying, investigating and, if investigation warrants, acquiring companies that will increase shareholder value. Our Acquisition Strategy is focused on pursuing a strategy of growth by acquiring undervalued businesses with a history of operating revenues. We will utilize several criteria to evaluate prospective acquisitions including whether the business to be acquired (1) is an established business with viable services or products, (2) has an experienced and qualified management team, (3) has room for growth and/or expansion into other markets, (4) offers the opportunity to achieve and/or enhance profitability, and (5) increases shareholder value.

Liquidity and Capital Resources

As of September 30, 2010 we had a working capital deficit of $143,528. On October 21, 2008, we entered into a Stock Subscription Agreement (“the Agreement”) with three accredited and non-affiliated investors (the “Investors”). Pursuant to the Agreement, the Investors purchased an aggregate of 450,000 shares of common stock for $49,500. On August 19, 2009 we executed a promissory note with a stockholder in the amount of $25,000. The note bears interest at 5% per year and matures on August 19, 2011. On August 13, 2010 we executed a second promissory note with a stockholder in the amount of $10,000. The note bears interest at 5% per year and matures on August 13, 2012. Our cash on hand on at October 31, 2010 of approximately $9,800 is sufficient to satisfy our immediate financial needs or provide us with sufficient capital to maintain our business and to finance acquisitions through March of 2011. Ultimately management anticipates needing to need to raise additional funds in order to continue operating. There can be no assurances that we will be able to obtain additional funds if and when needed.

Additionally, as we are considered a “shell” or “blank check” company, purchasers of our securities cannot currently rely on Rule 144 promulgated under the Securities Act with regard to the resale of their shares. Accordingly, any financing in the form of equity may be deeply discounted to compensate the investors for the added risk and inability to rely on Rule 144.

Recent Accounting Pronouncements

UNCERTAINTIES AND OTHER RISK FACTORS THAT

MAY AFFECT OUR FUTURE RESULTS AND FINANCIAL CONDITION

We have described below a number of uncertainties and risks which, in addition to uncertainties and risks presented elsewhere in this Quarterly Report, may adversely affect our business, operating results and financial condition. The uncertainties and risks enumerated below as well as those presented elsewhere in this Quarterly Report should be considered carefully in evaluating our company and our business and the value of our securities. The following important factors, among others, could cause our actual business, financial condition and future results to differ materially from those contained in forward-looking statements made in this Quarterly Report or presented elsewhere by management from time to time.

Our limited resources may not be sufficient for us to implement our Acquisition Strategy.

We have limited resources. We are pursuing an acquisition strategy, whereby we will seek to acquire undervalued businesses. The implementation of our strategy is highly dependent on retaining professionals such as lawyers, accountants and investment bankers to consummate any proposed transaction. As a result of our limited resources, we may not have sufficient capital to retain such professionals and as a result, may not be able to successfully implement our strategy.

We May Not be Able to Continue as Going Concern

Based on our limited operations, lack of revenue and relatively minimal assets there can be no assurance that we will be able to continue as a going concern or complete a merger, acquisition or other business combination.

We Will Need Additional Financing in Order to Execute Our Business Plan and it may be Extremely Expensive

We are entirely dependent upon our limited available financial resources to implement our acquisition strategy. We cannot ascertain with any degree of certainty the capital requirements for the successful execution of our acquisition strategy. In the event that our limited financial resources prove to be insufficient to implement our acquisition strategy, we will be required to seek additional financing. Also, in the event of the consummation of an acquisition, we may require additional financing to fund the operations or growth of the target. Additionally, as we are considered a “shell” or “blank check” company, purchasers of our securities cannot currently rely on Rule 144 promulgated under the Securities Act with regard to the resale of their shares. Accordingly, any financing in the form of equity may be deeply discounted to compensate the investors for the added risk and inability to rely on Rule 144. Depending on such discount, our current shareholders may be substantially diluted.

Additional Financing May Not Be Available to Us

There can be no assurance that additional financing will be available on acceptable terms, or at all. To the extent that additional financing proves to be unavailable when needed, we would, in all likelihood, be compelled to abandon plans of further acquisitions, and would have minimal capital remaining to pursue other targets. Our inability to secure additional financing, if needed, could also have a material adverse effect on our continued development or growth. We have no arrangements with any bank or financial institution to secure additional financing and there can be no assurance that any such arrangement, if required or otherwise sought, would be available on terms deemed to be commercially acceptable to us and in our best interests.

Competition for Acquisitions

We expect to encounter intense competition from other entities having business objectives similar to ours. Many of these entities, including venture capital firms, partnerships and corporations, blind pool companies, large industrial and financial institutions, small business investment companies and wealthy individuals, are well-established and have extensive experience in connection with identifying and effecting acquisitions directly or through affiliates. Many of these competitors possess greater financial, technical, human and other resources than us and there can be no assurance that we will have the ability to compete successfully. Our financial resources will be limited in comparison to those of many of our competitors. This inherent competitive limitation may compel us to select certain less attractive acquisition prospects. There can be no assurance that such prospects will permit us to achieve our stated business objectives.

We May Be Subject to Uncertainty in the Competitive Environment of a Target

In the event that we succeed in completing an acquisition, we will, in all likelihood, become subject to intense competition from competitors of the target. In particular, certain industries which experience rapid growth frequently attract an increasingly large number of competitors, including competitors with greater financial, marketing, technical, human and other resources than the initial competitors in the industry. The degree of competition characterizing the industry of any prospective target cannot presently be ascertained. There can be no assurance that, subsequent to a consummation of an acquisition, we will have the resources to compete effectively in the industry of the target, especially to the extent that the target is in a high growth industry.

We May Pursue an Acquisition with a Target Operating Outside the United States Which will Entail the Additional Risks Relating to Doing Business in a Foreign Country

We may effectuate an acquisition with a target whose business operations or even headquarters, place of formation or primary place of business are located outside the United States. In such event, we may face the significant additional risks associated with doing business in that country. In addition to the language barriers, different presentations of financial information, different business practices, and other cultural differences and barriers that may make it difficult to evaluate such a target, ongoing business risks may result from the internal political situation, uncertain legal systems and applications of law, prejudice against foreigners, corrupt practices, uncertain economic policies and potential political and economic instability that may be exacerbated in various foreign countries.

Lawrence Chimerine, our CEO, is Critical to Our Future Success

Our ability to successfully carry out our business plan and to consummate additional acquisitions will be dependent upon the efforts of Mr. Chimerine. Notwithstanding the significance of Mr. Chimerine, we have not obtained any "key man" life insurance on his life. The loss of the services of Mr. Chimerine would have a material adverse effect on our ability to successfully achieve our business objectives. If additional personnel are required, there can be no assurance that we will be able to retain such necessary additional personnel.

The Uncertain Structure of an Acquisition May Result in Risks Relating to the Market for Our Common Stock

We may form one or more subsidiary entities to effect an acquisition and may, under certain circumstances, distribute the securities of subsidiaries to our stockholders. There can be no assurance that a market would develop for the securities of any subsidiary distributed to stockholders or, if a market were to develop, no assurances as to the prices at which such securities might trade.

We Expect to Pay No Cash Dividends

We do not expect to pay dividends to the holders of common stock. Accordingly, any return on a stockholders’ investment will require the appreciation of our common shares. There can be no assurance that the value of our common shares will increase.

Indemnification of Officers and Directors

Our Certificate of Incorporation provides for the indemnification of our officers and directors to the fullest extent permitted by the laws of the State of Delaware. It is possible that the indemnification obligations imposed under these provisions could result in a charge against our earnings, if any, and thereby affect the availability of funds for other uses.

Taxation Considerations May Impact the Structure of an Acquisition and Post-merger Liabilities

Federal and state tax consequences will, in all likelihood, be major considerations for us in consummating an acquisition. The structure of an acquisition or the distribution of securities to stockholders may result in taxation of us, the target or stockholders. Typically, these transactions may be structured to result in tax-free treatment to both companies, pursuant to various federal and state tax provisions. We intend to structure any acquisition so as to minimize the federal and state tax consequences to both the us and the target. Management cannot assure that an acquisition will meet the statutory requirements for a tax-free reorganization, or that the parties will obtain the intended tax-free treatment upon a transfer of stock or assets. A non-qualifying reorganization could result in the imposition of both federal and state taxes, which may have an adverse effect on both parties to the transaction.

We May Be Deemed an Investment Company and Subjected to Related Restrictions

The regulatory scope of the Investment Company Act of 1940, as amended (the "Investment Company Act"), which was enacted principally for the purpose of regulating vehicles for pooled investments in securities, extends generally to companies engaged primarily in the business of investing, reinvesting, owning, holding or trading in securities. The Investment Company Act may, however, also be deemed to be applicable to a company which does not intend to be characterized as an investment company but which, nevertheless, engages in activities which may be deemed to be within the definitional scope of certain provisions of the Investment Company Act. We believe that our anticipated principal activities, which will involve acquiring control of an operating company, will not subject us to regulation under the Investment Company Act. Nevertheless, there can be no assurance that at some future point we will not be deemed to be an investment company. If we are deemed to be an investment company, we may become subject to certain restrictions relating to our activities, including restrictions on the nature of our investments and the issuance of securities. In addition, the Investment Company Act imposes certain requirements on companies deemed to be within its regulatory scope, including registration as an investment company, adoption of a specific form of corporate structure and compliance with certain burdensome reporting, record keeping, voting, proxy, disclosure and other rules and regulations. In the event of the characterization of us as an investment company, our inability to satisfy such regulatory requirements, whether on a timely basis or at all, would, under certain circumstances, have a material adverse effect on us.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item.

Item 4. Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to be effective in providing reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission (the “ SEC”), and that such information is accumulated and communicated to our management to allow timely decisions regarding required disclosure.

In designing and evaluating disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute assurance of achieving the desired objectives. Also, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. The design of any system of controls is based, in part, upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Evaluation of Disclosure Controls and Procedures

Based on management’s evaluation (with the participation of our CEO and Chief Financial Officer (Principal Accounting Officer)), as of the end of the period covered by this report, our CEO and Principal Accounting Officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), are effective as of the end of the period covered by this report to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including the CEO and Principal Accounting Officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

None

Item 2. Unregistered Sales of Equity Securities

None

Item 3. Defaults Upon Senior Securities

None

Item 4. (Removed and Reserved)

None

Item 5. Other Information

None

Item 6. Exhibits

31.1 Certification of the Chief Executive and the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Certification of the Chief Executive and the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 Certification of the Chief Executive and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350

32.2 Certification of the Chief Executive and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350

SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, duly authorized.

FIRST TRANSACTION MANAGEMENT, INC.

By:	/s/ Lawrence Chimerine
	Lawrence Chimerine, Chief Executive Officer and Principal
	Accounting Officer and Director

Dated: November 15, 2010

FIRST TRANSACTION MANAGEMENT INC 10-Q