| Delaware                             | 13-4070586           |
|--------------------------------------|----------------------|
| (State or Other Jurisdiction of      | (I.R.S. Employer ID) |
|  Incorporation or Organization) | Identification No.)  |

|                                             |                              |
|--------------------------------------------------|-----------------------------------|
| Large accelerated filer [  ]                |  Accelerated filer [  ] |
| Non-accelerated filer   [  ] | Smaller reporting company [X]     |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Table of Contents                                                                                                                                                                                                                                                                                                                                                                                                                                                  |     |
|                                                                             | Page     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 1 Description of Business                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 2 Description of Property                                                                                                                                                                                                                                                                                                                                                                                                                                     | 5        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 3 Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                           | 5        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 4 Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                         | 5        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Part II                                                                                                                                                                                                                                                                                                                                                                                                                                                            |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 5 Market for Common Equity and Related Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                    | 6        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 6 Management Discussion and Analysis of Plan of Operations                                                                                                                                                                                                                                                                                                                                                                                                    | 7        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 7 Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                            | F-1      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 8a Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                    | 9        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 8b Other Info                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 10       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Part III                                                                                                                                                                                                                                                                                                                                                                                                                                                           |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 9   Directors, Executive Officers, Promoters and Control Persons Compliance with Section 16(a) of the Exchange Act                                                                                                                                                                                                                                                                                                                             | 10  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 10  Executive Compensation                                                                                                                                                                                                                                                                                                                                                                                                                          | 11       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 11  Security Ownership of Certain Beneficial Owners and Management, and Related Matters                                                                                                                                                                                                                                                                                                                                                             | 12  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 12  Certain Relationships and Related Transactions                                                                                                                                                                                                                                                                                                                                                                                                  | 12       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 13  Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                        | 13       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item 14  Accounting Fees and Services                                                                                                                                                                                                                                                                                                                                                                                                                    | 13       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |

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|                                                                                                                     |   |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                      | High   | Low    |
|                                                                                                                     |   |   |
| 2010                                                                                                                     |   |   |
| Dec. 31, 2010                                                                                                            | $0.21  | $0.05  |
| Sept. 30, 2010                                                                                                           | 0.12   | 0.04   |
| Jun, 30, 2010                                                                                                            | 0.17   | 0.02   |
| Mar. 31, 2010                                                                                                            | 0.12   | 0.02   |
|                                                                                                                     |   |   |
| 2009                                                                                                                     |   |   |
| Dec. 31, 2009                                                                                                            | $0.18  | $0.04  |
| Sept. 30, 2009                                                                                                           | 0.19   | 0.07   |
| June 30, 2009                                                                                                            | 0.19   | 0.08   |
| Mar. 31, 2009                                                                                                            | 0.32   | 0.07   |
|                                                                                                                     |   |   |

----

|                                   | EQUITY COMPENSATION PLAN INFORMATION  |
|----------------------------------------|--------------------------------------------|
|                                   | (a)                                   | (b)  | (c)  |
|                                   |                                       |   | Number of Securities  |
|                                   | Number of Securities                  | Weighted Average  | Remaining Available  |
|                                   | to Be Issued upon                     | Exercise Price of  | for Future Issuance  |
| Plan Category                          | Exercise of                           | Outstanding  | Under Equity  |
|                                   | Outstanding Options,                  | Options, Warrants  | Compensation Plans  |
|                                   | Warrants and Rights                   | and Rights  | (Excluding  |
|                                   |                                       |   | Securities Reflected  |
|                                   |                                       |   | in Column (a))  |
|                                   |                                       |   |   |
| Equity compensation plans approved     |                                       |   |   |
| by security holders (1)           |  -0-                                  | -0- | -0-  |
|                                   |                                       |   |   |
| Equity compensation plans not     |                                       |   |   |
| approved by security holders (2)  |  -0-                                  | -0-  | -0-  |
|                                   |                                       |   |   |
| Total                                  |  -0-                                  | -0-  |  -0- |

----

----

|                                                                                                        |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| Financial Statements- Unaudited                                                                             |   |
|                                                                                                        |   |
|      Consolidated Balance Sheets as of December 31, 2010 and 2009                  | F-1    |
|                                                                                                        |   |
|      Consolidated Statements of Operations for the years ended                     |   |
|         December 31, 2010 and 2009                                  | F-2    |
|                                                                                                        |   |
|      Consolidated Statements of Changes in Stockholders Equity                     |   |
|         (Deficiency) for the years ended December 31, 2010 and 2009 | F-3    |
|                                                                                                        |   |
|      Consolidated Statements of Cash Flows for the years ended                     |   |
|         December 31, 2010 and 2009                                  | F-4    |
|                                                                                                        |   |
|      Notes to Consolidated Financial Statements                                    | F-5    |
|                                                                                                        |   |

----

|                                                                                                                                             |   |   | December 31,  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|
|                                                                                                                                             |   |   |               |   |   |   |   |   |
|                                                                                                                                             |   |   | 2010          |   |   |   | 2009  |   |
|                                                                                                                                             |   |   | Unaudited     |   |   |   | Unaudited  |   |
| ASSETS                                                                                                                                      |   |   |               |   |   |   |   |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| Current Assets                                                                                                                                   |   |   |               |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                        |   | $      | 72,730             |   |   | $ | 1,677 |   |
| Accounts receivable, less allowance for doubtful accounts of $147,597 and $197,025, respectively                                                 |   | $      | 43,178             |   |   |   | 69,918 |   |
| Loan receivable - short term                                                                                                                     |   |   | 13,000             |   |   |   | - |   |
| Inventory                                                                                                                                        |   |   | 77,616             |   |   |   | 578,628 |   |
| Deposits for future inventory purchases                                                                                                          |   |   | 210,344            |   |   |   | 127,697 |   |
| Prepaid Expenses                                                                                                                                 |   |   | 92,130             |   |   |   | - |   |
| Total current assets                                                                                                                             |   |   | 508,498            |   |   |   | 777,920 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| Property and equipment, less accumulateddepreciation of $194,573 and $123,781 respectively                                                       |   |   | 18,204             |   |   |   | 112,845 |   |
| Security deposits - retail store                                                                                                                 |   |   | 13,980             |   |   |   | 14,330 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                     |   | $      | 540,782            |   |   | $ | 905,095 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                              |   |   |               |   |   |   |   |   |
| Bank overdrafts                                                                                                                                  |   | $      | 34,293             |   |   | $ | 34,293 |   |
| Bank lines of credit                                                                                                                             |   |   | -                  |   |   |   | 210,422 |   |
| Accounts payable and accrued expenses                                                                                                            |   |   | 1,008,193          |   |   |   | 1 ,160,927 |   |
| Payroll taxes and withholdings                                                                                                                   |   |   | 633,718            |   |   |   | 653,417 |   |
| Deferred activations                                                                                                                             |   |   | 213,966            |   |   |   | - |   |
| Customer deposits                                                                                                                                |   |   | 207,158            |   |   |   | - |   |
| Common stock subject to put feature (Note 10)                                                                                                    |   |   | 323,000            |   |   |   | 323,000 |   |
| Total current liabilities                                                                                                                        |   |   | 2,420,328          |   |   |   | 2,382,059 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| LONG TERM LIABILITIES                                                                                                                            |   |   |               |   |   |   |   |   |
| Loans payable                                                                                                                                    |   |   | 368,451            |   |   |   | - |   |
| Loans payable to related parties                                                                                                                 |   |   | 3,018,014          |   |   |   | 2,177,168 |   |
| TOTAL LIABILITIES                                                                                                                                |   | $      | 5,806,793          |   |   | $ | 4,559,227 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                                                |   |   |               |   |   |   |   |   |
| Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 shares issued                                                                  |   |   | -                  |   |   |   | - |   |
| Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding 115,246,793  and 113,076,793 shares, respectively |   |   |  115,246      |   |   |   | 113,076 |   |
| Additional paid-in capital                                                                                                                       |   |   | 6,276,526          |   |   |   | 6,048,273 |   |
| Subscription receivable                                                                                                                          |   |   | (25,000            | )      |   |   | (25,000 | ) |
| Retained earnings (deficit)                                                                                                                      |   |   | (11,632,783        | )      |   |   | (9,790,481 | ) |
| Total stockholders' equity (deficiency)                                                                                                          |   |   | (5,266,011         | )      |   |   | (3,654,132 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY (DEFICIENCY)                                                                                           |   | $      | 540,782            |   |   | $ | 905,095 |   |
|                                                                                                                                             |   |   |               |   |   |   |   |   |

----

|                                                        |   | Year ended December 31 |        |
|-------------------------------------------------------------|--------|------------------------|-------------|
|                                                        |   | 2010                   |        |   | 2009 |   |
|                                                        |   | (Unaudited)            |        |   | (Unaudited) |   |
|                                                        |   |                   |        |   |   |   |
|  Sales                                                 |   | $                      | 176,362     |   |   | $ | 236,712 |   |
|  Less Cost of sales                                    |   |                   | 72,599      |   |   |   | 171,963 |   |
|  Gross profit                                          |   |                   | 103,763     |   |   |   | 64,749 |   |
|                                                        |   |                   |        |   |   |   |   |   |
|  Selling, general and administrative expenses          |   |                   | 1,596,907   |   |   |   | 1,065,169 |   |
|                                                        |   |                   |        |   |   |   |   |   |
|  Loss from operations                                  |   |                   | (1,493,144  | ) |   |   | (1,000,420 | ) |
|                                                        |   |                   |        |   |   |   |   |   |
|  Loss from inventory adjustment                        |   |                   | (346,428    | ) |   |   | - |   |
|  Other expense                                         |   |                   | -           |   |   |   | - |   |
|  Interest expense                                      |   |                   | (2,730      | ) |   |   | (140,548 | ) |
|                                                        |   |                   |        |   |   |   |   |   |
|  Net loss                                              |   | $                      | (1,842,302  | ) |   | $ | (1,140,968 | ) |
|                                                        |   |                   |        |   |   |   |   |   |
|  Basic and diluted earnings (loss) per common share    |   |                   | (0.02       | ) |   |   | (0.01 | ) |
|                                                        |   |                   |        |   |   |   |   |   |
|  Weighted average shares outstanding basic and diluted |   |                   | 115,004,394 |   |   |   | 112,460,521 |   |
|                                                        |   |                   |        |   |   |   |   |   |
|                                                        |   |                   |        |   |   |   |   |   |
|                                                        |   |                   |        |   |   |   |   |   |

----

|                                         |   |         |   |   |      |    |   | Additional |   |      |         |   |   | Retained  |   |   |   |        |
|----------------------------------------------|--------|--------------|--------|--------|-----------|---------|--------|------------|--------|-----------|--------------|--------|--------|----------------|--------|--------|--------|-------------|
|                                         |   | Common  |   |   |      |    |   | Paid-in    |   |      | Subscription |   |   | Earnings       |   |   |   |        |
|                                         |   | Shares  |   |   | Par Value |    |   | Capital    |   |      | Receivable   |   |   | (Deficit)      |   |   | Total  |        |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |
| Balance at December 31, 2008                 |   | 111,332,292  |   |   | $         | 111,332 |   |       | $      | 5,840,517 |         |   | $      | (25,000        | )      |   | $      | (8,649,513  | ) |   | $ | (2,722,664 | ) |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Sale of Common Stock                         |   | 733,501      |   |   |      | 734     |   |       |   | 163,766   |         |   |   | --             |   |   |   | --          |   |   |   | 164,500 |   |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Common stock issued for Consulting           |   | 1,060,000    |   |   |      | 1,060   |   |       |   | 93,940    |         |   |   | --             |   |   |   | --          |   |   |   | 95,000 |   |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Common stock subject to Put feature (Note 9) |   | (50,000      | )      |   |      | (50     | )      |       |   | (49,500   | )            |   |   | --             |   |   |   | --          |   |   |   | (50,000 | ) |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Net loss for year ended December 31, 2009    |   | --           |   |   |      | --      |   |       |   | --        |         |   |   | --        |   |   |   | (1,140,968  | )  |   |   | (1,140,968 | ) |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Balance at December 31, 2009                 |   | 113,075,793  |   |   | $         | 113,076 |   |       | $      | 6,048,723 |         |   | $      | (25,000        | )      |   | $      | (9,790,481  | ) |   | $ | (3,654,132 | ) |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Sale of Common Stock                         |   | 1,847,000    |   |   |      | 1,847   |   |       |   | 122,853   |         |   |   | --             |   |   |   | --          |   |   |   | 124,700 |   |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Common stock issued For Consulting           |   | 50,000       |   |   |      | 50      |   |       |   | 4,950     |         |   |   | --             |   |   |   | --          |   |   |   | 5,000 |   |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Common stock issued For Forbearance          |   | 273,000      |   |   |      | 273     |   |       |   | --        |         |   |   | --             |   |   |   | --          |   |   |   | 273 |   |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Net loss for year ended December 31, 2010    |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   | (1,842,302  | ) |   |   | (1,842,302 | ) |
|                                         |   |         |   |   |      |    |   |       |   |      |         |   |   |           |   |   |   |        |   |   |   |   |   |
| Balance at December 31, 2010                 |   | 115,245,793  |   |   | $         | 115,246 |   |       | $      | 6,276,526 |         |   | $      | (25,000        | )      |   | $      | (11,632,783 | ) |   | $ | (5,266,011 | ) |

----

|                                                                                                |   | Year ended December 31,  |       |
|-----------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                                                                |   | 2010                     |       |   | 2009  |   |
|                                                                                                |   |                          |       |   |   |   |
| Operating Activities                                                                                |   |                          |       |   |   |   |
|                                                                                                |   |                          |       |   |   |   |
|  Net (loss)                                                                                    |   | $                             | (1,842,302 | ) |   | $ | (915,871 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |   |                          |       |   |   |   |   |   |
| Depreciation and amortization                                                                       |   |                          | 70,792     |   |   |   | 19,698 |   |
| Stock for consulting services                                                                       |   |                          |       |   |   |   | 13,750 |   |
| Interest on common stock subject to put feature                                                     |   |                          | 2,730      |   |   |   | - |   |
| Loss on inventory adjustment                                                                        |   |                          | 346,428    |   |   |   | - |   |
| Provision for returns and allowance for doubtful accounts and bad debts write-offs                  |   |                          | 578,679    |   |   |   | - |   |
| Changes in operating assets and liabilities                                                         |   |                          |       |   |   |   |   |   |
| Receivables                                                                                         |   |                          | 13,740     |   |   |   | 21,888 |   |
| Inventories                                                                                         |   |                          | 501,012    |   |   |   | 95,780 |   |
| Deposits for future inventory purchases                                                             |   |                          | (82,647    | ) |   |   | - |   |
| Deposit and prepaid expenses                                                                        |   |                          | (91,780    | ) |   |   | (55,351 | ) |
| Customer deposits and deferred activations                                                          |   |                          | 421,124    |   |   |   |   |   |
| Accounts payable and accrued expenses                                                               |   |                          | (152,734   | ) |   |   | 202,502 |   |
| Payroll taxes and withholdings                                                                      |   |                          | (19,699    | ) |   |   | 265,654 |   |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Net cash (used for) operating activities                                                            |   |                          | (254,657   | ) |   |   | (351,950 | ) |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Investing Activities                                                                                |   |                          |       |   |   |   |   |   |
| Property and equipment disposals                                                                    |   |                          | 23,751     |   |   |   | - |   |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Net cash (used for) investing activities                                                            |   |                          | 23,751     |   |   |   | - |   |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Financing Activities                                                                                |   |                          |       |   |   |   |   |   |
| Increase (decrease) in loans payable to related parties                                             |   |                          | (191,691   | ) |   |   | 115,166 |   |
| Proceeds from loans                                                                                 |   |                          | 403,450    |   |   |   | - |   |
| Proceeds from sale of common stock                                                                  |   |                          | 89,700     |   |   |   | 235,250 |   |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Net cash provided by financing activities                                                           |   |                          | 301,459    |   |   |   | 350,416 |   |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Net increase (decrease) in cash                                                                     |   |                          | 70,553     |   |   |   | (1,534 | ) |
| Cash and cash equivalents at beginning of period                                                    |   |                          | 1,677      |   |   |   | 1,948 |   |
|                                                                                                |   |                          |       |   |   |   |   |   |
| Cash at end of period                                                                               |   | $                             | 72,230     |   |   | $ | 414 |   |
|                                                                                                |   |                          | -          |   |   |   |   |   |
| Significant non-cash investing and financing activities:                                            |   |                          |       |   |   |   |   |   |
| 273,000 shares were issued as interest for shares subject to put feature                            |   |                          |       |   |   |   |   |   |
| 50,000 shares were issued for $5,000 worth of legal services                                        |   |                          |       |   |   |   |   |   |
|                                                                                                |   |                          |       |   |   |   |   |   |

----

----

|                                                                                                                                                                                                                                                                           |   |               |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------|--------|
|                                               |   | December 31,  |   |
|                                                                                                                                                                                                                                                                           |   | 2010               |   |   | 2009   |   |
|                                                                                                                                                                                                                                                                           |   |               |   |   |   |   |
| Cell phones                                                                                                                                                                                                                                                                    |   | $                  | 77,616 |   |   | $      | 90,085 |   |
| Pre-paid calling cards                                                                                                                                                                                                                                                         |   |               | -      |   |   |   | 7,180 |   |
| Televisions                                                                                                                                                                                                                                                                    |   |               | -      |   |   |   | - |   |
| Packaging supplies                                                                                                                                                                                                                                                             |   |               | -      |   |   |   | - |   |
| Transportation products                                                                                                                                                                                                                                                        |   |               | -      |   |   |   | 480,163 |   |
|                                                                        |   |               |   |   |   |   |   |   |
| Total                                                                                                                                                                                                                                                                          |   | $                  | 77,616 |   |   | $      | 577,428 |   |

|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| EGCO bank account overdraft facility                                                                                                                                                                                                                                                                                                                                                |   | $      | 1,698  |   |
| FONE1 bank account overdraft facility                                                                                                                                                                                                                                                                                                                                               |   |   | 32,595 |   |
| Total                                                              |   | $      | 34,293 |   |
|                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|--------|--------|
|  Payroll taxes and withholdings consisted of:                                                                                                                                                                                                                                                                                                     |   |         |    |   |   |   |
|                                                           |   | December 31, |    |
|                                                                                                                                                                                                                                                                                                                                                   |   | 2010         |    |   | 2009   |   |
|                                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |   |   |
| Federal social security and income tax                                                                                                                                                                                                                                                                                                                 |   | $            | 539,652 |   |   | $      | 563,453 |   |
| New York State income tax                                                                                                                                                                                                                                                                                                                              |   |         | 72,278  |   |   |   | 34,744 |   |
| New York State unemployment insurance                                                                                                                                                                                                                                                                                                                  |   |         | 5,810   |   |   |   | 6,501 |   |
| Workers' Compensation and Disability                                                                                                                                                                                                                                                                                                                   |   |         |    |   |   |   |   |   |
| Insurance                                                                                                                                                                                                                                                                                                                                              |   |         | 15,766  |   |   |   | 15,199 |   |
| Connecticut Withholding taxes                                                                                                                                                                                                                                                                                                                          |   |         | -       |   |   |   | 1,193 |   |
| New Jersey Withholding taxes                                                                                                                                                                                                                                                                                                                           |   |         | 197     |   |   |   | 197 |   |
|                                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                  |   | $            | 633,718 |   |   | $      | 653,317 |   |

|                                                                                                                                                                                                                                                                                                                                                                     |   |         |      |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------|--------|
|  Loans payable to related parties consisted of:                                                                                                                                                                                                                                                                                                                     |   |         |      |   |   |   |
|                                                              |   | December 31, |      |
|                                                                                                                                                                                                                                                                                                                                                                     |   | 2010         |      |   | 2009   |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |         |      |   |   |   |
| Due to chief executive officer and affiliates                                                                                                                                                                                                                                                                                                                            |   | $            | 3,018,014 |   |   | $      | 2,177,168 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |         |      |   |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                    |   | $            | 3,018,014 |   |   | $      | 2,177,168 |   |
|                                                                                                                                                                                                                                                                                                                                                                     |   |         |      |   |   |   |   |   |

----

|                                                                                                                                                                                                                            |   |   |     |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                                                                                                                                            |   | 2010   |     |   | 2009   |   |
|      Current:                                                                                                                                                                                          |   |   |     |   |   |   |
|        Federal                                                                                                                                                                               |   | $      | --       |   |   | $      | -- |   |
|        State                                                                                                                                                                                 |   |   | --       |   |   |   | -- |   |
|      Total current                               |   |   | --       |   |   |   | -- |   |
|      Deferred:                                                                                                                                                                                         |   |   |     |   |   |   |   |   |
|        Federal                                                                                                                                                                               |   |   | (626.383 | )      |   |   | (493,427 | ) |
|        State                                                                                                                                                                                 |   |   | (106,853 | )      |   |   | (141,648 | ) |
|        Valuation allowance                                                                                                                                                                   |   |   | 733,236  |   |   |   | 635,075 |   |
|      Total                                                                                                                                                                                             |   | $      | --       |   |   | $      | -- |   |

|                                       |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                       |   | 2010   |   |   | 2009   |   |
|                                       |   |   |   |   |   |   |
| Federal statutory tax rate                 |   |   | 34.0   | %      |   |   | 34.0 | % |
| State income taxes, net of federal benefit |   |   | 5.8    |   |   |   | 5.8 |   |
| Change in valuation allowance              |   |   | (39.8  | )      |   |   | (39.8 | ) |
| Effective income tax rate                  |   |   | 0.0    | %      |   |   | 0.0 | % |

|                  |   |   |   |
|-----------------------|--------|--------|--------|
|                  |   |   |   |
| 2011                  |   |   | 28,168 |   |
| 2012                  |   |   | 29,016 |   |
| 2013 (through May 31) |   |   | 12,330 |   |
|                  |   |   |   |   |
| Total                 |   | $      | 97,046 |   |

----

|                          |   |         |     |   |           |   |       |           |   |   |     |   |
|-------------------------------|--------|--------------|----------|--------|----------------|--------|------------|----------------|--------|--------|----------|--------|
|                          |   | Telephone    |     |   |           |   |       |           |   |   |     |   |
|                          |   | products and |     |   | Transportation |   |       | Unallocated    |   |   |     |   |
|                          |   | services     |     |   | products       |   |       | Corporate      |   |   |     |   |
|                          |   | (Europhone)  |     |   | (Eurospeed)    |   |       | Administration |   |   | Total    |   |
|                          |   | Segment      |     |   | Segment        |   |       | Amounts        |   |   | Amount   |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |
| Year Ended December 31, 2010  |   |         |     |   |           |   |       |           |   |   |     |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |
| Total revenues                |   | $            | 176,362  |   |           | $      | --         |           |   | $      | --       |   |   | $ | 176,362 |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Income (loss) from Operations |   |         | (124,385 | )      |           |   | (1,091,123 | )              |   |   | (277,636 | )      |   |   | (1,493,144 | ) |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Depreciation expense          |   |         | 33,832   |   |           |   | --         |           |   |   | 36,960   |   |   |   | 70,792 |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Total assets                  |   |         | 392,478  |   |           |   | --         |           |   |   | 148,304  |   |   |   | 540,782 |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Year Ended December 31, 2009  |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Total revenues                |   | $            | 141,693  |   |           | $      | 95,019     |           |   | $      | --       |   |   | $ | 236,712 |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Income (loss) from Operations |   |         | (431,548 | )      |           |   | (367,408   | )              |   |   | (341,742 | )      |   | $ | (1,140,968 | ) |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Depreciation expense          |   |         | 13,915   |   |           |   | 9,450      |           |   |   | --       |   |   |   | 23,365 |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |
| Total assets                  |   |         | 338,585  |   |           |   | 432,900    |           |   |   | 96,110   |   |   |   | 867,595 |   |
|                          |   |         |     |   |           |   |       |           |   |   |     |   |   |   |   |   |

----

----

|                 |   |                                                                                                           |
|----------------------|--------|----------------------------------------------------------------------------------------------------------------|
| Name                 | Age    |                  Position |
|                 |   |                                                                                                           |
| Vasilios Koutsobinas | 57     | Chairman, Chief Executive Officer                                                                              |
| Andrew Eracleous     | 82     | Chief Financial Officer, Director                                                                              |
| Paul Kotrotsios *    | 54     | Director                                                                                                       |
| Georgia Dumas*       | 42     | Director                                                                                                       |
| Anna Aspras          | 43     | Director                                                                                                       |
| Kenneth Downey       | 50     | Director                                                                                                       |
| Stephen R. Bellis    | 51     | Director                                                                                                       |

----

----

|                                                                                                                                                               |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------------|--------|--------|-------------|--------|
| SUMMARY COMPENSATION TABLE                                                                                                                                         |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |
|                                                                                                                                                               |   |   |   |   |   |   |    |   |   |   | All     |   |   |        |   |
| Name and Principal                                                                                                                                                 |   |   |   |   |   |   |    |   |   |   | Other Annual |   |   |        |   |
| Position                                                                                                                                                           |   |   |   |   | Salary |   |    | Bonus  |   |   | Compensation |   |   | Total  |   |
|                             |   | Year   |   |   | $      |   |    | $      |   |   | $            |   |   | $           |   |
|                                                                                                                                                               |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |   |   |   |   |
| Vasilios Koutsobinas                                                                                                                                               |   |   | 2010   |   |   |   | 175,000 |   |   |   | 0            |   |   |        | 0      |   |   |   | 175,000 |   |
| CEO                                                                                                                                                                |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |   |   |   |   |   |
|                                                                                                                                                               |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |   |   |   |   |   |
|  "          "                                                                                               |   |   | 2009   |   |   |   | 125,000 |   |   |   | 0            |   |   |        | 0      |   |   |   | 125,000 |   |
|                                                                                                                                                               |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |   |   |   |   |   |
|  "          "                                                                                               |   |   | 2008   |   |   |   | 125,000 |   |   |   | 0            |   |   |        | 0      |   |   |   | 125,000 |   |
|                                                                                                                                                               |   |   |   |   |   |   |    |   |   |   |         |   |   |        |   |   |   |   |   |   |

|                  |   |         |       |   |        |   |
|-----------------------|--------|--------------|------------|--------|-------------|--------|
|                  |   | # of Common  |       |   | Percent of  |   |
| Name and Address      |   | Shares Owned |       |   | Class Owned |   |
|                  |   |         |       |   |        |   |
| Vasilios Koutsobinas  |   |         | 6,600,000  |   |        |   | 5.7 | % |
| Andrew Eracleous      |   |         | 939,500    |   |        |   | .8 | % |
| Paul Kotrotsios       |   |         | 0          |   |        |   | -- |   |
| Georgia Dumas         |   |         | 0          |   |        |   | -- |   |
| Anna Aspras           |   |         | 50,000     |   |        |   | -- |   |
| Kenneth Downey        |   |         | 1,316,667  |   |        |   | 1.1 | % |
| Stephen R. Bellis     |   |         | 160,000    |   |        |   | .1 | % |
| VK Funding LLC        |   |         | 70,881,675 |   |        |   | 61.5 | % |
| Directors and Control |   |         |       |   |        |   |   |   |
| Persons as a Group    |   |         | 79,947,842 |   |        |   | 69.2 | % |

----

|               |                                                                                                                                                                                           |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                                                                           |
| Number   | Description of Exhibits                                                                                                                                                                        |
|               |                                                                                                                                                                                           |
|               |                                                                                                                                                                                           |
| 3.1           | Certificate of Amendment of Certificate of Incorporation of ICT Technologies, Inc.*                                                                                                            |
|               |                                                                                                                                                                                           |
| 3.2           | Bylaws of ICT Technologies, Inc.**                                                                                                                                                             |
|               |                                                                                                                                                                                           |
| 10.1          | Amended and Restated Share Acquisition and Voting Agreement dated as of May 9, 2002 and executed April 30, 2003 by and among Europhone USA, Inc., Vasilios Koutsobinas and Joshua Shainberg*** |
|               |                                                                                                                                                                                           |
| 10.2          | Amendment to the Amended and Restated Share Acquisition and Voting Agreement***                                                                                                                |
|               |                                                                                                                                                                                           |
| 10.3          | Agreement with Parallel No Limit, Inc. ****                                                                                                                                                    |
|               |                                                                                                                                                                                           |
| 21            | List of Subsidiaries.                                                                                                                                                                          |
|               |                                                                                                                                                                                           |
| 31.1          | Certification of the Company's Chief Executive Officer pursuant to Section 302 of Sarbanes Oxley Act.                                                                                          |
|               |                                                                                                                                                                                           |
| 31.2          | Certification of the Company's Chief Financial Officer pursuant to Section 302 of Sarbanes Oxley Act.                                                                                          |
|               |                                                                                                                                                                                           |
| 32.1          | Certification of the Company's Chief Executive Officer pursuant to Section 906 of Sarbanes Oxley Act.                                                                                          |
|               |                                                                                                                                                                                           |
| 32.2          | Certification of the Company's Chief Financial Officer pursuant to Section 906 of Sarbanes Oxley Act.                                                                                          |
|               |                                                                                                                                                                                           |

----

----

|                    |                                               |
|-------------------------|----------------------------------------------------|
|                    | Euro Group of Companies, Inc.                      |
|                    |                                               |
|                    |                                               |
|                    |                                               |
| June  8, 2011 | /s/  Vasilios Koutsobinas                |
|                    | Vasilios Koutsobinas                               |
|                    | Chief Executive Officer                            |
|                    | Director                                      |
|                    | (Principal Executive Officer)                 |
|                    |                                               |
|                    |                                               |
| June  8, 2011 | /s/  Andrew Eracleous                    |
|                    | Andrew Eracleous                                   |
|                    | Chief Financial Officer                       |
|                    | Director                                      |
|                    | (Principal Financial and Accounting Officer)  |
|                    |                                               |
|                    |                                               |
| June  8, 2011 | /s/  Anna Aspras                         |
|                    | Anna Aspras                                        |
|                    | Director                                      |
|                    |                                               |
|                    |                                               |
| June  8, 2011 |  /s/  Stephen Bellis                |
|                    | Stephen Bellis                                     |
|                    | Director                                      |
|                    |                                               |
|                    |                                               |
| June  8, 2011 | /s/  Kenneth Downey                      |
|                    | Kenneth Downey                                     |
|                    | Director                                      |