UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q

(Mark One)

[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES  EXCHANGE ACT
      OF 1934.

                For the quarterly period ended February 28, 2006.
                -------------------------------------------------

                                       OR

[_]   TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
      OF 1934.

For the transition period from                      to                     .
                               -------------------        -----------------

                          Commission file number 0-4465

                            eLEC Communications Corp.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


         New York                                               13-2511270
--------------------------------------------------------------------------------
(State or Other Jurisdiction                                (I.R.S. Employer
 of Incorporation or Organization)                           Identification No.)


75 South Broadway, Suite 302, White Plains, New York                   10601
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                             (Zip Code)

Registrant's Telephone Number, Including Area Code            914-682-0214
                                                              ------------

      Indicate by check mark  whether the  registrant  (1) has filed all reports
required  to be filed by  Section  13 or 15(d) of the  Exchange  Act  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  is a large  accelerated
filer,  an accelerated  filer,  or a  non-accelerated  filer.  See definition of
"accelerated  filer and large  accelerated  filer in Rule 12b-2 of the  Exchange
Act. (Check one):

  Large Accelerated Filer [_] Accelerated Filer [_] Non-Accelerated Filer [X] .

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

      The number of shares of the Registrant's  Common Stock as of April 3, 2006
was 16,839,282.


<PAGE>

                          PART 1. FINANCIAL INFORMATION
                          -----------------------------

Item 1.  Financial Statements
-------  --------------------

                   eLEC Communications Corp. and Subsidiaries
                      Condensed Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                                       Feb. 28, 2006    Nov. 30, 2005
                                                                       -------------    -------------
<S>                                                                     <C>             <C>
                                                                        (Unaudited)       (See Note)
Assets
Current assets:
  Cash and cash equivalents                                             $    668,490    $    205,998
  Loan proceeds receivable                                                        --       1,753,500
  Accounts receivable, net                                                   856,634         989,887
  Prepaid expenses and other current assets                                  169,999         103,193
                                                                        ------------    ------------
Total current assets                                                       1,695,123       3,052,578

Property, plant and equipment, net                                           684,263         593,811

Deferred finance costs, net                                                  488,716         542,893

Other assets                                                                 210,526         195,809
                                                                        ------------    ------------
Total assets                                                            $  3,078,628    $  4,385,091
                                                                        ============    ============

Liabilities and stockholders' equity deficiency Current liabilities:
  Short-term borrowings                                                 $         --    $    326,103
  Current portion of long-term debt and capital lease obligations            245,670          43,891
  Accounts payable and accrued expenses                                    2,164,701       2,743,623
  Taxes payable                                                              628,208         632,147
  Due to related party                                                        25,032           2,737
  Deferred revenue                                                           234,000         278,200
                                                                        ------------    ------------
Total current liabilities                                                  3,297,611       4,026,701
                                                                        ------------    ------------

Long-term debt and capital lease obligations, less current
     maturities                                                            1,617,349       1,654,591
Warrant liability                                                          1,089,783       1,067,526
                                                                        ------------    ------------
Total liabilities                                                          6,004,743       6,748,818
                                                                        ------------    ------------

Stockholders' equity deficiency:
  Preferred stock $.10 par value, 1,000,000 shares authorized,
    none issued and outstanding                                                   --              --
  Common stock $.10 par value, 50,000,000 shares authorized,
    16,839,282 shares issued and outstanding in 2006 and 2005              1,683,928       1,683,928
  Capital in excess of par value                                          27,271,415      27,169,409
  Deficit                                                                (31,873,124)    (31,209,645)
  Accumulated other comprehensive loss, unrealized loss on securities         (8,334)         (7,419)
                                                                        ------------    ------------
    Total stockholders' equity deficiency                                 (2,926,115)     (2,363,727)
                                                                        ------------    ------------
Total liabilities and stockholders' equity deficiency                   $  3,078,628    $  4,385,091
                                                                        ============    ============
</TABLE>

See notes to the condensed consolidated financial statements.

                                       2
<PAGE>

                   eLEC Communications Corp. and Subsidiaries
     Condensed Consolidated Statements of Operations and Comprehensive Loss
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                         For the Three Months Ended
                                                       Feb. 28, 2006   Feb. 28, 2005
                                                       -------------   -------------
<S>                                                    <C>             <C>
Revenues                                               $  2,496,854    $  3,863,479
                                                       ------------    ------------

Costs and expenses:
  Costs of services                                       1,419,837       2,055,539
  Selling, general and administrative                     1,246,680       1,450,749
  Provision for bad debts                                   117,676         744,739
  Depreciation and amortization                              86,625          15,425
                                                       ------------    ------------
               Total costs and expenses                   2,870,818       4,266,452
                                                       ------------    ------------

Loss from operations                                       (373,964)       (402,973)
                                                       ------------    ------------

Other income (expense):
  Interest expense                                         (281,385)        (41,969)
  Change in warrant valuation                               (22,257)         47,089
  Other income                                               14,127          17,264
                                                       ------------    ------------
              Total other income (expense)                 (289,515)         22,384
                                                       ------------    ------------

Net loss                                                   (663,479)       (380,589)

Other comprehensive loss - unrealized
loss on marketable securities                                  (915)           (585)
                                                       ------------    ------------

Comprehensive loss                                        ($664,394)      ($381,174)
                                                       ============    ============

Basic loss per share                                         ($0.04)         ($0.02)
                                                       ============    ============

Weighted average number of common shares outstanding
    Basic                                                16,839,282      16,681,726
                                                       ============    ============
</TABLE>

See notes to the condensed consolidated financial statements.


                                       3
<PAGE>

                   eLEC Communications Corp. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                For the Three Months Ended
                                                               Feb. 28, 2006  Feb. 28, 2005
                                                               -------------  -------------
<S>                                                               <C>            <C>
Net cash used in operating activities:                            ($836,555)     ($771,279)
                                                                -----------    -----------

Cash flows used in investing activities, purchase of property
   and equipment                                                   (122,899)      (100,910)
                                                                -----------    -----------

Cash flows from financing activities:
   Repayment of short-term debt                                    (328,324)            --
   Repayment of long-term debt                                       (3,230)            --
   Proceeds form the exercise of options                                 --         34,500
   Proceeds from notes                                            1,753,500      2,018,186
                                                                -----------    -----------
   Net cash provided by financing activities                      1,421,946      2,052,686
                                                                -----------    -----------

Increase in cash and cash equivalents                               462,492      1,180,497
Cash and cash equivalents at beginning of period                    205,998        371,852
                                                                -----------    -----------
Cash and cash equivalents at the end of period                  $   668,490    $ 1,552,349
                                                                ===========    ===========
</TABLE>




See notes to the condensed consolidated financial statements.


                                       4
<PAGE>

                            eLEC COMMUNICATIONS CORP.
                            -------------------------

        Notes To Condensed Consolidated Financial Statements (Unaudited)
        ----------------------------------------------------------------


Note 1-Basis of Presentation
----------------------------

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and in accordance  with the rules and regulations of the
Securities  and  Exchange  Commission  for Form 10-Q.  Accordingly,  they do not
include all of the  information  and  footnotes  required by generally  accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the
three-month period ended February 28, 2006 are not necessarily indicative of the
results that may be expected for the year ended  November 30, 2006.  For further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto  included in our Annual Report on Form 10-K for the year ended  November
30, 2005.

Note 2-Major Customer
---------------------

During the three-month periods ended February 28, 2006 and 2005, no one customer
accounted for more than 10% of revenue.

Note 3- Loss Per Common Share
-----------------------------

Basic loss per common share is  calculated  by dividing net loss by the weighted
average number of common shares outstanding during the period.

Approximately 13,807,000 and 8,120,000 of our stock options, warrants and shares
issuable upon potential debt  conversions  were excluded from the calculation of
loss per share for the three months ended February 28, 2006 and 2005 because the
effect would be anti-dilutive.

Note 4-Risks and Uncertainties
------------------------------

We buy  substantially all of our  telecommunication  services from Regional Bell
Operating Companies ("RBOCs"),  and are, therefore,  highly dependent upon them.
We believe our  relationship  with the RBOCs from which we purchase  services is
satisfactory.  We also believe  there are other  suppliers of  telecommunication
services  in the  geographical  locations  in  which  we  conduct  business.  In
addition,  we are at risk to regulatory  changes that govern the rates we are to
be charged and the  obligations  of the RBOCs to  interconnect  with, or provide
unbundled  network  elements  to,  their  competitors.  The FCC and state public
utility   commissions   have   adopted   extensive   rules  to   implement   the
Telecommunications  Act of 1996, which sets standards for relationships  between
communications  providers, and they revisit such regulations on an ongoing basis
in response to the evolving  marketplace  and court  decisions.  In light of the
foregoing,  it is possible  that the loss of our  relationship  with the primary
RBOC  that  supplies  us with  wholesale  telephone  services  or a  significant
unfavorable  change in the regulatory  environment would have a severe near-term
impact on our ability to conduct our  telecommunications  business.  In order to

                                       5
<PAGE>

reduce regulatory risks going forward,  our principal  operating  subsidiary has
signed a commercially  negotiated  wholesale  services agreement with two of the
RBOCs.

Future  results  of  operations  involve a number  of risks  and  uncertainties.
Factors  that could  affect  future  operating  results and cash flows and cause
actual results to vary materially from historical  results include,  but are not
limited to:

      o     The  availability  of additional  funds to  successfully  pursue our
            business plan;
      o     The impact of changes the Federal Communications Commission or State
            Public Service  Commissions  may make to existing  telecommunication
            laws  and   regulations,   including   laws  dealing  with  Internet
            telephony;
      o     The highly competitive nature of our industry;
      o     The acceptance of VoIP technology by mainstream consumers;
      o     Our ability to retain key personnel;
      o     Our ability to maintain  adequate customer care and manage our churn
            rate;
      o     The cooperation of incumbent  carriers and industry service partners
            that have signed agreements with us;
      o     Our ability to maintain,  attract and integrate internal management,
            technical information and management information systems;
      o     Our ability to market our services to current and new  customers and
            generate  customer  demand  for our  products  and  services  in the
            geographical areas in which we operate;
      o     The availability  and maintenance of suitable vendor  relationships,
            in a timely manner, at reasonable cost;
      o     Our  ability  to manage  rapid  growth  while  maintaining  adequate
            controls and procedures;
      o     Failure or interruption in our network and information systems;
      o     Our inability to adapt to technological change;
      o     Our inability to manage customer attrition and bad debt expense;
      o     Failure or bankruptcy  of other  telecommunications  companies  upon
            whom we rely for services and revenues;
      o     Our lack of capital or borrowing capacity, and inability to generate
            cash flow;
      o     The decrease in telecommunications prices to consumers; and
      o     General economic conditions.

Note 5- Stock-Based Compensation Plans
--------------------------------------

We issue  stock  options to our  employees  and  outside  directors  pursuant to
stockholder-approved  and non-approved  stock option  programs.  Prior to fiscal
2006, we accounted for our  stock-based  compensation  plans under the intrinsic
value method of accounting,  as defined by Accounting  Principles  Board Opinion
No. 25, Accounting for Stock Issued to Employees,  and related  interpretations.
No stock-based  employee  compensation  cost was reflected in net income for the
three months ended  February 28, 2005, as all options  granted under these plans
had an exercise  price equal to the fair market value of the  underlying  common
stock on the date of the grant.  For pro forma  disclosures,  the estimated fair
value of these options was amortized over the vesting periods,  which range from
immediate  vesting to three years. The following table illustrated the effect on
net loss per share if we had accounted  for our stock option and stock  purchase
plans under the fair value  method of  accounting  under  Statement of Financial
Accounting   Standards   ("SFAS")   No.   123,   "Accounting   for   Stock-Based
Compensation",   as  amended  by  SFAS  No.  148,  "Accounting  for  Stock-Based
Compensation - Transition and Disclosure":

                                       6
<PAGE>

                                           For the Three Months Ended
                                                    2/28/05
                                                    -------
Net loss, as reported                             ($380,589)
Deduct: Total stock-based employee
    compensation expense determined
    under fair value-based method
    for all awards, net of related
    tax effects                                     (99,426)
                                                  ---------
Pro forma net loss                                ($480,015)
                                                  ---------
Loss per share
  Basic, as reported                                  ($.02)
  Basic, pro forma                                    ($.03)

  Diluted, as reported                                ($.02)
  Diluted, pro forma                                  ($.03)

In December 2004, the Financial  Accounting Standards Board ("FASB") issued SFAS
No.  123R,  "Share-Based  Payment".  SFAS 123R is a  revision  of SFAS 123,  and
supersedes APB 25. Among other items, SFAS 123R eliminates the use of APB 25 and
the intrinsic value method of accounting, and requires companies to recognize in
their financial  statements the cost of employee  services  received in exchange
for  awards of equity  instruments,  based on the grant date fair value of those
awards.  SFAS 123R permits  companies to adopt its  requirements  using either a
"modified  prospective" method, or a "modified  retrospective" method. Under the
"modified prospective" method,  compensation cost is recognized in the financial
statements  beginning with the effective date, based on the requirements of SFAS
123R for all  share-based  payments  granted  after that date,  and based on the
requirements  of SFAS 123 for all unvested awards granted prior to the effective
date of SFAS 123R. Under the "modified  retrospective"  method, the requirements
are the same as under the "modified  prospective"  method,  but this method also
permits  entities to restate  financial  statements of previous periods based on
proforma disclosures made in accordance with SFAS 123. Beginning in fiscal 2006,
we account for  stock-based  compensation  in accordance  with the provisions of
SFAS  123R and have  elected  the  "modified  prospective"  method  and have not
restated  prior  financial  statements.  For the three months ended February 28,
2006, we recorded  approximately  $52,000 in employee  stock-based  compensation
expense, which is included in our selling,  general and administrative expenses.
As of February  28,  2006,  there was  approximately  $365,300  of  unrecognized
stock-compensation  expense for previously granted unvested options that will be
recognized over a three year period.

Note 6- Related Party Transactions
----------------------------------

During the  three-month  periods  ended  February  28, 2006 and 2005,  we billed
Cordia   Corporation   ("Cordia"),   a  related  party,   $13,286  and  $24,403,
respectively, for commissions and other costs, and Cordia billed us $116,875 and
$169,311,  respectively,  for telecommunications services and other costs. As of
February 28, 2006, we owed Cordia $25,032.

                                       7
<PAGE>

Note 7-Reclassification
-----------------------

The Condensed  Consolidated  Statement of Operations and Comprehensive  Loss for
the three months ended  February  28, 2005 has been  restated to correct  errors
related to the accounting for our February 2005 financing.  Such restatement had
the effect of  reducing  the loss for such period by  approximately  $21,000 (no
effect of loss per share).

Note 8-Defined Benefit Plan
---------------------------

We sponsor a defined benefit plan covering two active  employees and a number of
former employees. Our funding policy with respect to the defined benefit plan is
to contribute  annually not less than the minimum required by applicable law and
regulation to cover the normal cost and to fund supplemental costs, if any, from
the date each  supplemental  cost was  incurred.  Contributions  are intended to
provide  not only for  benefits  attributable  to service to date,  but also for
those expected in the future.

For the  three-month  periods  ended  February  28,  2006 and 2005,  we recorded
pension expense of $24,000 for each fiscal period. In the first fiscal period of
2006, we  contributed  $52,500 to our defined  benefit plan. We did not make any
pension  contributions  in the  first  fiscal  period  of  2005.  We  expect  to
contribute  approximately  $100,000 to our defined  benefit plan in fiscal 2006.
The current  investment  strategy  for the defined  benefit plan is to invest in
conservative debt and equity  securities.  The expected long-term rate of return
on plan assets is 8%.

We also  sponsor a 401(k)  profit  sharing  plan for the benefit of all eligible
employees,  as defined.  The plan  provides for voluntary  contributions  not to
exceed the statutory  limitation  provided by the Internal  Revenue Code. We may
make discretionary contributions. There were no discretionary contributions made
for the three months ended February 28, 2006 or 2005.

Note 9-Income Taxes
-------------------

At November 30, 2005, we had net operating loss carryforwards for Federal income
tax  purposes of  approximately  $23,000,000  expiring in the years 2008 through
2025. There is an annual limitation of approximately $187,000 on the utilization
of approximately  $2,400,000 of such net operating loss carryforwards  under the
provisions  of Internal  Revenue  Code Section 382. We did not provide for a tax
benefit, as we had operating losses in the three months ended February 28, 2006.

                                       8
<PAGE>

Item 2. Management's  Analysis and Discussion of Financial Condition and Results
of Operations

      The statements  contained in this Report that are not historical facts are
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation Reform Act of 1995 with respect to our financial  condition,  results
of   operations   and   business,   which  can  be  identified  by  the  use  of
forward-looking   terminology,   such  as  "estimates,"   "projects,"   "plans,"
"believes,"  "expects,"  "anticipates,"  "intends,"  or the negative  thereof or
other variations  thereon,  or by discussions of strategy that involve risks and
uncertainties.  Management  wishes to caution the reader of the  forward-looking
statements that such statements, which are contained in this Report, reflect our
current  beliefs  with  respect to future  events and involve  known and unknown
risks, uncertainties and other factors, including, but not limited to, economic,
competitive,  regulatory,  technological,  key  employee,  and general  business
factors affecting our operations,  markets, growth, services, products, licenses
and  other  factors  discussed  in our other  filings  with the  Securities  and
Exchange   Commission,   and  that  these   statements  are  only  estimates  or
predictions.  No assurances  can be given  regarding the  achievement  of future
results, as actual results may differ materially as a result of risks facing us,
and actual events may differ from the assumptions underlying the statements that
have been made regarding  anticipated events.  Factors that may cause our actual
results, performance or achievements,  or industry results, to differ materially
from those  contemplated by such  forward-looking  statements  include,  without
limitation those factors set forth under Note 4 - Risks and Uncertainties.

      These  forward-looking  statements  are subject to  numerous  assumptions,
risks and  uncertainties  that may cause our  actual  results  to be  materially
different  from  any  future  results  expressed  or  implied  by  us  in  those
statements.  These risk factors  should be  considered  in  connection  with any
subsequent written or oral forward-looking  statements that we or persons acting
on our behalf may issue. All written and oral forward looking statements made in
connection with this Report that are attributable to us or persons acting on our
behalf are expressly qualified in their entirety by these cautionary statements.
Given  these  uncertainties,  we  caution  investors  not to unduly  rely on our
forward-looking  statements.  We do not  undertake  any  obligation to review or
confirm analysts' expectations or estimates or to release publicly any revisions
to any  forward-looking  statements to reflect events or circumstances after the
date of this  Report or to  reflect  the  occurrence  of  unanticipated  events.
Further,  the  information  about our  intentions  contained in this Report is a
statement  of our  intention  as of the date of this  Report and is based  upon,
among other things, the existing regulatory  environment,  industry  conditions,
market  conditions and prices,  the economy in general and our assumptions as of
such date. We may change our intentions,  at any time and without notice,  based
upon any changes in such factors, in our assumptions or otherwise.


Overview

      We are a provider of local and long distance voice telephone  services and
integrated Voice over Internet Protocol ("VoIP")  telephony  services.  Internet
Protocol ("IP") telephony is the real time transmission of voice  communications
in the form of digitized "packets" of information over the Internet or a private
network,  which  is  analogous  to the way in which  e-mail  and  other  data is
transmitted.  We use  proprietary  softswitch  technology that runs on Cisco and
Dell hardware to provide wholesale telephony services to other service providers
and  directly  to retail  consumers.  Our  technology  enables  telecom  service
providers,  cable operators,  wireless

                                       9
<PAGE>

carriers, Internet service providers,  resellers or any company seeking to offer
premier  packet  communications  services the ability to provide a  feature-rich
VoIP service offering.

      The  anticipated  rollout of worldwide  VoIP services is expected to allow
consumers  and  businesses  to  communicate  at  dramatically  reduced  costs in
comparison to traditional telephony networks. Traditionally,  telephony carriers
have built networks  based on circuit  switching  technology,  which creates and
maintains  a dedicated  path for  individual  telephone  calls until the call is
terminated.   While  circuit-switched  networks  have  provided  reliable  voice
communications  services for more than 100 years,  transmission  capacity is not
efficiently  utilized  in a  circuit-switched  system.  Under  circuit-switching
technology,  when a person  makes a  telephone  call,  a circuit is created  and
remains  dedicated for the entire  duration of that call,  rendering the circuit
unavailable for the  transmission  of any other calls.  Because of the high cost
and   inefficiencies   of   a   circuit-switched   network,   we   have   leased
circuit-switched  network  elements  from  other  carriers  in order to  provide
wireline services to customers.

      Data networks,  such as IP networks,  utilize packet switching  technology
that divides signals into packets and simultaneously  routes them over different
channels to a final  destination  where they are  reassembled  into the original
order in which they were transmitted.  No dedicated  circuits are required and a
fixed amount of bandwidth is not needed for the duration of each call.  The more
efficient  use  of  network   capacity   results  in  the  ability  to  transmit
significantly  higher amounts of traffic over a  packet-switched  network than a
circuit-switched network.  Packet-switching technology enables service providers
to  converge  traditional  voice and data  networks  in an  efficient  manner by
carrying voice,  fax, video and data traffic over the same network.  IP networks
are therefore less expensive for carriers to operate, and these cost savings can
be passed on to the consumer in the form of lower costs for local, long distance
and international long distance telephone services.

      Because of the network cost savings that are inherent in an IP network, we
have  created our own  proprietary  IP  platform  and have  transitioned  into a
facilities-based  VoIP  service  provider.  In addition  to the cost  savings we
obtain  from the  efficient  use of network  capacity,  we believe  our  network
equipment costs are lower than most other carriers as our network and technology
require  significantly  less capital  expenditures  than a  traditional  Class 5
telecom switch in a  circuit-switched  network,  and less  equipment  costs than
generally are incurred by our VoIP  competitors  that utilize a  packet-switched
network. Our proprietary softswitch, however, provides more than 20 of the Class
5 call  features,  voice mail and  enhanced  call  handling  on our own  Session
Initiation Protocol ("SIP") server suite. Our VoIP features are controlled by us
instead of a software vendor,  as we write the code for any new features that we
offer our customers.  We have no software  licensing fees and our other variable
network costs are expected to drop as we increase our network  traffic and as we
attract  more  pure  VoIP  users  with  traffic  that does not incur the cost of
originating or terminating on a circuit switched network.

      Our SIP servers  are part of a cluster of servers,  which we refer to as a
server farm, in which each server performs  different  network tasks,  including
back-up and  redundant  services.  We believe our server farm  structure  can be
easily and  cost-effectively  scaled as our VoIP  business  grows.  In addition,
servers within our server farm can be assigned  different tasks as demand on the
network dictates. If an individual server ceases to function, our server farm is
designed in a manner that  subscribers  should not have a call  interrupted.  We
support origination and termination using both the G.711 and G.729 voice codecs.
Codecs are the  algorithms  that enable us to carry  analog  voice  traffic over
digital  lines.  There are  several  codecs that vary in  complexity,  bandwidth
required and voice quality. We primarily use G.711 and G.729 codecs.

                                       10
<PAGE>

G.711 is a standard to represent 8 bit compressed pulse code modulation  samples
for signals of voice  frequency.  It creates a 64 kilobit per second  bitstream,
and we find that  approximately  90% of the current  VoIP  traffic in the United
States uses G.711. We frequently  process G.711 VoIP traffic because some of our
wholesale customers do not have the ability to handle G.729. We prefer the G.729
codec,  which allows us to utilize VoIP in more cost  effective  ways. It allows
for  compressing  more calls in limited  bandwidth  by  reducing  each call to 8
kilobits per second.  For all of our retail customers and our more sophisticated
wholesale  accounts,  we use G.729 to save cost and  enhance  the quality of the
call.

      Some VoIP carriers use only G.711  compression  under the theory that when
more bandwidth is used, the voice quality is normally better. We find,  however,
that our G.729 VoIP traffic  provides a higher quality voice  conversation  than
the G.711  processed  by other VoIP  carriers  because  when we  utilize  only 8
kilobits per second of bandwidth,  fewer packets are lost. Under G.711, with the
wider  bitstream,  the packets  are more  susceptible  to  dropping  off and not
reaching  their  intended  destination,  resulting in sound jitter or periods of
silence  during a telephone  call.  In addition to the high quality of our G.729
product,  it requires only  one-eighth  the bandwidth of G.711 to bring customer
traffic into and out of our switch, further reducing our costs of providing VoIP
service.  Similarly, using G.729 compression,  we offer a bandwidth cost savings
to our  customers.  A small  office  that uses six of our VoIP  lines is able to
support  the data  and  telephony  needs of an  office  with  only one  standard
residential  high-speed  Internet  connection  with a 384  kilobits  per  second
upstream speed. This customer would need to buy significantly  more bandwidth if
the VoIP lines were  utilizing  G.711  compression.  With the  quality  and cost
advantages of G.729, we anticipate  G.729 will become  increasingly  utilized by
VoIP carriers.


Plan of Operation

      Our objective is to build a profitable  communications company on a stable
and scalable  platform with minimal  network costs.  We want to be known for our
high quality of service,  robust features and ability to deliver any new product
to a wholesale customer or a web store without delay. We believe that to achieve
our objective we need to have "cradle to grave"  automation  of our  back-office
web and billing systems. We have written our software for maximum automation and
flexibility.

      We know from  experience  in  provisioning  complex  telecom  orders  that
back-office automation is a key factor in keeping overhead costs low. Technology
continues  to work for 24 hours a day and we  believe  that the  fewer  people a
company has in the back office,  the more  efficiently  it can run, which should
drive down the cost per order.

      When an order is entered into our  web-based  order entry system more than
50 database tables are populated.  No extra back-office  employees are needed to
guide the order though our systems. Some of the high-level, completely automated
steps that occur when a customer enters an order are as follows:

      o     Telephone number is assigned if in stock, or ordered if not in stock
      o     Customer's credit card is charged
      o     E911  address  is  formatted  and  sent  to the  Automatic  Location
            Identification database

                                       11
<PAGE>

      o     The  configuration  file for an analog telephone  adapter ("ATA") is
            sent to the provisioning server
      o     The web portal  database is populated so the subscriber can view his
            account
      o     Provisioning status emails are generated and sent to the subscriber
      o     The  appropriate  entries are made into the  billing  system for the
            chosen plan
      o     Federal Express is contacted and a shipping label is printed to ship
            the ATA
      o     A welcome letter is generated

      Given our current level of  automation,  we believe we can handle  between
500 and 1,000 orders a day. The order  processing and  auto-provisioning  of the
ATA into the back office provisioning system and billing systems is seamless and
integrated  and is designed to handle a single order  entered on our web site or
many thousands of orders flowing through an Extensible Markup Language,  or XML,
bulk entry portal.

      A very  complex  part of the web  process  that we  created  with  our own
software  is the  ability to  deliver a new  product  into the web  provisioning
systems   without  any  software  code  additions  or  changes.   The  products,
provisioning  and  interface to the  back-office  and billing  systems have been
"soft coded," which means they are data driven. We can simply key new parameters
pertaining  to a  particular  product  into our  database,  and a new product is
automatically  created and available for purchase in the web store. We also have
the ability to load a variable  set of products in the web store  depending on a
specific sales campaign or agent.

      Our  automation  strategy and soft code approach is further  leveraged for
our wholesale  customers.  We are able to set up a new wholesale  account with a
custom web store, logo, terms and conditions,  privacy policy,  products and any
other features the wholesaler  requires with no additional code being developed.
Everything is uploadable or configurable so that we can scale.

      We  believe  our  "cradle to grave"  automation  strategy  in a  wholesale
environment,  in which we are able to sell our VoIP services to other  carriers,
such as cable  companies,  CLECs  and  Internet  service  providers,  will be an
important factor that differentiates us from other VoIP service providers.  Many
VoIP service  providers are primarily selling a retail product and are incurring
substantial  customer acquisition costs in order to grow their subscriber bases.
These companies have access to  significantly  more capital than we have and are
generating  large  operating  losses  because of the rapid growth rate they have
achieved.  Other VoIP service providers have a wholesale offering,  but have not
been able to implement a satisfactory  billing  platform or E911  functionality.
Many of these carriers do not have the ability to implement custom programs on a
zero code basis,  and some do not even own their own code and are dependent upon
a vendor to provide them with quarterly or semi-annual upgrades so they can keep
up with the new  products  being  offered  in the  industry.  We  believe  these
wholesale competitors will not have the same success in scaling their businesses
as we plan to experience.

      Furthermore,  our strategy is to grow rapidly by  leveraging  the capital,
customer bases and marketing  strength of our wholesale  customers.  Many of our
targeted wholesale  customers and some of our existing wholesale  customers have
ample  capital  to  market a  private-labeled  VoIP  product  to their  existing
customer   base  or  to  new   customers.   We  believe  our   strength  is  our
technology-based  platform.  By providing  our  technology  to cable  companies,
CLECs, Internet service providers,  agents, affinity groups and any other entity
that  desires to offer a VoIP  telephony  product,  we  believe we will  require
significantly  less cash  resources  than other VoIP  providers  will require to
attract a similar number of subscribers.

                                       12
<PAGE>

Three Months Ended February 28, 2006 vs. Three Months Ended February 28, 2005
-----------------------------------------------------------------------------

      Our revenue for the  three-month  period ended February 28, 2006 decreased
by approximately  $1,366,000,  or approximately 35%, to approximately $2,497,000
as compared to  approximately  $3,863,000  reported for the  three-month  period
ended February 28, 2005.  The reduction in revenues was directly  related to the
decrease in the customer  base or number of local access lines served by our two
CLEC's,  New Rochelle  Telephone Corp. and Telecarrier  Services Inc. In lieu of
telemarketing  new CLEC  customers,  we used our financial  resources to further
build and enhance our VoIP operations.  Consequently,  CLEC sales declined,  but
new leads for VoIP  wholesale  accounts have  increased.  We have  determined to
continue  investing  in our VoIP  business,  even to the  detriment  of our CLEC
business,   because  of  the  rapidly  growing  market  opportunities  and  cost
efficiencies  for VoIP carriers.  To date however,  our VoIP sales have not been
material.

      At April 12, 2006, we had 19 VoIP  wholesale  accounts.  The first step in
our sales cycle is to sign a non-disclosure agreement with a potential wholesale
customer.  In March 2006 we signed  non-disclosure  agreements with 30 potential
wholesale customers.  Ten of these potential customers are currently testing our
services and we are negotiating  wholesale contracts with 13 potential accounts.
In our limited  experience with wholesale  accounts,  we find that approximately
50% of the companies that sign our non-disclosure  agreements  eventually sign a
wholesale  agreement.  We  are  unable  to  project  when  individual  wholesale
customers  will  send us  orders,  as it is  dependant  upon  how the  wholesale
customer plans to resell our VoIP product. Based on information given to us from
our  existing  wholesale  customers,  we  estimate  that on  average,  a  mature
wholesale  customer will have  approximately  5,000 lines.  However,  individual
wholesale  customers  will  mature at  different  rates  and many are  likely to
require more than one year to mature. Our goal is to have 75 wholesale customers
signed to resell our VoIP product by the end of our fiscal year.  Based upon the
current rate at which we are signing new accounts, we believe we will be able to
exceed this goal.

      Our gross  profit for the  three-month  period  ended  February  28,  2006
decreased  by   approximately   $731,000  to   approximately   $1,077,000   from
approximately  $1,808,000  reported in the three-month period ended February 28,
2005. During the same fiscal periods,  our gross profit percentage  decreased to
43.1% from 46.8%.  The decrease in our gross profit resulted  primarily from the
decrease  in the size of our  customer  base in first  quarter  of  fiscal  2006
relative to the first  quarter in fiscal 2005.  The decrease in our gross profit
percentage during the 2006 period resulted from the higher cost of services that
we are now incurring  under our wholesale  services  agreement  with Verizon and
higher  VoIP  network  costs  due to  the  low  utilization  rate  of  our  VoIP
facilities.  While it is difficult  for us to predict the gross  margins we will
achieve on our VoIP lines  because we are offering both a wholesale and a retail
product and the gross  margin will be  impacted  by the  product  mix,  based on
current  pricing,  we  anticipate  that when we have a  sufficient  quantity  of
subscribers,   mature  wholesale  accounts  will  generate  a  gross  margin  of
approximately   25%  and  retail  accounts  will  generate  a  gross  margin  of
approximately 55%.

      Selling,  general and  administrative  expenses decreased by approximately
$204,000, or approximately 14%, to approximately  $1,247,000 for the three-month
period ended February 28, 2006 from approximately  $1,451,000  reported in prior
year fiscal period. Our telemarketing costs decreased by approximately  $395,000
during the 2006 period,  as we did no telemarketing  during the first quarter of
fiscal 2006. This decrease was partially offset by increased  personnel

                                       13
<PAGE>

costs of approximately  $142,000, the majority of which was related to VoX as we
hired additional personnel to focus on our marketing and sales efforts.

      Our bad debt expense decreased by approximately $627,000, or approximately
84%, to approximately $118,000 for the three months ended February 28, 2006 from
approximately  $745,000  reported in the prior fiscal period.  This decrease was
related  to the  reduction  in the  number of  customers  we had during the 2006
period and the fact that the  remaining  customers  represent a mature base that
has consistently paid their bills.

      Depreciation and amortization  expense increased by approximately  $72,000
for the three  months  ended  February  28,  2006 to  approximately  $87,000  as
compared  to  approximately   $15,000  for  the  same  period  in  fiscal  2005.
Approximately  $40,000 of the increase was for deferred  financing costs related
to our  financing  agreements  and  approximately  $31,000  related  to our VoIP
platform.

      Interest  expense  increased by  approximately  $239,000 to  approximately
$281,000  for  the  three  months  ended   February  28,  2006  as  compared  to
approximately  $42,000 for the three months period ended February 28, 2005, as a
result of our increased borrowings.  The cash payment portion of the $281,000 in
interest  expense  amounted to  approximately  $75,000.  The  remaining  balance
represents the accretion of a debt discount using the effective  interest method
over the term of the related debt.

      Other income decreased by approximately  $3,000, to approximately  $14,000
for the three  months  ended  February  28, 2006 as  compared  to  approximately
$17,000 for the three months ended February 28, 2005. The decrease resulted from
a reduction in commission income.

      Warrant expense for the three months ended February 28, 2006,  amounted to
approximately $22,000 from the change in the market value of the warrants issued
as part of our financing, as compared to income of approximately $47,000 for the
same period in fiscal 2005.


Liquidity and Capital Resources
-------------------------------

      At February 28, 2006, we had cash and cash  equivalents  of  approximately
$668,000 and negative working capital of approximately $1,602,000.

      Net cash used in operating activities  aggregated  approximately  $837,000
and  $771,000  in the  three-month  periods  ended  February  28, 2006 and 2005,
respectively.  The  principal  use of cash in fiscal 2006 was primarily the loss
for the period of  approximately  $663,000.  The principal use of cash in fiscal
2005 was the increase in accounts receivable of approximately $1,157,000, offset
by an increase in the provision for doubtful accounts of approximately  $745,000
and the loss for the period of approximately $381,000.

      Net cash used in  investing  activities  in the  three-month  period ended
February  28, 2006 and 2005  aggregated  approximately  $123,000  and  $101,000,
respectively,   resulting  primarily  from  expenditures  related  to  our  VoIP
initiative.

      Net  cash  provided  by  financing  activities  aggregated   approximately
$1,421,926 and $2,052,686 in the three-month periods ended February 28, 2006 and
2005,  respectively.  In fiscal 2006, net cash provided by financing  activities
resulted from the proceeds of long-term notes of

                                       14
<PAGE>

approximately  $1,753,500,  which  was  partially  offset  by the  repayment  of
short-term debt of approximately  $328,000. In fiscal 2005, net cash provided by
financing  activities  resulted  from the proceeds of  short-term  and long-term
notes of  approximately  $2,018,000  and the  exercise  of stock  options in the
amounts of approximately $34,500.

      For the  three  months  ended  February  28,  2006,  we had  approximately
$123,000 in capital  expenditures  primarily related to our VoIP initiative.  We
expect to make equipment  purchases of approximately  $50,000 to $100,000 in the
second fiscal  quarter of 2006. We expect that other capital  expenditures  over
the next 12  months  will  relate  primarily  to a  continued  roll-out  of VoIP
services  and will only be required to support a growing  customer  base of VoIP
subscribers.

      The report of our  independent  registered  public  accounting firm on our
2005 financial statements indicates there is substantial doubt about our ability
to continue as a going  concern.  We have  sustained net losses from  operations
during the last three years,  as we have worked to build our customer base since
the sale of almost all of our customers on December 31, 2002,  and  subsequently
worked to build the software and  back-office  systems  required to provide VoIP
telephony  services.  Our operating  losses have been funded through the sale of
non-operating  assets,  the issuance of equity  securities  and  borrowings.  We
believe  our  current  cash  resources  will not be  sufficient  to finance  our
operations for the next twelve months.  Accordingly,  we believe we will have to
raise additional cash from investors  and/or sell certain assets,  including all
or part of our existing CLEC business. However, we continually evaluate our cash
needs and growth  opportunities  and we are  seeking  additional  equity or debt
financing in order to achieve our overall business  objectives.  There can be no
assurance that such financing will be available, or, if available,  will be at a
price  that  would be  acceptable  to us. Our  failure  to  generate  sufficient
revenues,  raise  additional  capital or reduce certain  discretionary  spending
could have an adverse impact on our ability to achieve our longer-term  business
objectives,  and would adversely  affect our ability to continue  operating as a
going concern.


Item 3.  Quantitative and Qualitative Disclosure About Market Risk

Our debt is primarily under two borrowing  arrangements with one lender and such
borrowings are at the rate of 2% and 3% over the prime rate. We currently do not
use interest rate derivative instruments to manage our exposure to interest rate
changes.  As a result of  conversion  features,  warrant  issuances  and  lender
discounts,  the  effective  rate of  interest  has been  calculated  at rates of
approximately  121% on our February 2005  financing and 68% on our November 2005
financing.

Item 4.  Controls and Procedures

(a) Disclosure Controls and Procedures.  Our management,  with the participation
of our chief  executive  officer/chief  financial  officer,  has  evaluated  the
effectiveness of our disclosure controls and procedures (as such term is defined
in Rules 13a-15(e) and 15d-15(e)  under the Securities  Exchange Act of 1934, as
amended  (the  "Exchange  Act"))  as of the end of the  period  covered  by this
Report. Based on such evaluation,  our chief executive  officer/chief  financial
officer has concluded  that,  as of the end of such period,  for the reasons set
forth below, our disclosure  controls and procedures were not effective.  We are
presently  taking the  necessary  steps to  improve  the  effectiveness  of such
disclosure controls and procedures.

                                       15
<PAGE>

      (b) Internal  Control Over  Financial  Reporting.  There have not been any
changes in our  internal  controls  over  financial  reporting  (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
first quarter of 2006 that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.  In connection
with our year-end November 30, 2005 audit, our management became aware of a lack
of staffing within our accounting department,  both in terms of the small number
of employees performing our financial and accounting functions and their lack of
experience to account for complex financial  transactions.  Management  believes
the  lack of  qualified  personnel,  in the  aggregate,  amounts  to a  material
weakness in our internal control over financial  reporting.  We will continue to
evaluate the employees  involved,  the need to engage outside  consultants  with
technical  and  accounting-related  expertise  to  assist us in  accounting  for
complex  financial  transactions  and the hiring of additional  accounting staff
with complex financing experience.

      We are also evaluating our internal  controls  systems so that when we are
required to do so, our management will be able to report on, and our independent
auditors to attest to, our internal controls,  as required by Section 404 of the
Sarbanes-Oxley  Act of  2002.  We will be  performing  the  system  and  process
evaluation and testing (and any necessary  remediation) required in an effort to
comply with the management certification and auditor attestation requirements of
Section 404 of the Sarbanes-Oxley  Act. In connection with our year-end November
30, 2005 audit, we have identified the following control deficiencies and issues
with our internal  controls over  financial  reporting that we believe amount in
the  aggregate  to a  significant  deficiency  in  our  internal  controls  over
financial reporting:

                Due to the  voluminous  nature  of  state  and  local
       telecom  taxes  and the small  quantity  of taxes  payable  to
       certain municipalities,  we do not remit all our telecom taxes
       in a timely manner.  Certain taxes that we should be remitting
       on a  monthly  basis,  we  remit  quarterly  or  semi-annually
       because many of the checks and returns that we are  processing
       are for insignificant amounts. We are aware of other telephone
       companies that follow this process. We continue to monitor the
       responses,  if  any,  we  receive  from  the  tax  authorities
       regarding  late filings and we intend to remit such taxes in a
       timely manner in the future.

                                       16
<PAGE>


                            eLEC COMMUNICATIONS CORP.
                            -------------------------
                            PART II-OTHER INFORMATION
                            -------------------------


Item 6.  Exhibits
-------  --------

                  Exhibit
                  Number                 Description

                  31.1  Certification  of our Chief Executive  Officer and Chief
                        Financial Officer,  Paul H. Riss,  Pursuant to 18 U.S.C.
                        1350 (Section 302 of the Sarbanes-Oxley Act of 2002)

                  32.1  Certification  of our Chief Executive  Officer and Chief
                        Financial Officer,  Paul H. Riss,  Pursuant to 18 U.S.C.
                        1350 (Section 906 of the Sarbanes-Oxley Act of 2002)


                                       17
<PAGE>


SIGNATURES

            Pursuant to 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 hereunto duly authorized.

                                                     eLEC Communications Corp.



Date:  April 14, 2006                                By:  /s/ Paul H. Riss
       --------------                                   ------------------------
                                                     Paul H. Riss
                                                     Chief Executive Officer
                                                     (Principal Financial and
                                                        Accounting Officer)




                                       18
<PAGE>


                                  EXHIBIT INDEX

                  Exhibit
                  Number                         Description

                  31.1  Certification  of our Chief Executive  Officer and Chief
                        Financial Officer,  Paul H. Riss,  Pursuant to 18 U.S.C.
                        1350 (Section 302 of the Sarbanes-Oxley Act of 2002)

                  32.1  Certification  of our Chief Executive  Officer and Chief
                        Financial Officer,  Paul H. Riss,  Pursuant to 18 U.S.C.
                        1350 (Section 906 of the Sarbanes-Oxley Act of 2002)


                                       19