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


                                   FORM 10-QSB





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



For the fiscal quarter ended:       March 31, 2004
Commission file number:             33-42498



                             SUN NETWORK GROUP, INC.
             (Exact name of registrant as specified in its charter)


      Florida                                          65-024624
      (State or other jurisdiction of                  (I.R.S. Employer
      incorporation or organization)                   Identification No.)



                         1440 CORAL RIDGE DR., SUITE 140
                          CORAL SPRINGS, FLORIDA 33071
                    (Address of principal executive offices)
                                   (Zip code)

                                 (954) 360-4080
              (Registrant's telephone number, including area code)


Indicate by check mark whether registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                 Yes |X|  No |_|

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of May 3, 2004: 123,407,813 shares of common stock, $.001 par
value per share.

<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
                                    FORM 10-QSB
                      QUARTERLY PERIOD ENDED MARCH 31, 2004
                                      INDEX

                                                                            Page

PART I - FINANCIAL INFORMATION

    Item 1 - Consolidated Financial Statements

    Consolidated Balance Sheet
            March 31, 2004 (Unaudited).....................................    3
    Consolidated Statements of Operations (Unaudited)
            For the Three Months Ended March 31, 2004 and 2003.............    4
    Consolidated Statements of Cash Flows (Unaudited)
            For the Three Months Ended March 31, 2004 and 2003.............    5

    Notes to Consolidated Financial Statements (Unaudited)................. 6-11

    Item 2 - Management's Discussion and Analysis of Financial Condition
             and Results of Operations.....................................12-15

    Item 3 - Control and Procedures........................................   16

PART II - OTHER INFORMATION

    Item 1 - Legal Proceedings.............................................   16

    Item 2 - Changes in Securities and Use of Proceeds.....................   16

    Item 4 - Submission of Matters to a Vote of Security Holders...........   16

    Item 6 - Exhibits and Reports on Form 8-K..............................   16

Signatures.................................................................   17

                                      -2-
<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2004
                                   (UNAUDITED)





                                     ASSETS

Current assets:
   Cash                                                             $   228,502
   Deferred debt issuance cost, net                                      63,000
   Prepaids                                                              34,000
                                                                    -----------

        Total current assets                                            325,502
                                                                    -----------

        Total assets                                                $   325,502
                                                                    -----------

                     LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
   Convertible debentures, net                                      $   390,619
   Accounts payable                                                       9,453
   Accrued interest                                                         825
   Accrued compensation, related party                                  215,992
                                                                    -----------

        Total current liabilities                                       616,889

   Long-term debt                                                       490,000
                                                                    -----------

        Total liabilities                                             1,106,889
                                                                    -----------

Minority interest                                                        38,127
                                                                    -----------

Stockholders' deficit:
   Common stock ($0.001 par value; 500,000,000 authorized shares;
      154,407,813 shares issued; 98,407,813 outstanding)                 98,407
   Common stock issuable (20,000,000 shares)                             20,000
   Additional paid-in capital                                         3,934,175
   Accumulated deficit                                               (4,469,929)
   Deferred consulting                                                 (402,167)
                                                                    -----------

        Total stockholders' deficit                                    (819,514)
                                                                    -----------
        Total liabilities and stockholders' deficit                 $   325,502
                                                                    ===========


          See accompanying notes to consolidated financial statements.

                                       -3-
<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)




                                                 For the Three Months Ended
                                                           March 31,
                                                ----------------------------
                                                     2004            2003
                                                ------------    ------------

REVENUES                                        $      2,415    $      1,119
                                                ------------    ------------


OPERATING EXPENSES:
    Compensation                                      37,500          40,986
    Amortization                                          --           3,699
    Bad debt                                              --           1,628
    Consulting                                     1,112,233           7,805
    Debenture penalties                               30,000         100,726
    Debt issuance cost amortization                    7,000           5,000
    Impairment loss                                       --          20,910
    Professional fees                                 10,143          31,443
    Other selling, general and administrative         34,711          25,578
                                                ------------    ------------

        Total Operating Expenses                   1,231,587         237,775
                                                ------------    ------------

LOSS FROM OPERATIONS                              (1,229,172)       (236,656)
                                                ------------    ------------

OTHER INCOME (EXPENSES):
    Settlement expense                               (57,334)        (36,500)
    Interest expense                                 (19,581)        (20,581)
    Recovery of bad debt                               4,520           7,289
    Interest income                                       --           1,628
                                                ------------    ------------

        Total Other Expenses                         (72,395)        (48,164)
                                                ------------    ------------

LOSS BEFORE MINORITY INTEREST                     (1,301,567)       (284,820)

MINORITY INTEREST IN SUBSIDIARY LOSS                      --           1,850
                                                ------------    ------------

NET LOSS                                        $ (1,301,567)   $   (282,970)
                                                ============    ============

EARNING (LOSS) PER SHARE:
      Net Loss Per Common Share - Basic
        and Diluted                             $      (0.02)   $      (0.01)
                                                ============    ============

      Weighted Common Shares Outstanding -
        Basic and Diluted                         79,961,349      28,048,487
                                                ============    ============


          See accompanying note to consolidated financial statements.

                                       -4-
<PAGE>


                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                         For the Three Months
                                                            Ended March 31,
                                                     ---------------------------
                                                         2004           2003
                                                     -----------    -----------
Cash flows from operating activities:
    Net loss                                         $(1,301,567)   $  (211,833)
    Adjustments to reconcile net loss to net cash
    used in operating activities:
      Amortization expense                                    --          3,699
      Bad debt expense                                        --          1,628
      Impairment loss                                         --         20,910
      Amortization of deferred debt issuance costs         7,000          5,000
      Amortization of debt discounts to interest
        expense                                              875          6,387
      Stock based consulting expense                   1,112,233         36,500
      Settlement expense                                  57,334             --
      Allocation of loss to minority interest                 --         (1,850)

      (Increase) decrease in:
         Interest receivable                                  --         (1,628)
         Prepaids                                             --        (54,000)

      Increase (decrease) in:
         Accounts payable                                  3,542          4,961
         Accrued interest                                 18,706         14,194
         Accrued penalties                                30,000         29,589
         Accrued compensation, related party              27,500         24,500
                                                     -----------    -----------

Net cash used in operating activities                    (44,377)      (121,943)
                                                     -----------    -----------

Cash flows from financing activities:
    Proceeds from lonas payable                          490,000             --
    Deferred debt issuance costs                         (49,000)            --
    Payments on convertible debenture                   (270,000)            --
    Proceed from loan from joint venture partner              --         50,000
    Proceeds from (payments on) loans from officer            --          2,000
                                                     -----------    -----------

Net cash provided by financing activities                171,000         52,000
                                                     -----------    -----------

Net (decrease) increase in cash                          126,623        (69,943)

Cash at beginning of year                                101,879         81,751
                                                     -----------    -----------

Cash at end of period                                $   228,502    $    11,808
                                                     ===========    ===========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the period for:
    Interest                                         $        --    $        --
                                                     ===========    ===========
    Income Taxes                                     $        --    $        --
                                                     ===========    ===========

NON-CASH INVESTING AND FINANCING ACTIVITIES:
    Common stock issued for debentures payable       $    62,188    $        --
                                                     ===========    ===========
    Debt issuance costs deferred in connection
      with convertible debentures                    $    49,000    $        --
                                                     ===========    ===========

          See accompanying notes to consolidated financial statements.

                                       -5-
<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 31, 2004
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Organization

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and pursuant to the rules and regulations of the
Securities and Exchange Commission ("SEC"). The accompanying consolidated
financial statements for the interim periods are unaudited and reflect all
adjustments (consisting only of normal recurring adjustments) which are, in the
opinion of management, necessary for a fair presentation of the consolidated
financial position and consolidated operating results for the periods presented.
These consolidated financial statements should be read in conjunction with the
consolidated financial statements of Sun Network Group, Inc. for the years ended
December 31, 2003 and 2002 and notes thereto contained in the Report on Form
10-KSB for the year ended December 31, 2003 as filed with the SEC . The results
of operations for the three months ended March 31, 2004 are not necessarily
indicative of the results for the full fiscal year ending December 31, 2004.

Sun Network  Group,  Inc. was  incorporated  under the laws of Florida on May 9,
1990 and was inactive for several years.

On September 5, 2002, the Company formed a general partnership with one other
partner. The partnership, Radio X Network ("Radio X"), was formed to
independently create, produce, distribute, and syndicate radio programs. The
Company offers radio programs to radio stations in exchange for advertising time
on those stations, which the Company then sells to advertisers. This is known in
the media industry as "barter syndication." In return for providing the radio
stations with programming content, the Company receives advertising minutes,
which the Company then sells to advertisers. The amount of advertising minutes
received is based on several factors, including the type and length of the
programming and the audience size of the radio station affiliate. In some
instances, the Company may also receive a monthly license fee in addition to or
in lieu of the commercial inventory and may derive revenues from sponsorship and
merchandising. Sun Network Group, Inc. acts as a holding company for Radio X and
RadioTV Network, Inc. RadioTV Network Inc. is developing a business to produce
and broadcast television versions of top rated radio programs.

Principles of Consolidation

The consolidated financial statements include the accounts of Sun Network Group,
Inc., its wholly owned subsidiary, RadioTV Network, Inc., and its controlled
subsidiary Radio X. All significant intercompany accounts and transactions have
been eliminated in consolidation.

Revenue Recognition

The Company follows the guidance of the Securities and Exchange Commission's
Staff Accounting Bulletin 104 for revenue recognition. In general, the Company
records revenue when persuasive evidence of an arrangement exists, services have
been rendered or product delivery has occurred, the sales price to the customer
is fixed or determinable, and collectability is reasonably assured. The
following policies reflect specific criteria for the various revenues streams of
the Company:

The Company accounts for revenues from its Radio TV Network, Inc operations in
accordance with the AICPA Accounting Standards Executive Committee Statement of
Position No. 00-2, "Accounting by Producers or Distributors of Films" ("SOP
00-2").

                                       -6-
<PAGE>

                     SUN NETWORK GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 March 31, 2004
                                   (UNAUDITED)


NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

Revenue Recognition (Continued)

The Company generally produces episodic television series and generates revenues
from the sale of broadcast licenses and advertising sales. The terms of the
licensing arrangement may vary significantly from contract to contract and may
include fixed fees, variable fees with or without nonrefundable minimum
guarantees, or barter arrangements.

The Company recognizes monetary revenues when evidence of a sale or licensing
arrangement exists, the license period has begun, delivery of the film to the
licensee has occurred or the film is available for immediate and unconditional
delivery, the arrangement fee is fixed or determinable, and collection of the
arrangement fee is reasonably assured. The Company recognizes only the net
revenue due to the Company pursuant to the formulas or amounts stipulated in the
customer contracts.

The Company recognizes revenues from barter arrangements in accordance with the
Accounting Principles Board Opinion No. 29 "Accounting for Non-Monetary
Exchanges," ("APB 29") as interpreted by EITF No. 93-11 "Accounting for Barter
Transactions Involving Barter Credits." In general, APB 29 and it related
interpretation require barter revenue to be recorded at the fair market value of
what is received or what is surrendered, whichever is more clearly evident.

The Company recognizes revenues from the sale of radio program advertising in
its Radio X Network operations when the fee is determinable and after the
commercial advertisements are broadcast. Any amounts received from customers for
radio advertisements that have not been broadcast during the period are recorded
as deferred revenues until such time as the advertisement is broadcast.

The Company recognizes radio program license fee revenues when evidence of a
licensing arrangement exists, the license period has begun, delivery of the
program to the licensee has occurred or is available for immediate and
unconditional delivery, the arrangement fee is fixed or determinable, and
collection of the arrangement fee is reasonably assured.

NOTE 2 - CONVERTIBLE DEBENTURES AND WARRANTS AND DEFAULT

On June 27, 2002, the Company entered into a Securities Purchase Agreement to
issue and sell 12% convertible debentures, in the aggregate amount of $750,000,
convertible into shares of common stock, of the Company. As of June 27, 2002,
$250,000 in convertible debentures were issued to various parties. The holders
of this debt have the right to convert all or any amount of this debenture into
fully paid and non-assessable shares of common stock at the conversion 0price
with the limitation that any debenture holder may not convert any amount of the
debentures if after conversion that debenture holder would beneficially hold
more than 4.9% of the total outstanding common stock of the Company. However,
any debenture holder may waive this limitation provision with 61 days written
notice to the Company. The conversion price generally is the lesser of (a) 50%
of the market value of the common stock as defined in the debenture or (b)
$0.15. Interest is payable either quarterly or at the conversion date at the
option of the holder. These convertible debentures matured on June 27, 2003, and
are secured by substantially all present and future assets of the Company. On
August 8, 2002, an additional $250,000 of convertible debentures were purchased
from the Company and matured on August 8, 2003 (see default discussion below).
On November 7, 2003, an additional $250,000 of convertible debentures were
purchased from the Company with the terms similar to that described above and
mature on November 8, 2004

                                       -7-
<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 March 31, 2004
                                   (UNAUDITED)

NOTE 2 - CONVERTIBLE DEBENTURES AND WARRANTS (CONTINUED)

Since a registration statement relating to the debentures was not declared
effective with in 90 days of June 27, 2002, the Company is obligated to pay a
fee to the debenture holders equal to 2% per month on the principal balance
outstanding. The registration statement was declared effective on October 30,
2003. In connection with this penalty, the Company had previously recorded
$130,849 in penalty fee expenses resulting in a total accrued penalty related to
this penalty of $130,849 through the date of redemption (March 8, 2004).

Under the debenture, the Company incurred a liquidated damages penalty for not
having enough authorized shares to allow for the issuance of all dilutive
securities based on a formula as stipulated in the Debenture agreement or for
not reporting to the debenture holder's on a timely basis as stipulated in the
Debenture Agreement. The penalty rate is computed as 3% of the outstanding
debenture balance per month, which computes to $15,000 per month. The accrued
penalty through March 8, 2004 (date of redemption agreement) amounted to
$236,137. Although the Company authorized the increase of its authorized shares
to 200,000,000 in May 2003 and then to 500,000,000 in October 2003, this
increase was not sufficient to satisfy the required authorized shares pursuant
to the Debenture Agreement and therefore the penalty has been accrued through
the redemption date (March 7, 2004).

On June 28, 2003 and on August 8, 2003 (the "Default Dates"), the Company
defaulted on its maturity date payments on $500,000 of debentures. A default
penalty expense was computed under the terms of the debenture as $179,492 and
has been charged to operations in fiscal 2003 from the Default Dates through
December 31, 2003 and included in accrued penalty.

In addition, interest accrued at the default rate of 15% from the default dates.

During December 2003 to the date of redemption (March 8, 2004), $87,194 of
debentures were converted into 15,159,326 shares of common stock (see note 4).
Additionally, through March 31, 2004, the Company repaid debenture holders
$270,000.

On March 8, 2004, the Company entered into a redemption agreement with its
debenture holders, whereby the Company agreed to pay $150,000 per week for five
weeks commencing on March 22, 2004 until such time as the Company has paid
$750,000. Upon final payment, the Company delivered 20,000,000 shares of common
stock to the debenture holders as full satisfaction of all accrued liabilities
under the debenture agreements. In May 2004, the Company paid funds due to the
debenture holders in full satisfaction of all liabilities. In connection with
the redemption agreement, the Company reduced accrued penalties as discussed
above amounting to $546,478 and reduced accrued interest of $116,188, as of
March 31, 2004. The Company valued the 20,000,000 shares of common stock due
upon full satisfaction of the debt on the date of the redemption agreement of
$720,000 or $.036 per share. Accordingly, the Company recorded settlement
expense of $57,334.

The convertible debenture liability is as follows at March 31, 2004:

Convertible debenture                                 $      392,806
Less: unamortized discount on debenture                       (2,187)
Convertible debenture, net                            $      390,619
                                                      ==============
                                       -8-
<PAGE>

                     SUN NETWORK GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 March 31, 2004
                                   (UNAUDITED)


NOTE 3 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board has recently issued several new
accounting pronouncements:

In December 2002, the FASB issued Statement of Financial Accounting Standards
No. 148, Accounting for Stock-Based Compensation - Transition and Disclosure.
Statement 148 provides alternative methods of transition to Statement 123's fair
value method of accounting for stock-based employee compensation. It also amends
the disclosure provisions of Statement 123 and APB Opinion No. 28, Interim
Financial Reporting, to require disclosure in the summary of significant
accounting policies of the effects of an entity's accounting with respect to
stock-based employee compensation on reported net income and earnings per share
in annual and interim financial statements. Statement 148's amendment of the
transition and annual disclosure requirements of Statement's 123 are effective
for fiscal years ending after December 15, 2002. Statement 148's amendment of
the disclosure requirements of Opinion 28 is effective for interim periods
beginning after December 15, 2002. The adoption of the disclosure provisions of
Statement 148 as of December 31, 2002 did not have a material impact on the
Company's financial condition or results of operations.


In January 2003, the FASB issued Interpretation No. 46 ("FIN 46"),
"Consolidation of Variable Interest Entities." FIN 46 requires that if an entity
has a controlling financial interest in a variable interest entity, the assets,
liabilities and results of activities of the variable interest entity should be
included in the consolidated financial statements of the entity. FIN 46 requires
that its provisions are effective immediately for all arrangements entered into
after January 31, 2003. The Company does not have any variable interest entities
created after January 31, 2003. For those arrangements entered into prior to
January 31, 2003, the FIN 46 provisions are required to be adopted at the
beginning of the first interim or annual period beginning after June 15, 2003.
The Company has not identified any variable interest entities to date and will
continue to evaluate whether it has variable interest entities that will have a
significant impact on its consolidated balance sheet and results of operations.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of Both Liabilities and Equity." This statement
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liabilities and equity. This
statement is effective for financial instruments entered into or modified after
May 31, 2003, and otherwise is effective for the first interim period beginning
after June 15, 2003, with certain exceptions. The adoption of SFAS No. 150 did
not have a significant impact on our consolidated financial position or results
of operations.

                                       -9-
<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 March 31, 2004
                                   (UNAUDITED)



NOTE 4 - STOCKHOLDERS' DEFICIT

Common Stock

During the three months ended March 31, 2004, in connection with the conversion
of debentures payable, the Company issued 6,260,998 shares of common stock upon
the conversion of debentures payable amounting to $62,188.

During the three months ended March 31, 2004, the Company entered into
agreements with third parties for management consulting, business advisory,
shareholder information and public relations services. In connection with these
agreements, the Company issued such consultants 36,800,000 shares of its common
stock for these services. The Company valued these shares at the quoted trading
price on the date of the agreement at prices ranging from $0.026 to $0.043 per
common share, and recorded consulting expense of $990,233 and deferred
consulting expense of $388,167 to be amortized over the contract terms.

In connection with the redemption agreement, the Company issued 20,000,000
shares of common stock to the debenture holders as full satisfaction of
liabilities under the debenture agreements. These shares were valued on the date
of the redemption agreement at fair market value based on the quoted trading
price of the stock (see Note 2).

NOTE 5 - LOAN PAYABLE

In March, 2004, the Company entered into two loan agreements to borrow $273,000
and $217,000, respectively. The loans bear interest at a rate equal to the
prevailing 30-day LIBOR rate plus 100 basis points. Interest on the loans is
computed on the basis of 360-day year for the number of actual days elapsed and
is due and payable quarterly commencing June 2, 3004. The loans are due in March
2006. If the loans are not paid by the close of business on the due date in
March 2006, the Company shall pay the lender a late charge equal to five percent
of the outstanding principal balance. The Company paid a cash fee equal 10% of
the amount borrowed which is deducted directly from the proceeds by the lender.
These fees are recorded as deferred debt issuance costs and amortized over the
loan term. The loans are collateralized by 28,000,000 shares of the Company's
common stock. In addition, the Company issued an additional 28,000,000 common
shares into escrow as collateral during March 2004 in anticipation of future
borrowings. The collateral shares are not considered outstanding for accounting
purposes and do not have voting rights until and unless they are foreclosed upon
due to any future default as stipulated in the agreements.

NOTE 6 - IMPAIRMENT LOSS

The Company received certain capital stock of a private German company in
exchange for a prepaid expense of $20,910 that was recorded at December 31,
2002. As the valuation of the capital stock received could not be supported
based on valuation or other objective data, the Company elected to
conservatively impair this asset for accounting purposes. Accordingly, the
Company recorded an impairment loss of $20,910 for the three months ended March
31, 2003.

                                      -10-
<PAGE>

                     SUN NETWORK GROUP, INC. AND SUBSIDIARIES
              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 March 31, 2004
                                   (UNAUDITED)

NOTE 7 - REPORTABLE SEGMENTS

As of March 31, 2004 and 2003, the Company had two reportable segments: Network
TV and Network Radio. The Company's reportable segments have been determined in
accordance with the Company's internal management structure. The following table
sets forth the Company's financial results by operating segments:

<TABLE>
<CAPTION>
               March 31, 2004                  Network TV     Network Radio        Total
     --------------------------------------   -----------     -------------    -------------

<S>                                           <C>                <C>           <C>
     Assets                                   $   325,502     $          -     $    325,502
                                              -----------     -------------    -------------
     Revenues                                 $      -               2,415     $      2,415
     Amortization                                    -                   -                -
     Other operating expenses                  (1,224,652)          (6,935)      (1,231,587)
     Interest expense                             (19,581)           -              (19,581)
     Settlement expense                           (57,334)           -              (57,334)
     Recovery of bad debt                            -               4,520            4,520
                                               ----------     -------------    -------------
     Segment loss                             $(1,301,567)    $          -     $ (1,301,567)
                                              ===========     =============    =============

               March 31, 2003                  Network TV     Network Radio     Total
     --------------------------------------   -----------     -------------    -------------

     Assets                                   $    70,808     $      6,493     $     77,301
                                              -----------     -------------    -------------
     Revenues                                 $      -               1,119     $      1,119
     Amortization                                    -              (3,699)          (3,699)
     Other operating expenses                    (262,168)          (8,408)        (270,576)
     Interest income                                1,628              -              1,628
     Interest expense                             (20,581)             -            (20,581)
     Recovery of bad debt                               -            7,289            7,289
     Minority interest                                  -            1,850            1,850
                                              -----------     -------------    -------------
     Segment loss                             $  (281,121)     $    (1,849)    $   (282,970)
                                              ===========     =============    =============
</TABLE>

NOTE 8 - GOING CONCERN

As reflected in the accompanying consolidated financial statements, the Company
had an accumulated deficit of $4,469,929 and a working capital deficit of
$291,387 at March 31, 2004, and cash used in operations in for the three months
ended March 31, 2004 of $44,377. In addition, revenues were nominal. Through
November 2003, the Company received approximately $582,000 in funding, net of
$168,000 of fees. Additionally, through March 31, 2004, the Company borrowed
$490,000 under loan agreements to pay back the debenture holders.

Management expects operations to generate negative cash flow at least through
December 2004 and the Company does not have existing capital resources or credit
lines available that are sufficient to fund operations and capital requirements
as presently planned over the next twelve months. The Company's ability to raise
capital to fund operations is further constrained because they have already
pledged substantially all of their assets and have restrictions on the issuance
of the common stock. The Company expects to generate substantially all revenues
in the future from sales of Radio X Network programs. However, the Company's
limited financial resources have prevented the Company from aggressively
advertising its product to achieve consumer recognition. The ability of the
Company to continue as a going concern is dependent on the Company's ability to
further implement its business plan and generate revenues. The consolidated
financial statements do not include any adjustments that might be necessary if
the Company is unable to continue as a going concern. Management believes that
the actions presently being taken to further implement its business plan and
generate additional revenues provide the opportunity for the Company to continue
as a going concern.

                                      -11-
<PAGE>

                    SUN NETWORK GROUP, INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
                                 March 31, 2004
                                   (UNAUDITED)

NOTE 9 - SUBSEQUENT EVENT

In April 2004, the Company borrowed additional fund of $334,000 under loan
agreements and paid $33,400 in debt issuance costs.

In April 2004, the Company entered into an agreement with a third party for
management consulting, business advisory, shareholder information and public
relations services. In connection with this agreement, the Company issued such
consultant 5,000,000 shares of its common stock for these services. The Company
valued these shares at the quoted trading price on the date of the agreement at
$.036 per common share, and recorded consulting expense of $180,000.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

OVERVIEW

The Company acquired all of the assets of RadioTV Network, Inc ("RTV") on July
16, 2001 in a transaction treated as a recapitalization of RTV. RTV has been
developing and operating, for the past few years, a new television network that
produced and distributed TV adaptations of top rated radio programs and also
produces and distributes radio programs through a partnership with an
established radio network.

On June 27, 2002 the Company entered into agreement with four (4) institutional
investors to provide the Company $750,000 in capital through a Secured
Convertible Debenture Offering ("Debenture")..

On June 28, 2002 the Company entered into an Option Agreement and Plan of Merger
("Agreement") to acquire all of the assets of Live Media Enterprises, Inc
("Live"), a west coast based independent producer of consumer lifestyle events.
On September 3, 2002 the Company elected to terminate the Agreement with Live
and will not proceed with the acquisition even on modified terms. In connection
with the Agreements the Company has loaned Live the sum of $56,000. This loan is
documented in two Promissory Notes and is collateralized by substantially all of
the assets of Live and personally guaranteed by Live's principal shareholder and
officer. The Company is presently attempting to collect its debts from Live in
the Los Angeles Superior Court.

On September 5, 2002, the Company entered into agreement with Sports Byline USA,
L.P. to own and operate a new, national radio network, Radio X. Radio X intends
to develop, produce, license, broadcast and distribute radio programs, targeted
to young males that will be distributed via traditional terrestrial stations,
via satellite and over the Internet. The Company has contributed the sum of
$100,000 to this business plus certain management services. Our partnership
interest is 50%, however, we have an overriding voting control over all matters
of the partnership. Radio X currently has three radio programs in distribution.

The Company intended to use the net proceeds from the Debenture to develop,
operate and expand the businesses of RTV and Radio X and continues to seek other
opportunities for the Company. In 2004, the Company entered into loan agreements
and borrowed a total of $824,000 and received proceeds f $741,600, net of debt
issue costs and paid back the debenture holders $750,000. The Company believes
that through its loan borrowings, it will have sufficient capital to operate
through the end of 2004. The Company will, however, continue to seek additional
capital to fund further development, expansion and operation of its businesses.
Upon conversion of the Debentures into the Company common stock there will be
substantial shareholder dilution.

                                      -12-
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

RESULTS OF OPERATIONS

Three months ended March 31, 2004 compared to the three months ended March 31,
2003

REVENUES

Revenues for the three months ended March 31, 2004 were $2,415 as compared to
revenues for the three months ended March 31, 2003 of $1,119 and were derived
from our consolidated subsidiary, Radio X Network.

OPERATING EXPENSES

Compensation was $37,500 for the three months ended March 31, 2004 compared to
$40,986 for the comparable period in 2003. Compensation relates solely to
compensation under our employment agreement with our president.

Amortization of radio programs of $0 and $3,699 for the three months ended March
31, 2004 and 2003, respectively, results from amortizing the radio programs
intangible assets that resulted from the investment by our subsidiary, RadioTV
Network, Inc, in the Radio X Network.

Consulting expense for the three months ended March 31, 2004 was $1,112,233
compared to $7,805 for the three months ended March 31, 2003. During the three
months ended March 31, 2004, consulting expense related to the issuance of
common stock for services.

The Debenture penalty of $30,000 and $100,726 for the three months ended March
31, 2004 and 2003, respectively, represents the accrued penalty under the
provisions of the Convertible Debentures. The penalties relate to the deadlines
associated with the Company filing a Registration Statement in connection with
the Convertible Debentures and liquidated damages penalty for not having enough
authorized shares to allow for the issuance of all dilutive securities based on
a formula as stipulated in the Debenture agreement and a default penalty on the
June 28, 2003 and August 8, 2003 maturity of $500,000 of debentures

For the three months ended March 31, 2003, the Company had an impairment loss of
$20,910 as compared to $0 for the three months ended March 31, 2004. The
impairment relates to certain capital stock received in a German private company
in lieu of a refund of a prepaid expense paid to a service provider. Since there
was no objective valuation data supporting the value of the capital stock
received, the Company elected to impair this asset.

Professional fees for the three months ended March 31, 2004 were $10,143
compared to $31,443 for the three months ended March 31, 2003. The decrease is
primarily related to accounting and legal, audit and registration statement
related services regarding our filing a SB-2 in the 2003 period.

Other selling, general and administrative expenses were $34,711 for the three
months ended March 31, 2004 as compared to $25,578 for the three months ended
March 31, 2003. The increase in expenses is primarily due to an increase in
travel related expense for the three months ended March 31, 2004 as compared to
the three months ended March 31, 2003.

Interest expense was $19,581 for the three months ended March 31, 2004 compared
to $20,581 for the three months ended March 31, 2003. Interest expense is
attributed to the Convertible Debenture offering and includes accrued interest
of the Convertible Debentures and amortization of the debt discount as well as
accrued interest on the Convertible Debentures due to the default on payment.

                                      -13-
<PAGE>

For the three months ended March 31, 2004, we recognized settlement expense of $
$57,334 related to the redemption of the debentures. On February 4, 2003, the
Company settled a lawsuit by issuing 1,000,000 common shares and $6,500 in cash.
The shares were valued at the quoted trading price of $0.03 per share on the
settlement date resulting in a total settlement expense of $36,500.

As a result of these factors, we reported a net loss of $1,301,567 or $(.02) per
share for the three months ended March 31, 2004 as compared to a net loss of
$282,970 or ($.01) per share for the three months ended March 31, 2003.

LIQUIDITY AND CAPITAL RESOURCES

At March 31, 2004, we had a stockholders' deficit of $819,514. Our operations
have been funded by an equity investor in our common stock where we issued
183,088 common shares for $82,390 cash during 2002, by the sale of convertible
debentures of $750,000 through November 2003, and net proceeds from loan of
$741,600 through May 2004. These funds were used primarily for working capital,
capital expenditures, advances to third parties in anticipation of entering into
a merger or acquisition agreement and to pay down certain related party loans.
The cash balance at March 31, 2004 was $228,502 and was used to pay back
debenture holders and we will have to minimize operations until we receive
additional cash flows from our businesses or complete additional financing.

We have no other material commitments for capital expenditures except for the
anticipated launch of a RadioTV Network program in late 2004. Other than several
thousand dollars to be generated from our advertising sales from the broadcast
of our initial program on the Radio X Network, debenture proceeds, loan
proceeds, and warrant exercise proceeds we have no external sources of
liquidity. Although we believe we will have sufficient capital to fund our
anticipated operations through fiscal 2004, we are not currently generating
meaningful revenues and, unless we raise additional capital, we may not be able
to continue operating beyond fiscal 2004.

Net cash used in operations during the three months ended March 31, 2004 was
$44,377 and was substantially attributable to net loss of $1,301,567 offset
primarily by non-cash stock based expenses of $1,112,233, settlement expense of
$57,334, non-cash debt discount amortization of $875, amortization of deferred
debt issuance costs of $7,000, and net changes in operating assets and
liabilities of $79,748. In the comparable period of 2003, we had net cash used
in operations of $121,943 primarily relating to the net loss of $211,833
primarily offset by an impairment loss of $20,910 and stock-based consulting
expense of $36,500.

Net cash provided by financing activities for the three months ended March 31,
2004 was $171,000 as compared to net cash provided by financing activities of
$52,000 for the three months ended March 31, 2003. During the three months ended
March 31, 2004, we received proceeds from loans of $490,000, paid debt issuance
costs of $49,000 and repaid debenture holders $270,000. In the comparable period
of 2003, we received a loan from a joint venture partner of $50,000 and proceeds
from an officer loan of $2,000.

For the fiscal year ended December 31, 2003, our auditors have issued a going
concern opinion in connection with their audit of the Company's financial
statements. These conditions raise substantial doubt about our ability to
continue as a going concern if sufficient additional funding is not acquired or
alternative sources of capital developed to meet our working capital needs.

CRITICAL ACCOUNTING POLICIES

A summary of significant accounting policies is included in Note 1 to the
audited financial statements included in our Annual Report on Form 10-K, as
amended, for the year ended December 31, 2002 as filed with the United States
Securities and Exchange Commission. We believe that the application of these
policies on a consistent basis enables us to provide useful and reliable
financial information about our operating results and financial condition.

                                      -14-
<PAGE>

ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results may differ from those estimates.

REVENUE RECOGNITION

We follow the guidance of the Securities and Exchange Commission's Staff
Accounting Bulletin 104 for revenue recognition. In general, the Company records
revenue when persuasive evidence of an arrangement exists, services have been
rendered or product delivery has occurred, the sales price to the customer is
fixed or determinable, and collectability is reasonably assured. The following
policies reflect specific criteria for the various revenues streams of the
Company:

We account for revenues from its Radio TV Network, Inc operations in accordance
with the AICPA Accounting Standards Executive Committee Statement of Position
No. 00-2, "Accounting by Producers or Distributors of Films" ("SOP 00-2").

We generally produce episodic television series and generates revenues from the
sale of broadcast licenses and advertising sales. The terms of the licensing
arrangement may vary significantly from contract to contract and may include
fixed fees, variable fees with or without nonrefundable minimum guarantees, or
barter arrangements.

We recognize monetary revenues when evidence of a sale or licensing arrangement
exists, the license period has begun, delivery of the film to the licensee has
occurred or the film is available for immediate and unconditional delivery, the
arrangement fee is fixed or determinable, and collection of the arrangement fee
is reasonably assured. We recognize only the net revenue due to the Company
pursuant to the formulas or amounts stipulated in the customer contracts.

We recognize revenues from barter arrangements in accordance with the Accounting
Principles Board Opinion No. 29 "Accounting for Non-Monetary Exchanges," ("APB
29") as interpreted by EITF No. 93-11 "Accounting for Barter Transactions
Involving Barter Credits." In general, APB 29 and it related interpretation
require barter revenue to be recorded at the fair market value of what is
received or what is surrendered, whichever is more clearly evident.

We recognize revenues from the sale of radio program advertising in its Radio X
Network operations when the fee is determinable and after the commercial
advertisements are broadcast. Any amounts received from customers for radio
advertisements that have not been broadcast during the period are recorded as
deferred revenues until such time as the advertisement is broadcast.

We recognize radio program license fee revenues when evidence of a licensing
arrangement exists, the license period has begun, delivery of the program to the
licensee has occurred or is available for immediate and unconditional delivery,
the arrangement fee is fixed or determinable, and collection of the arrangement
fee is reasonably assured.

STOCK BASED COMPENSATION

We account for stock transactions with employees in accordance with APB Opinion
No. 25, "Accounting for Stock Issued to Employees." In accordance with Statement
of Financial Accounting Standards No. 123 ("SFAS 123"), "Accounting for
Stock-Based Compensation," we adopted the pro forma disclosure requirements of
SFAS 123. We account for stock issued to non-employees in accordance with SFAS
123 and related interpretations.

                                      -15-
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our chief
executive officer and chief financial officer, conducted an evaluation of our
"disclosure controls and procedures" (as defined in the Securities Exchange Act
of 1934 (the "Exchange Act") Rules 13a-14I) within 90 days of the filing date of
this Quarterly Report on Form 10-QSB (the "Evaluation Date"). Based on their
evaluation, our chief executive officer and chief financial officer have
concluded that as of the Evaluation Date, our disclosure controls and procedures
are effective to ensure that all material information required to be filed in
this Quarterly Report on Form 10-QSB has been made known to them in a timely
fashion.

Changes in Internal Controls

There have been no significant changes (including corrective actions with regard
to significant deficiencies or material weaknesses) in our internal controls or
in other factors that could significantly affect these controls subsequent to
the Evaluation Date set forth above.

                          PART II - OTHER INFORMATION

Item 1. Legal Proceedings

      None

Item 2. Changes in Securities and Use of Proceeds

      In October 2003, we changed the number of authorized common shares to
500,000,000.

Item 4. Submission of Matters to Vote of Security Holders

      None

Item 6. Exhibits and Reports on Form 8-K

   (a) Exhibits

      31.1      Certification by Chief Executive Officer Pursuant to Section 302
      31.2      Certification by Chief Financial Officer Pursuant to Section 302
      32.1      Certification by Chief Executive Officer Pursuant to Section 906
      32.2      Certification by Chief Financial Officer Pursuant to Section 906


      Reports on Form 8-K

      None

                                      -16-
<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, thereunto duly authorized.

                                                SUN NETWORK GROUP, INC.


Dated:      May 24, 2004                    By: /s/ T. Joseph Coleman
                                                --------------------------------
                                                T. Joseph Coleman
                                                Chief Executive Officer,
                                                President and Director

                                      -17-