U.S. 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 QUARTERLY PERIOD ENDED  JUNE 30, 2006   Commission file number:  000-26971  TRIMOL GROUP, INC. (Exact Name of Small Business Issuer as it appears in its charter)  DELAWARE (State or other Jurisdiction of Incorporation or Organization)  13-3859706 (I.R.S. Employer Identification No.)  1285 Avenue of the Americas, 35th Floor New York, New York 10019 (Address of principal executive offices)  (212) 554-4394 (Issuers Telephone Number)   As of June 30, 2006, there were 100,472,328 issued and outstanding shares of the Companys common stock.  Transitional Small Business Disclosure Format (Check one):     o Yes      
x No  Accelerated filer as defined in Rule 12b-2 of the Securities Act of 1934.      o Yes      x No    TRIMOL GROUP, INC.





FORM 10-QSB QUARTERLY REPORT





For the period ended June 30, 2006





TABLE OF CONTENTS





PART I -  FINANCIAL INFORMATION






ITEM 1.

        FINANCIAL STATEMENTS

        3




INDEPENDENT ACCOUNTANTS REVIEW REPORT

        4




CONSOLIDATED BALANCE SHEET

        5




CONSOLIDATED STATEMENT OF OPERATIONS

        6




CONSOLIDATED STATEMENT OF CASH FLOWS

        7




NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

        8


ITEM 2.

        MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

        13




ITEM 3.

        CONTROLS AND PROCEDURES

        17





PART II -  OTHER INFORMATION






ITEM 1.

        LEGAL PROCEEDINGS

        17






ITEM 2.

        CHANGES IN SECURITIES

        18






ITEM 3.

        DEFAULTS UPON SENIOR SECURITIES

        18






ITEM 4.

        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

        18






ITEM 5.

        OTHER INFORMATION

        18






ITEM 6.

        EXHIBITS AND REPORTS ON FORM 8-K

        19






SIGNATURES

        20








2







PART I - FINANCIAL INFORMATION






ITEM 1.

        FINANCIAL STATEMENTS





CONSOLIDATED FINANCIAL STATEMENTS


AS OF JUNE 30, 2006











3







INDEPENDENT ACCOUNTANTS REVIEW REPORT





To the Board of Directors and Shareholders of


Trimol Group, Inc.





We have reviewed the accompanying consolidated balance sheet of Trimol Group, Inc. (the Company) as of June 30,
2006 and the related consolidated statements of operations and cash flows for the six and three month periods ended June 30, 2006 and 2005. These financial statements are the responsibility of the
Company's management.


We conducted our review in accordance with standards established by the American Institute of Certified Public
Accountants.  A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and
accounting matters.  It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is to express an opinion regarding the
financial statements taken as a whole.  Accordingly, we do not express such an opinion.


The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.
As discussed in Note 2 to the financial statements, the Companys only customer has notified the Company that it does not intend to renew its contract that expired April 29, 2006. In addition,
as shown on the accompanying balance sheet, the Companys liabilities exceeded its assets by $411,000.   These circumstances raise substantial doubt about its ability to continue as a going
concern.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


Based on our review, we are not aware of any material modifications that should be made to the consolidated financial
statements referred to above for them to be in conformity with generally accepted accounting principles.





PARITZ & COMPANY, P.A.


Hackensack, New Jersey






Date: August 3, 2006








4







TRIMOL GROUP, INC.


CONSOLIDATED BALANCE SHEET






June 30, 2006
(Unaudited)
     
     December 31, 2005
(Audited)ASSETSCurrent assets:Cash
     $2,000
        
     $14,000Accounts receivable (See Note 3)
     1,571,000
        
     646,000TOTAL CURRENT ASSETS
     1,573,000
        
     660,000Property and equipment, net
     55,000
        
     72,000TOTAL ASSETS
     $1,628,000
        
     $732,000LIABILITIESCurrent liabilities:Trade accounts payable
     $
        
     $267,000Accrued expenses
     1,918,000
        
     545,000Due to related parties
     66,000
        
     TOTAL  CURRENT LIABILITIES
     1,984,000
        
     812,000SHAREHOLDERS DEFICIENCY
     (356,000
        )
     (80,000
        )TOTAL LIABILITIES AND SHAREHOLDERS DEFICIENCY
     $1,628,000
        
     $732,000The accompanying notes are an integral part of the financial statements








5







TRIMOL GROUP, INC.


CONSOLIDATED STATEMENT OF OPERATIONS


(UNAUDITED)






SIX MONTHS ENDED
     
     THREE MONTHS ENDEDJune 30, 2006
     
     June 30, 2005
     
     June 30, 2006
     
     June 30, 2005REVENUES (See Note 3)
     
     
     $2,211,000
        
     $4,234,000
        
     $511,000
        
     $2,215,000OPERATING EXPENSES:Cost of revenues
     593,000
        
     1,283,000
        
     95,000
        
     891,000Marketing and promotion
     1,003,000
        
     1,512,000
        
     434,000
        
     800,000Other operating expenses
     891,000
        
     1,174,000
        
     413,000
        
     743,000TOTAL OPERATING EXPENSES
     2,487,000
        
     3,969,000
        
     942,000
        
     2,434,000NET INCOME (LOSS)
     $(276,000
        )
     $265,000
        
     $(431,000
        )
     $(219,000
        )Net income (loss) per share (basic anddiluted)
     (.003
        )
     .003
        
     (.004
        )
     (.002
        )WEIGHTED AVERGE NUMBER OFSHARES OUTSTANDING
     100,472,328
        
     100,472,328
        
     100,472,328
        
     100,472,328


The accompanying notes are an integral part of the financial statements








6







TRIMOL GROUP, INC.


CONSOLIDATED STATEMENT OF CASH FLOWS


(UNAUDITED)






Six Months Ended June 30,2006
     
     2005CASH FLOWS FROM OPERATING ACTIVITIES:NET INCOME (LOSS)
     $(276,000
        )
     $265,000ADJUSTMENTS TO RECONCILE NET INCOMETO NET CASH PROVIDED BY (USED IN)OPERATING ACTIVITIES:Depreciation of property and equipment
     17,000
        
     17,000CHANGES IN ASSETS AND LIABILITIES:Accounts receivable
     (925,000
        )
     (135,000
        )Accounts payable
     (267,000
        )
     687,000Accrued expenses
     1,373,000
        
     (260,000
        )NET CASH PROVIDED BY (USED IN)OPERATING ACTIVITIES
     (78,000
        )
     574,000CASH FLOW FROM FINANCING ACTIVITIES:Proceeds of loans from related parties
     66,000
        
     (582,000
        )NET CASH USED IN FINANCING ACTIVITIES
     66,000
        
     (582,000
        )INCREASE (DECREASE) IN CASH
     (12,000
        )
     (8,000
        )CASH - BEGINNING OF PERIOD
     14,000
        
     35,000CASH - END OF PERIOD
     $2,000
        
     $27,000


The accompanying notes are an integral part of the financial statements








7







TRIMOL GROUP, INC.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION





The unaudited consolidated financial statements of Trimol Group, Inc. (the Company) as of June 30, 2006 and
for the six and three month periods ended June 30, 2006 and 2005 included herein have been prepared on the same basis as those of the Annual Report on Form 10-KSB for the year ended December 31,
2005. In the opinion of management, all adjustments (consisting only of those which are normal and recurring) necessary for a fair presentation have been included.


The results of operations for interim periods are not necessarily indicative of the results to be expected for a full
fiscal year.


Certain financial information that is normally included in annual financial statements prepared in accordance with
generally accepted accounting principles, but is not required for interim reporting purposes, has been condensed or omitted.


The accompanying unaudited consolidated financial statements should be read in conjunction with the audited
consolidated financial statements and related notes included in the Companys Annual Report on Form 10-KSB for the year ended December 31, 2005.





NOTE 2 - OPERATIONS


The Company owns all of the outstanding shares of Intercomsoft Limited (Intercomsoft) a company engaged
in the operation of a computerized photo identification and database management system utilized in the production of a variety of secure essential government identification documents such as
passports, drivers licenses, national identification documents and other such forms of essential personal identification.


Intercomsoft utilizes a technology provided by Supercom, Ltd. (Supercom), pursuant to a Sales Agreement
dated August 25, 1995, as amended.  On March 24, 2005 Intercomsoft and Supercom entered into a Termination Agreement terminating the Sales Agreement.  Notwithstanding such termination, pursuant to
the Termination Agreement, and in consideration of certain payments to be made to it, Supercom agreed to continue to supply such equipment, consumables, software and technology required by
Intercomsoft during the remaining term of the Supply Agreement, as hereinafter defined.


Intercomsofts only customer is the Government of the Republic of Moldova, pursuant to a ten (10) year Contract
on Leasing Equipment and Licensing Technology(the Supply Agreement) awarded to it in April 1996 by the Ministry of Economics, Republic of Moldova,
to provide a National Register of Population and a National Passport System.  Under the terms of the Supply Agreement, Intercomsoft supplies all of the equipment, technology, software, materials and
consumables utilized by the Government for the production of all national passports, drivers licenses, vehicle permits, identification cards and other government authorized identification
documents in the Republic of Moldova.





8







On or about February 11, 2006, the Company received a notice from the Government of the Republic of Moldova wherein
it advised the Company that it does not intend to renew the Supply Agreement which, unless renewed, expired by its terms on April 29, 2006. The Company does not believe that such non-renewal notice
was sent timely under the applicable provisions of the Supply Agreement and has contested such non-renewal notice.


On June 27, 2006, the Company and Intercomsoft commenced an action in the United States District Court for the Southern
District of New York against the Ministry of Economics of the Republic of Moldova and the Government of the Republic of Moldova seeking damages of approximately $41,000,000 for breach of contract and
an injunction prohibiting Moldova from producing further essential government documents in accordance with the terms of the Supply Agreement.  As a consequence of discussions with counsel to the
defendants in this action, the Company withdrew the action in August 2006, without prejudice to its rights to reinstate it in the United States courts, and intends to submit its claims against the
defendants before an arbitration tribunal in Switzerland.  There can be no assurance as to the outcome of such arbitration proceeding.


However, inasmuch as the Companys only revenues are derived from Intercomsofts activities under the
Supply Agreement, if the Supply Agreement is not renewed or extended, the Company will have no source of revenues as a consequence of the expiration of such Agreement. Such event will have a material
adverse effect on Intercomsoft and the Company.


Currently, other than activities in connection with the Supply Agreement noted above, Trimol is not engaged in any other
business activities.





NOTE 3 - RISKS AND UNCERTAINTIES





The following risk factors relating to the Company and its business should be carefully considered:





The Company has no current source of revenue





The Companys sole revenue source for the three and six months ended June 30, 2006 was from Intercomsoft whose
only customer is the Republic of Moldovas Ministry of Economics to which it supplies its goods and services pursuant to the April 29, 1996 Supply Agreement  between the Government of Moldova
and Intercomsoft..





On or about February 11, 2006, the Company received a notice from the Government of the Republic of Moldova advising
the Company that it did not intend to renew the Supply Agreement which, unless renewed, expired by its terms on April 29, 2006. The Company does not believe that such non-renewal notice was sent
timely under the applicable provisions of the Supply Agreement. However, inasmuch as the Companys only revenues are derived from Intercomsofts activities under the Supply Agreement, as of
April 29, 2006, the Company has no source of revenue as a consequence of the expiration of such Agreement.  Although the Company has contested Moldovas notice of non-renewal of the Supply
Agreement, there can be no assurance as to the outcome of such dispute   If the Government of the Republic of Moldova does not recognize the renewal of the Supply Agreement, such event will have a





9







material adverse effect on Intercomsoft and the Company.





The accompanying consolidated balance sheet shows that, as of June 30, 2006, the Company has trade accounts receivable
in the amount of $1,571,000. Such amount is for services rendered to the Government of Moldova under the Supply Agreement through April 29, 2006.  The $1,571,000 is exclusive of contractually agreed
upon interest for late payments as well as certain contractual adjustments that the Government of Moldova has informed the Company are due in the approximate amount of $600,000.





Among the Companys claims against Moldova, as more detailed in Note 2, is a claim for non-payment for all of the
essential government documents produced under the Supply Agreement during the four month period commencing January 2006 and ending in April 2006.  Based, in part, upon records issued by Moldova, the
Company believes the amount due for this period, together with contractually agreed upon interest for late payments, is in excess of $2,500,000.  As of the date of this Report, Moldova has not
provided any reason to the Company for non-payment of the amount due for the production of these documents under the Supply Agreement. In the opinion of management, this receivable is valid and fully
collectible


The Company has terminated its agreement with Supercom Limited.


Pursuant to a Sales Agreement between Intercomsoft and Supercom Limited (Supercom) dated August 25, 1995,
as amended, Supercom supplied the equipment, software, technology and consumables utilized by Intercomsoft for the production of computerized documents under the Supply Agreement.  Pursuant to this
agreement, Intercomsoft is provided with the guidance and support required for the installation and operation of the equipment, as well as the materials required for its maintenance.





On March 24, 2005, Intercomsoft and Supercom entered into a Termination Agreement, terminating the Sales Agreement.
Notwithstanding, pursuant to the terms of the Termination Agreement, Supercom, in consideration of certain payments to be made to it, agreed to continue to supply Moldova with such equipment,
consumables, software and technology during the remaining term of the Supply Agreement, pursuant to the requirements of the Supply Agreement.  Supercom agreed not to take any action, directly or
indirectly, to interfere with Intercomsofts contractual rights with Moldova or to, in any way, cause Moldova to terminate or not renew the Supply Agreement and agreed to pay to Intercomsoft
certain amounts specified in the Termination Agreement as liquidated damages in the event of any breach or default by Supercom thereunder. Except and as to the extent provided under the Termination
Agreement, Intercomsoft

has no other rights to Supercoms proprietary technology as referred to above.


The Company is not pursuing development of its aluminum-air fuel cell technology.


Through a joint venture with Aluminum-Power, Inc. (API), the Companys majority shareholder, the
Company pursued research and development of its aluminum-air fuel cell technology it acquired in the first quarter of 2001.  Such research and development was suspended in the second quarter of 2003.
 The Company does not intend to pursue the development of such technology in the future.


The Company has no current business activities.





On June 27, 2006, the Company and Intercomsoft commenced an action in the United States








10







District Court for the Southern District of New York against the Ministry of Economics of the Republic of Moldova and
the Government of the Republic of Moldova seeking damages of approximately $41,000,000 for breach of contract and an injunction prohibiting Moldova from producing further essential government
documents in accordance with the terms of the Supply Agreement.  Additionally, the Company has contested Moldovas notice of non-renewal of the Supply Agreement.  The action was withdrawn in
August 2006, without prejudice, and the Company intends to submit its claims against the Ministry of Economics of the Republic of Moldova and the Government of the Republic of Moldova before an
arbitration tribunal in Switzerland.  There can be no assurance as to the outcome of such arbitration proceeding.





Currently, other than activities in connection with the Supply Agreement, Trimol is not engaged in any other business
activities.





NOTE 4 - RELATED PARTY TRANSACTIONS AND BALANCES





Transactions





During the three months ended June 30, 2006, the Company borrowed $66,000 from Boris Birshtein, the Companys
Chairman of the Board, and a company owned and controlled by Mr. Birshtein.  This loan is non-interest bearing and due on demand.





The Companys employment agreement with Mr. Birshtein expired December 31, 2003 and was not renewed. Pursuant to a
letter agreement dated March 10, 2004 between the Company and Mr. Birshtein, Mr. Birshtein agreed to continue to serve as the Companys Chairman of the Board of Directors on a month-to-month
basis.  Mr. Birshteins compensation for the six months ended June 30, 2006 aggregated $138,000, which is included in General and Administrative Expenses on the accompanying consolidated
statement of operations.





The Company incurred expenses of $318,000 for the six months ended June 30, 2006 to a company owned and controlled by
Mr. Birshtein





NOTE 5 - COMMITMENTS AND GENERAL COMMENTS


During the six months ended June 30, 2006, the Company did not issue any options to purchase its common stock.  As of
June 30, 2006, the total options outstanding were 10,720,000, of which 5,470,000 were issued pursuant to the 2001 Omnibus Plan, as amended.








11







NOTE 6 - SEGMENT INFORMATION


The Companys operations are classified into two reportable segments.  The segments consist of Intercomsoft,
which produces secure essential government identification documents, and general and administrative expenses incurred for corporate purposes.





SIX MONTHS ENDED JUNE 30, 2006





Intercomsoft
     
     Corporate and
Administrative
     
     TotalNet sales
     
     
     $2,211,000
        
     $
        
     $2,211,000Operating expenses
     1,650,000
        
     837,000
        
     $2,487,000Net income (loss)
     $561,000
        
     $(837,000
        )
     $(276,000
        )


SIX MONTHS ENDED JUNE 30, 2005






Intercomsoft
     
     Corporate and
Administrative
     
     TotalNet sales
     
     
     $4,234,000
        
     $
        
     $4,234,000Operating expenses
     2,871,000
        
     1,098,000
        
     3,969,000Net income (loss)
     $1,363,000
        
     $(1,098,000
        )
     $265,000


THREE MONTHS ENDED JUNE 30, 2006







Intercomsoft
     
     Corporate and
Administrative
     
     TotalNet sales
     
     
     $511,000
        
     $
        
     $511,000Operating expenses
     554,000
        
     388,000
        
     942,000Net income (loss)
     $(43,000
        )
     $(388,000
        )
     $(431,000
        )


THREE MONTHS ENDED JUNE 30, 2005






Intercomsoft
     
     Corporate and
Administrative
     
     TotalNet sales
     
     
     $2,215,000
        
     $
        
     $2,215,000Operating expenses
     1,724,000
        
     710,000
        
     2,434,000Net income (loss)
     $491,000
        
     $(710,000
        )
     $(219,000
        )






12







ITEM 2.

        MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL


CONDITION AND RESULTS OF OPERATION





The following management's discussion and analysis of financial condition and results of operation should be read in
conjunction with our unaudited consolidated financial statements and notes thereto contained elsewhere in this report.


PLAN OF OPERATION





General


We operate Intercomsoft, Ltd. (Intercomsoft), a wholly owned subsidiary acquired by us in
the second quarter of 1998.  Intercomsoft is a technology-intensive company engaged in the operation of a computerized photo identification and database management system utilized in the production
of secure essential government identification documents such as passports, drivers licenses, national identification documents and other such forms of essential personal identification.


Although it is interested in developing other opportunities, Intercomsofts only customer is the
Government of the Republic of Moldova, pursuant to a ten (10) year Contract on Leasing Equipment and Licensing Technology (the Supply Agreement) awarded to it in April 1996 by the
Ministry of Economics, Republic of Moldova, to provide a National Register of Population and a National Passport System.  Under the terms of the Supply Agreement, Intercomsoft supplies all of the
equipment, technology, software, materials and consumables utilized by the Government for the production of all national passports, drivers licenses, vehicle permits, identification cards and
other government authorized identification documents in the Republic of Moldova.


To support its efforts in the Republic of Moldova, Intercomsoft has utilized a proprietary technology
provided by Supercom, Ltd. (Supercom) pursuant to a Sales Agreement between it and Supercom dated August 25, 1995, as amended.  On March 24, 2005 Intercomsoft and Supercom entered into a
Termination Agreement terminating the Sales Agreement.   Notwithstanding such termination, pursuant to the Termination Agreement, and in consideration of certain payments to be made to it, Supercom
agreed to continue to supply the Government with such equipment, consumables, software and technology during the remaining term of the Supply Agreement.  Except and as to the extent provided under
the Termination Agreement, Intercomsoft has no other rights to Supercoms proprietary technology as referred to above.


On or about February 11, 2006, we received notice from the Government of the Republic of Moldova that
it did not intend to renew the Supply Agreement which, unless renewed, expired by its terms on April 29, 2006.  We believe that such notice of non-renewal was not timely under the applicable
provisions of the Supply Agreement and are currently contesting the claimed non-renewal of such Agreement.


On June 27, 2006, together with Intercomsoft, we commenced an action in the








13







United States District Court for the Southern District of New York against the Ministry of Economics of the Republic of
Moldova and the Government of the Republic of Moldova seeking damages of approximately $41,000,000 for breach of contract and an injunction prohibiting Moldova from producing further essential
government documents in accordance with the terms of the Supply Agreement. Such amount includes approximately $2,500,000 that we believe is due to us for the four month period commencing January 2006
and ending in April 2006.  The action was withdrawn in August 2006, without prejudice, and the Company intends to submit its claims to an arbitration tribunal in Switzerland.  There can be no
assurance as to the outcome of such arbitration tribunal.





If and to the extent that other such opportunities are presented to Intercomsoft in the future, we will
be required to obtain substantial capital and technology in order to pursue any such opportunities.  There can be no assurances that such capital, if and when needed, will be available to us, or that
Intercomsoft will be able to acquire any technology required to implement any such opportunity.


However, inasmuch as our only current source of revenue is derived from Intercomsofts activities
under the Supply Agreement, if the Supply Agreement is not renewed or extended, we will have no source of revenues as a consequence of the expiration of such Agreement.  This event will have a
material adverse effect on Intercomsoft as well as on us.


Currently, other than activities in connection with the Supply Agreement, Trimol is not engaged in
any other business activities.





RESULTS OF OPERATIONS


General


During the three month period ended June 30, 2006, our operations consisted solely of the activities
of Intercomsoft.


As more fully described above, Intercomsoft operates in and derives its revenues solely from
services performed for the Government of the Republic of Moldova pursuant to a Supply Agreement with such Government which, unless renewed as provided therein, expired by its terms on April 29, 2006.
We are currently contesting the Governments non-renewal of such Supply Agreement.


Comparison of Three Month Period: June 30, 2006 to June 30, 2005


During the three months ended June 30, 2006, we generated revenues resulting solely from
Intercomsofts production of government documents in the Republic of Moldova of approximately $511,000 as compared to $2,215,000 for the same period in 2005, a decrease of $1,704,000, or
approximately 77%.  The decrease in revenue in the comparative period in 2006 was the result of the disputed non-renewal of the Supply





14







Agreement on April 29, 2006, as previously noted.


Given such circumstances, we believe that our revenue for the three month period ended June 30, 2006
would have been significantly higher than noted above if the Republic of Moldova had complied with its contractual obligations under the Supply Agreement for payment of essential government documents
produced during this period which is due to us as of April 29, 2006.


During the three months ended June 30, 2006, Intercomsofts costs associated with generating
these revenues were $95,000 or 19% of revenues, as compared to $891,000, or 40% of revenues, for the same period in 2005. Costs associated with generating revenue were higher in the 2005 comparative
period due to non-recurring costs incurred in such period.


General and administrative expenses for the three months ended June 30, 2006, were approximately
$413,000, which consisted of $25,000 of Intercomsoft expenses and $388,000 of general corporate and administrative expenses. For the same period in 2005, general and administrative expenses
aggregated approximately $743,000, which consisted of $33,000 of Intercomsoft expenses and $710,000 of general corporate and administrative expenses.  General corporate and administrative expenses
decreased $330,000 in the three months ended June 30, 2006 as compared to the same period in 2005 due to corporate overhead cutbacks resulting from the disputed non-renewal of the Supply Agreement on
April 29, 2006, as previously noted.


Public relations, marketing and advertising expenses for the three months ended June 30, 2006 were
$434,000, compared to $800,000 in the same period in 2005, a decrease of $366,000, or 45%. All of such expenses were related to efforts to expand the use of Intercomsofts services.  The
decrease in such expenses resulted from a decrease in commissions and fees incurred pursuant to various marketing agreements, which are based on revenue generated in the period.


We had a net loss from operations of approximately $431,000 for the three month period ended June
30, 2006, as compared to a net loss of approximately $219,000 for the same period in 2005, an increased loss of $212,000, which resulted from all of the reasons set forth above.


Comparison of Six Month Period: June 30, 2006 to June 30, 2005


During the six months ended June 30, 2006, we generated revenues resulting solely from
Intercomsofts production of government documents in the Republic of Moldova of approximately $2,211,000 as compared to $4,234,000 for the same period in 2005, a decrease of $2,023,000, or
approximately 47%.  The decrease in revenue in the comparative period in 2006 was the result of the disputed non-renewal of the Supply Agreement on April 29, 2006, as previously noted.


Given such circumstances, we believe that our revenue for the six month period ended June 30, 2006
would have been significantly higher than noted above if the





15







Republic of Moldova had complied with its contractual obligations under the Supply Agreement for payment of essential
government documents produced during this period which is due to us as of April 29, 2006.


During the six months ended June 30, 2006, Intercomsofts costs associated with generating
these revenues were $593,000 or 27% of revenues, as compared to $1,283,000, or 30% of revenues, for the same period in 2005.


General and administrative expenses for the six months ended June 30, 2006, were approximately
$891,000, which consisted of $54,000 of Intercomsoft expenses and $837,000 of general corporate and administrative expenses. For the same period in 2005, general and administrative expenses
aggregated approximately $1,174,000, which consisted of $75,000 of Intercomsoft expenses and $1,099,000 of general corporate and administrative expenses. General corporate and administrative expenses
decreased $283,000 in the six months ended June 30, 2006 as compared to the same period in 2005 due to corporate overhead cutbacks resulting from the disputed termination of the Supply Agreement on
April 29, 2006, as previously noted.


Public relations, marketing and advertising expenses for the six months ended June 30, 2006 were
$1,003,000, compared to $1,512,000 in the same period in 2005, a decrease of $509,000, or 34%. All of such expenses were related to efforts to expand the use of Intercomsofts services.  The
decrease in such expenses resulted from a decrease in commissions and fees incurred pursuant to various marketing agreements, which are based on revenue generated in the period.


We had a net loss from operations of approximately $276,000 for the six month period ended June 30,
2006, as compared to net income of approximately $265,000 for the same period in 2005, a decrease of $541,000, which resulted from all of the reasons set forth above.


Liquidity & Capital Resources


Intercomsofts Supply Agreement, if not renewed pursuant to the terms thereof, expired by its
terms in April 2006.  As a consequence of what we believe was an untimely notice of non-renewal of the Supply Agreement, Moldova discontinued payment to us for amounts due under the Supply Agreement
and our sole source of revenue ended.  Although we are vigorously contesting the non-renewal of the Supply Agreement, there can be no assurances as to the outcome such dispute.  If the Supply
Agreement is not renewed, we will need to pursue future business opportunities in order to sustain continued operations.


CAUTIONARY STATEMENT RELATING TO FORWARD LOOKING STATEMENTS


This Quarterly Report on Form 10-QSB contains forward looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, which are intended to be covered by the safe harbors created thereby. Investors are
cautioned that all forward-








16







looking statements involve risk and uncertainty.  Although we believe that the assumptions underlying all forward
looking statements are reasonable, any assumptions could be inaccurate, and therefore, there can be no assurance that these statements will prove to be accurate.  In light of these uncertainties
inherent in forward-looking statements, the inclusion of such information should not be regarded as a representation by us, or anyone affiliated with us, that our objectives and plans will be
achieved.





ITEM 3.

        CONTROLS AND PROCEDURES


Our Chief Executive Officer and Chief Financial Officer have participated in and supervised the
evaluation of our disclosure controls and procedures (as defined in Rules 13(a)-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act) that are
designed to ensure that information required to be disclosed by us in the reports that we file is recorded, processed, summarized and reported within the time periods specified in the Securities and
Exchange Commissions rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that the information required to be disclosed
by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow
timely decisions

regarding required disclosure.  Our Chief Executive Officer and Chief Financial Officer determined that, as of the end of the period covered by this report, these controls and procedures are adequate
and effective in alerting them in a timely manner to material information required to be included in our periodic SEC filings.




PART II - OTHER INFORMATION








ITEM 1.

        LEGAL PROCEEDINGS





On June 22, 2006, together with Intercomosoft, our wholly owned subsidiary, we commenced an action
in the United States District Court for the Southern District of New York against the Ministry of Economics of the Republic of Moldova and the Republic of Moldova seeking damages and injunctive
relief for various specified breaches of the Contract on Leasing Equipment and Licensing Technology dated April 29, 1996, as amended, between the Ministry of Economics of the Republic of Moldova and
Intercomsoft (the Supply Agreement).  The action seeks damages against the defendants in the aggregate amount of approximately Forty One Million Dollars ($41,000,000) as a consequence of
such breaches, as well as injunctive relief against the defendants for continuing to utilize the equipment and technology licensed to defendants under the Supply Agreement or for otherwise engaging
in

activities competitive with us for the period specified in the applicable provisions of the Supply Agreement. As a consequence of discussions with counsel to the defendants in such action, the
Company withdrew the action in August 2006, without prejudice to








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its rights  to reinstate it in the United States courts, and intends to submit its claims against the defendants before an
arbitration tribunal in Switzerland.  There can be no assurance as to the outcome of such tribunal proceeding.








ITEM 2.

        CHANGES IN SECURITIES





There were no options issued during the three and month periods ended June 30, 2006.  There were no
options to purchase shares of our common stock cancelled in the three month period ended June 30, 2006, however, there were options to purchase 100,000 shares of our common stock cancelled during the
six month period ended June 30, 2006.  As of June 30, 2006, the total number of shares of our common stock reserved for issuance under options outstanding was 10,220,000, of which options to purchase
4,970,000 shares were issued pursuant to our 2001 Omnibus Plan, as amended.








ITEM 3.

        DEFAULTS UPON SENIOR SECURITIES





None.








ITEM 4.

        SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS






None.








ITEM 5.

        OTHER INFORMATION


In the first quarter of 2001, we acquired certain rights from Aluminum-Power, Inc.
(Aluminum-Power), our majority shareholder, to an aluminum-air fuel cell technology for use in portable consumer electronic products and devices such as cellular telephones and laptop
computers.  From the time we acquired such aluminum-air fuel cell technology in January 2001 through the second quarter of 2003 we engaged in research, development ad marketing efforts in connection
with such technology.  In addition, we actively sought strategic business partners to commercialize the technology and pursued prosecution of our patent applications resulting in the issuance by the
US Patent and Trademark Office of two patents on such technology.  However, we have not actively pursued development of this technology since the second quarter of 2003 and do not intend to further
pursue the development of

such technology.


During the six month period ended June 30, 2006 we borrowed $66,000 from Boris Birshtein, our Chairman
of the Board, and a company owned and controlled by Mr. Birshtein, to meet on-going operational expenses.  Such loan is non-interest bearing and is due on demand.





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During the three and six month period ended June 30, 2006, we incurred $204,247 and $318,000,
respectively, in consulting fees and expenses to Royal HTM Group, Inc., a Canadian company beneficially owned and controlled by our Chairman of the Board, in connection with certain business services
performed by Royal HTM Group, Inc. on our behalf.








ITEM 6.

        EXHIBITS AND REPORTS ON FORM 8-K


The exhibits listed below are filed as part of this Quarterly Report for the period ended June 30,
2006.






Exhibit No.

        Document






31.1

        Chief Executive Officer Certification pursuant to18.U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.







31.2

        Chief Financial Officer Certification pursuant to 18.U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.







32.1

        Chief Executive Officer Certification







32.2

        Chief Financial Officer Certification






There were three Current Reports on Form 8-K filed with the Securities and Exchange Commission on
February 21, 2006, June 14, 2006 and June 27, 2006 in the three and six month periods ended June 30, 2006, each of which are incorporated herein by reference thereto.








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SIGNATURES





In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.






TRIMOL GROUP, INC.









Date: August 21, 2006

        By:  /s/ Yuri Benenson




Name:

        Yuri Benenson




Title:

        Chief Executive Officer









By:  /s/ Jack Braverman




Name:

        Jack Braverman




Title:

        Chief Financial Officer











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