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, 2005    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, 2005, there were 100,472,328 issued and outstanding shares of the Companys common stock. Transitional Small Business
Disclosure Format (Check one):  |_| Yes    |X| No Accelerated filer as defined in Rule
12b-2 of the Securities Act of 1934.  |_| Yes    |X| No     TRIMOL GROUP, INC.



FORM 10-QSB QUARTERLY REPORT



For the period ended June 30, 2005



TABLE OF CONTENTS




PART
      I - FINANCIAL INFORMATIONITEM
      1. FINANCIAL STATEMENTS
    
    
    
    3INDEPENDENT
      ACCOUNTANTS REVIEW REPORT
    
    
    
    4CONSOLIDATED
      BALANCE SHEET
    
    
    
    5CONSOLIDATED
      STATEMENT OF OPERATIONS
    
    
    
    6CONSOLIDATED
      STATEMENT OF CASH FLOWS
    
    
    
    7NOTES
      TO THE CONSOLIDATED FINANCIAL STATEMENTS
    
    
    
    8ITEM
      2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL 
                     CONDITION
      AND RESULTS OF OPEERATIONS
    
    
    
    12ITEM
      3. CONTROLS AND PROCEDURES
    
    
    
    16PART
      II - OTHER INFORMATIONITEM
      1. LEGAL PROCEEDINGS
    
    
    
    17ITEM
      2. CHANGES IN SECURITIES
    
    
    
    17ITEM
      3. DEFAULTS UPON SENIOR SECURITIES
    
    
    
    17ITEM
      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    
    17ITEM
      5. OTHER INFORMATION
    
    
    
    17ITEM
      6. EXHIBITS AND REPORTS ON FORM 8-K
    
    
    
    18SIGNATURES
    
    
    
    19



2



PART I - FINANCIAL INFORMATION






ITEM 1.
        FINANCIAL STATEMENTS

CONSOLIDATED
        FINANCIAL STATEMENTS
        AS OF JUNE 30, 2005



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, 2005 and the related consolidated statements of operations and cash flows for the six and three month periods ended June 30, 2005 and 2004. 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.

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 11, 2005



4



TRIMOL GROUP, INC.


CONSOLIDATED BALANCE SHEET





June 30, 2005
      (Unaudited)
    
    December 31,
      2004
      (Audited)ASSETSCurrent assets:Cash
    
    
    $
    27,000
    
    $
    35,000Accounts
      receivable
    
    
    
    797,000
    
    
    662,000TOTAL
      CURRENT ASSETS
    
    
    
    824,000
    
    
    697,000Property
      and equipment, net
    
    
    
    89,000
    
    
    106,000TOTAL ASSETS
    
    
    $
    913,000
    
    $
    803,000LIABILITIESCurrent liabilities:Trade accounts
      payable
    
    
    $
    882,000
    
    $
    195,000Accrued expenses
    
    
    
    301,000
    
    
    561,000Current portion
      of payables to related parties
    
    
    
    
    
    
    582,000TOTAL
      CURRENT LIABILITIES
    
    
    
    1,183,000
    
    
    1,338,000SHAREHOLDERS
      DEFICIENCY
    
    
    
    (270,000
    )
    
    (535,000
    )TOTAL LIABILITIES
      AND SHAREHOLDERS DEFICIENCY
    
    
    $
    913,000
    
    $
    803,000The 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, 2005
    
    June 30, 2004
    
    June 30, 2005
    
    June 30, 2004REVENUES
    
    
    $
    4,234,000
    
    $
    2,174,000
    
    $
    2,215,000
    
    $
    1,082,000OPERATING
      EXPENSES:Cost
      of revenues
    
    
    
    1,283,000
    
    
    660,000
    
    
    891,000
    
    
    328,000Marketing
      and promotion
    
    
    
    1,512,000
    
    
    585,000
    
    
    800,000
    
    
    290,000Other
      operating expenses
    
    
    
    1,174,000
    
    
    1,007,000
    
    
    743,000
    
    
    661,000TOTAL OPERATING
      EXPENSES
    
    
    
    3,969,000
    
    
    2,252,000
    
    
    2,434,000
    
    
    1,279,000NET
      INCOME (LOSS)
    
    
    $
    265,000
    
    $
    (78,000
    )
    $
    (219,000
    )
    $
    (197,000
    )Net income
      (loss) per share (basic and
      diluted)
    
    
    
    .003
    
    
    (.0007
    )
    
    (.002
    )
    
    (.0002
    )WEIGHTED
      AVERGE NUMBER OF
      SHARES 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 30,2005
    
    2004CASH
      FLOWS FROM OPERATING ACTIVITIES:NET INCOME
      (LOSS)
    
    
    $
    265,000
    
    $
    (78,000
    )ADJUSTMENTS
      TO RECONCILE NET INCOMETO NET CASH
      PROVIDED BY (USED IN)OPERATING
      ACTIVITIES:Depreciation
      of property and equipment
    
    
    
    17,000
    
    
    17,000Abandonment
      of property and equipment
    
    
    
    
    
    
    10,000CHANGES IN
      ASSETS AND LIABILITIES:Accounts
      receivable
    
    
    
    (135,000
    )
    
    (43,000
    )Prepaid expenses
    
    
    
    
    
    
    32,000Accounts
      payable
    
    
    
    687,000
    
    
    46,000Accrued expenses
    
    
    
    (260,000
    )
    
    354,000NET CASH
      PROVIDED BY OPERATING ACTIVITIES
    
    
    
    574,000
    
    
    338,000CASH FLOWS
      FROM INVESTING ACTIVITIES:Acquisition
      of property and equipment
    
    
    
    
    
    
    (84,000
    )NET CASH
      USED IN INVESTING ACTIVITIES
    
    
    
    
    
    
    (84,000
    )CASH FLOW
      FROM FINANCING ACTIVITIES:Net repayment
      of loans to related parties
    
    
    
    (582,000
    )
    
    (248,000
    )NET CASH
      USED IN FINANCING ACTIVITIES
    
    
    
    (582,000
    )
    
    (248,000
    )INCREASE
      (DECREASE) IN CASH
    
    
    
    (8,000
    )
    
    6,000CASH - BEGINNING
      OF PERIOD
    
    
    
    35,000
    
    
    20,000CASH - END
      OF PERIOD
    
    
    $
    27,000
    
    $
    26,000Supplemental
      disclosures of cash flow information:Interest
      paid
    
    
    $
    
    
    $
    Income taxes
      paid
    
    
    $
    
    
    $
    1,000The 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, 2005 and for the six and three month periods ended June 30, 2005 and 2004 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, 2004. 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, 2004.

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 has utilized a proprietary technology provided by Supercom, Ltd. (Supercom), pursuant to a Sales Agreement between Supercom and Intercomsoft 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, Supercom agreed to continue to supply directly to Moldova such equipment, consumables, software and technology required by Intercomsoft during the remaining term of the Supply Agreement, as hereinafter defined.

Intercomsofts only customer at present, and since 1996, is the Government of the Republic of Moldova, pursuant to a ten (10) year 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.

The Company also has an exclusive worldwide license to an aluminum-air fuel cell technology solely for use with consumer portable electronic devices, all rights and title to certain technology relating to aluminum-air fuel cells, and the design and know-how to a converter designed and developed by a related company. At this time, the Company is not pursuing the development of such technology.

As of the second quarter 2005, Intercomsoft is the Companys only operating entity.




8



NOTE 3 - RISKS AND UNCERTAINTIES



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


(a)
        Intercomsofts only customer is the Government of the Republic of Moldovas Ministry of Economics pursuant to a ten (10) year 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, as more defined in Note 2 above.Moldova is a former Republic of the Soviet Union and the political and economic situation of such Republic has historically been unstable. Should the Government of the Republic of Moldova default under the agreement or discontinue the use of Intercomsofts services under such agreement, the Company would likely have limited recourse. If for any reason (or for no reason) the agreement was terminated, the terms were materially or adversely amended, or business reduced, such event would have a material adverse effect on Intercomsoft. The Supply Agreement expires in April 2006, and is subject to renewal. Likewise, if the Supply Agreement is not renewed upon such expiration date, such non-renewal would materially adversely affect the Company which is dependent upon the revenues and cash flow from such agreement to sustain its business activities. If renewed, there can be
no assurance as to the terms of any such renewal.


(b)
        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 for two years. Such research and development was suspended in the second quarter of 2003 until such time, if any, as the Company is able to obtain financing to proceed with such efforts as additional capital will be required in order to further develop this technology before it can be commercially exploited. There can be no assurance that additional financing will be available on commercially reasonable terms or at all. If adequate funds are not available, or are not available on acceptable terms, the Company may not be able to further develop the technology. Such inability to obtain additional financing when needed would
have a negative impact on the Company. If additional funds are raised through the issuance of equity or convertible debt securities, the percentage ownership of the existing shareholders will be reduced, and the holders of such securities may have rights, preferences and privileges senior to those of the holders of shares of the Companys common stock.Although the United States Patent and Trademark Office has issued several patents on the technology, there can be no assurances that any additional patents will issue or to what extent, if any, such patents will provide protection from competitors or others and there can be no assurances that such technology will be marketable and/or profitable.

The Company continues to believe that there may be potential viability for its aluminum-air fuel cell technology however management has concluded that due to the extraordinary time and enormous costs involved, continued research and development efforts are not justified at this time.

NOTE 4 - RELATED PARTY TRANSACTIONS AND BALANCES



In the second quarter 2005 the Company granted a bonus to its Chairman of the Board of $178,500 in partial compensation for certain services rendered by him to the Company.

In the second quarter 2005 the Company engaged Royal HTM
Group, a Canadian company beneficially owned and controlled by its Chairman of
the Board, to render certain business development services to the Company. In
the second quarter 2005, $286,806 was paid to Royal HTM Group in connection with
such services and related expenses. The Company intends to enter into a
definitive written agreement



9



with Royal HTM Group for such services. There can be no assurance as to the final terms of any such agreement if and when it is entered into by the parties thereto.

NOTE 5 - COMMITMENTS AND GENERAL COMMENTS

Intercomsoft was party to a Sales Agreement dated August 25, 1995 with Supercom pursuant to which it purchased from Supercom the equipment, software and consumables utilized by it for the production of computerized documents under the Supply Agreement, as defined in Note 2 above, and the utilization by Intercomsoft of the proprietary technology owned by Supercom which is an integral part of the production of the essential government documents under the Supply Agreement between Intercomsoft and the Government of Moldova. Such Sales Agreement obligated Intercomsoft to pay 25% of its profits to Supercom, as more specifically provided for under the agreement. However, on March 24, 2005 Intercomsoft and Supercom entered into a Termination Agreement terminating the Sales Agreement. Notwithstanding such termination, pursuant to the Termination Agreement, Supercom agreed to continue to supply
directly to Moldova such equipment, consumables, software and technology required by Intercomsoft during the remaining term of the Supply Agreement, as defined in Note 2 above. Pursuant to the terms of the Termination Agreement, Intercomsoft agreed to pay to Supercom $184,912 representing the balance of the amount due to Supercom for certain equipment supplied by Supercom pursuant to the Sales Agreement, which payment will be made in nine equal monthly installments which commenced in April 2005. However, notwithstanding the terms set forth in the Termination Agreement, in April 2005 Supercom requested that the Company remit to it, on a monthly basis as of March 2005, payment equal to the profit sharing provisions of the Sales Agreement and the Company complied with such request.



In February 2000, the Company issued warrants to purchase 1,400,000 shares of its common stock to three employees, 400,000 of which were canceled on January 28, 2003 and the balance of which expired in February 2005.



During the three months ended June 20, 2005, the Company issued options to purchase an aggregate of 3,000,000 shares of its common stock at an exercise price of $.01 per share. As of June 30, 2005, there were 10,820,000 shares of the Companys common stock reserved for issuance under outstanding options, of which 5,470,000 shares were reserved for issuance pursuant to options issued pursuant to the 2001 Omnibus Plan, as amended.




10



NOTE 6SEGMENT INFORMATION

The Companys operations are classified into two reportable segments plus corporate and administrative functions. The segments consist of Intercomsoft, which produces secure essential government identification documents, research and development of an aluminum-air fuel cell technology acquired from a related party, and general and administrative expenses incurred for corporate purposes.




Intercomsoft
    
    Research and
      Development
    
    Corporate
      and
      Administrative
    
    TotalSIX
      MONTHS ENDED JUNE 30, 2005Net 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
    )
    $
    265,000SIX
      MONTHS ENDED JUNE 30, 2004Net sales
    
    
    $
    2,174,000
    
    $
    
    
    $
    
    
    $
    2,174,000Operating
      expenses
    
    
    
    1,316,000
    
    
    
    
    
    936,000
    
    
    2,252,000Net income
      (loss)
    
    
    $
    858,000
    
    $
    
    
    $
    (936,000
    )
    $
    (78,000
    )THREE
      MONTHS ENDED JUNE 30, 2005Net sales
    
    
    $
    2,215,000
    
    $
    
    
    $
    
    
    $
    2,215,000Operating
      expenses
    
    
    
    1,724,000
    
    
    
    
    
    710,000
    
    
    2,434,000Net income
      (loss)
    
    
    $
    491,000
    
    $
    
    
    $
    (710,000
    )
    $
    (219,000
    )THREE
      MONTHS ENDED JUNE 30, 2004Net sales
    
    
    $
    1,082,000
    
    $
    
    
    $
    
    
    $
    1,082,000Operating
      expenses
    
    
    
    655,000
    
    
    
    
    
    624,000
    
    
    1,279,000Net income
      (loss)
    
    
    $
    427,000
    
    $
    
    
    $
    (624,000
    )
    $
    (197,000
    )



11



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 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.

Although it is interested in developing other opportunities, Intercomsofts only customer at present, and since 1996, is the Government of the Republic of Moldova, pursuant to a ten (10) year 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, Supercom agreed to continue to supply directly to Moldova such equipment, consumables, software and technology required by Intercomsoft 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.

We currently derive all of our revenues and income pursuant to Intercomsofts Supply Agreement with the Government of the Republic of Moldova. The Republic of Moldova has historically been unstable and we would have limited recourse should the Government default under the agreement or discontinue use of Intercomsofts services provided for under the agreement. If for any reason (or for no reason) such agreement was terminated, the terms were materially amended, or business reduced, or the agreement was not renewed at its expiration, such event would have a material adverse effect on us. Further, as the revenue generated by Intercomsoft is our only current revenue, any material adverse impact on Intercomsoft would



12



have a material adverse impact on us. Currently, the Government has the right to terminate the agreement in less than one year. In the event that the Supply Agreement is not renewed, such non-renewal will have a material adverse effect on us as we are dependent upon revenues and cash flow from such agreement to sustain our business activities. If renewed, there can be no assurance as to the terms thereof.

If and to the extent that other such opportunities are presented to Intercomsoft in the future outside of the Republic of Moldova, 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.

In addition to Intercomsoft, 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. However, we discontinued development of such technology in the second quarter of 2003.

RESULTS OF OPERATIONS



General

During the three month period ended June 30, 2005, our operations consisted solely of the activities of Intercomsoft.

As more fully described above, Intercomsoft currently 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 expires in less than one year. The uncertain economy and political instability in the Republic of Moldova could result in the termination or loss of such agreement, thereby having a material adverse effect on us. Additionally, if the Supply Agreement is not renewed in April 2006 when it expires by its terms, such non-renewal will have a material adverse effect on us.

Comparison of Three Months Ended June 30, 2005 to Three Months Ended June 30, 2004

During the three months ended June 30, 2005, we had revenues resulting solely from Intercomsofts production of government documents in the Republic of Moldova of approximately $2,215,000 as compared to $1,082,000 for the same period in 2004, an increase of approximately 104%.

The increase in revenue of $1,113,000 in the three months ended June 30, 2005 as compared to the same period in 2004 was the result of a number of factors. Similar to the passport controls instituted by and between Romania and Moldova in 2001, as of January 1, 2005 a protocol enacted by the Russian as the Ukraine governments in November 2004 became effective requiring individuals to produce a valid passport for travel across the Russian and Ukraine borders and at border control points. Prior to January 1, 2005 passports from the former Soviet Union were accepted as valid identification, as well as other various forms of identification. However, as of January 1, 2005 a valid passport issued by the country of citizenry



13



became required. This necessitated that hundreds of thousands of Moldovan citizens working in Russia and the Ukraine secure a valid passport from Moldova which in turn led to a significant increase in the number of passports issued during this three month period.

In addition, our ongoing program of public awareness encourages the renewal of various forms of government licenses and registrations resulting in an increase in the issuance of such replacement documents. Direct marketing efforts by us and cross marketing to individuals during passport renewals and/or issuances has also led to a continuing increase in the sale of collateral documentation including drivers licenses and other government issued documents that Intercomsoft produces.

During the three months ended June 30, 2005, Intercomsofts costs associated with generating these revenues were $891,000 or 40% of revenues, as compared to $328,000, or 30% of revenues, for the same period in 2004. The increase of costs associated with generating such revenue was twofold: (1) as a condition of continuing service, in April 2005 Supercom requested that in the second quarter 2005 we reinstate payment to it equal to the profit sharing provisions set forth in the Sales Agreement that was terminated by virtue of the Termination Agreement in March 2005; and, (2) Supercom requested that we pay to it such profit sharing for March 2005, which was not previously due to it or accrued by us in the first quarter 2005 as a result of the termination of such Sales Agreement. (See Item 5Other
Information). However, notwithstanding such expense, Intercomsoft had a gross profit of approximately $1,324.000 for the three month period ended June 30, 2005 as compared to $754,000 for the same period in 2004, an increase of approximately 75%.

General and administrative expenses for the three months ended June 30, 2005, were approximately $743,000, which consisted of $33,000 of Intercomsoft expenses and $710,000 of general corporate and administrative expenses. For the same period in 2004, general and administrative expenses aggregated approximately $661,000, which consisted of $36,000 of Intercomsoft expenses and $625,000 of general corporate and administrative expenses. Although overall our expenses decreased, the increase of general corporate and administrative expenses of $85,000, or 13%, resulted, in part, from a bonus to our Chairman of the Board of $178,500 in the three month period ended June 30, 2005 as well as $286,800 in fees and expenses paid to Royal HTM Group, a company beneficially owned by our Chairman of the Board, in connection with certain business development services rendered to us during
this period.

Public relations, marketing and advertising expenses for the three months ended June 30, 2005 were $800,000, compared to $290,000 in the same period in 2004, an increase of $510,000, or 175%. All of such expenses were related to efforts to expand the use of Intercomsofts services. The increase in public relations, marketing and advertising expenses of Intercomsoft resulted from an increase in marketing efforts as well as an increase in commissions and fees paid pursuant to various marketing agreements, which are based on revenue generated in the period.

We had a net loss from operations of approximately $219,000 for the three month period ended June 30, 2005, as compared to a net loss of approximately $197,000 for the same period in 2004, an increase of 11%, which resulted from all of the reasons set forth above.



14



Comparison of Six Months Ended June 30, 2005 to Six Months Ended June 30, 2004

During the six months ended June 30, 2005, we had revenues resulting solely from Intercomsofts production of government documents in the Republic of Moldova of approximately $4,234,000 as compared to $2,174,000 for the same period in 2004, an increase of approximately 95%.

The increase in revenue of $2,060,000 in the six months ended June 30, 2005 as compared to the same period in 2004 was the result of a number of factors. Similar to the passport controls instituted by and between Moldova and Romania in 2001, as of January 1, 2005 a protocol enacted by the Russian as the Ukraine governments in November 2004 became effective requiring individuals to produce a valid passport for travel across the Russian and Ukraine borders and at border control points. Prior to January 1, 2005 passports from the former Soviet Union were accepted as valid identification, as well as other various forms of identification. However, as of January 1, 2005 a valid passport issued by the country of citizenry became required. This necessitated that hundreds of thousands of Moldovan citizens working in Russia and the Ukraine secure a valid passport from Moldova which in
turn led to a significant increase in the number of passports issued during this six month period.

In addition, our ongoing program of public awareness encourages the renewal of various forms of government license and registrations resulting in an increase in the issuance of such replacement documents. Direct marketing efforts by us and cross marketing to individuals during passport renewals and/or issuances has also led to a continuing increase in the sale of collateral documentation including drivers licenses and other government issued documents that Intercomsoft produces.

During the six months ended June 30, 2005, Intercomsofts costs associated with generating these revenues were $1,283,000, or 30% of revenues, as compared to $660,000, or 30% of revenues, for the same period in 2004.  The 95% increase in revenues resulted in gross profit for Intercomsoft of approximately $2,951,000 for the six month period ended June 30, 2005, as compared to $1,514,000 for the same period in 2004, an increase of approximately 95%. Although it was previously anticipated that our cost of goods would decrease due to the termination of the Sales Agreement by virtue of the Termination Agreement with Supercom in March 2005 (see Item5 Other Information) we have continued to remit to Supercom an amount equal to the profit sharing provisions under the terminated Sales
Agreement. Consequently, our cost of goods did not decrease.

General and administrative expenses for the six months ended June 30, 2005, were approximately $1,174,000, which consisted of $75,000 of Intercomsoft expenses and $1,099,000 of general corporate and administrative expenses. For the same period in 2004, general and administrative expenses aggregated approximately $1,007,000, which consisted of $71,000 of Intercomsoft expenses and $936,000 of general corporate and administrative expenses. Although overall our general and administrative expenses decreased in this period, the increase of general corporate and administrative expenses of $167,000, or 17%, resulted, in part, from a bonus to our Chairman of the Board of $178,500 as well as $286,000 in fees and expenses paid to Royal HTM Group, a company beneficially owned by our Chairman of the Board, in connection with certain business development services rendered to us during
this period.



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Public relations, marketing and advertising expenses for the six months ended June 30, 2005 were $1,512,000, compared to $585,000 in the same period in 2004, an increase of $927,000, or 158%. All of such expenses were related to efforts to expand the use of Intercomsofts services. The increase in public relations, marketing and advertising expenses of Intercomsoft resulted from an increase in marketing efforts as well as an increase in commissions and fees paid pursuant to various marketing agreements, which are based on revenue generated in the period.

We had a net profit from operations of approximately $265,000 for the six month period ended June 30, 2005, as compared to a net loss of approximately $78,000 for the same period in 2004, an increase of $343,000 for the same period in 2004, which resulted from all of the reasons set forth above.

Liquidity & Capital Resources

Although we believe we have adequate capital to fund our current operations for fiscal year 2005, we will need to obtain additional working capital for future periods if we are to pursue any additional research and development efforts in connection with our aluminum-air fuel cell technology or expand the services of Intercomsoft.

We may seek additional funding in an effort to subsidize such future research and development expenses as well as to fund our efforts to expand the services of Intercomsoft. Such additional funding may be obtained by bank borrowings, public offerings, or private placements of our equity or debt securities, loans from shareholders, or a combination of the foregoing. However, there can be no assurances that additional financing will be available or, if available, that it will be available on terms that are acceptable to us.

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-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 PROCEDURESBased upon their evaluation of our internal controls, disclosure controls and procedures within 90 days of the filing of this report, our Chief Executive Officer and Chief Financial Officer have concluded that the effectiveness of such controls and procedures is satisfactory. Further, there were no significant changes in our internal controls or in any other factors that could significantly affect those controls subsequent to the date of their evaluation.



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PART II - OTHER INFORMATIONITEM 1.
        LEGAL PROCEEDINGS


None.




ITEM 2.
        CHANGES IN SECURITIES

During the three month period ended June 30, 2005, we issued options to purchase 3,000.000 shares of our common stock.  There were no options cancelled during such period. As of June 30, 2005, the total number of shares of our common stock reserved for issuance under options outstanding was 10,820,000, of which options to purchase 5,470,000 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 INFORMATIONOn March 24, 2005, Intercomsoft and Supercom entered into a Termination Agreement. Pursuant to the Termination Agreement, the Sales Agreement between such parties was terminated at the request of Supercom. Under the Sales Agreement, certain equipment, technology, supplies and other consumables which Intercomsoft is obligated to supply to the Government of the Republic of Moldova pursuant its Supply Agreement dated April 29, 1996, was supplied by Supercom on behalf of Intercomsoft pursuant to the Sales Agreement. Notwithstanding the termination of the Sales Agreement pursuant to the Termination Agreement, Supercom agreed to continue to supply directly to Moldova such equipment, consumables, software and technology required by Intercomsoft during the remaining term of the Supply Agreement. Pursuant to the Termination Agreement, Intercomsoft agreed to pay to Supercom, in nine
equal monthly installments commencing in April 2005, the sum of $184,912 representing the balance of the amount due to Supercom for certain equipment supplied by Supercom pursuant to the Sales Agreement. In addition, 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.



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However, notwithstanding such Termination Agreement, in April 2005 Supercom requested that we remit to it, on a monthly basis as of March 2005, payments equal to the profit sharing provisions of the Sales Agreement and we complied with such request. Payments to Supercom totaled $891,000 in the three month period ended June 30, 2005.

In the second quarter 2005 the Board of Directors agreed to grant a bonus to Boris Birshtein, our Chairman of the Board, in the amount of $178,500 in partial compensation to him for certain services rendered by him to us.

In the second quarter 2005 we engaged Royal HTM Group, a Canadian company beneficially owned and controlled by our Chairman of the Board, to render certain business development services to us. In the second quarter 2005, $268,000 in fees and expenses were paid to Royal HTM Group in connection with such services rendered by it to us during such period. We intend to enter into a definitive written agreement with Royal HTM Group for such services. There can be no assurance as to the final terms of any such agreement if and when it is entered into by the parties thereto.


ITEM 6.
        EXHIBITS AND REPORTS ON FORM 8-K(a)The exhibits listed below are filed as part of this Quarterly Report for the period ended March 31, 2005.




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 to18.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


(b)
    We
        filed a Report on Form 8-K on March 28, 2005 disclosing the terms of the
Termination Agreement entered into on March 24, 2005 by and between Supercom
Ltd. and Intercomsoft Limited, our wholly owned subsidiary.
Such Report is incorporated herein by reference thereto


(c)
    There
        were no Reports on Form 8-K filed in the three month period ended June30, 2005.





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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 19, 2005
        By:  /s/ Yuri BenensonName:
        Yuri BenensonTitle:
        Chief Executive Officer




By:  /s/  Jack BravermanName:
        Jack BravermanTitle:
        Chief Financial Officer







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