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

                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 2002

                                       OR

     |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

 For the transition period from _____________________ to _______________________

                        Commission file number: 000-27582

                                SPEEDUS.COM, Inc.
             (Exact name of registrant as specified in its charter)

                 Delaware                                13-3853788
          -------------------------                   ----------------
     (State or other jurisdiction of        (I.R.S. Employer Identification No.)
      incorporation or organization)

          140 58th Street, Suite 7E
              Brooklyn, New York                           11220
          -------------------------                   ----------------
 (Address of principal executive offices)                (Zip Code)

                                  718-567-4300
                               -------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
                               -------------------
         (Former name, former address and former fiscal year, if changed
                               since last report)

Indicate by check mark whether the 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 |_|

The number of outstanding shares of the registrant's common stock, par value
$.01 per share, as of May 13, 2002 was 17,991,106.
<PAGE>

                                SPEEDUS.COM, Inc.

                               INDEX TO FORM 10-Q

<TABLE>
<CAPTION>
                                                                              Page(s)
                                                                              -------
<S>                                                                           <C>
PART I -- FINANCIAL INFORMATION

ITEM 1 -- Financial Statements

            Consolidated Balance Sheets as of March 31, 2002 (unaudited)
            and December 31, 2001 .........................................     3

            Consolidated Statements of Operations (unaudited) for the
            Three Months Ended March 31, 2002 and 2001 ....................     4

            Consolidated Statements of Cash Flows (unaudited) for the
            Three Months Ended March 31, 2002 and 2001 ....................     5

            Notes to Consolidated Financial Statements (unaudited) ........    6-7

ITEM 2 -- Management's Discussion and Analysis of Financial
            Condition and Results of Operations ...........................   8-11

ITEM 3 -- Quantitative and Qualitative Disclosures About Market Risk ......     11

PART II -- OTHER INFORMATION

ITEM 1 -- Legal Proceedings ...............................................     12

ITEM 2 -- Changes in Securities ...........................................     12

ITEM 3 -- Defaults Upon Senior Securities .................................     12

ITEM 4 -- Submission of Matters to a Vote of Security Holders .............     12

ITEM 5 -- Other Information ...............................................     12

ITEM 6 -- Exhibits and Reports on Form 8-K ................................     12

Signature Page ............................................................     13
</TABLE>


                                       2
<PAGE>

                                SPEEDUS.COM, Inc.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                   March 31,       December 31,
                                                                     2002              2001
                                                                 ------------      ------------
                                                                  (unaudited)
<S>                                                              <C>               <C>
                          ASSETS
Current assets:
    Cash and cash equivalents                                    $ 39,614,369      $ 39,933,881
    Marketable securities                                              46,358            31,471
    Due from broker                                                 5,240,672         4,921,177
    Accounts and other receivables                                     58,495           670,120
    Prepaid expenses and other                                        176,060           381,332
                                                                 ------------      ------------
    Total current assets                                           45,135,954        45,937,981
Property and equipment, net of accumulated
  depreciation of $9,842,208 and $9,650,192                         5,205,497         5,828,315
Other intangible assets, net of accumulated
  amortization of $308,036 and $271,071                             1,761,964         1,798,929
Other assets                                                          335,816           326,881
                                                                 ------------      ------------
    Total assets                                                 $ 52,439,231      $ 53,892,106
                                                                 ============      ============

    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
    Accounts payable                                             $    416,478      $    206,871
    Accrued liabilities                                             1,283,709         1,461,460
    Securities sold and not purchased                               7,467,770         6,277,837
    Other current liabilities                                         260,858           464,217
                                                                 ------------      ------------
    Total current liabilities                                       9,428,815         8,410,385

Commitments and Contingencies                                              --                --

Stockholders' equity:
    Common stock ($.01 par value; 40,000,000
      shares authorized; 21,384,838 shares issued                     213,848           213,848
    Preferred stock ($.01 par value; 20,000,000
      shares authorized):
         Series A Junior Participating ($.01 par value;
           4,000 shares authorized; no shares issued
           and outstanding)                                                --                --
    Additional paid-in-capital                                     90,289,432        90,289,432
    Treasury stock (at cost; 2,739,432 and 2,277,532 shares)       (2,906,024)       (2,416,089)
    Accumulated deficit                                           (44,586,840)      (42,605,470)
                                                                 ------------      ------------
    Stockholders' equity                                           43,010,416        45,481,721
                                                                 ------------      ------------
    Total liabilities and stockholders' equity                   $ 52,439,231      $ 53,892,106
                                                                 ============      ============
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       3
<PAGE>

                                SPEEDUS.COM, Inc.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

                                                   Three Months Ended March 31,
                                                 ------------------------------
                                                     2002              2001
                                                 ------------      ------------

Revenues                                         $    234,564      $     24,504
                                                 ------------      ------------

Expenses:
    Selling, general and administrative             1,053,104         1,537,574
    Research and development                          216,361           485,088
    Depreciation and amortization                     659,783         1,384,225
    Cost of sales                                     205,272                --
                                                 ------------      ------------
    Total operating expenses                        2,134,520         3,406,887
                                                 ------------      ------------

Operating loss                                     (1,899,956)       (3,382,383)

Investment income                                         514         5,878,659
Equity in loss of associated company                  (81,928)          (20,012)
                                                 ------------      ------------

Net earnings/(loss)                              $ (1,981,370)     $  2,476,264
                                                 ============      ============

Per share:
Basic earnings (loss) per common share           $      (0.10)     $       0.12
                                                 ============      ============
Weighted average common shares
    outstanding                                    18,910,607        20,323,766
                                                 ============      ============

Diluted earnings (loss) per common share         $      (0.10)     $       0.12
                                                 ============      ============
Weighted average common shares
    outstanding                                    18,910,607        20,451,256
                                                 ============      ============

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       4
<PAGE>

                                SPEEDUS.COM, Inc.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                          Three months ended March 31,
                                                                         ------------------------------
                                                                             2002               2001
                                                                         ------------      ------------
<S>                                                                      <C>               <C>
Cash flows from operating activities:
     Net earnings/(loss)                                                 $ (1,981,370)     $  2,476,264
     Adjustments to reconcile net earnings/(loss) to
       net cash provided by/(used in) operating activities:
         Depreciation and amortization                                        659,783         1,384,225
         Stock based compensation                                                  --           326,500
         Equity in loss of associated company                                  81,928            20,012
         Changes in operating assets and liabilities:
             Marketable securities                                            (14,887)            1,170
             Due from broker                                                 (319,495)         (690,982)
             Accounts and other receivables                                   101,003              (592)
             Prepaid expenses and other                                       205,272            55,753
             Other assets                                                     (13,200)              850
             Accounts payable                                                 209,607            30,048
             Accrued liabilities                                             (177,751)          (26,010)
             Securities sold and not purchased                              1,189,933         2,003,019
             Other current liabilities                                       (203,359)              434
                                                                         ------------      ------------

                 Net cash provided by/(used in) operating activities         (529,262)        5,580,691
                                                                         ------------      ------------

Cash flows from investing activities:
     Proceeds from sale of other assets                                       553,122                --
     Loans and other receivables                                             (146,563)               --
     Investment in associated companies                                            --          (200,000)
     Property and equipment additions                                              --           (34,359)
                                                                         ------------      ------------

                 Net cash provided by/(used in) investing activities          406,559          (234,359)
                                                                         ------------      ------------

Cash flows from financing activities:
     Repurchase of stock                                                     (489,935)         (698,293)
                                                                         ------------      ------------

                 Net cash provided by/(used in) financing activities         (489,935)         (698,293)
                                                                         ------------      ------------

                 Net increase/(decrease) in cash
                    and cash equivalents                                     (319,512)        4,648,039

Cash and cash equivalents, beginning of period                             39,933,881        38,594,815
                                                                         ------------      ------------

Cash and cash equivalents, end of period                                 $ 39,614,369      $ 43,242,854
                                                                         ============      ============
</TABLE>

              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       5
<PAGE>

                                SPEEDUS.COM, Inc.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

1. Basis of Presentation

      The accompanying unaudited consolidated financial statements include the
accounts of SPEEDUS.COM, Inc. and its wholly-owned subsidiaries. All significant
intercompany accounts and transactions have been eliminated in consolidation.

      These financial statements have been prepared in accordance with generally
accepted accounting principles for interim financial information. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. These financial
statements do not include all information and notes required by generally
accepted accounting principles for complete financial statements. These
financial statements should be read in conjunction with the Company's 2001
audited consolidated financial statements and notes thereto on Form 10-K.

      Operating results for the three months ended March 31, 2002 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2002.

Marketable Securities

      All marketable securities are defined as trading securities under the
provisions of Statement of Financial Accounting Standards No. 115, "Accounting
for Certain Investments in Debt and Equity Securities." At March 31, 2002,
marketable securities consisted of publicly traded equity securities and were
recorded at fair market value. Their original cost was $639,000, unrealized
losses were $593,000 and the carrying value was $46,000.

Securities sold but not purchased

      The Company may sell publicly traded equity securities it does not own in
anticipation of declines in the fair market values of the securities. When the
Company effects such transactions, it must borrow the securities it sold in
order to deliver them and settle the trades. The amounts shown on the balance
sheet as 'Securities sold and not purchased' represent the value of these
securities at fair market value. At March 31, 2002, the Company had sold
securities it had not purchased. The aggregate proceeds were $6,575,000,
unrealized losses were $893,000 and the market value of the securities was
$7,468,000.

      During the quarters ended March 31, 2002 and 2001, realized gains in the
amounts of $29,000 and $585,000, respectively, were recorded and included in
Investment Income in the accompanying Consolidated Statements of Operations.

Due from broker

      In connection with selling publicly traded securities that it does not
own, the Company is obligated to maintain balances with brokerage firms as
security for these transactions. At March 31, 2002 and December 31, 2001,
restricted cash balances in the amounts of $5,241,000 and $4,921,000,
respectively, were held by brokerage firms.

Long-lived assets

      The Company periodically evaluates the net realizable value of long-lived
assets, including fixed assets and equity method investments, relying on
anticipated future cash flows. The Company's evaluation of anticipated future
cash flows considers operating results, business plans and economic projections,
as well as, non-financial data such as market trends, product and development
cycles, and changes in management's market emphasis. An impairment in the
carrying value of an asset is recognized when the expected future operating cash
flows derived from the asset are less than its carrying value.

      In August 2001, Statement of Financial Accounting Standards No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets", was issued.
SFAS No. 144 provides a single accounting model for long-lived assets to be
disposed of and changes the criteria that would have to be met to classify an
asset as held-for-sale. SFAS No. 144 retains the requirement of Accounting
Principles Board Opinion No. 30 to report discontinued operations separately
from continuing operations and extends that reporting to a component of an
entity that either has been disposed of or is classified as held for sale. SFAS
No. 144 is effective January 1, 2002 for the Company. This accounting standard
had no material effect on our results of operations.

Other Intangible Assets

      Other intangible assets consist of the cost of a software license, which
was being amortized over its estimated useful life of three years, and a patent,
which is being amortized over its remaining life of fourteen years at the time
of acquisition.


                                       6
<PAGE>

      In July 2001, Statement of Financial Accounting Standards No. 142,
"Goodwill and Other Intangible Assets" was issued. FAS No. 142 requires the use
of a nonamortization approach to account for purchased goodwill and certain
intangibles. Under a nonamortization approach, goodwill and certain intangibles
will not be amortized into results of operations, but instead would be reviewed
for impairment and charged against results of operations only in the periods in
which the recorded value of goodwill and certain intangibles is more than its
fair value. This accounting standard had no material effect on our results of
operations.

Revenue Recognition

      The Company earns fees from a licensee for the sale and activation of
wireless phones. In accordance with the provisions of the Securities and
Exchange Commission Staff Accounting Bulletin No. 101, "Revenue Recognition in
Financial Statements", these revenues and associated costs are deferred due to
cancellation privileges and chargebacks from carriers. At March 31, 2002, there
is $242,000 and $176,000 included in 'Other current liabilities' and 'Prepaid
expenses and other', respectively, representing these deferred revenues and
deferred charges, respectively.

Earnings Per Share

      Basic and diluted earnings/(loss) per common share are determined in
accordance with Statement of Financial Accounting Standards No. 128, "Earnings
Per Share".

      For the quarters ended March 31, 2002 and 2001, basic and diluted net
earnings/(loss) available for common shareholders was equal to net
earnings/(loss).

      For the quarter ended March 31, 2002, weighted average common shares for
the assumed exercise or conversion of stock options and warrants in the amounts
of 678 and 0, respectively, have been excluded from the diluted loss per share
since their effect would be antidilutive. For the quarter ended March 31, 2001,
the weighted average common shares for diluted earnings per share were
determined by adding weighted average common shares in the amounts of 5,693 and
121,797 for the assumed exercise of stock options and warrants, respectively, to
the weighted average common shares outstanding for basic earnings per share for
a total of 20,451,256 weighted average common shares outstanding for diluted
earnings per share.

2. Legal Proceedings

      The Company is subject to various claims and proceedings that occur in the
ordinary course of business. The Company believes it has substantial defenses to
a material portion of these claims and is prepared to pursue litigation if a
reasonable and structured settlement cannot be reached with the parties. Based
on information currently available, the Company believes that none of these
current claims or proceedings, either individually or in the aggregate, will
have a material effect on its business.

3. Subsequent Events

      In May 2002, we acquired controlling interest in a European style casual
food service company. This company is operating its first store in Manhattan and
is currently planning expansion to other locations. The acquisition price was
$3,500,000, which funds will be applied principally for its expansion. We also
entered into a management services contract with this company that will result
in direct revenues to us apart from those arising out of our ownership interest.


                                       7
<PAGE>

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

      The following discussion and analysis of financial condition and results
of operations should be read in conjunction with the corresponding discussion
and analysis included in the Company's Report on Form 10-K for the year ended
December 31, 2001.

Cautionary Statement Regarding Forward-Looking Information

      This Management's Discussion and Analysis of Financial Condition and
Results of Operations and other sections of this Form 10-Q contain
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). These statements appear in a number of places in this Form 10-Q
and include statements regarding the intent, belief or current expectations of
the Company or its officers with respect to, among other things, the ability of
the Company to make capital expenditures, the ability to incur additional debt,
as necessary, to service and repay such debt, if any, as well as other factors
that may effect the Company's financial condition or results of operations.
Forward-looking statements may include, but are not limited to, projections of
revenues, income or losses, capital expenditures, plans for future operations,
financing needs or plans, compliance with covenants in loan agreements, plans
for liquidation or sale of assets or businesses, plans relating to products or
services of the Company, assessments of materiality, predictions of future
events, and the ability to obtain additional financing, including the Company's
ability to meet obligations as they become due, and other pending and possible
litigation, as well as assumptions relating to the foregoing. All statements in
this Form 10-Q regarding industry prospects and the Company's financial position
are forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
hereof. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. The Company undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

Operations

      We have co-invested with Siemens Corporate Research, Inc., a subsidiary of
Siemens Corporation, in Zargis Medical Corp. to develop a service solution,
initially targeted toward primary care physicians that would be used as part of
general medical examinations for the early screening and detection of valvular
and congenital heart disease. We will continue to explore additional
acquisitions of emerging-growth companies. We own a portfolio of patents that
allow for high-speed wireless communications. We also own fixed wireless
spectrum in the New York City metropolitan area that we may commercialize in the
future to support high-speed, or broadband, Internet access service. We also
developed and launched an online cell phone store, 007Phones, which we now
license to a third-party.

      We changed our business focus in November 1998, terminating our
subscription television service. Since changing our focus, we have yet to
generate any material revenue from our wireless data products and services
business. Revenues from 1999 to 2001, generally subscriber fees from our pilot
program for high-speed Internet service and co-hosting revenues from the use of
our Data Center, have not been material and future revenues from this and our
mobile wireless business are uncertain. In 2002, we recognized revenues from the
sale and activation of wireless phones. However, these amounts are expected to
decrease in the future. The Company now licenses the cell phone store to a third
party and license fees are less than revenues from sale and activation.

      In January 2001, we co-invested with Siemens Corporate Research, Inc., a
subsidiary of Siemens Corporation, in a new company, Zargis Medical Corp. Zargis
Medical is building a service solution, initially targeted toward primary care
physicians that would be used as part of general medical examinations for the
early screening and detection of valvular and congenital heart disease. General
medical examinations, according to the National Center for Health Statistics,
totaled 46 million in 1999 for the US alone. We have signed an exclusive
contract with Zargis Medical to design and develop the wireless applications, as
well as provide transaction processing to support the commercial rollout of
Zargis Medical's cardiac diagnostic products. Under this contract, using a
combination of wireless and wired technology, Speedia Wireless, our wholly owned
subsidiary, has demonstrated the ability to transfer the heart sound file from a
physician's office to the SPEEDUS Data Center which will enable Zargis Medical
to pursue a business model based on a fee per usage basis. Some of the major
next steps remaining for Zargis Medical include clinical trials, FDA approval,
marketing and roll-out, along with the formation of strategic partnerships.

      We seek business opportunities across all industries for potential
transactions and relationships in which we can apply our current resources and
management strengths. We are particularly focused on companies with sound
business plans and existing revenue bases that require growth capital. We will
continue to pursue opportunities involving our wireless expertise and broadband
assets as attractive opportunities present themselves. The companies that we
target, either public or privately held and regardless of industry, will be
seeking growth or restructuring capital to pursue near term business objectives
in demonstrated markets. We have examined numerous business opportunities and
have closed our first investment under this growth plan during the second
quarter of 2002. In May 2002, we acquired controlling interest in a European
style casual food service company. This company is operating its first store in
Manhattan and is currently planning expansion to other locations. The
acquisition price was $3,500,000, which funds will be applied principally for
its expansion. We also entered into a management services contract with this
company that will result in direct revenues to us apart from those arising out
of our ownership interest.


                                       8
<PAGE>

      We have invested a portion of our assets in a portfolio of marketable
securities consisting of publicly traded equity securities. We have also sold
publicly traded equity securities we do not own in anticipation of declines in
the fair market values of these securities. During the quarter ended March 31,
2002, we recognized realized gains on these transactions in the amount of
$29,000.

      Through our wholly owned subsidiaries, Broadband Patents, LLC and
CellularVision Technology & Telecommunications, L.P., we have accumulated a
portfolio of patents that allow for high-speed wireless communication systems
with greater information content, reliability, clarity, or more efficient use of
licensed spectrum as compared to prior systems. We have five domestic patents
with expiration dates ranging from 2007 through 2017, with numerous
international counterparts. Any particular wireless communications system may
employ a number of different combinations of our patented technology to maximize
operational and spectrum efficiency. While we believe that it would be difficult
for any wireless communications company to construct a system without using one
or more of our patented technologies, it is a lengthy and expensive process to
pursue licensing/patent infringement cases.

      We are evaluating a strategy for the utilization of these patents in the
future, which may include pursuit of licensing or development of other strategic
opportunities with users of the underlying technology. However, due to the
current economic state of the telecommunications industry, licensing activity
for the patent portfolio is not actively being pursued. We have licensed
technology in the past, both domestically and internationally, but are not
currently receiving any license fees. Currently, we have instituted litigation
in the New York courts against an international licensee in Canada.

      In August 2001, we launched 007Phones.com, an e-commerce portal designed
to provide consumers and businesses with an easy-to-use, online method of
researching and purchasing wireless phones and carrier services. We now license
007Phones.com to a third-party.

      We have generated operating losses and negative operating cash flows since
our inception and expect to continue to do so in the near future.

      We have an FCC commercial operating license, awarded to us in recognition
of our efforts in developing and deploying LMDS technology and for spearheading
its regulatory approval at the FCC, which covers 150 MHz of spectrum in the New
York City area. The license has been renewed as a standard LMDS license through
February 1, 2006. Under FCC authorization, the license includes an additional
150 MHz of spectrum until the first Ka band satellite is launched, an event
which is not currently determinable. The license provides that the spectrum may
be used for a wide variety of fixed wireless purposes, including wireless local
loop telephony, high-speed Internet access and two-way teleconferencing.

      Currently, we are conducting a limited pilot program of our SPEED(SM)
broadband super high-speed Internet service and, at March 31, 2002, had less
than 100 subscribers. A full marketing effort will not commence until new LMDS
equipment becomes commercially available with cost and performance that allow
implementation of SPEED(SM) service on an economically attractive basis. We
cannot determine when this will occur and this equipment may never be available
to us on this basis. Revenues from our high-speed Internet service would consist
of subscriber fees, as well as the sales and installations of modems; however,
the pricing structure of the service could change in response to market and
other competitive conditions. Revenues to date from these sources have not been
material. We estimate that the total annual cost of the pilot program is
approximately $500,000.

Critical Accounting Policies

      Our discussion and analysis of our financial condition and results of
operations are based upon our consolidated financial statements. The preparation
of those 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 dates of the financial statements and the reported
amounts of operating revenues and expenses during the reporting periods. Actual
results could differ from those estimates. For a description of all of our
accounting policies, see Note 2 to our consolidated financial statements
included in our 2001 Form 10-K and Note 1 to our consolidated financial
statements included in this Form 10-Q. However, we believe the following
critical accounting policies affect the more significant judgments and estimates
used in the preparation of our consolidated financial statements.


                                       9
<PAGE>

      Financial instruments. Our financial instruments consist primarily of cash
equivalents, marketable securities and securities sold and not purchased. The
carrying value of cash equivalents approximates market value since these highly
liquid, interest earning investments are invested in money market funds.
Marketable securities consist of publicly traded equity securities classified as
trading securities and are recorded at fair market value. Securities sold and
not repurchased are carried at the fair market value of the securities.
Significant changes in the market value of securities that we invest in could
have a material impact on our financial position and results of operations.

      Long-lived assets. Long-lived assets, including fixed assets, goodwill,
equity method investments and other intangibles, are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of
any such asset may not be recoverable through estimated future cash flows from
that asset. The estimate of cash flow is based upon, among other things, certain
assumptions about expected future operating performance. Specifically, we own
broadband assets, including fixed and intangible assets, which had a carrying
value of $5.7 million at March 31, 2002 and currently do not generate
significant revenues or cash flows. Absent increased revenues and cash flows in
the future, however, we estimate that, based upon our review of recent
transactions and other factors, the fair value of our remaining FCC license and
certain patents that have no carrying value on our books would generate
sufficient cash to fully realize our assets described above. These estimates may
differ from actual results due to, among other things, technological changes,
economic conditions, changes to our business model or changes in our operating
performance.

      Contingencies. We account for contingencies in accordance with Statement
of Financial Accounting Standards No. 5, "Accounting for Contingencies". SFAS
No. 5 requires that we record an estimated loss when information available prior
to issuance of our financial statements indicates that it is probable that an
asset has been impaired or a liability has been incurred at the date of the
financial statements and the amount of the loss can be reasonably estimated.
Accounting for contingencies such as environmental, legal and income tax matters
requires us to use our judgment. While we believe that our accruals for these
matters are adequate, if the actual loss is significantly different than the
estimated loss, our results of operations may be misstated.

Three Months Ended March 31, 2002 Compared to Three Months Ended March 31, 2001

      Revenues increased $210,000 from $25,000 for the three months ended March
31, 2001 to $235,000 for the three months ended March 31, 2002. This increase is
a result of revenues recognized from the sale and activation of wireless phones
through the Company's online cell phone store, 007phones, which the Company now
licenses to a third-party. In accordance with the provisions of the Securities
and Exchange Commission Staff Accounting Bulletin No. 101, "Revenue Recognition
in Financial Statements", these revenues and associated costs are deferred due
to cancellation privileges and chargebacks from carriers. Revenues to be
recognized in the future from the sale and activation of wireless phones are
expected to decrease. The Company now licenses the cell phone store to a third
party and license fees are less than revenues from sale and activation. The
revenues for the 2001 period reflect the early results of the Company's pilot
program to connect its first Internet subscribers and co-hosting revenues from
use of the Company's Data Center. The Company intends to continue this pilot
program until a final determination can be made on the availability of equipment
on an economically attractive basis. We cannot determine when this will occur
and this equipment may never be available to us on this basis. We estimate that
the total annual cost of the pilot program is approximately $500,000.

      Selling, general and administrative expenses decreased $485,000 from
$1,538,000 for the three months ended March 31, 2001 to $1,053,000 for the three
months ended March 31, 2002. This decrease is primarily attributable to
decreases in compensation and employee related expenses as a result of staff
reductions and decreases in stock based compensation.

      Research and development expenses decreased $269,000 from $485,000 for the
three months ended March 31, 2001 to $216,000 for the three months ended March
31, 2002. This decrease is primarily attributable to decreases in compensation
and employee related expenses as a result of staff reductions.

      Depreciation and amortization decreased $724,000 from $1,384,000 for the
three months ended March 31, 2001 to $660,000 for the three months ended March
31, 2002. $605,000 of this net decrease is a result of amortization of the
goodwill recorded during the three months ended March 31, 2001 resulting from
the Speedia acquisition on June 30, 2000. This goodwill was being amortized over
a period of three years. The Company recorded a charge of $3,779,000 in the
fourth quarter of 2001 for the impairment of goodwill and intangible assets
associated with that acquisition, eliminating the remaining balance of goodwill
and those intangible assets.

      Cost of sales amounted to $205,000 for the three months ended March 31,
2002. These costs, which were previously deferred, represent the direct cost and
expenses related to the sale and activation of wireless phones through the
Company's online cell phone store, 007phones, as discussed above.

      Investment income decreased $5,878,000 from $5,879,000 for the three
months ended March 31, 2001 to $1,000 for the three months ended March 31, 2002.
This decrease is primarily a result of the recognition of realized and
unrealized gains/(losses) during those periods. The Company's policy is to
record marketable securities and securities sold and not purchased at the fair
market value of the securities. The amount of these realized and unrealized
gains or losses will fluctuate based upon changes in the market value of the
underlying investments and are not necessarily indicative of the results that
may be expected for any future periods. Realized gains/(losses) decreased
$556,000 from net gains of $585,000 for the three months ended March 31, 2001 to
net gains of $29,000 for the three months ended March 31, 2002. Unrealized
gains/(losses) decreased $4,814,000 from net gains of $4,728,000 for the three
months ended March 31, 2001 to net losses of $86,000 for the three months ended
March 31, 2002.


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<PAGE>

      Equity in loss increased $62,000 from $20,000 for the three months ended
March 31, 2001 to $82,000 for the three months ended March 31, 2002. The 2001
period reflects the Company's share (48% at March 31, 2002) in Zargis Medical's
operations, accounted for under the equity method.

      Net loss amounted to $1,981,000 for the three months ended March 31, 2002
compared to net earnings of $2,476,000 for the three months ended March 31,
2001, primarily as a result of the unrealized gains from investments recognized
by the Company during the 2001 period. These results for the three months ended
March 31, 2002 are not necessarily indicative of the results that may be
expected for any future periods.

Liquidity and Capital Resources

      The Company has recorded operating losses and negative operating cash
flows in each year of its operations since inception.

      The Company believes that consummation of spectrum assignments in November
1998 and October 1999 for net proceeds of approximately $15.5 million and $19.8
million, respectively, after the repayment and repurchase of debt (in the
aggregate amount of approximately $11.2 million) and redemption of preferred
stock (approximately $4.6 million) in connection with the 1998 assignment as
required under those indentures and the sale of Common Stock in July 1999 for
net proceeds of approximately $19.8 million have provided sufficient liquidity
to finance its current level of operations and expected capital requirements
through the 2002 fiscal year. However, the Company does not expect to have
earnings from operations, exclusive of non-cash charges, until such time as it
substantially increases its customer base and/or forms a strategic alliance for
use of its capabilities in the future. We cannot predict when this will occur.
We have no material non-cancelable commitments and the amount of future capital
funding requirements will depend on a number of factors that we cannot quantify,
including the success of our business, the extent to which we expand our
high-speed Internet service if suitable equipment becomes available and the
types of services we offer, as well as other factors that are not within our
control, including competitive conditions, government regulatory developments
and capital costs.

      In May 2002, we acquired controlling interest in a European style casual
food service company. This company is operating its first store in Manhattan and
is currently planning expansion to other locations. The acquisition price was
$3,500,000, which funds will be applied principally for its expansion. We also
entered into a management services contract with this company that will result
in direct revenues to us apart from those arising out of our ownership interest.

      We have invested a portion of our assets in a portfolio of marketable
securities consisting of publicly traded equity securities. We have also sold
publicly traded equity securities we do not own in anticipation of declines in
the fair market values of these securities. During the quarter ended March 31,
2002, we recognized realized gains on these transactions in the amount of
$29,000.

      Internet broadcast stations used in our pilot high-speed Internet service
had an original cost of approximately $500,000 each. We cannot predict whether
new broadcast stations would be necessary or what they would cost in the future.

      The lack of additional capital in the future could have a material adverse
effect on the Company's financial condition, operating results and prospects for
growth.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

      The Company's financial instruments at March 31, 2002 consist primarily of
cash equivalents, which are subject to interest rate risk, and marketable
securities and securities sold and not purchased, which are subject to equity
price risk.

      The carrying value of cash equivalents approximates market value since
these highly liquid, interest earning investments are invested in money market
funds. The Company's investment in marketable securities consists of publicly
traded equity securities classified as trading securities and are recorded at
fair market value. Securities sold and not purchased are carried at the fair
market value of the securities.


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<PAGE>

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

      Note 2 to the accompanying consolidated financial statements is
incorporated herein by reference.

ITEM 2. CHANGES IN SECURITIES

      None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None.

ITEM 5. OTHER INFORMATION

      None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      a.    Exhibits:

            None.

      b.    Current Reports on Form 8-K:

            None.


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<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                               SPEEDUS.COM, Inc.


Date: May 15, 2002             By: /s/ Shant S. Hovnanian
                                   ---------------------------------------------
                               Shant S. Hovnanian
                               Chairman of the Board and Chief Executive Officer


Date: May 15, 2002             By: /s/ Angela M. Vaccaro
                                   ---------------------------------------------
                               Angela M. Vaccaro
                               Controller and Chief Accounting Officer


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