UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
 FORM 10-Q þQUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2007 OR o
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 CORP.(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)9 Desbrosses Street, Suite 402New York, New York

10013(Address of principal executive
  offices)

(Zip Code)  888-773-3669(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 þNo o Indicate by
check mark whether the registrant is a large accelerated filer, an accelerated
filer, or a non-accelerated filer. See definition of  accelerated filer and large accelerated filer in Rule 12b-2 of
the Exchange Act.
 Large accelerated filer o          Accelerated
filer o          Non-accelerated
filer  þ
 Indicate by
check mark whether the registrant is a shell company (as defined in Rule 12b-2
of the Exchange Act). Yes  oNo þ The number of
outstanding shares of the registrants common stock, par value $.01 per share,
as of May 11, 2007 was 15,967,640.    PagePART I  FINANCIAL INFORMATIONItem 1.
Financial
  StatementsConsolidated
Balance Sheets (unaudited) as of March 31, 2007
  and December 31, 2006

3Consolidated
Statements of Operations (unaudited) for the 
  Three Months Ended March 31, 2007 and 2006

4Consolidated
Statements of Cash Flows (unaudited) for the 
  Three Months Ended March 31, 2007 and 2006

5Condensed Notes to Consolidated Financial Statements
  (unaudited)

6-9Item 2.
Managements Discussion and Analysis of Financial
Condition and
  Results of Operations

10-14Item 3.
Quantitative and Qualitative Disclosures About Market
Risk

14Item 4T.
Controls and Procedures

14PART II  OTHER INFORMATIONItem 1.
Legal Proceedings

15Item 1A.
Risk Factors

15Item 2.
Unregistered Sales of Equity Securities and Use of
Proceeds

15Item 3.
Defaults Upon Senior Securities

15Item 4.
Submission of Matters to a Vote of Security
Holders

15Item 5.
Other Information

15Item 6.
Exhibits

15Signature Page

16Exhibit 31.1
Certification of Chief Executive Officer
Pursuant
  to Rule 13a 14 of the Securities Exchange Act of 1934, as Adopted Pursuant to
  Section 302 of The Sarbanes-Oxley Act of 2002

17Exhibit 31.2
Certification of Chief Financial Officer
Pursuant
  to Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to
  Section 302 of The Sarbanes-Oxley Act of 2002

18Exhibit 32.1
Certification of Chief Executive Officer
Pursuant
  to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002

19Exhibit 32.2
Certification of Chief Financial Officer
Pursuant
  to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002

202

SPEEDUS CORP.CONSOLIDATED BALANCE SHEETS
(unaudited)

March 31,

December 31,2007

2006ASSETSCurrent
  assets:Cash and
cash equivalents

$
8,936,287

$
10,204,167United
States Treasury bills


4,988,200


4,990,250Marketable
securities


370,795


354,011Prepaid
expenses and other


187,120


143,654Total
current assets


14,482,402


15,692,082Property and
  equipment, net of accumulated depreciation of $485,589
  and $444,972


519,630


527,828Other
  intangible assets, net of accumulated amortization of $1,137,304 and
  $1,125,928


22,740


34,116Other
  investments


800,000


800,000Other assets


83,127


81,737Total
assets

$
15,907,899

$
17,135,763LIABILITIES AND STOCKHOLDERS EQUITYCurrent
  liabilities:Accounts
payable

$
54,951

$
62,805Accrued
liabilities


927,460


971,055Total
current liabilities


982,411


1,033,860Commitments
  and ContingenciesStockholders
  equity:Common
stock ($.01 par value;
  50,000,000 shares authorized; 21,750,174 shares issued)


217,502


217,502Preferred
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


91,497,973


91,464,119Treasury
stock (at cost; 5,780,884 shares)


(6,083,360
)

(6,083,360
)Accumulated
deficit


(70,706,627
)

(69,496,358
)Stockholders equity


14,925,488


16,101,903Total
liabilities and stockholders equity

$
15,907,899

$
17,135,763The accompanying notes are an integral part
of these consolidated financial statements.

3

SPEEDUS CORP.CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

For the quarters ended March 31,2007

2006Revenues

$
173,319

$
219,070Expenses:Selling,
general and administrative


1,110,261


863,444Research
and development


353,620


457,362Depreciation and amortization


51,993


238,890Cost of
sales


64,829


65,974Total
operating expenses


1,580,703


1,625,670Operating
  loss


(1,407,384
)

(1,406,600
)Investment
  income


197,115


113,906Net loss

$
(1,210,269
)
$
(1,292,694
)Per share:Loss per
  common share - basic and diluted

$
(0.08
)
$
(0.08
)Weighted
  average common shares outstanding - basic and diluted


15,969,290


16,107,989The accompanying notes are an integral part
of these consolidated financial statements.

4

SPEEDUS CORP.CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

Three months ended March 31,2007

2006Cash flows
from operating activities:Net
loss

$
(1,210,269
)

(1,292,694
)Adjustments
to reconcile net loss to net
  cash used in operating activities:Depreciation and amortization


51,993


238,890Unrealized
investment gains


(16,784
)

(87,578
)Stock based
compensation


33,854


31,332Changes in
operating assets and
  liabilities:Marketable
securities





472,506Prepaid
expenses and other


(43,466
)

20,336Other
assets


(1,390
)

13,235Accounts
payable


(7,854
)

(43,249
)Accrued
liabilities


(43,595
)

(66,233
)Net cash
used in operating activities


(1,237,511
)

(713,455
)Cash flows
from investing activities:Property
and equipment additions


(32,419
)

(289,115
)United
States Treasury bills:Purchases


(5,000,000
)

(4,989,300
)Maturities


5,002,050


Net cash
used in investing activities


(30,369
)

(5,278,415
)Cash flows
from financing activities:Repurchase
of stock





(33,161
)Net cash
used in financing activities





(33,161
)Net
decrease in cash and cash equivalents


(1,267,880
)

(6,025,031
)Cash and
cash equivalents, beginning of
  period


10,204,167


18,563,088Cash and
cash equivalents, end of period

$
8,936,287

$
12,538,057The accompanying notes are an integral part
of these consolidated financial statements.

5

SPEEDUS
CORP.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1.
Basis of PresentationThe
unaudited consolidated financial statements of Speedus Corp. 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 fair
statements 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 2006 audited consolidated financial statements
and notes thereto on Form 10-K.

Operating
results for the three months ended March 31, 2007 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2007.

Financial
statements and principles of consolidation

The
consolidated financial statements include the accounts of Speedus and its
wholly-owned subsidiaries. All significant intercompany accounts and
transactions have been eliminated in consolidation.

Companies
in which Speedus directly or indirectly owns more than 50% of the outstanding
voting securities or that Speedus has effective control over are accounted for
under the consolidation method of accounting. Under this method, those
companies balance sheets and results of operations, from the date Speedus
acquired control, are included in Speedus consolidated financial statements.
The interest in the net assets and operations of these companies other
stockholders is reflected in the caption Minority interest in Speedus
consolidated balance sheet and statements of operations. Through the quarter
ended March 31, 2007, F&B Güdtfood
and Zargis Medical continued to generate losses which, during 2005, reduced the
minority interest balance to zero. As a result, the Company is consolidating
100% of the losses for these entities and continues to fund their operations
with intercompany loans or additional investment, which are eliminated in
consolidation.

Companies
in which Speedus owns less than 20% of the outstanding voting securities and
does not have the ability to exercise significant influence are accounted for
under the cost method of accounting.

Estimates

The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the 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.

Cash
and Cash Equivalents

The
Company considers all highly liquid interest earning investments with original
maturities of three months or less to be cash equivalents. At March 31, 2007
and December 31, 2006, cash equivalents consisted of money market funds.

United
States Treasury bills

United
States Treasury bills are classified as held-to-maturity securities and are
carried at amortized cost.

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, 2007 and December 31,
2006, marketable securities consisted of publicly traded equity securities
which were recorded at fair market value. Their original cost was $887,000 and
$887,000, unrealized losses since acquisition were $516,000 and $533,000 and
the carrying value was $371,000 and $354,000, respectively. At March 31, 2007,
based upon the fair market value of these securities, 100% was invested in
technology companies.

Other
investments

The
Company has invested in equity and debt instruments of non-publicly held
companies and accounts for them under the cost method since the Company does
not have the ability to exercise significant influence over operations. The
Company monitors these investments for other than temporary impairment by
considering current factors including economic environment, market conditions,
operational performance and other specific factors relating to the business
underlying the investment, and records reductions in carrying values when
necessary. The Company does not believe there has been any impairment of other
investments at March 31, 2007.

6

Other investments consist of:

March 31,
  2007

December
  31,
  2006(a) 791,667
  shares of preferred stock of a non-publicly held cardiovascular technology
  company, recorded at cost in the amount of $300,000. In connection with this
  investment, the Company also received warrants to purchase 375,000 shares of
  common stock at $.40 per share. This investment was acquired in 2004.

$
300,000

$
300,000(b) an
  investment in an entity specifically formed to invest in convertible
  preferred stock in a non-publicly held online and directory assistance
  company, recorded at cost in the amount of $250,000. The preferred stock is
  convertible into shares of common stock at a conversion price equal to 50% of
  the price of the common stock in an initial public offering. This investment
  was acquired in 2005.


250,000


250,000(c) an
  investment in an entity specifically formed to invest in a senior third-party
  note of a non-publicly held online and directory assistance company, recorded
  at cost in the amount of $250,000. The note is convertible into shares of
  common stock at a conversion price equal to the price of the common stock in
  an initial public offering. This investment was acquired in 2005.


250,000


250,000$
800,000

$
800,000Securities
Sold But Not Purchased

The
Company has in the past and may in the future 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, 2007
and December 31, 2006, there were no securities sold and not purchased.

Concentrations
of Credit Risk

Financial
instruments that potentially could subject the Company to concentrations of
credit risk consist largely of cash equivalents and marketable securities.
These instruments are potentially subject to concentrations of credit risk but
the Company believes that this risk is limited due to diversification and
investments being made in investment grade securities.

The
Company has in the past and may in the future sell publicly traded equity
securities that it does not own in anticipation of declines in the fair market
values of the securities. When the Company sells securities that it does not
own, it must borrow the securities it sold in order to deliver them and settle
the trades. Thereafter, the Company must buy the securities and deliver them to
the lender of the securities. The Companys potential for loss on these
transactions is unlimited since the value of the underlying security can keep
increasing which could have a material adverse effect on the Companys
consolidated financial statements.

Property
and Equipment

Office
equipment and leasehold improvements are recorded at cost and depreciated on a
straight-line basis over the estimated useful lives of the assets, ranging from
three to seven years, but not longer than initial lease terms in the case of
leasehold improvements.

When
assets are fully depreciated, it is the Companys policy to remove the costs
and related accumulated depreciation from its books and records.

Long-lived
Assets

The
Company periodically evaluates the net realizable value of long-lived assets,
including fixed and intangible assets, in accordance with Statement of
Financial Accounting Standards No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets, 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.

7

Other
Intangible Assets

At
March 31, 2007, other intangible assets consist of medical technology in
connection with the acquisition of a controlling interest in Zargis Medical
during 2003 and additional investment in 2004. Medical technology, in the
aggregate amount of $1,160,000 with accumulated amortization of $1,137,000 at
March 31, 2007 is being amortized over a period of three years.

Amortization
expense relating to intangible assets for the three months ended March 31, 2007
and 2006 amounted to $11,000 and $186,000, respectively. The estimated
amortization expense for the balance of 2007, the expiration of the remaining
useful life of the Companys intangible assets at March 31, 2007, is $23,000.
Amortization expense is included in Depreciation and amortization on the
accompanying Consolidated Statement of Operations and not allocated to
Selling, General and Administrative or Research and Development.

Revenue
Recognition

Revenues
from F&B Güdtfoods operations are recorded on a cash basis.

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 three months ended March 31, 2007 and 2006, outstanding stock
options and warrants in the aggregate weighted average amount of 2,166,000 and
1,726,000, respectively, have been excluded from the diluted loss per share
since their effect would be antidilutive.

Stock
Options

Effective
January 1, 2006, the Company adopted FASB 123R, Share-Based Payment,
using the modified prospective application method. Under this method, for all
unvested awards as of January 1, 2006, the Company records compensation
cost based upon the fair value of those awards on the grant date over the
remaining service period of each award on a straight line basis. For awards
granted after January 1, 2006, the Company records compensation cost based
upon the fair value of those awards on the grant date over the service period
of each award on a straight line basis. Stock based compensation expense
recognized during the three months ended March 31, 2007 and 2006 was $34,000
and $31,000, respectively.

The
fair value of the awards on the grant date was estimated using a Black-Scholes
option pricing model. Assumptions utilized in the model for both Speedus and
Zargis are evaluated and revised, as necessary, to reflect market conditions
and experience.

Recent
Accounting Pronouncements

There
have been no recent accounting pronouncements which upon future adoption would
have an effect on the Companys results of operations or financial position,
except as disclosed below.

In
September 2006, the Financial Accounting Standards Board issued
FASB 157, Fair Value Measurements. FASB 157 defines fair value,
establishes a framework for measuring fair value in generally accepted accounting
principles and expands disclosures about fair value measurements. FASB 157 is
effective for fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years. The Company does not expect adoption of FASB
No. 157 to have a material effect on its results of operations or financial
position.

In
February 2007, the Financial Accounting Standards Board issued FASB No. 159,
The Fair Value Option for Financial Assets and Financial Liabilities Including
an Amendment of FASB Statement No. 115, which permits companies to measure
many financial instruments and certain other assets and liabilities at fair
value on an instrument-by-instrument basis (the fair value option). FASB 159 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007. We are currently evaluating the possible impact of
adopting FASB No. 159 on our consolidated financial statements.

Effective
January 1, 2007, the Company adopted Financial Accounting Standards Board
Interpretation No. 48, Accounting for
Uncertainty in Income Taxesan Interpretation of FASB Statement 109.
FIN 48 prescribes a comprehensive model for the manner in which a company
should recognize, measure, present and disclose in its financial statements all
material uncertain tax positions that the Company has taken or expects to take
on a tax return. Upon adoption of FIN 48 and through March 31, 2007, the
Company had no unrecognized tax benefits and, therefore, no unrecognized tax
benefits that, if recognized, would affect the effective tax rate. As of the
date of adoption, there were no tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
increase or decrease within twelve months from the date of adoption of FIN 48
or from March 31, 2007. As of March 31, 2007, the only tax jurisdictions to
which the Company is subject are the United States and several states where the
Company operates. Open tax years relate to years in which unused net operating
losses were generated. Thus, upon adoption of FIN 48, the Companys open tax
years extend back to 2000. In the event that the Company concludes that it is
subject to interest and/or penalties arising from uncertain tax positions, the
Company will present interest and penalties as a component of income taxes. No
amounts of interest or penalties were recognized in the Companys Consolidated
Statements of Operations or Consolidated Balance Sheets upon adoption of FIN 48
or as of and for the three months ended March 31, 2007.

8

2.
Business Segment InformationThe
following table sets forth the Companys financial performance by reportable
operating segment for the three months ended March 31, 2007 and 2006.

Three
  months ended March 31, 2007F&B

Zargis

Wibiki

Corporate
  and other

TotalsRevenues from external customers

$
173,319

$


$


$


$
173,319Depreciation and amortization


31,965


3,665





16,363


51,993Operating loss


(195,646
)

(505,871
)

(67,111
)

(638,756
)

(1,407,384
)Investment income


412








196,703


197,115Other intangible assets





22,740








22,740Fixed assets


487,661


20,332





11,637


519,630Total assets


646,378


176,904





15,084,617


15,907,899Three
  months ended March 31, 2006F&B

Zargis

Wibiki

Corporate
  and other

TotalsRevenues from external customers

$
218,732

$


$


$
338

$
219,070Depreciation and amortization


45,801


2,558





190,531


238,890Operating loss


(377,225
)

(399,549
)

(199,392
)

(430,435
)

(1,406,600
)Investment income


475


17





113,414


113,906Other intangible assets





127,791





309,576


437,367Fixed assets


609,098


21,285





31,587


661,970Total assets


860,951


338,234





19,857,287


21,056,472The
Company has no foreign operations. During the three months ended March 31, 2007
and 2006, the Company did not have sales to any individual customer greater
than 10% of total Company revenues. The Companys accounting policies for
segments are the same as those described in Note 1.

9

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, 2006.

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.

Business
Activities

Speedus
Corp. is a holding company that owns significant equity interests in diverse
businesses. We seek business opportunities across all industries for potential
transactions and relationships in which we can apply our current resources and
management strengths. The companies that we target, either public or privately
held, will be seeking growth or restructuring capital to pursue near term
business objectives in demonstrated markets. We will continue to pursue
opportunities involving our expertise in the medical device and wireless
markets, as well as those areas involving our broadband assets as attractive
opportunities present themselves.

We
have co-invested with Siemens Corporate Research, Inc., a subsidiary of Siemens
Corporation, in Zargis Medical Corp. to develop advanced diagnostic decision
support products and services for primary care physicians, pediatricians,
cardiologists and other healthcare professionals. Zargis Acoustic Cardioscan®
(Cardioscan®), Zargis core product, is the first and only FDA-authorized
computer-assisted medical device designed to support physicians in analyzing heart
sounds for the identification of suspected systolic and diastolic murmurswhich
are a potential sign of heart disease. We own 90% of F&B Güdtfood Holding
Corp., the creator and operator of the original Eurocentric chic and quick
café, which is operating two stores in Manhattan. In 2005, we conceived Wibiki,
a new software-based wireless network that leverages existing Wi-Fi
infrastructures to reduce cost, complexity and risk for users when accessing
the Internet wirelessly. Wibikis business model will employ a user opt-in
advertising service we call AdChooser to generate revenues that keep Wibiki
services free to users. 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. For additional information
on each of our business segments, see the discussions below and Notes to
Consolidated Financial Statements  Note 2, Business Segment Information.

Zargis
Medical Corp.In January 2001, we co-invested with Siemens
Corporate Research, Inc., a subsidiary of Siemens Corporation, in Zargis
Medical Corp. to develop non-invasive, diagnostic support solutions that
automatically analyze acoustical data from a patient to determine
physiologically significant features useful in medical diagnosis. The
development of Zargis patented technology is a pioneering effort in medicine
which uses advanced signal processing algorithms deployed on standard computer
platforms. The first Zargis device, Cardioscan, received its initial FDA
authorization in May 2004 and additional authorizations in September 2005 and
March 2006. Cardioscan is currently being tested by a small group of physicians
during general medical examinations and physicals to help detect and analyze
suspected heart murmurs which could be a sign of valvular and congenital heart
disease. According to the National Center for Health Statistics, the number of
general medical examinations, administered in the US totaled 64 million in 2000
alone. Zargis is currently researching, and conducting trials on, additional
noninvasive diagnostic support tools that process acoustical data from the body
in order to provide an accurate and intelligible assessment of a patients
health. These assessments may be used by physicians and other healthcare
providers to assist in the early identification or monitoring of heart, lung,
vascular and other conditions and to provide better patient treatment.

Major
next steps remaining for Zargis include continuing market trials and clinical
trials for new applications of the Zargis technology and the formation of
strategic partnerships designed to support product commercialization.

In
February 2003, we acquired a controlling interest in Zargis Medical. At March
31, 2007, as a result of continued investment, our ownership interest was approximately 80%.

10

F&B
Güdtfood. We own 90%
of F&B Güdtfood, the creator and operator of the original Eurocentric chic
and quick café, which is operating two stores in Manhattan. The acquisition
price was $3,500,000 in May 2002. In February 2003, we reduced our cash
investment in F&B Güdtfood and received $1,775,000 while maintaining our
original 51% interest. In December 2003, as a result of renegotiation, our
interest increased to 80% without an additional investment. As a result of
certain milestones not having been met, in 2005 our interest increased to 90%.
We have also entered into a management services contract with F&B Güdtfood
that will result in direct revenues to us although these revenues will be
eliminated on our consolidated financial statements.

Broadband
Patents.We have accumulated a portfolio of patents that teach and cover the
improvement of high-speed wireless communication systems to allow greater
information content, reliability, clarity, more efficient use of licensed
spectrum as compared to prior systems and other advances. We have 6 domestic
patents with expiration dates ranging from 2007 through 2017, with
approximately 46 international counterparts in 28 countries. We also have 4
domestic patents pending and 14 patents pending in an additional 3 countries.
Certain wireless communications systems may employ a number of different
combinations of our patented technology to maximize operational and spectrum
efficiency. While we believe that there is great value in our patented
technologies, it is a lengthy and expensive process to investigate and 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. We have licensed technology in the past, both
domestically and internationally, but are not currently receiving any license
fees.

Wibiki.
During 2005, our
technology resources and experience in wireless broadband enabled us to
conceive a new software-based wireless network that leverages existing Wi-Fi
infrastructures to reduce cost, complexity and risk for users when accessing
the Internet wirelessly. We named that network Wibiki. Wibiki offers free beta
software designed to improve access to free Wi-Fi, including streamlining
registration and security configuration of Wi-Fi clients and routers. Wibiki
software for laptops and routers can be downloaded from www.wibiki.com.
Wibikis business model will employ a user opt-in advertising service we call
AdChooser to generate revenues that keep Wibiki services free to users.

NetfreeUs. In March 2007,
NetfreeUs, a new wholly-owned subsidiary, asked the FCC for authority to manage
a new nationwide Wireless Public Broadband (WPB) network in the 2155-2175 MHz
frequency band. Like viewers of free over-the-air television and radio,
consumers of NetfreeUS Wireless Public Broadband (WPB) service will never
incur monthly fees. NetfreeUS will coordinate third-party lessees who would own
and operate wireless access points (WAPs). Initially, no lessee would be
authorized to operate more than fifty (50) WAPs. WPB will promote localism and
the provision of advertising and public service messages targeted to local
interests and communities, as well as local business and economic development,
through ubiquitous coverage provided by small-footprint networks. In addition,
user-designated advertising would permit local customization of advertising
messages to inform users about products and services of interest in the
community.

There
are six other applications for this band. Because the FCC has not established
processing standards for these applications, we cannot predict whether and to
what extent our application will be granted, if at all.

Local
Multipoint Distribution Service (LMDS) license.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. 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.

The
license has been renewed through February 1, 2016 conditioned upon demonstrating
to the FCC by March 27, 2007 that we are providing substantial service. On
March 7, 2007, we filed a notification that we are providing substantial
service in accordance with FCC standards. On March 27, 2007, out of an
abundance of caution, we requested a contingent waiver and an extension of time
until March 27, 2010 to demonstrate substantial service, to the extent our
earlier demonstration is not deemed compliant with FCC standards. In a pleading
filed in the 2155-2175 MHz proceeding described above, a competing applicant
has questioned our substantial service showing. It is possible that there
will be other challenges to our FCC filings. We anticipate FCC action on our
filings in the next several months.

We
will not commence a full marketing effort using our LMDS technology until new
LMDS equipment becomes commercially available with cost and performance that
allow implementation of an economically viable business model. We cannot
determine when this will occur and this equipment may never be available to us
on this basis.

Other. We have invested a
portion of our assets in a portfolio of marketable securities consisting of
publicly traded equity securities. We have also invested a portion of our
assets in equity and debt instruments of non-publicly held companies. We have
in the past and may in the future sell publicly traded equity securities we do
not own in anticipation of declines in the fair market values of these
securities.

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

11

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 1 to our consolidated financial statements included in
this Form 10-Q and Note 2 to our consolidated financial statements included in
our 2006 Form 10-K. However, we believe the following critical
accounting policies affect the more significant judgments and estimates used in
the preparation of our consolidated financial statements.

Financial
instruments. Our financial instruments consist primarily of
cash equivalents, United States treasury bills and marketable securities and
may include 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, i.e., closing prices quoted on
established securities markets. Securities sold and not repurchased are also
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.

We
have also invested in equity and debt instruments of non-publicly held
companies and account for them under the cost method since we do not have the
ability to exercise significant influence over operations. We monitor these
investments for other than temporary impairment by considering current factors
including economic environment, market conditions, operational performance and
other specific factors relating to the business underlying the investment, and
record reductions in carrying values when necessary.

Long-lived
assets. Long-lived assets, including fixed assets 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.

Share-Based
Payments. Prior
to January 1, 2006, we accounted for our employee stock options in
accordance with Statement of Financial Accounting Standards No. 123, Accounting
for Stock-Based Compensation, as amended, which defines a fair value method
of measuring and accounting for compensation expense from employee stock
options. FASB 123 also allowed accounting for such options under the intrinsic
value method in accordance with Accounting Principles Board No. 25,
Accounting for Stock Issued to Employees. We elected to use the intrinsic
value method and adopted the disclosure only provisions of FASB 123. Generally,
no compensation cost was recognized since stock options were issued with
exercise prices equal to the market value of the underlying shares on the grant
date.

Effective
January 1, 2006, we adopted FASB 123R, Share-Based Payment, using the
modified prospective application method. Under this method, for all unvested
awards as of January 1, 2006, we record compensation cost based upon the
fair value of those awards on the grant date over the remaining service period
of each award on a straight line basis. For awards granted after January 1,
2006, we record compensation cost based upon the fair value of those awards on
the grant date over the service period of each award on a straight line basis.

We
estimate the value of these awards on the date of grant using a Black-Scholes
option pricing model. The determination of the fair value of these awards on
the date of grant is affected by our stock price as well as assumptions
regarding a number of complex and subjective variables. These variables include
our expected stock price volatility over the term of the awards, expected term,
risk-free interest rate, expected dividends and expected forfeiture rates.

If
factors change and we employ different assumptions in the application of FASB
123R in future periods, the compensation expense that we record under FASB 123R
may differ significantly from what we have recorded in the current period.
There is a high degree of subjectivity involved when using option pricing
models to estimate share-based compensation under FASB 123R. Consequently,
there is a risk that our estimates of the fair values of these awards on the
grant dates may bear little resemblance to the actual values realized upon the
exercise, expiration, early termination or forfeiture of those share-based
payments in the future. Employee stock options may expire worthless or
otherwise result in zero intrinsic value as compared to the fair values
originally estimated on the grant date and reported in our consolidated
financial statements. Alternatively, value may be realized from these
instruments that are significantly in excess of the fair values originally
estimated on the grant date and reported in our consolidated financial
statements. During the three months ended March 31, 2007, we do not believe
that reasonable changes in the projections would have had a material effect on
share-based compensation expense.

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

12

loss is significantly different than the estimated
loss, our results of operations will be affected in the period that the
difference is known.

Three
Months Ended March 31, 2007 Compared to Three Months Ended March 31, 2006

Revenues
decreased $46,000 from $219,000 for the three months ended March 31, 2006 to
$173,000 for the three months ended March 31, 2007. This decrease is primarily
the result of a reduction in menu prices at the Companys first store and a
lack of customer acceptance of the F&B format at the second store. We are
testing new menu concepts as a solution to customer acceptance.

Selling,
general and administrative expenses increased $247,000 from $863,000 for the
three months ended March 31, 2006 to $1,110,000 for the three months ended
March 31, 2007. This increase is primarily a result of increases in legal
expenses in connection with litigating patent infringement claims.

Research
and development expenses decreased $103,000 from $457,000 for the three months
ended March 31, 2006 to $354,000 for the three months ended March 31, 2007.
This decrease is primarily a result of a lower level of expenses incurred
during 2006 in connection with new wireless initiatives by the Company.

Depreciation
and amortization decreased $187,000 from $239,000 for the three months ended
March 31, 2006 to $52,000 for the three months ended March 31, 2007. This
decrease is primarily a result of a decrease in amortization of medical
technology from the completion of amortization of early tranches of medical
technology resulting from the Zargis acquisition, net of an increase as a
result of renovation to one of the F&B Restaurant stores.

Investment
income increased $83,000 from a net gain of $114,000 for the three months ended
March 31, 2006 to a net gain of $197,000 for the three months ended March 31,
2006. Realized gains decreased $100,000 from net gains of $100,000 for the
three months ended March 31, 2006. There were no trades during the three months
ended March 31, 2007. Unrealized gains increased $188,000 from net losses of
$171,000 for the three months ended March 31, 2006 to net gains of $17,000 for
the three months ended March 31, 2007. Interest income decreased $5,000 from
$185,000 for the three months ended March 31, 2006 to $180,000 for the three
months ended March 31, 2007. These amounts will fluctuate based upon changes in
the market value of the underlying investments, overall market conditions and
the amount of funds available for short-term investment and 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.

Net
cash used in operating activities was $1,238,000 for the three months ended
March 31, 2007 compared to net cash used in operating activities of
$713,000 for the three months ended March 31, 2006. This net increase in cash
used in operating activities was primarily the result of a decrease in the sale
of marketable securities.

Net
cash used in investing activities was $30,000 for the three months ended
March 31, 2007 compared to net cash used in investing activities of
$5,278,000 for the three months ended March 31, 2006. This net increase in cash
used in investing activities was primarily the result of the maturity of United
States Treasury bills during the three months ended March 31, 2007 and an
decrease in property and equipment additions.

Net
cash used in financing activities was $33,000 for the three months ended
March 31, 2006 as a result of repurchases of treasury stock.

At
March 31, 2007, the Companys future minimum lease payments due under
non-cancelable leases aggregated $1,510,000. $333,000 of this amount is due
during the remainder of 2007. $382,000, $233,000, $138,000 and $109,000 of this
amount is due during the years ending December 31, 2008, 2009, 2010 and 2011,
respectively, and $315,000 is payable thereafter. In addition, in connection
with a license agreement to which the Company is a party, a termination payment
will be payable by the Company in the amount of $500,000, $300,000 or $200,000
if the license agreement is terminated by the Company before September 2007,
September 2009 or September 2011, respectively.

The
Company believes that it has sufficient liquidity to finance its current level
of operations and expected capital requirements through the next twelve months.
However, the Company does not expect to have earnings from operations 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. 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.

We
have invested a portion of our assets in a portfolio of marketable securities
consisting of publicly traded equity securities. We purchase these securities
in anticipation of increases in the fair market values of the securities. We
have in the past and may in the future also sell publicly traded equity
securities we do not own in anticipation of declines in the fair market values
of these securities.

13

When we sell securities that we do not own, we must
borrow the securities we sold in order to deliver them and settle the trades.
Thereafter, we must buy the securities and deliver them to the lender of the
securities. Our potential for loss on these transactions is unlimited since the
value of the underlying security can keep increasing.

Off-Balance
Sheet Arrangements

The
Company does not have any off-balance sheet arrangements.

Recent
Accounting Pronouncements

There
have been no recent accounting pronouncements which upon future adoption would
have an effect on the Companys results of operations or financial position,
except as disclosed below.

In
September 2006, the Financial Accounting Standards Board issued
FASB 157, Fair Value Measurements. FASB 157 defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles and expands disclosures about fair value measurements.
FASB 157 is effective for fiscal years beginning after November 15, 2007
and interim periods within those fiscal years. The Company does not expect
adoption of FASB No. 157 to have a material effect on its results of operations
or financial position.

In
February 2007, the Financial Accounting Standards Board issued FASB No. 159,
The Fair Value Option for Financial Assets and Financial Liabilities Including
an Amendment of FASB Statement No. 115, which permits companies to measure
many financial instruments and certain other assets and liabilities at fair
value on an instrument-by-instrument basis (the fair value option). FASB 159 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007. We are currently evaluating the possible impact of
adopting FASB No. 159 on our consolidated financial statements.

Effective
January 1, 2007, the Company adopted Financial Accounting Standards Board
Interpretation No. 48, Accounting for
Uncertainty in Income Taxesan Interpretation of FASB Statement 109.
FIN 48 prescribes a comprehensive model for the manner in which a company
should recognize, measure, present and disclose in its financial statements all
material uncertain tax positions that the Company has taken or expects to take
on a tax return. Upon adoption of FIN 48 and through March 31, 2007, the
Company had no unrecognized tax benefits and, therefore, no unrecognized tax
benefits that, if recognized, would affect the effective tax rate. As of the
date of adoption, there were no tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
increase or decrease within twelve months from the date of adoption of FIN 48
or from March 31, 2007. As of March 31, 2007, the only tax jurisdictions to
which the Company is subject are the United States and several states where the
Company operates. Open tax years relate to years in which unused net operating
losses were generated. Thus, upon adoption of FIN 48, the Companys open tax
years extend back to 2000. In the event that the Company concludes that it is
subject to interest and/or penalties arising from uncertain tax positions, the
Company will present interest and penalties as a component of income taxes. No
amounts of interest or penalties were recognized in the Companys Consolidated
Statements of Operations or Consolidated Balance Sheets upon adoption of FIN 48
or as of and for the three months ended March 31, 2007.

ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The
Companys financial instruments at March 31, 2007 consist primarily of cash
equivalents, which are subject to interest rate risk, and marketable
securities, which are subject to price risk.

As
part of our overall investment strategy, we invest in publicly traded equity
securities. We purchase these securities in anticipation of increases in the
fair market values of the securities. We have in the past and may in the future
also sell publicly traded equity securities that we do not own in anticipation
of declines in the fair market values of the securities. When we sell
securities that we do not own, we must borrow the securities we sold in order
to deliver them and settle the trades. Thereafter, we must buy the securities
and deliver them to the lender of the securities. Our potential for loss on
these transactions is unlimited since the value of the underlying security can
keep increasing which could have a material adverse effect on the Companys
consolidated financial statements.

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 repurchased are carried at the fair
market value of the securities.

ITEM 4T.
CONTROLS AND PROCEDURES

Management
of the Company, including the Chief Executive Officer and the Chief Financial
Officer, evaluated the effectiveness of the design and operation of the
Companys disclosure controls and procedures (as such term is defined in
Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934)
as of the end of the period covered by this report. Based upon that evaluation,
the Companys Chief Executive Officer and the Chief Financial Officer concluded
that the Companys disclosure controls and procedures were effective as of the
end of the period covered by this report.

There
have not been any changes in the Companys internal control over financial
reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under
the Exchange Act) during the fiscal quarter ended March 31, 2007 that have
materially affected, or are reasonably likely to materially affect, the
Companys internal control over financial reporting.

14

PART II. OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGSItem 3 to the Companys Form 10-K for the year ended
  December 31, 2006 is incorporated herein by reference.ITEM 1A.

RISK FACTORSNo material changes.ITEM 2.

UNREGISTERED SALES OF EQUITY
  SECURITIES AND USE OF PROCEEDSNone.ITEM 3.

DEFAULTS UPON SENIOR SECURITIESNone.ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF
  SECURITY HOLDERSNone.ITEM 5.

OTHER INFORMATIONNone.ITEM 6.

EXHIBITSExhibit number 31.1

Certification of Chief Executive Officer Pursuant to
  Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to
  Section 302 of The Sarbanes-Oxley Act of 2002.Exhibit number 31.2

Certification of Chief Financial Officer Pursuant to
  Rule 13a-14 of the Securities Exchange Act of 1934, as Adopted Pursuant to
  Section 302 of The Sarbanes-Oxley Act of 2002.Exhibit number 32.1

Certification of Chief Executive Officer Pursuant to
  18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002.Exhibit number 32.2

Certification of Chief Financial Officer Pursuant to
  18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The
  Sarbanes-Oxley Act of 2002.15

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 CORP.Date: May 15, 2007
By:
/s/ Shant S. HovnanianShant S. HovnanianChairman of the Board, President and Chief Executive
  OfficerDate: May 15, 2007
By:
/s/ Thomas M. FinnThomas M. FinnTreasurer and Chief Financial and Accounting Officer16