----

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| Delaware                               | 13-4070586                              |
|----------------------------------------|-----------------------------------------|
| (State or other jurisdiction of   | (IRS Employer Identification No.)  |
|  incorporatin or organization)    |                                    |

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|                                                                                                                                        | Page  |
|---------------------------------------------------------------------------------------------------------------------------------------------|------------|
|                                                                                                                                        |       |
| Part I - Financial Information                                                                                                              |       |
|                                                                                                                                        |       |
| Item 1 - Financial Statements                                                                                                               |       |
|                                                                                                                                        |       |
| Consolidated Balance Sheets as of March 31, 2010 (unaudited) and December 31, 2009 (unaudited)                          |  3    |
|                                                                                                                                        |       |
| Consolidated Statements of Operations for the three months ended March 31, 2010 (unaudited)and March 31, 2009 (unaudited)    |  4    |
|                                                                                                                                        |       |
| Consolidated Statements of Cash Flows for the three months ended March 31, 2010 and March 31, 2009 (unaudited)     |  5    |
|                                                                                                                                        |       |
| Notes to Consolidated Financial Statements                                                                              |  6    |
|                                                                                                                                        |       |
| Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations                   |  10   |
|                                                                                                                                        |       |
| Item 3.    Controls and Procedures                                                                                      |  12   |
|                                                                                                                                        |       |
| PART II - OTHER INFORMATION                                                                                                                 |  13   |
|                                                                                                                                        |       |
| Item 1.    Legal Proceedings                                                                                       |  13   |
|                                                                                                                                        |       |
| Item 2.    Unregistered Sales of Equity Securities and  Use of Proceeds                                  |  13   |
|                                                                                                                                        |       |
| Item 3.    Defaults Upon Senior Securities                                                                         |  13   |
|                                                                                                                                        |       |
| Item 4.    Submission of Matters to a Vote of Security Holders                                                     |  13   |
|                                                                                                                                        |       |
| Item 5.    Other Information                                                                                       |  13   |
|                                                                                                                                        |       |
| Item 6.    Exhibits and Reports on Form 8-K                                                                        |  13   |
|                                                                                                                                        |       |
| SIGNATURES                                                                                                                             |  14   |

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|                                                                                                                                                   |   | March 31, 2010 |        |   | December 31, 2009 |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|---------|
|                                                                                                                                                   |   | (Unaudited)    |        |   | (Unaudited)       |    |
|                                                                                                                                                   |   |           |        |   |              |    |
| CURRENT ASSETS                                                                                                                                         |   |           |        |   |              |    |
|  Cash and cash equivalents                                                                                                                        |   | $              | 49,686      |   |              | $       | 1,677 |   |
| Accounts receivable, less allowance for doubtful accounts of $147,597 and $197,025, respectively                                                       |   |           | 1,649       |   |              |    | 69,918 |   |
| Loan receivable - short term                                                                                                                           |   |           | 3,000       |   |              |    | - |   |
| Inventory                                                                                                                                              |   |           | 91,760      |   |              |    | 578,628 |   |
| Deposits for future inventory purchases                                                                                                                |   |           | 210,344     |   |              |    | 127,697 |   |
| Prepaid Expenses                                                                                                                                       |   |           | 91,630      |   |              |    |   |   |
|       Total current assets                                                                                               |   |           | 448,069     |   |              |    | 777,920 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| Property and equipment, less accumulated depreciation of $ and $123,781 respectively                                                                   |   |           | 71,396      |   |              |    | 112,845 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| Security deposits - retail store                                                                                                                       |   |           | 13,980      |   |              |    | 14,330 |   |
| Total other assets                                                                                                                                |   |           | 13,980      |   |              |    | 14,330 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| TOTAL ASSETS                                                                                                                                           |   | $              | 533,445     |   |              | $       | 905,095 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| CURRENT LIABILITIES                                                                                                                                    |   |           |        |   |              |    |   |   |
| Bank overdrafts                                                                                                                                        |   | $              | 34,293      |   |              | $       | 34,293 |   |
| Bank lines of credit                                                                                                                                   |   |           |        |   |              |    | 210,422 |   |
| Accounts payable and accrued expenses                                                                                                                  |   |           | 1,012,276   |   |              |    | 1,160,927 |   |
| Payroll taxes and withholdings                                                                                                                         |   |           | 633,718     |   |              |    | 653,417 |   |
| Defferred activations                                                                                                                                  |   |           | 213,966     |   |              |    | - |   |
| Customer deposits                                                                                                                                      |   |           | 207,158     |   |              |    | - |   |
| Common stock subject to put feature (Note 10)                                                                                                          |   |           | 248,000     |   |              |    | 323,000 |   |
|    Total current liabilities                                                                                                            |   |           | 2,349,411   |   |              |    | 2,382,059 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| LONG TERM LIABILITIES                                                                                                                                  |   |           |        |   |              |    |   |   |
| Loans payable                                                                                                                                          |   |           | 130,000     |   |              |    | - |   |
| Loans payable to related parties                                                                                                                       |   |           | 1,966,765   |   |              |    | 2,177,168 |   |
| TOTAL LIABILITIES                                                                                                                                      |   | $         | 4,446,176   |   |              |  $ | 4,559,227 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| STOCKHOLDERS' EQUITY (DEFICIENCY)                                                                                                                      |   |           |        |   |              |    |   |   |
| Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 shares issued                                                                        |   |           | -           |   |              |    | - |   |
| Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding 166,575,793,  and 113,075,793 shares, respectively |   |           | 113,676     |   |              |    | 113,076 |   |
| Additional paid-in capital                                                                                                                             |   |           | 6,124,673   |   |              |    | 6,048,273 |   |
| Subscription receivable                                                                                                                                |   |           | (25,000     | )      |              |    | (25,000 | ) |
| Retained earnings (deficit)                                                                                                                            |   |           | (10,126,080 | )      |              |    | (9,790,481 | ) |
| Total stockholders' equity (deficiency)                                                                                                                |   |           | (3,912,731  | )      |              |    | (3,654,132 | ) |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY (DEFICIENCY)                                                                                                 |   | $              | 533,445     |   |              | $       | 905,095 |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |
|                                                                                                                                                   |   |           |        |   |              |    |   |   |

----

|                                                        |   |
|-------------------------------------------------------------|--------|
|                                                        |   | Three months endedMarch 31, |   |
|                                                        |   | 2010 |   |   | 2009 |   |
|                                                        |   |   |   |   |   |   |
|  Sales                                                 |   | $ | 39,891 |   |   | $ | 100,237 |   |
|                                                        |   |   |   |   |   |   |   |   |
|  Less Cost of sales                                    |   |   | 12,099 |   |   |   | 84,809 |   |
|                                                        |   |   |   |   |   |   |   |   |
|  Gross profit                                          |   |   | 27,792 |   |   |   | 15,428 |   |
|  Selling, general and administrative expenses          |   |   | 1,198,992 |   |   |   | 388,948 |   |
|                                                        |   |   |   |   |   |   |   |   |
|  Loss from operations                                  |   |   | (1,171,200 | ) |   |   | (373,520 | ) |
|                                                        |   |   |   |   |   |   |   |   |
|  Loss from inventory adjustment                        |   |   | (346,428 | ) |   |   |   |   |
|  Interest expense                                      |   |   | - |   |   |   | (13,342 | ) |
|                                                        |   |   |   |   |   |   |   |   |
|  Net loss                                              |   | $ | (1,517,628 | ) |   | $ | (386,862 | ) |
|                                                        |   |   |   |   |   |   |   |   |
|  Basic and diluted earnings (loss) per common share    |   |   | (0.01 | ) |   |   | (0.00 | ) |
|                                                        |   |   |   |   |   |   |   |   |
|  Weighted average shares outstanding basic and diluted |   |   | 113,293,904 |   |   |   | 112,249,788 |   |
|                                                        |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |

----

|                                                                                                |   |   | Three Months EndedMarch 31,  |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|
|                                                                                                |   |   | 2010                         |   |   |   | 2009  |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
|  Net (loss)                                                                                    |   | $      | (1,517,628                        | )      |   | $ | (386,952 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: |   |   |                              |   |   |   |   |   |
| Depreciation and amortization                                                                       |   |   | 17,698                            |   |   |   | 6,566 |   |
| Loss on inventory adjustment                                                                        |   |   | 346,428                           |   |   |   | - |   |
| Stock-based compensation                                                                            |   |   | -                                 |   |   |   | 3,750 |   |
| Provision for returns and allowance for doubtful accounts and bad debts write-offs                  |   |   | 503,679                           |   |   |   | - |   |
| Changes in operating assets and liabilities                                                         |   |   |                              |   |   |   |   |   |
| Receivables                                                                                         |   |   | 65,269                            |   |   |   | 12,583 |   |
| Inventories                                                                                         |   |   | 486,868                           |   |   |   | 206 |   |
| Deposits for future inventory purchases                                                             |   |   | (82,647                           | )      |   |   | - |   |
| Deposit and prepaid expenses                                                                        |   |   | (91,280                           | )      |   |   | 11,550 |   |
| Customer deposits and deferred activations                                                          |   |   | 421,124                           |   |   |   | - |   |
| Accounts payable and accrued expenses                                                               |   |   | (148,651                          | )      |   |   | 153,785 |   |
| Common stock subject to put feature                                                                 |   |   | 75,000                            |   |   |   | - |   |
| Payroll taxes and withholdings                                                                      |   |   | (19,699                           | )      |   |   | 95,234 |   |
|                                                                                                |   |   | 56,161                            |   |   |   | (103,278 | ) |
| Net cash (used for) operating activities                                                            |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
| Investing Activities                                                                                |   |   |                              |   |   |   |   |   |
| Property and equipment disposals                                                                    |   |   | 23,751                            |   |   |   | - |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
| Net cash used for investing activities                                                              |   |   | 23,751                            |   |   |   | - |   |
| Financing Activities                                                                                |   |   |                              |   |   |   |   |   |
| Increase (decrease) in loans payable to related parties                                             |   |   |                              |   |   |   |   |   |
| Proceeds from loans                                                                                 |   |   | (210,403                          | )      |   |   | (1,044 | ) |
| Proceeds from sale of common stock                                                                  |   |   | 130,000                           |   |   |   | - |   |
|                                                                                                |   |   | 48,500                            |   |   |   | 104,250 |   |
| Net cash provided by financing activities                                                           |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   | (31,903                           | )      |   |   | (103,206 | ) |
| Net increase (decrease) in cash                                                                     |   |   |                              |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                    |   |   | 48,009                            |   |   |   | (72 | ) |
|                                                                                                |   |   | 1,677                             |   |   |   | 1,848 |   |
| Cash at end of period                                                                               |   |   |                              |   |   |   |   |   |
|                                                                                                |   | $      | 49,686                            |   |   | $ | 1,776 |   |
| Significant non-cash investing and financing activities:                                            |   |   |                              |   |   |   |   |   |
| ... shares were issued for $5,000 worth of legal services                                       |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   |                              |   |   |   |   |   |
|                                                                                                |   |   |                              |   |   |   |   |   |

|   |
|--------|

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| ICTT bank account overdraft facility       |   | $      | 1,698  |
|---------------------------------------------------------------------|--------|--------|--------|
| FONE1 bank account overdraft facility      |   |   | 32,595 |
|  Total                                               |   | $      | 34,293 |

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|                              |   | March 31, 2010 |     |    | December 31, 2009 |    |
|-----------------------------------|--------|---------------------|----------|---------|-------------------|---------|
|                              |   |                |     |    |              |    |
| Computer equipment and software   |   | $                   | 82,290   |    |              | $       | 82,290 |   |
| Furniture and Fixtures            |   |                | 72,758   |    |              |    | 79,247 |   |
| Leasehold Improvement             |   |                | 57,827   |    |              |    | 66,878 |   |
|                              |   |                |     |    |              |    |   |   |
|                              |   |                | 212,875  |    |              |    | 228,915 |   |
| Less accumulated depreciation     |   |                | (147,479 | )  |              |    | (117,215 | )  |
|                              |   |                |     |    |              |    |   |   |
| Property and equipment, net  |   |                |     |    |              |    |   |   |
| of accumulated depreciation  |   | $                   | 71,396   |    |              | $  | 112,845 |   |

|                           |   | Three Months Ended March 31, |   |
|--------------------------------|--------|------------------------------|--------|
|                           |   | 2010                         |   |   | 2009 |   |
|                           |   |                         |   |   |   |   |
|  Current                  |   |                         |   |   |   |   |
|  Federal                  |   | $                            | -      |   |   | $ | - |   |
|  State                    |   |                         | -      |   |   | $ | - |   |
|                           |   |                         |   |   |   |   |   |   |
|  Total current provision  |   |                         | -      |   |   |   | - |   |
|  Deferred                 |   |                         |   |   |   |   |   |   |
|  Federal                  |   |                         | -      |   |   |   | - |   |
|  State                    |   |                         | -      |   |   |   | - |   |
|                           |   |                         |   |   |   |   |   |   |
|  Total deferred provision |   |                         | -      |   |   |   | - |   |
|                           |   |                         |   |   |   |   |   |   |
|  Total income tax expense |   | $                            | -      |   |   | $ | - |   |

----

|  Federal social security and income tax                                                                                             |   | $      | 539,652 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
|  New York State Income Tax                               |   |   | 72,278  |
|  New York State Department of Labor                                                              |   |   | 5,810   |
|  New Jersey State Income Tax                        |   |   | 197     |
|  New York State Workers' Compensation Board                                                                                                   |   |   | 15,786  |
|  Total                                                                                                                                                            |   | $      | 633,718 |

|  Due to chief executive officer and affiliates:     |   | $      | 1,966,765 |
|------------------------------------------------------------------------------|--------|--------|-----------|
|                                                                         |   |   |      |
|  Total                                                                  |   | $      | 1,966,765 |

----

|                                                                                                                                                                                                                                                                     |   | Telephone    |     |    |            |   |       |                                                    |   |   |    |                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|---------|-----------------|--------|------------|---------------------------------------------------------|--------|--------|---------|---------------------|
|                                                                                                                                                                                                                                                                     |   | products and |     |    | Transpaortation |   |       | Unallocated                                             |   |   |    |                |
|                                                                                                                                                                                                                                                                     |   | services     |     |    | products        |   |       | Corporate                                               |   |   |    |                |
|                                                                                                                                                                                                                                                                     |   | (Europhone)  |     |    | (Eurospeed)     |   |       | Administration                                          |   |   | Total   |                |
|                                                                                                                                                                                                                                                                     |   | Segment      |     |    | Segment         |   |       | Amounts                                                 |   |   | Amount  |                |
|                                                                                                                                                                                                                                                                     |   |         |     |    |            |   |       |                                                    |   |   |    |                |
|  Three Months Ended March 31, 2010                                                                                                                                                                                                                                  |   |         |     |    |            |   |       |                                                    |   |   |    |                |
|  Total revenues                                                                                                                                                                                                                                                     |   | $            | 39,891   |    |            |   | -          |                                                    |   |   | -       |                |   | $ | 39,891 |   |
|  Income (loss) from Operations                                                                                                                                                                                                                                 |   |         | ( 29,565 | )       |            |   | (1,410,696 | )                                        |   |   | (77,067 | )    |   |   | (1,517,628 | ) |
|  Depreciation expense                                                                                                                                                                                                                                     |   |         | 6,566    |    |            |   | -          |                                                    |   |   | -       |                |   |   | 6,566 |   |
|                                                                                                                                                                                                                                                                     |   |         |     |    |            |   |       |                                                    |   |   |    |                |   |   |   |   |
|  Total assets                                                                                                                                                                                                                                                  |   |         | 441,815  |    |            |   | -          |                                                    |   |   | 91,630  |                |   |   | 533,445 |   |
|                                                                                                                                                                                                                                                                     |   |         |     |    |            |   |       |                                                    |   |   |    |                |   |   |   |   |
|  Three Months Ended March 31, 2009                                                                                                                                                                                                                                  |   |         |     |    |            |   |       |                                                    |   |   |    |                |   |   |   |   |
|  Total revenues                                                                                                                                                                                                                                                |   | $            | 100,237  |    |            |   | -          |                                                    |   |   | -       |                |   | $ | 100,237 |   |
|  Income (loss) from Operations                                                                                                                   |   |         | (268,649 | )  |            |   | (45,538    | )          |   |   | (59,333 | )              |   |   | (373,520 | ) |
|  Depreciation expense                                                                |   |         | 6,566    |    |            |   | -          |                                                    |   |   | -       |                |   |   | 6,566 |   |
|                                                                                                                                                                                                                                                                     |   |         |     |    |            |   |       |                                                    |   |   |    |                |   |   |   |   |
|  Total assets                                          |   |         | 403,752  |    |            |   | 614,567    |                                                    |   |   | 68,847  |                |   |   | 1,087,166 |   |
|                                                                                                                                                                                                                                                                     |   |         |     |    |            |   |       |                                                    |   |   |    |                |   |   |   |   |

----

----

----

----

----

|                          | EUROGROUP OF COOMPANIES, INC. |
|-------------------------------|-------------------------------|
|                          |                          |   |
| Date   May 17, 2011 | By:                           | /s/   Vasilios Koutsobinas |
|                          |                          | Vasilios Koutsobinas |
|                          |                          | Chief Executive Officer, |
|                          |                          | Director  |
|                          |                          | (Principal Executive Officer)  |
|                          |                          |   |

|                          |   |
|-------------------------------|--------|
|                          |   |   |
| Date   May 17, 2011 | By:    | /s/    Andrew Eracleous |
|                          |   | Andrew Eracleous |
|                          |   | Chief Financial Officer |
|                          |   | Director  |
|                          |   | (Principal Financial and Accounting Officer)  |
|                          |   |   |

----

|  Exihibits |                                                                                                             |
|-----------------|------------------------------------------------------------------------------------------------------------------|
|  Number    |  Description of Exhibits                                                                                    |
|            |                                                                                                             |
|  21        |  List of Subsidiaries.                                                                                      |
|            |                                                                                                             |
|  31.1      |  Certification of the Company's Chief Executive Officer pursuant to Section 302 of Sarbanes Oxley Act.      |
|            |                                                                                                             |
|  31.2      |  Certification of the Company's Chief Financial Officer pursuant to Section 302 of Sarbanes Oxley Act. |
|            |                                                                                                             |
|  32.1      |  Certification of the Company's Chief Executive Officer pursuant to 18 U.S.C. Section 1350             |
|            |                                                                                                             |
|  32.2      |  Certification of the Company's Chief Financial Officer pursuant to 18 U. S. C. Section 1350                |

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