| x | Quarterly Report Pursuant to      Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|---|---------------------------------------------------------------------------------------------------|

| o | Transition Report Pursuant to      Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|---|----------------------------------------------------------------------------------------------------|

| Nevada                               | 84-1665042                        |
|--------------------------------------|-----------------------------------|
| (State      or Other Jurisdiction of | (IRS      Employer Identification |
| Incorporation      or Organization)  | Number)                           |

| Large      Accelerated Filer | o      | Accelerated      Filer         | o      |
|------------------------------|--------|--------------------------------|--------|
|                         |   |                           |   |
| Accelerated      Filer       | o      | Smaller      Reporting Company | x      |

----

TABLE OFCONTENTS

| PART      I: FINANCIAL INFORMATION                                                                            |   |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                          |   |   |
| Item      1: Financial Statements                                                                             |   | 4      |
| Item      2: Management’s Discussion and Analysis of Financial Condition and Results      of Operations |   | 5      |
| Item      3: Quantitative and Qualitative Disclosures About Market    Risk                                    |   | 8      |
| Item      4: Controls and Procedures                                                                          |   | 9      |
|                                                                                                          |   |   |
| PART      II: OTHER INFORMATION                                                                               |   |   |
|                                                                                                          |   |   |
| Item      1: Legal Proceedings                                                                                |   | 10     |
| Item      1A: Risk Factors                                                                                    |   | 10     |
| Item      2: Unregistered Sales of Equity Securities and Use of    Proceeds                                   |   | 10     |
| Item      3: Defaults Upon Senior Securities                                                                  |   | 10     |
| Item      4: Reserved                                                                                         |   | 10     |
| Item      5: Other Information                                                                                |   | 10     |
| Item      6: Exhibits                                                                                         |   | 11     |
|                                                                                                          |   |   |
| SIGNATURES                                                                                                    |   | 12     |

----

----

|   | FINANCIAL      REPORTS |   |
|--------|------------------------|--------|
|   | AT                     |   |
|   | MARCH      31, 2010    |   |

----

----

| Consolidated Balance      Sheets at March 31, 2010 (Unaudited) and December 31, 2009                                                                                                                         | F-2            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                                                                                                                         |           |
| Consolidated      Statements of Operations for the Three Months EndedMarch      31, 2010 and 2009 (Unaudited)                                                                            | F-3            |
|                                                                                                                                                                                                         |           |
| Consolidated      Statements Of Changes In Deficit For The Years Ended December      31, 2009 And 2008                                                                                                       | F-4            |
|                                                                                                                                                                                                         |           |
| Consolidated      Statements of Cash Flows for the Three Months EndedMarch      31, 2010 and 2009      (Unaudited)                | F-5            |
|                                                                                                                                                                                                         |           |
| Notes to      Consolidated Financial Statements                                                                                                                                               | F-6 to      16 |

----

|                                                                                                                       |   | (Unaudited)    |       |   |              |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                                       |   | March 31, |       |   | December 31, |   |
|                                                                                                                       |   | 2010           |       |   | 2009              |   |
|                                                                                                                       |   |           |       |   |              |   |
| ASSETS                                                                                                                     |   |           |       |   |              |   |
| Cash      and Cash Equivalents                                                                                             |   | $              | 1,280      |   |              | $      | 10,658 |   |
| Due      from Related Party                                                                                                |   |           | 133,938    |   |              |   | 133,938 |   |
| Prepaid      Expenses                                                                                                      |   |           | 20,048     |   |              |   | 20,048 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Total      Current Assets                                                                                                  |   |           | 155,266    |   |              |   | 164,644 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Property      and Equipment - Net of Accumulated Depreciation                                                              |   |           | 18,354     |   |              |   | 20,393 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Other      Assets                                                                                                          |   |           |       |   |              |   |   |   |
| Licensing      Rights - Net of Accumulated Amortization                                                                    |   |           | 135,379    |   |              |   | 137,004 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Total      Assets                                                                                                          |   | $              | 308,999    |   |              | $      | 322,041 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' DEFICIT                                                                                 |   |           |       |   |              |   |   |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Liabilities                                                                                                                |   |           |       |   |              |   |   |   |
| Accounts      Payable                                                                                                      |   | $              | 197,672    |   |              | $      | 199,427 |   |
| Accrued      Expenses                                                                                                      |   |           | 44,667     |   |              |   | 39,400 |   |
| Accrued      Legal Expense                                                                                                 |   |           | 77,520     |   |              |   | 63,360 |   |
| Accrued      Interest                                                                                                      |   |           | 37,829     |   |              |   | 36,182 |   |
| Deferred      Revenue                                                                                                      |   |           | 10,109     |   |              |   | 10,109 |   |
| Notes      Payable                                                                                                         |   |           | 51,237     |   |              |   | 231,987 |   |
| Due      to Officer                                                                                                        |   |           | 636,866    |   |              |   | 624,366 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Total      Current Liabilities                                                                                             |   |           | 1,055,900  |   |              |   | 1,204,831 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Other      Liabilities                                                                                                     |   |           |       |   |              |   |   |   |
| Deferred      Revenue                                                                                                      |   |           | 73,289     |   |              |   | 75,816 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Total      Liabilities                                                                                                     |   |           | 1,129,189  |   |              |   | 1,280,647 |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Stockholders'      Deficit                                                                                                 |   |           |       |   |              |   |   |   |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Common      Stock - $.001 Par; 100,000,000 Shares Authorized, 81,880,988      and 79,880,988 Shares Issued and Outstanding |   |           | 81,881     |   |              |   | 79,881 |   |
| Additional      Paid-In-Capital                                                                                            |   |           | 561,470    |   |              |   | 378,923 |   |
| Deficit                                                                                                                    |   |           | (1,463,541 | )      |              |   | (1,417,410 | ) |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Total      Stockholders' Deficit                                                                                           |   |           | (820,190   | )      |              |   | (958,606 | ) |
|                                                                                                                       |   |           |       |   |              |   |   |   |
| Total      Liabilities and Stockholders' Deficit                                                                           |   | $              | 308,999    |   |              | $      | 322,041 |   |

----

|                                                 |   | Common Stock    |       |   | Additional |   |    |    |   |   |                |   |   | Total         |       |
|------------------------------------------------------|--------|----------------------|------------|--------|------------|--------|---------|---------|--------|--------|---------------------|--------|--------|---------------|------------|
|                                                 |   | $ .001 Par |       |   | Paid-In    |   |    |    |   |   | Treasury Stock |   |   | Stockholders' |       |
|                                                 |   | Shares               |       |   | Amount     |   |    | Capital |   |   | Deficit             |   |   | at Cost  |       |   | Deficit |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |
| Balance      - January 1, 2009 (1)                   |   |                 | 53,250,000 |   |       |   | 53,250  |    |   |   | 335,494             |   |   |          | (980,085   | ) |   |   | — |   |   |   | (591,341 | ) |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Common      Stock Issued in Exchange for Services    |   |                 | 7,616,428  |   |       |   | 7,616   |    |   |   | 178,777             |   |   |          | —    |   |   |   | — |   |   |   | 186,393 |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Common      Stock Issued for Cash                    |   |                 | 262,000    |   |       |   | 262     |    |   |   | 64,608              |   |   |          | —    |   |   |   | — |   |   |   | 64,870 |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Common      Stock Issued for Related Party Expense   |   |                 | 500,000    |   |       |   | 500     |    |   |   | 69,500              |   |   |          | —    |   |   |   | — |   |   |   | 70,000 |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Acquisition      of Shell (1)                        |   |                 | 242,560    |   |       |   | 243     |    |   |   | (272,946            | )      |   |          | —    |   |   |   | — |   |   |   | (272,703 | ) |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Common      Stock Issued to Relieve Accounts Payable |   |                 | 10,000     |   |       |   | 10      |    |   |   | 3,490               |   |   |          | —    |   |   |   | — |   |   |   | 3,500 |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Common      Stock Issued for Note Payable Conversion |   |                 | 18,000,000 |   |       |   | 18,000  |    |   |   | —             |   |   |          | —    |   |   |   | — |   |   |   | 18,000 |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Net      Loss                                        |   |                 | —    |   |       |   | — |    |   |   | —             |   |   |          | (437,325   | ) |   |   | — |   |   |   | (437,325 | ) |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Balance      - December 31, 2009                     |   |                 | 79,880,988 |   |       | $      | 79,881  |    |   | $      | 378,923             |   |   | $             | (1,417,410 | ) |   | $ | — |   |   | $ | (958,606 | ) |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Common      Stock Issued for Note Payable Conversion |   |                 | 2,000,000  |   |       |   | 2,000   |    |   |   | 182,547             |   |   |          | —    |   |   |   | — |   |   |   | 184,547 |   |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Net      Loss for the Period                         |   |                 | —    |   |       |   | — |    |   |   | —             |   |   |          | (46,131    | ) |   |   | — |   |   |   | (46,131 | ) |
|                                                 |   |                 |       |   |       |   |    |    |   |   |                |   |   |          |       |   |   |   |   |   |   |   |   |   |
| Balance      - March 31, 2010                        |   |                 | 81,880,988 |   |       | $      | 81,881  |    |   | $      | 561,470             |   |   | $             | (1,463,541 | ) |   | $ | — |   |   | $ | (820,190 | ) |

| (1) | The      stockholders equity of Cono Italiano, Inc. has been recapitalized to give      effect to the shares received by the existing shareholders of Cono      Italiano, Inc. form the shareexchange      agreement with Tiger Renewable EnergyInc. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

CONO ITALIANO, INC.

| For      the Three Months Ended March 31,       |   | 2010   |       |   | 2009   |   |
|-------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                            |   |   |       |   |   |   |
| Sales                                           |   | $      | 2,527      |   |   | $      | — |   |
|                                            |   |   |       |   |   |   |   |   |
| Cost      of Sales                              |   |   | —    |   |   |   | — |   |
|                                            |   |   |       |   |   |   |   |   |
| Gross      Profit                               |   |   | 2,527      |   |   |   | — |   |
|                                            |   |   |       |   |   |   |   |   |
| Expenses                                        |   |   |       |   |   |   |   |   |
| Selling      and Direct                         |   |   | —    |   |   |   | 1,422 |   |
| General      and Administrative                 |   |   | 43,215     |   |   |   | 34,643 |   |
| Interest      Expense                           |   |   | 5,443      |   |   |   | 2,754 |   |
|                                            |   |   |       |   |   |   |   |   |
| Total      Expenses                             |   |   | 48,658     |   |   |   | 38,819 |   |
|                                            |   |   |       |   |   |   |   |   |
| Net      Loss for the Period                    |   | $      | (46,131    | )      |   | $      | (38,819 | ) |
|                                            |   |   |       |   |   |   |   |   |
| Loss      per Share - Basic and Diluted         |   | $      | (0.00      | )      |   | $      | (0.00 | ) |
|                                            |   |   |       |   |   |   |   |   |
| Weighted      Average Common Shares Outstanding |   |   | 81,636,544 |   |   |   | 54,045,893 |   |

----

CONO ITALIANO, INC.

| For      the Three Months Ended March 31,                      |   | 2010   |    |   | 2009   |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                           |   |   |    |   |   |   |
| Cash      Flows from Operating Activities                      |   |   |    |   |   |   |
|                                                           |   |   |    |   |   |   |
| Net      Loss for the Period                                   |   | $      | (46,131 | )      |   | $      | (38,819 | ) |
|                                                           |   |   |    |   |   |   |   |   |
| Adjustments      to Reconcile Net Loss to                      |   |   |    |   |   |   |   |   |
| Net      Cash Flows from Operating Activities:                 |   |   |    |   |   |   |   |   |
| Amortization                                                   |   |   | 1,625   |   |   |   | 1,625 |   |
| Depreciation                                                   |   |   | 2,039   |   |   |   | 3,616 |   |
| Common      Stock Issued in Exchange for Services              |   |   | — |   |   |   | 3,269 |   |
| Changes      in Assets and Liabilities:                        |   |   |    |   |   |   |   |   |
| Accounts      Payable                                          |   |   | (1,755  | )      |   |   | — |   |
| Accrued      Expenses                                          |   |   | 5,267   |   |   |   | — |   |
| Accrued      Legal Expense                                     |   |   | 14,160  |   |   |   | — |   |
| Accrued      Interest                                          |   |   | 5,443   |   |   |   | 2,754 |   |
| Deferred      Revenue                                          |   |   | (2,526  | )      |   |   | 25,000 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Net      Cash Flows from Operating Activities                  |   |   | (21,878 | )      |   |   | (2,555 | ) |
|                                                           |   |   |    |   |   |   |   |   |
| Net      Cash Flows from Investing Activities                  |   |   | — |   |   |   | — |   |
|                                                           |   |   |    |   |   |   |   |   |
| Cash      Flows from Financing Activities                      |   |   |    |   |   |   |   |   |
| Cash      Proceeds from Sale of Stock                          |   |   | — |   |   |   | 25,000 |   |
| Due      to Officer                                            |   |   | 12,500  |   |   |   | 3,777 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Net      Cash Flows from Financing Activities                  |   |   | 12,500  |   |   |   | 28,777 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Net      Change in Cash and Cash Equivalents                   |   |   | (9,378  | )      |   |   | 26,222 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Cash      and Cash Equivalents - Beginning of Period           |   |   | 10,658  |   |   |   | 724 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Cash      and Cash Equivalents - End of Period                 |   | $      | 1,280   |   |   | $      | 26,946 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Supplemental      Non-Cash Investing and Financing Activities: |   |   |    |   |   |   |   |   |
| Common      Stock Issued for Note Payable Conversion           |   | $      | 184,547 |   |   | $      | — |   |
| Common      Stock Issued for Related Party Payable             |   | $      | — |   |   | $      | 70,000 |   |
|                                                           |   |   |    |   |   |   |   |   |
| Cash      Paid During the Period for:                          |   |   |    |   |   |   |   |   |
| Interest                                                       |   | $      | — |   |   | $      | — |   |
| Income      Taxes                                              |   | $      | — |   |   | $      | — |   |

----

----

| Note      A - | The      Company                 |
|---------------|----------------------------------|
|          | Merger      and Recapitalization |

|   | The      Company was incorporated in the State of Nevada on September 9, 2004, as      Arch Management Services Inc.  A change of control of the      Company occurred on June 5, 2006 and the Company changed its name form      “Arch Management Services Inc.” to “Tiger Ethanol International Inc.” on      November 24, 2006.  On February 11, 2008 the Company changed its      name to “Tiger Renewable Energy Ltd.”  Another change of control      of the Company occurred on June 4, 2009.  On August 10, 2009 the      Company changed its name to “Cono Italiano, Inc.” and its symbol changed      to CNOZ. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company was previously party to a joint venture named Xinjiang Yajia      Distillate Company Limited (the “Venture”) to produce ethanol in the      People’s Republic of China.  The Company’s board of directors      determined that it was in the Company’s best interest to initiate a      withdrawal from the ethanol business as of January 31, 2009 and assess      alternative businesses. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      June 4, 2009 an Affiliate Stock Purchase Agreement (the “Stock Purchase      Agreement”) was entered into by and between Gallant Energy International      Inc. (“Gallant”), the owner of 5,000,000 shares of the Company’s common      stock (prior to the Company’s one for sixty reverse stock split) and Lara      Mac Inc. (“Lara Mac”), an entity controlled by Mitchell Brown (now the      Chief Executive Officer of the Company and a member of the Company’s Board      of Directors).  Pursuant to the Stock Purchase Agreement,      Gallant sold all of its 5,000,000 shares of the Company’s common stock to      Lara Mac.  The Gallant transaction with Lara Mac resulted in a      change in control of the largest voting block of the Company effective as      of June 4, 2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      August 10, 2009, the Company conducted a one for sixty reverse stock      split.  As of that date, all of the existing outstanding common      stock of the Company have been consolidated such that existing      stockholders will hold one share of post-split common stock for every      sixty shares owned prior to the reverse split.  All fractional      shares resulting from the reverse stock split have been rounded up to the      next whole share. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Janex      International Inc. was formed on July 6, 2007,      in the State of Delaware.   On January 8, 2008 Janex      International Inc., changed its name to Cono Italiano, Inc      (Delaware). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cono      Italiano, LLC (Cono, LLC) was formed on June 27, 2007 as a limited      liability company in the State of New Jersey.  Cono, LLC had no      operations and its primary assets were the license rights to manufacture,      market, and distribute “pizza cono”, a unique pizza style food      product. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -      continued - |
|--------|--------------------|

----

----

| Note      A - | The      Company - continued     |
|---------------|----------------------------------|
|          | Merger      and Recapitalization |

|   | In      March 2007, the license rights held by the individual founders of Cono,      LLC were sold to The Total Luxury Group (TLG), an unrelated      entity.  Subsequently, on January 8, 2008 the license rights      were transferred to Mitchell Brown for the total consideration of      $312,000.  The transfer of Cono, LLC (which includes the license      rights) was effected in settlement of an obligation due to Mitchell Brown      by TLG. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      January 14, 2008, Cono, LLC was sold to Cono, Inc. (Delaware) for the      total consideration of $426,000.  In exchange for the 100%      interest in Cono, LLC, the sole member of the LLC received 6,000,000      shares of Cono, Inc. (Delaware) valued at $114,000 and was issued a      promissory note for $312,000.  Mitchell Brown is also a      principal stockholder in Cono, Inc.(Delaware). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      transaction was accounted for as a recapitalization of Cono, Inc. and      Cono, LLC; as both companies were under common control.  As      such, the assets and liabilities of Cono, LLC were carried over to Cono,      Inc. (Delaware) at the historical carrying  values. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | At      the time of the sale of Cono, LLC to Cono, Inc. (Delaware), Cono LLC had a      tangible net book value of $114,700. Since the assets and liabilities of      Cono, LLC were recorded at their historical carrying amounts after the      merger and recapitalization, the excess of the consideration paid of      $426,000 over the carrying value of $114,700 had been recorded as a      distribution to the stockholder. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On      November 12, 2009 Cono Inc. (Delaware) entered into a share exchange      agreement whereby Cono Inc. (Delaware) would exchange all of its common      stock for the stock of Tiger Renewable Energy, Inc. (TRE) (a shell      company) on a share for share basis. Prior to entering into the share      exchange agreement, the principal stockholder of Cono Inc. (Delaware)      became a stockholder of TRE, either through direct ownership or through an      entity in which he controlled, effectively gaining control of TRE, and on      August 10, 2009, TRE changed its name to Cono Italiano, Inc., a Nevada      corporation.   As an inducement for Cono (Delaware) to      enter the share exchange agreement, TRE’s largest shareholder has agreed      to the cancellation of 242,557 shares of Cono (Nevada)    stock. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      exchange of shares between Cono Italiano, Inc., (Delaware) and Cono      Italiano, Inc., (Nevada) will be accounted for as a recapitalization of      the Companies, as the majority stockholder of Cono Italiano, Inc. will be      the majority stockholder of the surviving company.  Pursuant to      the accounting for a recapitalization, the historical carrying value of      the assets and liabilities of Cono Italiano, Inc. (Nevada) will carry over      to the surviving company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Effective      at the closing of the share exchange transactions, November 12, 2009, Cono      (Delaware) became a wholly owned subsidiary of Cono    (Nevada). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -      continued - |
|--------|--------------------|

----

----

| Note      A - | The      Company - continued |
|---------------|------------------------------|
|          | Scope      of Business       |

|   | The Company      is licensed to distribute an innovative food product - a      cone-shaped pizza called "Pizza Cono."  The product will be      distributed into fast food market establishments which include typical      fast food chains, supermarkets, convenience stores, entertainment      facilities, and sports arenas.  The Company’s focus will be the      sale and management of licensing and distribution agreements with      customers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      B - | Summary      of Significant Accounting Policies |
|---------------|-------------------------------------------------|
|          | Basis      of Presentation                      |

|   | The      condensed consolidated financial statements of Cono Italiano, Inc. (the      “Company”) included herein have been prepared by the Company, without      audit, pursuant to the rules and regulations of the Securities and      Exchange Commission (the “SEC”).  Certain information and      footnote disclosures normally included in financial statements prepared in      conjunction with generally accepted accounting principles have been      condensed or omitted pursuant to such rules and regulations, although the      Company believes that the disclosures are adequate to make the information      presented not misleading. These condensed consolidated financial      statements should be read in conjunction with the annual audited financial      statements and the notes thereto included in the Company’s registration      statement on Form 10-K, and other reports filed with the    SEC. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      accompanying unaudited interim financial statements reflect all      adjustments of a normal and recurring nature which are, in the opinion of      management, necessary to present fairly the financial position, results of      operations and cash flows of the Company for the interim periods      presented.  The results of operations for these periods are not      necessarily comparable to, or indicative of, results of any other interim      period or for the fiscal year taken as a whole.  Certain      information that is not required for interim financial reporting purposes      has been omitted. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Principles      of Consolidation |
|--------|----------------------------------|

|   | The      consolidated financial statements include the accounts of Cono Italiano,      Inc. (Nevada) and its wholly owned subsidiary, Cono Italiano, Inc.      (Delaware) (the “Company”).  All significant intercompany      balances have been eliminated inconsolidation. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Method      of Accounting |
|--------|---------------------------|

|   | The      Company maintains its books and prepares its financial statements on the      accrual basis of accounting. |
|--------|---------------------------------------------------------------------------------------------------------------------|

|   | -      continued - |
|--------|--------------------|

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| Note      B - | Summary      of Significant Accounting Policies – continued |
|---------------|-------------------------------------------------------------------|
|          | Earnings      per Share                                           |

|   | Earnings      per share of common stock are computed in accordance with FASB ASC 260,      “Earnings per Share”.  Basic earnings per share are computed by      dividing income or loss available to common shareholders by the      weighted-average number of common shares outstanding for each      period.  Diluted earnings per share are calculated by adjusting      the weighted average number of shares outstanding assuming conversion of      all potentially dilutive stock options, warrants and convertible      securities, if dilutive. Common stock equivalents that are anti-dilutive      are excluded from both diluted weighted average number of common shares      outstanding and diluted earnings pershare. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Use      of 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 date of the      financial statements and the reported amounts of revenues and expenses      during the reporting period.  Actual results could differ from      those estimates. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Fair      value of financial instruments                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Prepaid      expenses, accrued expenses, notes payable, and amounts due to and from      related parties are carried in the financial statements at amounts which      approximate fair value. |

|   | Stock-Based      Compensation |
|--------|-------------------------------|

|   | Stock-based      compensation related to non-employees is recognized based on service      provided in the accompanying statements of operations and is based on the      fair value of the services received or the fair value of the equity      instruments issued, whichever is more readily determinable. The Company’s      accounting policy for equity instruments issued to consultants and vendors      in exchange for goods and services follows the provisions of FASB ASC 505,      “Equity Based Payments to Non-Employees”. The measurement date for the      fair value of the equity instruments issued is determined at the earlier      of (i) the date at which a commitment for performance by the consultant or      vendor is reached or (ii) the date at which the consultant or vendor’s      performance is complete. In the case of equity instruments issued to      consultants, the fair value of the equity instrument is recognized over      the term of the consultingagreement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note      C - | Recently      Issued Accounting Standards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | In      June 2009, the FASB issued revised authoritative guidance related to      variable interest entities, which requires entities to perform a      qualitative analysis to determine whether a variable interest gives the      entity a controlling financial interest in a variable interest      entity.  The guidance also requires an ongoing reassessment of      variable interests and eliminates the quantitative approach previously      required for determining whether an entity is the primary      beneficiary.  This guidance, which was reissued by the FASB in      December 2009 as ASU  No. 2009-17, “Improvements to Financial      Reporting by Enterprises Involved with Variable Interest Entities,” amends      ASC Topic 810, “Consolidation”, and will be effective as of the beginning      of an entity’s first annual reporting period that begins after November      15, 2009 (January 1, 2010 for the Company).  The adoption of      this guidance did not have a significant impact on the consolidated      financial statements. |

|   | In      January 2010, the FASB issued Accounting Standards Updated (ASU) No.      2010-06, “Improving Disclosures about Fair Value Measurements,” which      amends ASC 820, “Fair Value Measures and Disclosures.”  ASU No.      2010-06 amends the ASC to require disclosure of transfers into and out of      Level 1 and Level 2 fair value measurements, and also require more      detailed disclosure about the activity within Level 3 fair value      measurements.  The changes to the ASC as a result of this update      are effective for annual and interim reporting periods beginning after      December 15, 2009 (January 1, 2010 for the Company), except for the      requirements related to Level 3 disclosures, which are effective for      annual and interim reporting periods beginning after December 15, 2010      (January 1, 2011 for the Company).  This guidance requires new      disclosures only, and will have no impact on the Company’s consolidated      financial statements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note      D - | Related      Party Transactions |
|---------------|---------------------------------|
|          | Due      from Related Party     |

|   | On      July 14, 2008, (the date of Edesia’s inception), the Company entered into      an operating agreement with Edesia Emprise, LLC to manufacture product for      the Company. The CEO of the Company owned 50% of Edesia until July 21,      2008 when he transferred his interest to a relative. At the date of the      transfer, Edesia had no assets or business  operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Due      from Related Party consists of monies advanced on behalf of Edesia      Emprise, LLC. |
|--------|------------------------------------------------------------------------------------------------|

|   | The      Company purchased manufacturing equipment on behalf of Edesia to be used      by an unrelated entity for the production of the pizza cones products. The      manufactured pizza cone products will be resold by Cono and its licensees.      Production of the pizza cones under the agreement began in      March 2009. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      advances are non-interest bearing and is due upon demand.  Due      from related party consists of thefollowing: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|                     |   | March      31, |    |   | December      31, |   |
|--------------------------|--------|----------------|---------|--------|-------------------|--------|
|                     |   | 2010           |    |   | 2009              |   |
|                     |   |           |    |   |              |   |
| Edesia      Emprise, LLC |   | $              | 133,938 |   |              | $      | 133,938 |   |

|   | On      November 11, 2009, Cono Italiano (Delaware) and Edesia Emprise, LLC      entered into a Master Manufacturing Agreement.  Pursuant to this      Master Manufacturing Agreement, Edesia Emprise, LLC will produce the      Company’s Pizza Cono product.  Cono Italiano (Delaware) has      agreed to pay Edesia Emprise, LLC the costs of production plus fifteen      percent (15%).  This Master Manufacturing Agreement has a five      (5) year term and will automatically renew unless cancelled by one of the      parties pursuant to its terms.  This Master Manufacturing      Agreement is exclusive within the United States.  Edesia      Emprise, LLC may either produce this product directly or through a      subcontractor. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Edesia      Emprise, LLC has advised Cono Italiano (Delaware) that it has entered into      its first subcontract agreement.  Sunrise Bakery, located in      Brooklyn, New York, will produce the cones for the Pizza Cono product on      behalf of Edesia Emprise, LLC |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Due      to Officer |
|--------|---------------------|

|   | Certain      disbursements of the Company have been paid by an officer of the      Company.  The balance at March 31, 2010 and December 31, 2009      was $636,866 and $624,366, respectively.  There are no      established repayment terms.  For the periods ended March 31,      2010 and December 31, 2009, the Company has imputed interest at the      applicable federal rate of  2.66% and 2.64%, respectively.      Accrued interest was $37,829 and $33,939, at March 31, 2010 and December      31, 2009, respectively. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note      E - | Notes      Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | In      January, 2008, Cono Inc. (Delaware) issued 3,000,000 shares of common      stock to the former owners of the license rights of the Pizza Cono      Products.  The shares were issued by agreement between Cono,      Inc. (Delaware) and the former owners in satisfaction of any future claims      whether known or unknown with regards to the license rights.  In      addition to the shares issued, the Company also issued a note payable to      the MEGK Group LLC (the former owners) in the amount of $200,000 on      December 28, 2007. Interest accrued at 8% per annum, and the note was due      in full on December 28, 2008.  This note was also convertible      automatically upon the sale of all or substantially all of the assets of      the Company or the merger, consolidation or liquidation of the Company      where the Company would not remain in control of the new      company.  The note could also be converted at option of the      holder.  Common stock issued upon conversion would be calculated      by dividing the principal amount of the note to be converted divided by      $.001.  On November 1, 2009, MEGK assigned its rights to this      note payable to Azure Seas Ltd. |

|   | On      December 16, 2009, Azure renegotiated the original convertible promissory      note, waived all past due interest on the note through November 1, 2009,      and assigned $18,000 of the note to various holders.  Prior to      December 31, 2009, those holders converted their notes payable of $18,000      to 18,000,000 shares common stock.  At December 31, 2009 note      payable to Azure was $182,000.  On January 11, 2010, Azure      converted their note payable of $182,000 and accrued interest of $2,547 to      2,000,000 shares common stock. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company also has a note payable to DT Crystal Limited accruing interest at      10% annually which is due upon demand.  The note is convertible      at the option of the holder into restricted stock of Cono      (Nevada).  At March 31, 2010 and December 31, 2009 and 2008 note      payable to DT Crystal was $51,237 and $49,987,      respectively.  Interest expense for the three months ended March      31, 2010 and 2009 was $1,250 and $-0-,  respectively. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      F - | Going      Concern                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | The      Company’s financial statements have been presented on the basis that it is      a going concern, which contemplates the realization of assets and the      satisfaction of liabilities in the normal course of business. The Company      has reported recurring losses from operations.  As a result,      there is an accumulated deficit of $1,463,541 at March 31,      2010. |

|   | The      Company’s continued existence is dependent upon its ability to raise      capital.  The financial statements do not include any      adjustments that might be necessary should the Company be unable to      continue as a going concern |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note G – | Employment      Contracts |
|----------------|---------------------------|

|   | On      December 30, 2009 the Company entered into employment agreements with each      of the officers serving the Company.  The employment agreements      contained the following provisions: (i) two-year terms with automatic      renewal provisions unless notice is given by either party 30 days prior to      renewal; (ii) commitment of a substantial portion of their professional      time to the Company, consisting of 75% of their time for Mitchell Brown      and 60% of their time for each of Joseph Masselli, Alex Kaminski and Steve      Savage; and (iii) and additional customary employment agreement terms and      conditions.  The officers have agreed that they will not receive      any compensation for their services to the Company prior to January 1,      2012.  The compensation of the officers has been set as      follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | Annual |    |
|-------------------------------------------------------------|--------|--------|---------|
| Officer                                                     |   | Salary |    |
| Mitchell      Brown, Chief Executive Officer                |   | $      | 125,000 |   |
| Joseph      Masselli, President and Chief Operating Officer |   | $      | 75.000  |   |
| Alex      Kaminski, Chief Financial Officer and Treasurer   |   | $      | 50.000  |   |
| Steve      Savage, Secretary                                |   | $      | 50.000  |   |

|   | It      has also been agreed by the Company, Mr. Smith, a director, and Mr.      Kaminski that pursuant to separate stock option agreements, Mr. Smith will      be granted options to purchase 2,000,000 shares of the Company’s common      stock at $.01 per share and Mr. Kaminski will be granted options to      purchase 1,500,000 shares of the Company’s common stock at $.01 per      share.  These options will vest in one year and will expire in      three years. These options have not yet been formally granted by the      Board. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note H – | Stock      Based Compensation Expense |
|----------------|---------------------------------------|

|   | On      October 5, 2006, the Company’s Board of Directors adopted the Company’s      2006 Equity Incentive Plan, which authorizes the Company to issue options      for the purchase of up to 2,000,000 shares of the Company’s common stock,      pursuant to the terms and conditions set forth therein.  The      Equity Incentive Plan authorizes the issuance of incentive stock options      (ISQ) and non-qualified stock options (NQOs) to the Company’s employees,      directors or consultants. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -      continued - |
|--------|--------------------|

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|  Note H      –  | Stock      Based Compensation Expense –continued |
|---------------------------------|--------------------------------------------------------|

|   | Options      outstanding at the date of acquisition were 336. All outstanding options      were fully vested and expensed prior to the  acquisition. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   |           |           |   | Three      Months Ended |   |
|--------------------------------------------|--------|----------------|----------------|--------|-------------------------|--------|
|                                       |   |           |           |   | March      31, 2010     |   |
|                                       |   | Number      of |           |   | Weighted      - Average |   |
| Options                                    |   | Options        |           |   | Exercise      Price     |   |
| Balance      at Acquisition                |   |           | 336            |   |                    | $      | 120 |   |
| Granted                                    |   |           | –– |   |                    |   | –– |   |
| Exercised                                  |   |           | –– |   |                    |   | –– |   |
| Cancelled                                  |   |           | –– |   |                    |   | –– |   |
| Balance      at March 31, 2010             |   |           | 336            |   |                    | $      | 120 |   |
|                                       |   |           |           |   |                    |   |   |   |
| Options      Exercisable at March 31, 2010 |   |           | 336            |   |                    | $      | 120 |   |

|   | The      aggregate intrinsic value of the options outstanding and the options      exercisable on March 31, 2010 is$-0-. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | The      following table summarizes information about options outstanding and      exercisable at March 31, 2010: |
|--------|-------------------------------------------------------------------------------------------------------------------|

|                |        | Weighted              |        |
|---------------------|-------------|-----------------------|-------------|
|                | Options     | Average               | Options     |
|                | Outstanding | Contractual      Life | Exercisable |
| Exercise      Price | Number      | (In      Years)       | Number      |
|                |        |                  |        |
| $120                | 336         | 1.58                  | 336         |

|   | As      of March 31, 2010, there was no unrecognized compensation cost related to      non-vested stock options. |
|--------|------------------------------------------------------------------------------------------------------------------|

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| Note      I - | Income      Tax Compliance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|          | The      Company is not in compliance with filing its required income tax      returns.  Since the Company has had continuous losses and has      available net operating losses, the Company believes that any tax      liability would not be material. Deferred taxes are provided for the      temporary differences between the financial reporting basis and the tax      reporting basis of the Company’s assets and liabilities.  The      temporary differences between financial reporting and income tax purposes      are primarily net operating loss carry forwards for income tax purposes. A      valuation allowance is recorded for deferred tax assets when management      determines it is more likely than not, that such assets, will not be      realized. |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|          | A      full valuation allowance has been established against the deferred tax      assets for the years ended December 31, 2009 and 2008 as utilization of      the loss carry forwards and realization of other deferred tax assets      cannot be reasonably assured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Note      J - | Licensing      Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   | On      July 9, 2008, (subsequently amended in October, 2009) the Company entered      into a Supplier/Distribution agreement with Pino Gelato, Inc., an      unrelated entity. The      agreement grants the exclusive distribution rights to Pino Gelato, Inc.      for the pizza cono food products in certain specified geographical      territories. The      term of the agreement is for ten (10) years with an automatic renewal for      another ten (10) years.  In addition, Pino Gelato, Inc. has the      exclusive rights to enter into franchise agreements with third parties to      market and sell the pizza cono foodproducts. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In      exchange for the rights granted to Pino Gelato under the agreement, the      Company received total cash consideration of  $100,000. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | As      an inducement for Pino Gelato, Inc to buy the distribution and franchise      rights, the Company agreed to issue 375,000 shares of common stock to Pino      upon receipt of the first and final installment of the      agreement.  Common stock amounting to 250,000 shares were issued      prior to the execution of the amendment in October, 2009 with the      remaining 125,000 shares to be issued upon receipt of the final $25,000      cash payment from Pino. As of March 31, 2010, the final payment has been      received from Pino. The related 125,000 shares remain unissued and will be      issued upon request. The fair market value of the common stock issued in      connection with the installment payments made has been recorded as an      offset to the payments received under the agreement.  The      payments received have been recorded as deferred licensing revenue in the      accompanying consolidated financial statements.  The licensing      revenue is being amortized to revenue over the initial license term of ten      (10) years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The      Company is also entitled to ten (10) percent of all franchise revenue      generated by Pino Gelato. |
|--------|---------------------------------------------------------------------------------------------------------------|

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| Note K      -  | Other      Matters |
|---------------------|--------------------|

|   | On      November 6, 2009, Cono Italiano (Delaware) entered into a Commitment      Letter, pursuant to which, one of the Company’s shareholders, Lara Mac has      agreed to provide financing to Cono Italiano, Inc., with such funds as the      Company’s Board of Directors shall deem to be sufficient to maintain the      Company’s ordinary course of business operations (the “Commitment      Amount”).  We may draw on the Commitment Amount in monthly      tranches in accordance with our operating requirements as set forth in our      business plan. The available Commitment Amount will be reduced by the      aggregate cash proceeds received by the Company which are derived from the      issuance of any equity securities and Company gross revenues. Draws on the      Commitment Amount will be made on terms of unsecured notes, with interest      set on each note as of the date of the draw at prime rate plus two percent      per annum. The notes will mature and become repayable thirty calendar days      after demand at any time following the earlier of (a) December 31, 2010 or      (b) the date upon which we are in receipt of revenues or proceeds from the      sales of equity securities. We will give Lara Mac customary      representations and warranties regarding the good standing of our Company      and status of progress in respect of our Company business plan prior to      each draw on the Commitment Amount, and we will provide certifications and      covenants regarding use of proceeds of each draw, which will be in      customary forms reasonably requested by Lara Mac as determined by      reference to similar lenders making similar loans to similar companies.      Lara Mac will not be required to make any loans under the Commitment      Amount to us if we are unable to make the representations, warranties,      certifications or covenants, or if we are in breach of any previously      given representations, warranties, certifications or covenants. If we      breach any of the notes, the default rate will be 15% per annum and Lara      Mac may seek recourse against our company for repayment of all of the      notes. As of March 31, 2010, no funds have been  borrowed. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 3: Quantitative and Qualitative Disclosures AboutMarket Risk

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Item 4: Controls and Procedures

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PART II: OTHER INFORMATION

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| Exhibit No.  |   | Description of Exhibits                                                                                                                                         |
|-------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|              |   |                                                                                                                                                                      |
| Exhibit 31.1 |   | Certification      of Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                         |
|              |   |                                                                                                                                                                      |
| Exhibit 31.2 |   | Certification      of Principal Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                         |
|              |   |                                                                                                                                                                      |
| Exhibit 32.1 |   | Certification      of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |
|              |   |                                                                                                                                                                      |
| Exhibit      32.2 |   | Certification      of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. |

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|                     | CONO      ITALIANO, INC. |
|--------------------------|--------------------------|
|                     | (Registrant)             |
|                     |                     |
| Dated:      May 13, 2010 |                     |
|                     | By:                      | /s/ Mitchell Brown |
|                     |                     | Name: | Mitchell      Brown |
|                     |                     | Title: | Principal      Executive Officer |
|                     |                     |   |   |
| Dated:      May 13, 2010 |                     |   |   |
|                     | By:                      | /s/ Alex J. Kaminski |
|                     |                     | Name: | Alex      J. Kaminski |
|                     |                     | Title: | Principal      Financial Officer andChief      AccountingOfficer |

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