================================================================================

                               SPEECHSWITCH, INC.
               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

                             JUNE 30, 2006 and 2005

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended June 30, 2006

                                       OR-

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

          For the transition period from ____________ to ____________

                       Commission file number: 333-120507

                                SPEECHSWITCH, INC
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          New Jersey                                              20-1862816
--------------------------------------------------------------------------------
(State or other jurisdiction of                                I.R.S. Employer
 incorporation or organization)                              Identification No.)

            750 Highway 34
             Matawan, NJ                                            07747
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                         (Zip Code)

Registrant's Telephone Number, Including Area Code: (732) 441-7700

Securities registered under Section 12(b) of the Exchange Act: None.

Securities  registered  under Section 12(g) of the Exchange Act:  Class A Common
Stock,  no par value per share Indicate by check mark whether the registrant (1)
has  filed  all  reports  required  to be filed by  Section  13 or 15 (d) of the
Securities  Exchange  Act of 1934  during the  preceding  12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements for the past 90 days.
YES [X] NO [ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Number of shares of Class A Common Stock, no par value, outstanding as of August
8, 2006: 22,459,530
================================================================================
<PAGE>

                               TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION

     Item 1. Condensed Financial Statements (Unaudited)

          Balance Sheet - June 30, 2006                                       2

          Statements of Operations -
          For the six months and three months ended June 30, 2006 and 2005    3
          Statements of Cash Flows -
          For the six months ended June 30, 2006 and 2005                     4

          Notes to Condensed Financial Statements                           5-17

     Item 2. Management's Discussion and Analysis of Financial Condition

          or Plan of Operation                                             18-23

     Item 3. Controls and Procedures                                         24


PART II. OTHER INFORMATION

         Item 6. Exhibits                                                    25





<PAGE>
                               SPEECHSWITCH, INC.
                       CONDENSED BALANCE SHEET (Unaudited)
                                  JUNE 30, 2006


<TABLE><CAPTION>
<S>                                                                     <C>
                                     ASSETS
                                     ------

CURRENT ASSETS
Cash and cash equivalents                                               $    288,060
Accounts receivable                                                           12,006
Prepaid expenses                                                               5,869
                                                                        ------------
      Total current assets                                                   305,935
                                                                        ------------

OTHER ASSETS
Intangible assets, net                                                        10,828
                                                                        ------------

TOTAL ASSETS                                                            $    316,763
                                                                        ============

                       LIABILITIES & STOCKHOLDERS' DEFICIT
                       -----------------------------------

CURRENT LIABILITIES
Accounts payable and accrued expenses                                   $    367,201
Due to related parties                                                       126,243
Notes payable to related parties                                             177,550
Deferred maintenance contracts                                                 1,775
Notes payable                                                              1,000,000
                                                                        ------------

      Total current liabilities                                            1,672,769
                                                                        ------------

STOCKHOLDERS' (DEFICIT)
Preferred stock, $1.00 par value; authorized 1,000,000 shares;                    --
no shares issued and outstanding
Common stock:
   Class A - no par value; authorized 10,000,000,000 shares;
             22,459,530 shares issued, 20,641,695 outstanding and            239,454
             1,817,835 shares held in escrow
   Class B - $.01 par value; authorized 50,000,000 shares;                        --
             no shares issued and outstanding
   Class C - $.01 par value; authorized 20,000,000 shares;                        --
             no shares issued and outstanding
Additional paid in Capital                                                 2,151,911
Accumulated deficit                                                       (3,747,371)
                                                                        ------------
      Total stockholders' (deficit)                                       (1,356,006)
                                                                        ------------

TOTAL LIABILITIES & STOCKHOLDERS' (DEFICIT)                             $    316,763
                                                                        ============
</TABLE>
                   The accompanying notes are an integral part
                    of these condensed financial statements.

                                        2
<PAGE>
                                SPEECHSWITCH, INC
                 CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
        FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 2006 AND 2005


<TABLE><CAPTION>
                                                       FOR THE SIX MONTHS ENDED      FOR THE THREE MONTHS ENDED
                                                              JUNE 30,                        JUNE 30,
                                                    ----------------------------    ----------------------------
                                                        2006            2005            2006            2005
                                                    ------------    ------------    ------------    ------------
<S>                                                 <C>             <C>             <C>             <C>
SALES, net                                          $     44,762    $     45,992    $     37,429    $     30,782

COST OF SALES                                             18,400          20,729          11,250          13,361
                                                    ------------    ------------    ------------    ------------

GROSS PROFIT                                              26,362          25,263          26,179          17,421
                                                    ------------    ------------    ------------    ------------

SELLING GENERAL AND ADMINISTRATIVE EXPENSES

   Selling and marketing expenses                         61,934          43,024          24,919          36,310
   General and administrative expenses                   174,160         206,542          90,784          69,829
   Research and development expenses                      30,217          20,110          14,125          20,110
   Depreciation and amortization                           1,702              --             851              --
                                                    ------------    ------------    ------------    ------------
Total selling general and administrative expenses        268,013         269,676         130,679         126,249
                                                    ------------    ------------    ------------    ------------

LOSS FROM OPERATIONS                                    (241,651)       (244,413)       (104,500)       (108,828)
                                                    ------------    ------------    ------------    ------------

OTHER INCOME (EXPENSE)
   Other income                                            4,322           3,028           2,280           1,761
   Write-off of financing costs                               --         (20,000)             --              --
   Interest expense                                     (142,888)        (23,487)        (41,317)        (12,466)
                                                    ------------    ------------    ------------    ------------
Total other income (expense)                            (138,566)        (40,459)        (39,037)        (10,705)
                                                    ------------    ------------    ------------    ------------

LOSS FROM OPERATIONS BEFORE INCOME TAXES                (380,217)       (284,872)       (143,537)       (119,533)

PROVISION FOR INCOME TAXES                                    --              --              --              --
                                                    ------------    ------------    ------------    ------------

NET LOSS APPLICABLE TO COMMON SHARES                $   (380,217)   $   (284,872)   $   (143,537)   $   (119,533)
                                                    ============    ============    ============    ============

NET LOSS PER COMMON SHARE
   Basic and diluted                                $      (0.03)   $      (0.03)   $      (0.01)   $      (0.01)
                                                    ============    ============    ============    ============

WEIGHTED AVERAGE SHARES OUTSTANDING
   Basic and diluted                                  15,197,940      10,050,000      17,726,441      10,050,000
                                                    ============    ============    ============    ============
</TABLE>
                   The accompanying notes are an integral part
                    of these condensed financial statements.

                                        3
<PAGE>
                               SPEECHSWITCH, INC.
                 CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
                 FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005


<TABLE><CAPTION>
                                                                    2006            2005
                                                                ------------    ------------
<S>                                                             <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                        $   (380,217)   $   (284,872)
   Adjustments to reconcile net loss to net cash (used in)
   operating activities
   Depreciation and amortization                                       1,702           1,200
   Issuance of common stock for repayment of legal fees               42,000              --
   Issuance of common stock for repayment of promissory note          53,626              --
   Changes in certain assets and liabilities:
      (Increase) decrease in accounts receivable                       7,888          (3,763)
      (Increase) in inventory                                             --          (1,664)
      Decrease in prepaid expenses                                       410              --
      Increase in accounts payable and accrued liabilities            45,188          15,715
      Increase in due to related parties                              10,576          61,366
      Increase in deferred maintenance contracts                         367             744
                                                                ------------    ------------

      Total cash (used in) operating activities                     (218,460)       (211,274)
                                                                ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES
   Issuance of common stock through equity financing                 126,296              --
   Issuance costs incurred through equity financing                  (19,496)             --
   Sale of convertible debentures                                         --         200,000
                                                                ------------    ------------

      Net cash provided by financing activities                      106,800         200,000
                                                                ------------    ------------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS                         (111,660)        (11,274)

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                      399,720         576,232
                                                                ------------    ------------

CASH AND CASH EQUIVALENTS - END OF PERIOD                       $    288,060    $    564,958
                                                                ============    ============

CASH PAID DURING THE PERIOD FOR:
   Interest expense                                             $         --    $         --
                                                                ============    ============
   Income taxes                                                 $         --    $         --
                                                                ============    ============

SUPPLEMENTAL NON-CASH FLOW INFORMATION
   Common stock issued for professional services rendered       $     42,000    $         --
                                                                ============    ============
   Common stock issued for repayment of promissory note         $     53,626    $         --
                                                                ============    ============
</TABLE>
                   The accompanying notes are an integral part
                    of these condensed financial statements.

                                        4
<PAGE>

                               SPEECHSWITCH, INC.
               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                             JUNE 30, 2006 and 2005


NOTE 1 - BACKGROUND
-------------------

The condensed unaudited interim financial statements included herein have been
prepared, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission ("SEC"). The condensed financial statements and notes
are presented as permitted on Form 10-QSB and do not contain information
included in the Company's annual statements and notes. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with accounting principles generally accepted in the United States of
America 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. It is suggested that these condensed
financial statements be read in conjunction with the December 31, 2005 audited
financial statements and the accompanying notes thereto. While management
believes the procedures followed in preparing these condensed financial
statements are reasonable, the accuracy of the amounts are in some respects
dependent upon the facts that will exist, and procedures that will be
accomplished by the Company later in the year.

These condensed unaudited financial statements reflect all adjustments,
including normal recurring adjustments which, in the opinion of management, are
necessary to present fairly the operations and cash flows for the periods
presented.

SpeechSwitch, Inc. ("SpeechSwitch" or "Company") was incorporated under the laws
of New Jersey on November 10, 2004 as a wholly owned subsidiary of iVoice, Inc.
("iVoice, Inc."). The Company received by assignment all of the interests in and
rights and title to, and assumed all of the obligations of, all of the
agreements, contracts, understandings and other instruments of iVoice Technology
3, Inc., a Nevada corporation and affiliate of the Company. When we refer to or
describe any agreement, contract or other written instrument of the Company in
these notes, we may also be referring to an agreement, contract or other written
instrument that had been entered into by iVoice Technology 3 and thereafter
assigned to the Company.

In September 2004, the Board of Directors of iVoice, Inc. the former parent of
the Company, resolved to pursue the separation of iVoice, Inc. software business
into three publicly owned companies. SpeechSwitch intends to continue to
develop, market and license the automated speech attendant software, which runs
on industry-standard hardware and performs speech recognition.

A spin-off transaction was accomplished, on August 5, 2005, by the assignment,
contribution and conveyance of certain intellectual property, representing the
software codes of speech recognition, and certain accrued liabilities and
related party debt into SpeechSwitch (the "Spin-off"). The Class A Common

                                        5
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 1 - BACKGROUND (Continued)
-------------------------------

Stock shares of the Company were distributed to iVoice, Inc. shareholders in the
form of a taxable special dividend distribution.

In conjunction with the Spin-off, SpeechSwitch entered into a temporary
administrative service agreement with iVoice, Inc.. This agreement will continue
on a month-to-month basis until such time as we are able to replace any or all
of the services currently being provided by iVoice, Inc..

On August 5, 2005, SpeechSwitch assumed $190,000 in accrued liabilities and
related party debt incurred by iVoice, Inc.. The debt assumed is convertible
into SpeechSwitch Class B Common Stock at the option of the holder as later
described in these notes.

On August 4, 2005, the Company received notice from the SEC that the
registration statement to effectuate the Spin-off of the SpeechSwitch from
iVoice, Inc. was declared effective and the Company immediately embarked on the
process to spin off SpeechSwitch from iVoice, Inc..


NOTE 2 - BUSINESS OPERATIONS
----------------------------

The Company will continue to develop, market and license the lines of business
relating to iVoice, Inc.'s Speech-Enabled Auto Attendant, Name Dialer and Speech
Software Developers Kit (Speech SDK) products, which were developed by iVoice,
Inc.. Speech recognition is used to recognize what a person says, and through
the use of natural language understanding, derives the meaning of what is said.
The Company also offers a range of support services that enable its customers
and channel partners to develop voice-driven applications that use the Company's
software.


NOTE 3 - GOING CONCERN
----------------------

The accompanying financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America, which
contemplates continuation of the Company as a going concern. The Company's
previous financial results and operations were reflected in the consolidated
financial statements and accounting records of iVoice, Inc., and reflected
significant assumptions and allocations. The Company has relied on iVoice, Inc.
for administrative, management, research and other services.

As of June 30, 2006, the Company had a net loss, a negative cash flow from
operations, as well as negative working capital. These matters raise substantial
doubt about the Company's ability to continue as a going concern. Therefore,
recoverability of a major portion of the recorded asset amounts shown in the
accompanying balance sheet is dependent upon continued operations of the
Company, which in turn, is dependent upon the Company's ability to raise capital
and/or generate positive cash flow from operations.

                                        6

<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005


NOTE 3 - GOING CONCERN (Continued)
----------------------------------

The financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets, or the amounts and
classification of liabilities that might be necessary in the event the Company
cannot continue in existence.


NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

a) Basis of Presentation

The accompanying financial statements up through August 4, 2005, have been
derived from the consolidated financial statements and accounting records of
iVoice, Inc. using the historical results of operations and historical basis of
assets and liabilities of the Company's Interactive Voice Response business.
Management believes the assumptions underlying the financial statements are
reasonable.

b) Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America 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 revenue and expenses during
the reporting period. Actual results could differ from those estimates.

c) Revenue Recognition

The Company derives its revenues from the licensing of its software product and
optional customer support (maintenance) service. The Company's standard license
agreement provides for a one-time fee for use of the Company's product in
perpetuity for each computer or CPU in which the software will reside. The
Company's software application is fully functional upon delivery and
implementation and does not require any significant modification or alteration.
The Company also offers customers an optional annual software maintenance and
support agreement for the subsequent one-year periods. Such maintenance and
support services are free for the first year the product is licensed and is
considered the warranty period. The software maintenance and support agreement
provides free software updates, if any, and technical support the customer may
need in deploying or changing the configuration of the software. Generally, the
Company does not license its software in multiple element arrangements whereby
the customer purchases a combination of software and maintenance. In a typical
arrangement, software maintenance services are sold separately from the software
product; are not considered essential to the functionality of the software and
are purchased at the customer's option upon the completion of the first year
licensed.

                                        7
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005


NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
--------------------------------------------------------------

The Company does not offer any special payment terms or significant discount
pricing. Normal and customary payment terms require payment for the software
license fees when the product is shipped. Payment for software maintenance is
due prior to the commencement of the maintenance period. It is also the
Company's policy to not provide customers the right to refund any portion of its
license fees. With respect to the sale of software license fees, the Company
recognizes revenue in accordance with Statement of Position 97-2, Software
Revenue Recognition (SOP 97-2), as amended, and generally recognizes revenue
when all of the following criteria are met: (1) persuasive evidence of an
arrangement exists generally evidenced by a signed, written purchase order from
the customer, (2) delivery of the software product on Compact Disk (CD) or other
means to the customer has occurred, (3) the perpetual license fee is fixed or
determinable and (4) collectibility, which is assessed on a customer-by-customer
basis, is probable. With respect to customer support services, upon the
completion of one year from the date of sale, considered to be the warranty
period, the Company offers customers an optional annual software maintenance and
support agreement for subsequent one-year periods. Sales of purchased
maintenance and support agreements are recorded as deferred revenue and
recognized over the respective terms of the agreements.

d) Product Warranties

The Company estimates its warranty costs based on historical warranty claims
experience in estimating potential warranty claims. Due to the limited sales of
the Company's products, management has determined that warranty costs are
immaterial and has not included an accrual for potential warranty claims.
Presently, costs related to warranty coverage are expensed as incurred. Warranty
claims are reviewed quarterly to verify that warranty liabilities properly
reflect any remaining obligation based on the anticipated expenditures over the
balance of the obligation period.

e) Research and development costs

Research and development costs are charged to operations as incurred.

f)  Advertising Costs

Advertising costs are expensed as incurred and included in selling expenses. For
the six months ended June 30, 2006 and 2005, advertising expense amounted to
$2,546 and $5,444, respectively.

g)  Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original
maturities of three months or less to be cash equivalents. There were no cash
equivalents at June 30, 2006.

The Company maintains cash and cash equivalent balances at a financial
institution that is insured by the Federal Deposit Insurance Corporation up to
$100,000. The uninsured cash balances at June 30, 2006 were $211,223.

                                        8
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
---------------------------------------------------------------

h) Income Taxes

The Company accounts for income taxes under the Financial Accounting Standards
Board ("FASB") No. 109, "Accounting for Income Taxes" ("Statement 109"). Under
Statement 109, deferred tax assets and liabilities are recognized for the future
tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
basis. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Under Statement 109, the
effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income in the period that includes the enactment date.

i) Intangible Assets

In May and in December 2003, the Company was issued two patents by the U.S.
Patent and Trademark Office for its Speech-Enabled Automatic Telephone Dialer.
The patents expire 20 years from the date of the original patent filings. All
accumulated costs incurred with respect to the Company's patent filings have
been capitalized. Costs related specifically to the awarded patents are now
being amortized on a straight basis over the life of the patents. All
capitalized intangibles have been reviewed for impairment. In doing so,
management has determined there has been no impairment of the intangible assets
at June 30, 2006.

j) Earnings (Loss) Per Share

SFAS No. 128, "Earnings Per Share" requires presentation of basic earnings per
share ("basic EPS") and diluted earnings per share ("diluted EPS").

The computation of basic earnings per share is computed by dividing income
available to common shareholders by the number of shares issued via the spin-off
from iVoice, Inc. Diluted earnings per share gives effect to all dilutive
potential Common shares outstanding during the period. The computation of
diluted EPS does not assume conversion, exercise or contingent exercise of
securities that would have an anti-dilutive effect on earnings resulting from
the Company's net loss position.

                                        9
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
---------------------------------------------------------------

The weighted shares used in the computation are as follows:

                         Six Months ended                Three Months ended
                   June 30, 2006   June 30, 2005   June 30, 2006   June 30, 2005
                   -------------   -------------   -------------   -------------
Basic and Diluted
   EPS Purposes      15,197,940     10,050,000       17,726,441      10,050,000

The Company had no common stock equivalents at June 30, 2006 and 2005,
respectively.

k) Recent Accounting Pronouncements

On December 16, 2004, the Financial Accounting Standards Board ("FASB")
published Statement of Financial Accounting Standards No. 123 (Revised 2004),
Share-Based Payment ("SFAS 123R"). SFAS 123R requires that compensation cost
related to share-based payment transactions be recognized in the financial
statements. Share-based payment transactions within the scope of SFAS 123R
include stock options, restricted stock plans, performance-based awards, stock
appreciation rights, and employee share purchase plans. The provisions of SFAS
123R are effective for small business issuers as of the first interim period
that begins after December 15, 2005. Accordingly, the Company implemented the
revised standard in the fourth quarter of fiscal year 2005. Prior to December
31, 2005, the Company accounts for its share-based payment transactions under
the provisions of APB 25, which does not necessarily require the recognition of
compensation cost in the financial statements. For the six months ended June 30,
2006, FAS 126R did not have any impact on the financial statements.

On December 16, 2004, FASB issued Financial Accounting Standards No. 153,
Exchanges of Non-monetary Assets, an amendment of APB Opinion No. 29, Accounting
for Non-monetary Transactions ("FAS 153"). This statement amends APB Opinion 29
to eliminate the exception for non-monetary exchanges of similar productive
assets and replaces it with a general exception for exchanges of non-monetary
assets that do not have commercial substance. Under FAS 153, if a non-monetary
exchange of similar productive assets meets a commercial-substance criterion and
fair value is determinable, the transaction must be accounted for at fair value
resulting in recognition of any gain or loss. FAS153 is effective for
non-monetary transactions in fiscal periods that begin after June 15, 2005. The
implementation of this standard did not have a material impact on its financial
position, results of operations or cash flows.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections." SFAS No. 154 replaces Accounting Principles Board ("APB") Opinion
No. 20, "Accounting Changes" and SFAS No. 3, "Reporting Accounting Changes in
Interim Financial Statements." SFAS No. 154 requires retrospective application
to prior periods' financial statements of a voluntary change in accounting
principle unless it is impracticable. APB No. 20 previously required that most
voluntary changes in accounting principle be recognized by including the
cumulative effect of changing to the new accounting principle in net income in
the period of the change. SFAS No. 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.
The adoption of SFAS No. 154 did not have a material impact on the Company's
financial position, results of operations, or cash flows for the six months
ended June 30, 2006.

                                       10
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
---------------------------------------------------------------

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments, an amendment of FASB Statements No. 133 and 140." SFAS
No. 155 resolves issues addressed in SFAS No. 133 Implementation Issue No. D1,
"Application of Statement 133 to Beneficial Interests in Securitized Financial
Assets," and permits fair value remeasurement for any hybrid financial
instrument that contains an embedded derivative that otherwise would require
bifurcation, clarifies which interest-only strips and principal-only strips are
not subject to the requirements of SFAS No. 133, establishes a requirement to
evaluate interests in securitized financial assets to identify interests that
are freestanding derivatives or that are hybrid financial instruments that
contain an embedded derivative requiring bifurcation, clarifies that
concentrations of credit risk in the form of subordination are not embedded
derivatives and amends SFAS No. 140 to eliminate the prohibition on a qualifying
special-purpose entity from holding a derivative financial instrument that
pertains to a beneficial interest other than another derivative financial
instrument. SFAS No. 155 is effective for all financial instruments acquired or
issued after the beginning of the first fiscal year that begins after September
15, 2006. The Company is currently evaluating the effect the adoption of SFAS
No. 155 will have on its financial position, results of operations, and cash
flows.

In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of
Financial Assets, an amendment of FASB Statement No. 140." SFAS No. 156 requires
an entity to recognize a servicing asset or liability each time it undertakes an
obligation to service a financial asset by entering into a servicing contract
under a transfer of the servicer's financial assets that meets the requirements
for sale accounting, a transfer of the servicer's financial assets to a
qualified special-purpose entity in a guaranteed mortgage securitization in
which the transferor retains all of the resulting securities and classifies them
as either available-for-sale or trading securities in accordance with SFAS No.
115, "Accounting for Certain Investments in Debt and Equity Securities" and an
acquisition or assumption of an obligation to service a financial asset that
does not relate to financial assets of the servicer or its consolidated
affiliates. Additionally, SFAS No. 156 requires all separately recognized
servicing assets and servicing liabilities to be initially measured at fair
value, permits an entity to choose either the use of an amortization or fair
value method for subsequent measurements, permits at initial adoption a one-time
reclassification of available-for-sale securities to trading securities by
entities with recognized servicing rights and requires separate presentation of
servicing assets and liabilities subsequently measured at fair value and
additional disclosures for all separately recognized servicing assets and
liabilities. SFAS No. 156 is effective for transactions entered into after the
beginning of the first fiscal year that begins after September 15, 2006. The
Company is currently evaluating the effect the adoption of SFAS No. 156 will
have on its financial position, results of operations, and cash flows.


NOTE 5 - INTANGIBLE ASSETS
--------------------------

Intangible assets consist of accumulated costs incurred with respect to the
Company's patent filings originally paid for by iVoice, Inc. for $24,000 in May
and December 2003. The asset is reflected at its original cost net of
accumulated amortization of $13,172, from the date acquired by iVoice, Inc.

                                       11
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 5 - INTANGIBLE ASSETS (Continued)
--------------------------------------

In accordance with FAS 142 goodwill and indefinite-lived intangible assets are
reviewed for impairment at least annually, and whenever events or changes in
circumstances indicate the carrying amounts of the assets may be impaired. We
have elected to perform our impairment review during the fourth quarter of each
year, in conjunction with our annual planning cycle. The Company has determined
no impairment of goodwill or other indefinite-lived intangible assets was
necessary at June 30, 2006.

NOTE 6 - RELATED PARTY TRANSACTIONS
-----------------------------------

In conjunction with the Spin-off, SpeechSwitch has entered into a temporary
administrative services agreement with iVoice, Inc.. The administrative services
agreement will continue on a month-to-month basis until SpeechSwitch has found
replacement services for those services being provided by iVoice, Inc. or can
provide these services for itself.

The Company also assumed an outstanding promissory note in the amount of
$190,000 payable to Jerry Mahoney, President and Chief Executive Officer of
iVoice, Inc. and non-executive Chairman of the Board of SpeechSwitch. This
amount is related to funds loaned to iVoice, Inc. and is unrelated to the
operations of SpeechSwitch. The note will bear interest at the rate of prime
plus 2.0% (10.25% at June 30, 2006) per annum on the unpaid balance until paid.
Under the terms of the Promissory Note, at the option of the Promissory Note
holder, principal and interest can be converted into either (i) one share of
SpeechSwitch Class B Common Stock, par value $.01 per share, for each dollar
owed, (ii) the number of shares of SpeechSwitch Class A Common Stock calculated
by dividing (x) the sum of the principal and interest that the Note holder has
requested to have prepaid by (y) eighty percent (80%) of the lowest issue price
of Class A Common Stock since the first advance of funds under this Note, or
(iii) payment of the principal of this Promissory Note, before any repayment of
interest. The Board of Directors of the Company maintains control over the
issuance of shares and may decline the request for conversion of the repayment
into shares of the Company.

During the six months ended June 30, 2006, Mr. Mahoney received 1,556,250 shares
of Class A common stock as a repayment of $12,450 to reduce the promissory note.
As of June 30, 2006, the outstanding balance due to Mr. Mahoney is $177,550 plus
accrued interest of $14,559. The prime rate at June 30, 2006 is 8.25%.

As of November 8, 2004, the Company entered into a one-year employment contract
with Bruce R. Knef as President, Chief Executive Officer and Principal Financial
Officer. The Company will pay Mr. Knef a base salary of $85,000 during the term.
Mr. Knef can earn bonuses based on the Company achieving certain levels of sales
and profitability and will also be entitled to certain bonuses based on mergers
and acquisitions completed by the Company. The employment agreement with Mr.
Knef has been extended to November 7, 2006.


The Company entered into a five-year employment agreement with Jerome Mahoney,
its non-executive Chairman of the Board of Directors, effective August 3, 2004.
The Company will compensate Mr. Mahoney with a base salary of $85,000 for the
first year with annual increases based on the Consumer Price Index.

                                       12
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 6 - RELATED PARTY TRANSACTIONS (CONTINUED)
-----------------------------------------------

Mr. Mahoney has agreed to accept some of his compensation pursuant to this
Employment Agreement in the form of Class B Common Stock, par value $.01 per
share, in lieu of cash, for as long as the Board of Directors decides, in its
sole discretion, that the Company does not have the financial resources to pay
him in cash. The number of Class B Common Stock shares to be issued Mr. Mahoney
shall be equal to one share of Class B Common Stock for every dollar of
compensation due and owing the Executive. Mr. Mahoney will also be entitled to
certain bonuses based on mergers and acquisitions completed by the Company.

During the six months ended June 30, 2006, Mr. Mahoney deferred $23,027 of his
compensation. As of June 30, 2006, the outstanding balance due to Mr. Mahoney is
$126,243 for his deferred compensation.


NOTE 7 - INCOME TAXES
---------------------

Deferred income taxes will be determined using the liability method for the
temporary differences between the financial reporting basis and income tax basis
of the Company's assets and liabilities. Deferred income taxes will be measured
based on the tax rates expected to be in effect when the temporary differences
are included in the Company's tax return. Deferred tax assets and liabilities
are recognized based on anticipated future tax consequences attributable to
differences between financial statement carrying amounts of assets and
liabilities and their respective tax bases.

At June 30, 2006 and 2005, deferred tax assets consist of the following:

                                    For the six months ended June 30,
                                    ---------------------------------
                                          2006             2005
                                       ---------        ---------
     Deferred tax assets               $ 340,000        $       0
       Less: Valuation allowance        (340,000)               0
                                       ---------        ---------
     Net deferred tax assets           $       0        $       0
                                       =========        =========


At June 30, 2006, the Company had a federal net operating loss carry forward in
the approximate amounts of $1,000,000 available to offset future taxable income.
Prior to August 5, 2005, the Company was a wholly owned subsidiary of iVoice,
Inc. and as such, did not have access to any of the federal net operating loss
carry forwards from the parent. The Company established valuation allowances
equal to the full amount of the deferred tax assets due to the uncertainty of
the utilization of the operating losses in future periods.

                                       13
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 8 - DEBT
-------------

On August 12, and November 19, 2004, SpeechSwitch, Inc. issued an aggregate
$800,000 in secured convertible debentures, with interest payable at 5% per
annum, to Cornell Capital Partners L.P. The debentures were convertible at the
option of the holder only after our Class A Common Stock has commenced trading
on the Over-the-Counter Bulletin Board. On February 28, 2005, iVoice, Inc., on
behalf of the Company, renegotiated the terms and conditions with the holders of
the convertible debentures. The holders of the convertible debentures agreed to
exchange the convertible debentures for various promissory notes. The promissory
notes will be in the aggregate amount of $1,000,000, $800,000 loaned through the
previously issued and exchanged convertible debentures in 2004 and $200,000
advanced on February 28, 2005. A commitment fee of 10% of the face amount of the
previously issued convertible debentures and recently issued promissory note was
paid at the time of each advance. The previously paid commitment fees were
credited against commitment fees due and owing against the promissory note. The
balance of the commitment fee owed from the recently issued promissory note was
paid on February 28, 2005, at the time that such $200,000 was advanced to the
Company.

The promissory notes bear interest at the rate of 12% per annum. Weekly
principal installments of $10,000, plus interest, were to commence on September
1, 2005 and continue on the first day of each week thereafter until the
principal is paid in full. The promissory notes mature on September 5, 2006 with
a lump sum payment due of any remaining principal and interest. The Company is
in default of the payment schedule and therefore, the balance has been recorded
as a current liability. To date, no weekly principal payments have been made. As
of June 30, 2006, the principal balance on the note is $1,000,000 plus accrued
interest of $176,537.

On August 31, 2005, SpeechSwitch, Inc. entered into a Standby Equity
Distribution Agreement (the SEDA") with Cornell Capital Partners, LP ("Cornell
Capital Partners") (which was amended and restated on December 12, 2005) whereby
Cornell Capital Partners agrees to purchase up to $10 million of the Company's
Class A Common Stock (the "Common Stock") over a two-year period.

The purchase price of the Common Stock shall be at ninety-five percent (95%) of
the lowest trading price of the Company's Common Stock during the five
consecutive trading day period following the notification by the Company of its
request for an advance from Cornell Capital Partners under the SEDA. In
connection with the SEDA, the Company entered into an Escrow Agreement,
Registration Rights Agreement and Placement Agent Agreement. As of June 30,
2006, the Company has sold 7,370,165 shares of Class A Common Stock to Cornell
Capital for proceeds of $106,800, which are net of fees and discounts of
$19,496.

During February 2006, pursuant to the terms of the Registration Rights Agreement
with Cornell Capital Partners, the Company's registration statement on Form SB-2
with the Securities and Exchange Commission was declared effective.

                                       14
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 9 - CAPITAL STOCK
----------------------

Pursuant to SpeechSwitch's certificate of incorporation, as amended, the Company
is authorized to issue 10,000,000,000 shares of Class A Common Stock, no par
value per share, 50,000,000 shares of Class B Common Stock, par value $0.01 per
share, 20,000,000 shares of Class C Common Stock, par value $0.01 per share, and
1,000,000 shares of Preferred Stock, par value of $1.00 per share. Below is a
description of SpeechSwitch's outstanding securities, including Preferred Stock,
Class A Common Stock, Class B Common Stock, and Class C Common Stock.

a) Preferred Stock

SpeechSwitch is authorized to issue 1,000,000 shares of Preferred Stock, par
value $1.00 per share. As of June 30, 2006, SpeechSwitch has not issued any
shares of Preferred Stock.

b) Class A Common Stock

As of June 30, 2006, there are 10,000,000,000 shares of Class A Common Stock
authorized, no par value, 22,459,530 shares were issued, 20,641,695 shares were
outstanding and 1,817,835 shares held in escrow.

Each holder of Class A Common Stock is entitled to receive ratably dividends, if
any, as may be declared by the Board of Directors out of funds legally available
for payment of dividends. The Company has never paid any dividends on its common
stock and does not contemplate doing so in the foreseeable future. The Company
anticipates that any earnings generated from operations will be used to finance
its growth objectives.

For the six months ending June 30, 2006, the Company had the following
transactions in its Class A common stock:


o    The Company issued 1,000,000  shares of Class A common stock,  with a total
     value of $8,000 as repayment of accrued  legal fees.  The fair market value
     of the shares was $42,000,  resulting in a charge to beneficial interest of
     $34,000.

o    The Company issued 1,556,250 shares of Class A common stock, with a total
     value of $12,450 to an officer of the Company as repayment of promissory
     note. The fair market value of the shares was $53,626, resulting in a
     charge to beneficial interest of $41,176.

o    The Company issued  7,370,165 shares of Class A common stock per the Equity
     Line of Credit with Cornell Capital valued at $126,296.

o    The Company issued  1,817,835 shares held in escrow pursuant to the Standby
     Equity Distribution Agreement with Cornell Capital Partners.

                                       15
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 9 - CAPITAL STOCK (Continued)
----------------------------------

c) Class B Common Stock

As of June 30, 2006, there are 50,000,000 shares of Class B Common Stock
authorized, par value $.01 per share. Each holder of Class B Common Stock has
voting rights equal to 100 shares of Class A Common Stock. A holder of Class B
Common Stock has the right to convert each share of Class B Common Stock into
the number of shares of Class A Common Stock determined by dividing the number
of Class B Common Stock being converted by a 20% discount of the lowest price
that SpeechSwitch, Inc. had ever issued its Class A Common Stock.

Upon our liquidation, dissolution, or winding-up, holders of Class B Common
Stock will be entitled to receive distributions. As of June 30, 2006, no shares
were issued or outstanding.

d) Class C Common Stock

As of June 30, 2006, there are 20,000,000 shares of Class C Common Stock
authorized, par value $.01 per share. Each holder of Class C Common Stock is
entitled to 1,000 votes for each share held of record. Shares of Class C Common
Stock are not convertible into Class A Common Stock. Upon liquidation,
dissolution or wind-up, the holders of Class C Common Stock are not entitled to
receive our net assets pro rata. As of June 30, 2006, no shares were issued or
outstanding.

NOTE 10 - STOCK OPTIONS
-----------------------

Stock Option Plans

During 2005, the Company adopted the 2005 Stock Incentive Plan and the 2005
Directors' and Officers' Stock Incentive Plan ("Plan") in order to attract and
retain qualified personnel. Under the Plan, the Board of Directors, in its
discretion may grant stock options (either incentive or non-qualified stock
options) to officers, directors and employees.

The Company did not issue any stock options for the six months ended June 30,
2006.

                                       16
<PAGE>

                               SPEECHSWITCH, INC.
         NOTES TO CONDENSED FINANCIAL STATEMENTS (Continued) (UNAUDITED)
                             JUNE 30, 2006 and 2005

NOTE 11 - SUBSEQUENT EVENTS
---------------------------

o    On March 21, 2006, the Company entered into a Patent Purchase Agreement
     with Lamson Holdings LLC, for the sale of certain United States Letters
     Patents and/or applications for United States Letters Patents and/or
     foreign patents and applications. The patents and/or patent applications
     being transferred in this purchase agreement are owned by SpeechSwitch and
     relate to various Voice Activated/Voice Responsive systems developed by
     SpeechSwitch's predecessor iVoice, Inc., including voice-based computer
     address book systems and other voice-based technology. On July 28, 2006, we
     consummated the sale of patents to Lamson Holdings LLC for the net proceeds
     of $144,000.






















                                       17
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF
         OPERATION

     You should read the following discussion in conjunction with our audited
financial statements and related notes included in the Form SB-2 previously
filed with the SEC. Our fiscal year currently ends on December 31, and each of
our fiscal quarters ends on the final day of a calendar quarter (March 31, June
30 and September 30). The following discussion contains forward-looking
statements. Please see "Forward Looking Statements - Cautionary Factors" for a
discussion of uncertainties, risks and assumptions associated with these
statements.

OVERVIEW AND PLAN OF OPERATION

     Prior to August 5, 2005, the Company's previous financial results and
operations were reflected in the consolidated financial statements and
accounting records of iVoice, Inc., and reflected significant assumptions and
allocations. These financial statements do not necessarily reflect the financial
position, results of operations and cash flows of SpeechSwitch had it been a
stand-alone entity.

     SpeechSwitch seeks to leverage the value of underutilized developed
technology and believes that the transition to an independent company will
provide SpeechSwitch with greater access to capital. This should provide needed
financial resources to potentially penetrate the market and distribute the
product. As such, SpeechSwitch's business was formed from the contribution by
iVoice, Inc. of certain assets and related liabilities on or about August 5,
2005. In connection with this Spin-off by iVoice, Inc., iVoice, Inc. assigned
and conveyed to SpeechSwitch its speech recognition software business and
related liabilities, including all intellectual property of iVoice, Inc.
relating to the speech recognition software business. The board and management
of iVoice, Inc. elected not to transfer any part of the working cash balance of
iVoice, Inc. to SpeechSwitch. Based upon the current intention of SpeechSwitch
not to conduct any research and development or hire additional employees and
instead to focus on the sale of the existing speech recognition technology, the
board has determined that, on balance, SpeechSwitch has the ability to satisfy
its working capital needs as a whole. The board and management of iVoice, Inc.
also determined that SpeechSwitch has the ability to obtain financing to satisfy
any addition working capital needs as a stand-alone company.

     The emerging nature of the speech recognition software industry and
unforeseen expenses from the separation from iVoice, Inc., make it difficult to
assess the future growth of SpeechSwitch.

     The speech recognition software business has operated at a loss in the past
for iVoice, Inc., and as an independent company such losses may continue or
increase. Additionally, SpeechSwitch's business has relied on iVoice, Inc. for
financial, administrative and managerial expertise in conducting its operations.
Following the Spin-off, SpeechSwitch has developed and maintains its own credit
and banking relationships and performs its own financial and investor relation
functions. SpeechSwitch may not be able to successfully maintain the financial,
administrative and managerial structure necessary to operate as an independent
public company, and the development of such structure will require a significant
amount of management's time and other resources.

     SpeechSwitch has received a going concern opinion from its auditors. Its
continuation as a going concern is dependent upon obtaining the financing
necessary to operate its business. The financing of our working capital needs
are expected to be provided, in large part, from the sale of Class A Common
Stock to Cornell Capital Partners pursuant to the terms of the Standby Equity
Distribution Agreement ("SEDA"). However, Cornell Capital Partners is under no
obligation to purchase any shares of our Class A Common Stock unless certain
conditions are met by SpeechSwitch, including the registration of shares to be
sold to

                                       18
<PAGE>

Cornell Capital Partners pursuant to the Securities Act of 1933, as amended.
[See "Liquidity and Capital Resources"] If SpeechSwitch cannot fund its working
capital needs under the SEDA with Cornell Capital Partners, we will be unable to
obtain sufficient capital resources to operate our business, and have no other
current plans to obtain alternative financing. We cannot assure you that we will
be able to access any financing in sufficient amounts or at all when needed. Our
inability to obtain sufficient working capital funding will have an immediate
material adverse effect upon our financial condition and our business.

SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO SIX MONTHS ENDED JUNE 30, 2005

     All revenues reported by SpeechSwitch are derived from the license of our
speech recognition software products. Total revenues for the six months ended
June 30, 2006 and June 30, 2005 were $44,762 and $45,992, respectively. The
decrease of $1,230 was due to lower software and maintenance renewals when
compared to the prior year. The low sales volume of the speech recognition
software business is attributable to the minimal resources made available for
the sales and marketing of the speech recognition software products. Management
feels that the sales of the speech recognition software products may increase if
greater financial and operational resources are made available for the sales and
marketing of the products.

     Gross margin for the six months ended June 30, 2006 and June 30, 2005 was
$26,362 and $25,263, respectively. The increase in gross margin is the results
of a favorable mix between turn-key systems and software only sales. The
software portion of the sales and the maintenance revenues carry no direct
costs.

     Total operating expenses decreased to $268,013 for the six months ended
June 30, 2006 from $269,676 for the six months ended June 30, 2005, a decrease
of $1,663. This decrease in the current six months is primarily attributable to
the net decrease in payroll expenses of $28,495 and lower administrative
services fees of $16,674 offset by increased professional fees and insurance
costs of $48,993 associated with being a public reporting company.

     Total other income (expense) for the six months ended June 30, 2006 were
($138,566), as compared to ($40,459) for the six months ended June 30, 2005, an
increase of $98,107. During the six months ending June 30, 2006, SpeechSwitch
recorded $67,712 of interest expense, $75,176 of beneficial interest charged to
interest expense and $4,322 of interest income. In the six months ending June
30, 2005, SpeechSwitch recorded $23,487 of interest expense, $20,000 of
financing costs and $3,028 of interest income. The finance costs were for fees
paid to Cornell Capital Partners for additional financing arrangements. The
interest income was interest earned on the cash accounts. The interest expense
was for accrued interest on related party loans and Cornell promissory notes.

     Net loss for the six months ended June 30, 2006 was $380,217 as compared to
a loss of $284,872 for the six months ended June 30, 2005. The increase in net
loss of $95,345 was the result of the factors discussed above.

     As of June 30, 2006, SpeechSwitch had three full-time employees and one
part-time employee.

                                       20
<PAGE>

THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THREE MONTHS ENDED JUNE 30, 2005

     All revenues reported by SpeechSwitch are derived from the license of our
speech recognition software products. Total revenues for the three months ended
June 30, 2006 and June 30, 2005 were $37,429 and $30,782, respectively. The
increase is primarily attributed to higher software sales. The low overall sales
volume of the speech recognition software business is attributable to the
minimal resources made available for the sales and marketing of the speech
recognition software products. Management feels that the sales of the speech
recognition software products may increase if greater financial and operational
resources are made available for the sales and marketing of the products.

     Gross margin for the three months ended June 30, 2006 and June 30, 2005 was
$26,179 and $17,421, respectively. The increase in gross margin is a result of
increased product sales and a favorable mix of software versus hardware sales
during the quarter. Software sales carry no direct costs .

     Total operating expenses increased to $130,679 for the three months ended
June 30, 2006 from $126,249 for the three months ended June 30, 2005, an
increase of $4,430. This increase in the current three months is primarily
attributable to the increase of professional fees and insurance of $24,549
associated with being a public reporting company. These increases were offset by
decreases in payroll expenses of $8,825, lower administrative services fees of
$8,337 and lower travel and entertainment expenses of $3,792

     Total other income (expense) for the three months ended June 30, 2006 were
($39,037), as compared to ($10,705) for the three months ended June 30, 2005, an
increase of $28,332. During the three months ending June 30, 2006, SpeechSwitch
recorded $34,141 of interest expense, $7,176 of beneficial interest charged to
interest expense and $2,280 of interest income. In the three months ending June
30, 2005, SpeechSwitch recorded $12,466 of interest expense and $1,761 of
interest income. The interest income was interest earned on the cash accounts.
The interest expense was for accrued interest on related party loans and Cornell
promissory notes.

     Net loss for the three months ended June 30, 2006 was $143,537 as compared
to a loss of $119,533 for the three months ended June 30, 2005. The increase in
net loss of $24,004 was the result of the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

     To date, SpeechSwitch has incurred substantial losses, and will require
financing for working capital to meet its operating obligations. We anticipate
that we will require financing on an ongoing basis for the foreseeable future.

     On August 12 and November 19, 2004, SpeechSwitch issued an aggregate of
$800,000 in secured convertible debentures, with interest payable at 5% per
annum, to Cornell Capital Partners. On February 28, 2005, SpeechSwitch's
obligations under the secured convertible debentures were terminated and
replaced with a secured promissory note of the same principal amount with an
additional loan of $200,000 bringing the promissory note to an aggregate
principal of $1 million. These promissory notes accrue interest at rate of 12%
per annum, but are not convertible into any equity security of SpeechSwitch. In
connection with the issuances of the secured convertible debentures,
SpeechSwitch paid a fee to Cornell equal to 10% of the aggregate principal
amount of the debentures. When the secured convertible debentures were
terminated, SpeechSwitch received a credit for fees that would otherwise have
been payable upon the issuance of the $800,000 in replacement notes.
SpeechSwitch paid Cornell Capital Partners a fee of $20,000 in connection with
its $200,000 additional borrowing. The Company's obligations under the secured
promissory note

                                       21
<PAGE>

issued to Cornell Capital Partners are secured by a first priority security
interest in substantially all of our assets. iVoice, Inc. has also guaranteed
the payment of all amounts payable by SpeechSwitch pursuant to the secured
promissory note. This guaranty terminated on August 5, 2005.

     On August 31, 2005, SpeechSwitch executed a Standby Equity Distribution
Agreement with Cornell (which was amended and restated on December 12, 2005),
pursuant to which SpeechSwitch may, from time to time, issue and sell to Cornell
Capital Partners our Class A Common Stock for a total purchase price of up to
$10.0 million. The purchase price for the shares is 95% of the market price,
which is defined as the lowest closing bid price of the Class A Common Stock
during the five consecutive trading days following the date that SpeechSwitch
delivers to Cornell a notice requiring it to advance funds to us. A cash fee
equal to six percent (6%) of the cash proceeds of the draw down is also payable
at the time of funding. In addition, Cornell is entitled to receive, as
additional compensation, the number of shares of Class A Common Stock equal to
one and one half percent (1.5%) of the number of shares of Class A Common Stock
outstanding on the date that a registration statement in respect of the shares
to be distributed pursuant to the SEDA becomes effective.

     We cannot assure you that we will be able to access any financing in
sufficient amounts or at all when needed. Our inability to obtain sufficient
financing would have an immediate material adverse effect on our financial
condition and our business. Management believes that its going-forward expenses
for the twelve months following the date of the Spin-off, August 5, 2005, will
be approximately $520,000, which includes salaries for SpeechSwitch's officers
and employees, and, assuming SpeechSwitch has no revenues in such period,
SpeechSwitch expects to incur liabilities, for the year ending December 31,
2006, of approximately $520,000. Management has no current plan to hire
additional employees, perform additional research and development or purchase
additional equipment or services beyond the requirements of the administrative
services agreement with iVoice, Inc.. If there are additional deficiencies that
are in excess of the proceeds of the secured promissory note, and SpeechSwitch
is unable to obtain funds from the sale of our Class A Common Stock to Cornell,
management believes that SpeechSwitch can limit its operations, defer payments
to management and maintain its business at nominal levels until it can identify
alternative sources of capital.

     Except for these two financing agreements, the Company has no other
significant sources of working capital or cash commitments. Accordingly, no
assurance can be given that SpeechSwitch will raise sufficient funds from such
financing arrangements, or that SpeechSwitch will ever produce sufficient
revenues to sustain its operations, or that a market will develop for its common
stock for which a significant amount of SpeechSwitch's financing is dependent
upon.

     On August 5, 2005, SpeechSwitch assumed an aggregate of $190,000 in
liabilities from iVoice, Inc. and iVoice, Inc. assigned to SpeechSwitch assets
having an aggregate book value of $16,800. SpeechSwitch believes that the fair
value of these assets may be greater than the book value, although it has not
undertaken an appraisal. The assumed obligations are described below.

     SpeechSwitch assumed from iVoice, Inc. an outstanding promissory note in
the amount of $190,000 payable to Jerry Mahoney. This amount is related to funds
that had been loaned to iVoice, Inc. in July 2000 that was used to develop the
automated speech attendant software business. The amount of $190,000 includes
approximately $32,110 for interest on the original loan from Jerry Mahoney to
iVoice, Inc.. Pursuant to the terms of the promissory note, SpeechSwitch, for
value received, will pay to Mr. Mahoney the principal sum of $190,000 that will
bear interest at the prime rate plus 2% per annum on the unpaid balance until
paid or until default. Interest payments will be due annually. All accrued
interest becomes due on the date of any payment of the promissory note. At the
time of default (if any) the interest rate shall increase to 20% until the
principal balance has been paid. Under the terms of the promissory note, at the
option of the

                                       22
<PAGE>

note holder, principal and interest can be converted into either (i) one share
of Class B Common Stock of SpeechSwitch, par value $0.01, for each dollar owed,
(ii) the number of shares of Class A Common Stock of SpeechSwitch calculated by
dividing (x) the sum of the principal and interest that the note holder has
requested to have prepaid by (y) eighty percent (80%) of the lowest issue price
of Class A Common Stock since the first advance of funds under this note, or
(iii) payment of the principal of this note, before any repayment of interest.
The Board of Directors of the Company maintains control over the issuance of
shares and may decline the request for conversion of the repayment into shares
of the Company.

     During the six months ended June 30, 2006, the Company had a net decrease
in cash of $111,660. The Company's principal sources and uses of funds were as
follows:

     Cash used by operating activities. The Company used $ 218,460 in cash for
operating activities in the six months ended June 30, 2006. This was primarily
the result of the cash used to fund the cash loss from current operating
activities offset by increases in vendor payables and related party accounts.

     Cash provided by financing activities. Financing activities in the six
months ended June 30, 2006 provided a total of $ 106,800 in cash. This consisted
of net proceeds from the issuance of common stock through equity financing with
Cornell Capital Partners.

FORWARD LOOKING STATEMENTS - CAUTIONARY FACTORS

     Certain information included in this Form 10-QSB and other materials filed
or to be filed by us with the Securities and Exchange Commission (as well as
information included in oral or written statements made by us or on our behalf),
may contain forward-looking statements about our current and expected
performance trends, growth plans, business goals and other matters. These
statements may be contained in our filings with the Securities and Exchange
Commission, in our press releases, in other written communications, and in oral
statements made by or with the approval of one of our authorized officers.
Information set forth in this discussion and analysis contains various
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Private
Securities Litigation Reform Act of 1995 (the "Act") provides certain "safe
harbor" provisions for forward-looking statements. The reader is cautioned that
such forward-looking statements are based on information available at the time
and/or management's good faith belief with respect to future events, and are
subject to risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in the statements.
Forward-looking statements speak only as of the date the statement was made. We
assume no obligation to update forward-looking information to reflect actual
results, changes in assumptions or changes in other factors affecting
forward-looking information. Forward-looking statements are typically identified
by the use of terms such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "might," "plan," "predict," "project," "should,"
"will," and similar words, although some forward-looking statements are
expressed differently. Although we believe that the expectations reflected in
such forward-looking statements are reasonable, we can give no assurance that
such expectations will prove to be correct.

                                       23
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.

The Company maintains a set of disclosure controls and procedures designed to
ensure that information required to be disclosed by us in our reports filed
under the Securities Exchange Act, is recorded, processed, summarized, and
reported within the time periods specified by the SEC's rules and forms.
Disclosure controls are also designed with the objective of ensuring that this
information is accumulated and communicated to our management, including our
chief executive officer and chief financial officer, as appropriate, to allow
timely decisions regarding required disclosure.

Based upon their evaluation as of the end of the time period covered by this
report, our chief executive officer concluded that our disclosure controls and
procedures are not effective to ensure that information required to be included
in our periodic SEC filings is recorded, processed, summarized, and reported
within the time periods specified in the SEC rules and forms.

Our Board of Directors were advised by Bagel, Josephs, Levine and Company, LLC,
our independent registered public accounting firm, that during their performance
of review procedures for the period ended June 30, 2006, they have identified a
material weakness as defined in Public Company Accounting Oversight Board
Standard No. 2 in our internal control over financial reporting.

This deficiency consisted primarily of inadequate staffing and supervision that
could lead to the untimely identification and resolution of accounting and
disclosure matters and failure to perform time and effective reviews. However,
our resources and size prevent us from being able to employ sufficient resources
to enable us to have adequate segregation of duties within our internal control
system. Management is required to apply its judgment in evaluating the
cost-benefit relationship of possible control and procedures.

CHANGES IN INTERNAL CONTROLS.

Management of the Company has also evaluated, with the participation of the
Chief Executive Officer and Chief Financial Officer of the Company, any change
in the Company's internal control over financial reporting (as defined in Rules
13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal
quarter covered by this Quarterly Report on Form 10-QSB. There was no change in
the Company's internal control over financial reporting identified in that
evaluation that occurred during the fiscal quarter covered by this Quarterly
Report on Form 10-QSB that has materially affected, or is reasonably likely to
materially affect, the Company's internal control over financial reporting.

                                       24
<PAGE>

                           PART II - OTHER INFORMATION



ITEM 6. EXHIBITS


     31.1  Certifications of the Chief Executive Officer and Principal Financial
           Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     32.1  Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant
           To Section 906 of the Sarbanes-Oxley Act Of 2002




























                                       25
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.


SpeechSwitch, Inc


By: /s/ Bruce R. Knef                                      Date: August 14, 2006
    ---------------------------
    Bruce R. Knef, President,
    Chief Executive Officer and
    Principal Financial Officer



























                                       26
<PAGE>

                                Index of Exhibits

     31.1  Certifications of the Chief Executive Officer and Chief Financial
           Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

     32.1  Certification Pursuant To 18 U.S.C. Section 1350, As Adopted Pursuant
           To Section 906 of the Sarbanes-Oxley Act Of 2002
































                                       27