UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, State D.C. 20549

                                    FORM 10-Q

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

                  For the six month period ended June 30, 2010

                                       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: 0-27210


                                  Zunicom, Inc.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

                TEXAS                                     75-2408297
    (State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization)                   Identification No.)

  4315 West Lovers Lane, Dallas, Texas                       75209
(Address of principal executive offices)                  (Zip Code)

                                 (214) 352-8674
              (Registrant's telephone number, including area code)

                                      None
(Former name,former address and former fiscal year,if changed since last report)

           Securities registered pursuant to Section 12(b) of the Act:

                                      None

           Securities registered pursuant to Section 12(g) of the Act:
                          Common Stock, $0.01 Par Value
                          -----------------------------
                                (Title of Class)

                    Class A Preferred Stock, $1.00 Par Value
                    ----------------------------------------
                                (Title of Class)

         Units, consisting of one (1) share of Common Stock and one (1)
                        share of Class A Preferred Stock
               --------------------------------------------------
                                (Title of Class)



                                        1
<PAGE>

     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 large accelerated filer,
an accelerated  filer, a non-accelerated  filer, or a smaller reporting company.
See definitions of "large  accelerated filer,  "accelerated  filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]                      Accelerated  filer [ ]
Non-accelerated  filer  [ ]                      Smaller reporting company [X]
  (Do not check if a smaller reporting company)

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

     As of July 31, 2010, 9,733,527 shares of Common Stock were outstanding.


                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None































                                        2
<PAGE>
                                  Zunicom, Inc.
                                      INDEX

                                                                      Page
                                                                      ----
PART I - Financial Information

Item 1.  Financial Statements

Unaudited Consolidated Balance Sheet at June 30, 2010
and Consolidated Balance Sheet at December 31, 2009. . . . . . . . . . 4

Unaudited Consolidated Statements of Operations for the
Three and six months ended June 30, 2010 and 2009 . . . . . .. . . . . 6

Unaudited Consolidated Statements of Cash Flows for the six months
ended June 30, 2010 and 2009. . . . . .. . . . . . . . . . . . . . . . 8

Notes to Unaudited Consolidated Financial Statements . . . . . . . . . 9

Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . . .  15

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.  20

Item 4.  Controls and Procedures. . . . . . . . . . . . . . . . . .   20


PART II - Other Information

Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . . .  21

Item 6.  Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . .  21

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  23

Certifications




















                                        3
<PAGE>
PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements

                                  ZUNICOM, INC.
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS


                                                June 30, 2010 December 31,2009
                                                 (unaudited)
                                                -------------- ----------------
CURRENT ASSETS
 Cash and cash equivalents                       $  4,675,596 $    5,680,943
 Accounts receivable - trade, net of
   allowance for doubtful accounts of
   $7,854 (2009 - $0)                                  59,239          7,723
 Inventories - finished goods                           6,226          6,224
 Prepaid expenses and other current assets             58,081         35,084
                                                 ------------  -------------
    Total current assets                            4,799,142      5,729,974
                                                 ------------  -------------
PROPERTY AND EQUIPMENT
 Business center equipment                            211,150        329,925
 Machinery and equipment                              448,233        448,234
 Computer equipment                                   149,220        149,220
 Furniture and fixtures                                40,097         30,097
 Leasehold improvements                                12,377         12,377
                                                 ------------  -------------
    Total property and equipment                      861,077        969,853

 Less accumulated depreciation and amortization      (843,536)      (949,992)
                                                 ------------  -------------
    Net property and equipment                         17,541         19,861
                                                 ------------  -------------

INTANGIBLE ASSETS, NET                                465,500             --

INVESTMENT IN UNCONSOLIDATED INVESTEE               3,878,228      3,345,697
                                                 ------------  -------------
TOTAL ASSETS                                     $  9,160,411  $   9,095,532
                                                 ============  =============











                                   (Continued)


                                        4
<PAGE>
                                  ZUNICOM, INC.
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                                June 30, 2010 December 31,2009
                                                  (unaudited)
                                                -------------- ----------------
CURRENT LIABILITIES
 Accounts payable                                     349,604         275,196
 Accrued liabilities                                   67,250         114,989
 Customer deposits                                     31,596              --
                                                -------------   -------------
    Total current liabilities                         448,450         390,185
                                                -------------   -------------
NON-CURRENT DEFERRED TAX LIABILITY                  2,487,826       2,461,396
                                                -------------   -------------
TOTAL LIABILITIES                                   2,936,276       2,851,581
                                                -------------   -------------
STOCKHOLDERS' EQUITY

Preferred stock - $1.00 par value, 1,000,000
  shares authorized; 60,208 (2009 - 60,208)
  Class A Preferred Shares issued and
  outstanding; liquidation preference of
  $316,092 as of June 30, 2010                         60,208          60,208
Common stock - $0.01 par value; 50,000,000
  shares authorized; 9,733,527
  (2009 - 9,733,527) shares issued and out-
  standing                                             97,335          97,335
Additional paid-in capital                          9,127,594       9,102,096
Accumulated deficit                                (3,061,002)     (3,015,688)
                                                -------------   -------------
      Total stockholders' equity                    6,224,135       6,243,951
                                                -------------   -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $   9,160,411   $   9,095,532
                                                =============   =============
















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

                                        5
<PAGE>
                                  ZUNICOM, INC.
          UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three
               Months and Six Months Ended June 30, 2010 and 2009

                           For the three months ended  For the six months ended
                           -------------------------  -------------------------
                                   June 30,                    June 30,
                           -------------------------  -------------------------
                              2010          2009          2010          2009
                              ----          ----          ----          ----
REVENUES
Sales revenue           $    168,959  $         --  $    168,959  $         --
Service revenue               97,552       146,643       178,727       308,154
                        ------------  ------------  ------------  ------------
Total revenue                266,511       146,643       347,686       308,154
                        ------------  ------------  ------------  ------------
COST OF REVENUES
Cost of Sales                 96,853                      96,853            --
Direct servicing costs        39,347        44,106        65,137        70,244
                        ------------  ------------  ------------  ------------
Total cost of revenues       136,200        44,106       161,990        70,244
                        ------------  ------------  ------------  ------------
GROSS PROFIT                 130,311       102,537       185,696       237,910
                        ------------  ------------  ------------  ------------
OPERATING EXPENSES
 Selling, general and
  administrative             430,634       304,956       703,403       607,236
Depreciation and amortization
of property and equipment     23,123        11,794        27,463        28,114
                        ------------  ------------  ------------  ------------
                             453,757       316,750       730,866       635,350
                        ------------  ------------  ------------  ------------
LOSS FROM OPERATIONS        (323,446)     (214,213)     (545,170)     (397,440)

OTHER INCOME (EXPENSES)
 Interest income net,including
  $0,$69,058,$0, and $143,465,
  from related parties         5,563        70,157        11,971       145,535
(Loss) equity in earnings
  of investee                335,462       241,504       532,531      (482,000)
Loss on impairment                --            --            --    (5,793,679)
 Other, net                   (2,831)       63,065        (6,927)      (16,636)
                        ------------  ------------  ------------  ------------
                             338,194       374,726       537,575    (6,146,780)
                        ------------  ------------  ------------  ------------
(LOSS) INCOME BEFORE PROVISION
  FOR INCOME TAXES            14,748       160,512        (7,596)   (6,544,220)

INCOME TAX(EXPENSE)BENEFIT    (6,520)        1,092       (26,430)    2,241,765
                        ------------  ------------  ------------  ------------
NET (LOSS) INCOME       $      8,228  $    161,604  $    (34,026) $ (4,302,455)
                        ============  ============  ============  ============




                                   (Continued)
                                        6
<PAGE>
                                  ZUNICOM, INC.
          UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months
               and Six Months Ended June 30, 2010 and 2009
                                   (Continued)


                           For the three months ended  For the six months ended
                           -------------------------  -------------------------
                                   June 30,                    June 30,
                           -------------------------  -------------------------
                              2010          2009          2010          2009
                              ----          ----          ----          ----
Net income (loss)
attributable to common
stockholders            $      2,809  $    156,185  $    (45,314) $ (4,313,918)
                        ============  ============  ============  ============
Net income (loss) per share
 attributable to common
 stockholders
    Basic               $       0.01  $       0.02  $      (0.01) $      (0.44)
                        ============  ============  ============  ============
    Diluted             $       0.01  $       0.02  $      (0.01) $      (0.44)
                        ============  ============  ============  ============
Number of weighted average
 shares of common stock
 outstanding
    Basic                  9,733,527     9,733,527     9,733,527     9,759,891
                        ============  ============  ============  ============
    Diluted                9,953,943     9,853,943     9,733,527     9,759,891
                        ============  ============  ============  ============

























            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                        7
<PAGE>
                                  ZUNICOM, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
               For The Six Months Ended June 30, 2010 and 2009

                                                         2010          2009
                                                   ------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                           $    (34,025) $ (4,302,455)
Adjustments to reconcile net loss to net
   cash used in operating activities:
 Depreciation and amortization of property
   and equipment                                         27,463        28,114
 Impairment of investment in UPG                             --     4,367,891
 Impairment in value of UPG notes                            --     1,425,788
 Write off of property and equipment                      4,356         8,792
 (Loss) equity in earnings of investee                 (532,531)      482,000
 Non-cash stock-based compensation                       25,496        25,496
 Provision for income taxes                              26,430    (2,241,765)
 Change in operating assets and liabilities:
 Accounts receivable - trade                            (51,516)          264
 Accounts receivable - other                                 --         3,366
 Inventories                                                 --        (1,247)
 Prepaid expenses and other current assets              (22,996)      (28,826)
 Accounts payable                                        74,408        (3,810)
 Accrued liabilities                                    (47,739)      (98,518)
 Customer deposits                                       31,596            --
 Dividends payable                                           --         5,419
                                                   ------------  ------------
 Net cash used in operating activities                 (499,058)     (329,491)
                                                   ------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of business assets                           (495,000)           --
 Purchase of UPG stock                                       --       (20,400)
                                                    ------------  -----------
 Net cash used in investing activities                 (495,000)      (20,400)
                                                    ------------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES
 Principal payments on notes receivable                      --       731,250
 Dividends paid on preferred stock                      (11,289)      (11,463)
                                                   ------------   -----------
 Net cash (used in)provided by financing activities     (11,289)      719,787
                                                   ------------   -----------
NET (DECREASE) INCREASE  IN CASH AND CASH
 EQUIVALENTS                                         (1,005,347)      369,896
Cash and cash equivalents at beginning of period      5,680,943     1,522,831
                                                   ------------   -----------
Cash and cash equivalents at end of period            4,675,596     1,892,727
                                                   ============   ===========
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid                                      $         46   $        --
                                                   ============   ===========



            The accompanying footnotes are an integral part of these
                       consolidated financial statements.
                                        8
<PAGE>
                                  ZUNICOM, INC.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE A - ORGANIZATION

Zunicom,  Inc., ("Zunicom" or the "Company") was formed on January 10, 1992 as a
Texas corporation.  Zunicom's  consolidated  wholly-owned  subsidiary,  AlphaNet
Hospitality   Systems   Inc.   ("AlphaNet"),   has  been  a  provider  of  guest
communication  services  to the  hospitality  market.  AlphaNet  will  exit this
business as of August 31, 2010. In April of 2010,  AlphaNet purchased the assets
and business of Action Computer  Systems and is now a reseller of  point-of-sale
software  and  hardware  to  restaurants  in southern  Connecticut,  Westchester
County,  New York,  and New York City (Note K).  Zunicom also holds a 41 percent
ownership  interest in UPG, a distributor  and supplier to a diverse and growing
range of industries of portable power and related synergistic products, provider
of third-party logistics services and a custom battery pack assembler.

NOTE B - BASIS OF PRESENTATION

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with the  instructions  to Form 10-Q.  Accordingly,  they do not
include all of the information and footnotes required by United States generally
accepted accounting principles for complete financial statements.

In the opinion of management,  all adjustments  (consisting of normal  recurring
adjustments) considered necessary for a fair presentation have been included for
the three and six month periods  ended June 30, 2010.  The results for the three
and six month periods ended June 30, 2010 are not necessarily  indicative of the
results that may be expected for the year ended December 31, 2010. The unaudited
consolidated  financial  statements  included in this  filing  should be read in
conjunction with the Company's  audited  consolidated  financial  statements and
notes thereto  included in the Company's annual report on form 10-K for the year
ended December 31, 2009.

NOTE C - STOCK-BASED COMPENSATION

Stock-based  compensation expense recognized in the statements of operations for
the three and six months  ended June 30,  2010 and 2009,  of  $12,819,  $25,496,
$12,819, and $25,496, respectively represents the amortization of the restricted
stock grant to the Company's chairman in 2007.

As of June 30,  2010,  $50,711 of the  restricted  stock grant to the  Company's
chairman remains  unamortized,  and $31,270 of the restricted stock grant to UPG
employees remains unamortized.  On January 21, 2009, the chief executive officer
of UPG resigned and according to the terms of the  restricted  stock  agreement,
forfeited his  restricted  stock grant.  As a result  227,229  shares of Zunicom
common  stock have been  returned to the Company and the  investment  in UPG has
been reduced by $132,925.

Valuation Assumptions

The fair  values of option  awards  are  estimated  at the  grant  date  using a
Black-Scholes  option  pricing  model.  There were no options  issued in the six
months ended June 30, 2010 or 2009.



                                        9
<PAGE>
NOTE C - STOCK-BASED COMPENSATION (CONTINUED)

Activity and Summary

Stock option activity under the 1999 and 2000 stock option plans was as follows:

                                                              Weighted Average
                                           Number of Shares   Exercise Price
                                           ----------------  -----------------
Options outstanding at December 31, 2009           525,000   $           0.85
      Granted                                           --   $             --
      Exercised                                         --   $             --
      Canceled, lapsed  or forfeited                    --   $             --
                                           ---------------   ----------------
Options outstanding at June 30, 2010               525,000   $           0.85
                                           ===============   ================

The following table summarizes stock options outstanding under the 1999 and 2000
stock option plans at June 30, 2010:
                        Options Outstanding      Options Exercisable
                -------------------------------- --------------------
                             Weighted
                              Average
                             Remaining  Weighted             Weighted
                 Number of  Contractual  Average  Number of   Average
Range of          Options      Life     Exercise   Options   Exercise
Exercise Prices Outstanding (in years)   Price   Exercisable  Price
--------------- ----------- ----------- -------- ----------- --------
$ 0.90              400,000         0.3 $   0.90     400,000 $   0.90

$ 1.75               25,000         6.6 $   1.75      25,000 $   1.75

$ 0.45              100,000         2.8 $   0.45     100,000 $   0.45
                ----------- ----------- -------- ----------- --------
$ 0.45 - $ 1.75     525,000         1.1 $   0.85     525,000 $   0.85
                =========== =========== ======== =========== ========

At June 30, 2010,  the  aggregate  intrinsic  value of options  outstanding  was
$5,000 and the aggregate  intrinsic value of options exercisable was $5,000. The
aggregate  intrinsic value is calculated as the difference  between the exercise
price of the  underlying  awards and the quoted  price of the  Company's  common
stock for those awards that have an exercise  price  currently  below the quoted
price. At June 30, 2010, all outstanding options were fully vested.

NOTE D - NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss)
decreased (increased) by the preferred stock dividends of $5,419, $11,289,
$5,419, and $11,463 for the three and six months ended June 30, 2010 and 2009,
respectively, by the weighted average number of common shares outstanding for
the period.

Diluted net income per share is computed by dividing net income decreased by the
preferred stock dividends by the weighted average number of common shares and
common stock equivalents outstanding for the period. The Company's common stock


                                       10
<PAGE>
NOTE D - NET INCOME (LOSS) PER SHARE 9CONTINUED)

equivalents include all common stock issuable upon conversion of preferred stock
and the exercise of outstanding stock options.

The dilutive effect of 525,000 options and the dilutive effect of the conversion
of 60,208 shares of preferred stock into 120,416 shares of common stock have not
been included in the computation of dilutive net income per share for the six
months ended June 30, 2010 or 2009 as the effect would be anti-dilutive.
However, 100,000 in-the-money options and the dilutive effect of the conversion
of 60,208 shares of preferred stock into 120,416 shares of common stock were
included in the computation of dilutive net income per share for the three
months ended June 30, 2010 and 2009.

NOTE E - UNCONSOLIDATED SUBSIDIARY - INVESTEE

The  Company's  investment  in UPG is accounted  for under the equity  method of
accounting for the three and six month periods ended June 30, 2010 and 2009.
Following is a summary of financial information of UPG for the three and six
months ended June 30, 2010 and 2009:
                                       Three and Six Months Ended June 30,
                              ----------- ----------- ----------- -----------
                                  2010        2009       2010         2009
                              ----------- ----------- ----------- -----------
                                              ($ in thousands)
----------------------------- ----------- ----------- ----------- -----------
Net revenues                  $   28,394  $   27,947  $   54,429  $   55,636
----------------------------- ----------  ----------  ----------  ----------
Cost of revenues                  23,333      22,993      44,935      45,724
----------------------------- ----------  ----------  ----------  ----------
Gross profit                       5,061       4,954       9,494       9,912
----------------------------- ----------  ----------  ----------  ----------
Operating expenses                 3,657       3,787       7,131       9,951
----------------------------- ----------  ----------  ----------  ----------
Income (Loss) from operations      1,404       1,168       2,363         (39)
----------------------------- ----------  ----------  ----------  ----------
Interest expense                    (237)       (233)       (398)       (481)
----------------------------- ----------  ----------  ----------  ----------
Other income                           -           -           -           -
----------------------------- ----------  ----------  ----------  ----------
Income (Loss) from operations
 before income tax provision       1,167         934       1,965       (520)
----------------------------- ----------  ----------  ----------  ----------
Income tax provision                (323)       (322)       (616)       (618)
                              ----------  ----------  ----------  ----------
Net income (Loss)             $      844  $      612  $   (1,349)     (1,138)
                              ==========  ==========  ==========  ==========
Following is a summary of the balance sheets for UPG for the six months ended
June 30, 2010 and 2009.
                                               June 30, 2010  December 31, 2009
                                                       ($ in thousands)
                                               --------------  -----------------
Current assets                                        42,808             46,706
Noncurrent assets                                      2,340              2,933
Current liabilities                                   23,820             29,303
Noncurrent liabilities                                   852              1,305
Shareholders' equity                                  20,475             19,031
                                       11
<PAGE>
NOTE E - UNCONSOLIDATED SUBSIDIARY - INVESTEE (CONTINUED)

The Company evaluated its investment in UPG at March 31, 2009 to determine if an
other than  temporary  decline in fair value below the cost basis had  occurred.
The primary input in estimating  the fair value of the investment was the quoted
market value of UPG publicly traded shares as at March 31, 2009,  which declined
significantly  from the date of the initial  investment  in December  2006. As a
result of the severe decline in the quoted market value, the Company  recognized
impairment  in other income  (expense) of $4,367,891 to adjust the cost basis in
the investment to its estimated fair value.  The carrying value of the Company's
investment in UPG as of June 30, 2010, is $3,878,228.

NOTE F: FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The Company utilizes a hierarchy that prioritizes fair value  measurements based
on the  types  of  inputs  used for the  various  valuation  techniques  (market
approach,  income approach and cost  approach).  The levels of the hierarchy are
described below:

o   Level 1:  consists of financial  instruments  whose value is based on quoted
    market prices for identical financial instruments in an active market

o   Level 2: consists of financial  instruments  that are valued using models or
    other valuation  methodologies.  These models use inputs that are observable
    either directly or indirectly;  Level 2 inputs include (i) quoted prices for
    similar  assets or  liabilities  in active  markets,  (ii) quoted prices for
    identical or similar  assets or  liabilities in markets that are not active,
    (iii) pricing models whose inputs are observable for  substantially the full
    term of the financial  instrument  and (iv) pricing  models whose inputs are
    derived  principally from or corroborated by observable  market data through
    correlation or other means for  substantially the full term of the financial
    instrument

o   Level 3: consists of financial instruments whose values are determined using
    pricing   models  that  utilize   significant   inputs  that  are  primarily
    unobservable,  discounted cash flow methodologies, or similar techniques, as
    well as  instruments  for which the  determination  of fair  value  requires
    significant management judgment or estimation

The  assessment  of the  significance  of a  particular  input to the fair value
measurement  requires  judgment  and  may  affect  the  valuation  of  financial
instruments and their classification within the fair value hierarchy.  Financial
instruments  are classified in their entirety based on the lowest level of input
that is significant to the fair value measurement. There have been no changes in
the classification of any financial instruments within the fair value hierarchy.

The Company recognized an other than temporary impairment to other income
(expense) of $4,367,891 to adjust the cost basis in the Company's investment in
UPG of approximately $7,916,442 to its estimated fair value (see Note E ). The
valuation methodology utilized the quoted market value of UPG's publicly traded
shares. The Company's investment in UPG is classified as a Level 1 financial
instrument in the fair value hierarchy, as the estimated fair value of the
investment is based on observable inputs.




                                       12
<PAGE>
NOTE G - RELATED PARTY NOTES

Through December 15, 2009, the Company held two unsecured  promissory notes from
UPG,  one in the  amount  of  $3,000,000  and a  second  note in the  amount  of
$2,850,000  for a total of  $5,850,000.  Both notes were dated December 20, 2006
and carried the same terms. These terms provided for quarterly interest payments
at an annual  interest rate of 6% and principal  payments in 16 equal  quarterly
installments  of $365,625  each,  beginning  September 20, 2008. On December 16,
2009, both notes were paid in full, and the Company received cash of $3,771,141.
The  Company  recorded  $1,124,146  as a reversal  of a  valuation  charge and a
reduction in the impairment charge and an expense in general and  administrative
expenses of $301,641 for the discount on the notes.

NOTE H - SHAREHOLDERS' EQUITY

During the three and six months ended June 30, 2010 and 2009, the Company paid a
cash  dividend of $5,419,  $11,289,  $5,419 and  $11,463,  respectively,  to the
holders of its class A Preferred Stock.

NOTE I - LEGAL PROCEEDINGS

The  Company  is  subject  to legal  proceedings  and  claims  that arise in the
ordinary  course of  business.  Management  does not believe that the outcome of
these matters will have a material adverse effect on the Company's  consolidated
financial position,  operating results, or cash flows. However,  there can be no
assurance that such legal  proceedings  will not have a material  impact.  As of
June 30, 2010, the Company is not subject to any ongoing legal proceedings.

NOTE J - COMMITTMENTS

Leases

During the third quarter of 2008, the Company  extended the office lease for one
year to April 30,  2010 at the same rent and terms.  In January  2010,  AlphaNet
vacated  the leased  premises.  AlphaNet  leased  certain  equipment  located at
customer  sites as part of its Office (TM) product.  As of August 31, 2010,  the
Company will discontinue its office (TM) product.  As a result,  the Company has
no further commitments related to its office (TM) product.

On April 23, 2010, AlphaNet closed on the acquisition of Action Computer Systems
(Note  K)  and  now  provides  point-of-sale  software,   hardware  systems  and
maintenance  and support to  restaurants in the New York  metropolitan  area and
southern  Connecticut.  The Company  assumed Action  Computer  Systems' lease on
approximately  1,200 square feet of office  space in  Larchmont,  New York.  The
Company's commitment for rent is as follows.


------------- ---------   -------  -------  -------  -------  --------
                   2010     2011     2012     2013     2014     Total
------------- ---------   -------  -------  -------  -------  --------
Office lease    $11,818   $23,818  $25,892  $26,669  $25,117  $113,314
------------- ---------   -------  -------  -------  -------  --------





                                       13
<PAGE>
NOTE K - PURCHASE OF BUSINESS

On March 30,  2010,  AlphaNet  entered  into a binding  agreement to acquire the
business  and the  assets  of  Advanced  Computer  Software,  Inc.,  a New  York
corporation,  doing business as Action Computer  Systems for a purchase price of
$495,000.  Action Computer  Systems is a reseller of  point-of-sale  software to
restaurants  in the New York  metropolitan  area and southern  Connecticut.  The
software,  Restaurant  Manager,  was developed by Action  Systems  Inc.,  Silver
Spring,  Maryland. On April 23, 2010, AlphaNet closed on the acquisition and now
provides point-of-sale software, hardware systems and maintenance and support to
restaurants in the New York metropolitan area and southern Connecticut.

The following  represents the preliminary  purchase price allocation at the date
of the acquisition:

Customer Lists                 $335,000
Covenant not to compete        $150,000
Fixed Assets                   $ 10,000
---------------------------------------
Purchase price                 $495,000

The purchase price is not considered  final as of the date of this report as the
Company is still reviewing all of the underlying  assumptions  and  calculations
used in the allocation.  However,  the Company believes the final purchase price
allocation will not be materially different than that presented herein.

The total  revenue and  earnings of Action  Computer  Systems  since the date of
acquisition, included in the consolidated income statement for the three and six
months  ended  dateYear2010Day30Month6June  30, 2010 was  $241,236  and $241,236
respectively.

Supplemental  pro-forma information regarding the results of the combined entity
for the current reporting periods and the comparative periods presented in these
consolidated  financial  statements  has not  been  presented  as the  financial
information  is  not  available  and  it  is  impracticable  for  management  to
reasonably  estimate the effect for disclosure.  Management does not believe the
pro forma results to be materially different from actual results for the periods
ended June 30, 2010 and June 30, 2009.



















                                       14
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The  following  discussion  and  analysis  should  be read in  conjunction  with
Zunicom's Unaudited  Consolidated Interim Financial Statements and notes thereto
included  elsewhere  in this Form 10-Q.  Except for the  historical  information
contained  herein,  the  discussion in this Form 10-Q contains  certain  forward
looking statements that involve risks and  uncertainties,  such as statements of
Zunicom's  plans,  objectives,   expectations  and  intentions.  The  cautionary
statements  made in this Form 10-Q  should  be read as being  applicable  to all
related forward-looking statements wherever they appear in this Form 10-Q. These
statements  include,  without  limitation,  statements  concerning the potential
operations and results of the Company described below.  Zunicom's actual results
could differ  materially from those discussed here.  Factors that could cause or
contribute  to such  differences  include,  without  limitation,  those  factors
discussed  herein and in Zunicom's Annual Report on Form 10-K for the year ended
December 31, 2009.

RESULTS OF OPERATIONS

Currently,  the  operations  of Zunicom are conducted  through its  wholly-owned
subsidiary,  AlphaNet.  AlphaNet  has been a  provider  of  guest  communication
services  to the  hospitality  market.  AlphaNet  will exit this  business as of
August 31, 2010.  AlphaNet recently  purchased the assets and business of Action
Computer Systems and is now a reseller of point of sale software and hardware to
restaurants in southern Connecticut,  Westchester County, New York, and New York
City.

Three months ended June 30, 2010

REVENUES

For the three month  period  ended June 30,  2010,  Zunicom,  through its wholly
owned  subsidiary  Alphanet  which  now  consists  of  two  product  lines,  had
consolidated  revenues of $266,511  compared to $146,643  for the same period in
2009, an increase of $119,868 or 81.7%. Revenues of the Office (TM) product line
have been declining  sharply in recent years due to increasing use of laptops by
business travelers,  increasing numbers of hotels turning their business centers
into a "free to the guest" model for competitive  reasons,  and competition from
large  "full  service"  providers  who  include  business  centers  as part of a
complete package of outsourced administrative services to hotels.

On  April  23,  2010,  AlphaNet  acquired  a  product  line  as  a  reseller  of
point-of-sale  software  to  restaurants  continuing  its  history of  providing
services to the hospitality industry.  (See Footnote K, Purchase of Business, to
the Consolidated Financial Statements above.) Management has determined that the
Office (TM) product line is no longer viable and will  discontinue  that product
line effective August 31, 2010.

From the  acquisition  date  (April 23,  2010)  through  June 30,  2010,  Action
Computer  Systems had revenue of $241,236.  Revenue from the Office (TM) product
for the three months ended June 30, 2010,  was $25,275  compared to $146,643 for
the same period in 2009, a decrease of $121,368 or 82.8%.

COST OF REVENUES


                                       15
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

From the acquisition date (April 23, 2010) through June 30, 2010, Action
Computer Systems had cost of revenue of $128,270. Cost of revenue for the Office
(TM) product for the three months ended June 30, 2010, was $7,930 compared to
$44,106 for the same period in 2009, a decrease of $36,176 or 82.0%.

OPERATING EXPENSES

For the three month period ended June 30, 2010, Zunicom's consolidated operating
expenses, consisting of selling, general and administrative expenses and
depreciation and amortization of property and equipment increased to $453,758
compared to $316,750 for the same period in 2009, an increase of $137,008
or 43.2%. The increase is due to a decrease in operating expenses of AlphaNet of
$45,089, offset by an increase in Zunicom's expenses of $38,159, and Action
Computer Systems operating expenses from the acquisition date through June 30,
2010, of $143,938.

AlphaNet's selling, general and administrative expenses for the three month
period ended June 30, 2010 were $130,215 compared to $167,145 for the same
period in 2009, a decrease of $36,930 or 22.1%. The decrease is primarily
attributable to decreased occupancy costs of $18,827 and decreases in equipment
and other costs related to the Office (TM) product of $30,082. Employment costs
increased by $11,979 consisting of a decrease in employment costs of $28,021
offset by a settlement of an employment contract for $40,000. The Office (TM)
product is being wound down and the Company will exit that business effective
August 31, 2010.

Zunicom's selling, general and administrative expenses for the three month
period ended June 30, 2010 were $176,315 compared to $137,811 for the same
period in 2009, an increase of $38,504 or 42.4%. The increase is attributable to
increased accounting, legal, and consulting fees. The increased fees are related
to the acquisition of Action Computer Systems.

For the three month period ended June 30, 2010, the Company recorded $23,123 in
depreciation and amortization expense compared to $11,794 in 2009. The increase
is due to depreciation and amortization of the assets acquired in the
acquisition of Action Computer Systems.

OTHER INCOME / EXPENSE

Zunicom's consolidated interest income for the three month period ended June 30,
2010 was $5,563 compared to interest income of $70,157 for the same period in
2009, a decrease of $64,594, or 92.1%. The decrease is due to the payoff of the
UPG notes. Since the note payoff date of December 16, 2009, interest income
consists only of interest on bank cash balances.

Equity in earnings of investee of $335,462 represents Zunicom's share of UPG's
net income for the three month period ended June 30, 2010 recorded in accordance
with the equity method of accounting for an unconsolidated investee.

Other, net, consists of loss on foreign exchange of $1,393 and loss on sale of
assets of $1,438 for the three months ended June 30, 2010, compared to other,
net, of $63,065 in 2009. Other, net, in 2009 consisted of a loss on foreign
exchange of $2,595 and loss on sale of assets of $2,447 offset by a gain on
equity transactions of investee of $68,106.
                                       16
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

Six months ended June 30, 2010

REVENUES

For the six month period ended June 30, 2010, Zunicom, through its wholly owned
subsidiary Alphanet, had consolidated revenues of $347,686 compared to $308,154
for the same period in 2009, an increase of $39,532 or 12.8%. Revenues of the
Office (TM) product line have been declining sharply in recent years due to
increasing use of laptops by business travelers, increasing numbers of hotels
turning their business centers into a "free to the guest" model for competitive
reasons, and competition from large "full service" providers who include
business centers as part of a complete package of outsourced administrative
services to hotels.

On April 23, 2010, AlphaNet acquired a product line as a reseller of
point-of-sale software to restaurants continuing its history of providing
services to the hospitality industry. (See Footnote K, Purchase of Business, to
the Consolidated Financial Statements above.) Management has determined that the
Office (TM) product line is no longer viable and will discontinue that product
line effective August 31, 2010.

From the acquisition date (April 23, 2010) through June 30, 2010, Action
Computer Systems had revenue of $241,236. Revenue from the Office (TM) product
for the six months ended June 30, 2010, was $106,450 compared to $308,154 for
the same period in 2009, a decrease of $201,704 or 65.4%.

COST OF REVENUES

For the six month period ended June 30, 2010, Zunicom's consolidated cost of
revenues is $161,990 compared to $70,244 for the same period in 2009, an
increase of $91,746 or 130.6%. This increase is due to the acquisition of Action
Computer Systems on April 23, 2010.

From the acquisition date (April 23, 2010) through June 30, 2010, Action
Computer Systems had cost of revenue of $128,270. Cost of revenue for the Office
(TM) product for the three months ended June 30, 2010, was $33,720 compared to
$70,244 for the same period in 2009, a decrease of $36,524 or 52.0%.

OPERATING EXPENSES

For the six month period ended June 30, 2010, Zunicom's consolidated operating
expenses, consisting of selling, general and administrative expenses and
depreciation and amortization of property and equipment increased to $730,867
compared to $635,350 for the same period in 2009, an increase of $95,517 or
15.0%. The increase is due to a decrease in operating expenses of AlphaNet of
$105,148, offset by an increase in Zunicom's expenses of $56,727, and Action
Computer Systems operating expenses from the acquisition date through June 30,
2010, of $143,938.

AlphaNet's selling, general and administrative expenses for the six month period
ended June 30, 2010 were $271,079 compared to $356,433 for the same period in
2009, a decrease of $85,354 or 23.9%. The decrease is primarily attributable to
decreased occupancy costs of $36,852 and decreases in equipment  and other costs

                                       17
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (CONTINUED)

related to the Office (TM) product of $36,267. Employment costs decreased by
$12,235, consisting of a decrease in employment costs of $52,235 offset by a
settlement of an employment contract for $40,000. The Office (TM) product is
being wound down and the Company will exit that business effective August 31,
2010.

Zunicom's selling, general and administrative expenses for the six month period
ended June 30, 2010 were $308,220 compared to $250,803 for the same period in
2009, an increase of $57,417 or 22.9%. The increase is attributable to increased
accounting, legal, and consulting fees. The increased fees are related to the
acquisition of Action Computer Systems.

For the six month period ended June 30, 2010, the Company recorded $27,463 in
depreciation and amortization expense compared to $28,114 in 2009. The increase
is due to depreciation and amortization of the assets acquired in the
acquisition of Action Computer Systems.

OTHER INCOME / EXPENSE

Zunicom's consolidated interest income for the six month period ended June 30,
2010 was $11,971 compared to interest income of $145,535 for the same period in
2009, a decrease of $133,564, or 91.8%. The decrease is due to the repayment of
the UPG notes. Since repayment of the note on December 16, 2009, interest income
consists only of interest on bank cash balances.

Equity in earnings of investee of $532,531 represents Zunicom's share of UPG's
net income for the six month period ended June 30, 2010 recorded in accordance
with the equity method of accounting for an unconsolidated investee.

Other, net, consists of loss on foreign exchange of $2,571 and loss on sale of
assets of $4,356 for the six months ended June 30, 2010, compared to a loss on
foreign exchange of $7,845 and loss on sale of assets of $8,792.

The Company evaluated its investment in UPG at March 31, 2009 to determine if an
other than temporary decline in fair value below the cost basis had occurred.
The primary input in estimating the fair value of the investment was the quoted
market value of UPG publicly traded shares as at March 31, 2009, which declined
significantly from the date of the initial investment in December 2006. As a
result of the severe decline in the quoted market value, the Company recognized
an impairment in other income (loss) of $4,367,891 to adjust the costs basis in
the investment to its estimated fair value. The carrying cost of the Company's
investment in UPG as of June 30, 2010 is $3,335,425.

In conjunction with its evaluation of its investment in UPG described above, the
Company also evaluated its two unsecured promissory notes from UPG in the amount
of $4,753,125 to determine if an other than temporary decline in the fair value
of the notes had occurred. The principle inputs in estimating the fair value of
the UPG notes was the possible impairment of UPG's ability to service the notes
in the future given the revenue decline in the first quarter of 2009, especially
from its largest customer, and the profitability decline from 2007 to the first
quarter of 2009. As a result, the Company recognized a valuation loss in other



                                       18
<PAGE>
income (loss) of $1,425,788 to adjust the cost basis of the notes to their
estimated fair value. As a result, the carrying value of the UPG notes as of
March 31, 2009, was $3,327,338. The notes were paid off on December 16, 2009
(See Note G above).

LIQUIDITY

Zunicom, on a consolidated basis, had cash and cash equivalents of $4,675,596 at
June 30, 2010.

Net cash used in operating activities was $499,058 for the six month period
ended June 30, 2010 as compared to $329,491 for the same period in 2009. The
cash used in operating activities is primarily attributable to the net loss of
$47,505 offset by depreciation of $27,463, write off of property and equipment
of $4,356, non-cash stock based compensation of $25,496, provision for federal
income taxes of $19,910, and an increase in working capital of $3,752, offset by
an increase in equity in earnings of investee of $532,531.

For the six months ended June 30, 2010 cash flow used in investing activities
was $495,000 representing the acquisition of Action Computer Systems.

Net cash used in financing activities for the six month period ended June 30,
2010 was $11,289 representing payment of a cash dividend on the Company's
preferred stock.

Zunicom management believes that cash on hand will be sufficient to meet its
operational needs over the next year.






























                                       19
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange

Our customers are primarily located in the United States. Up until we exit the
Office (TM) product line on August 31, 2010, we have one customer in Canada and
as such, our exchange rate risk between the US and Canadian dollar is minimal.
In addition, the aggregate impact of any likely exchange rate fluctuations would
be immaterial as most payments are made in U.S. dollars. We have not used
derivative instruments to hedge our foreign exchange risks. Subsequent to August
31, 2010, all of our customers will be in the United States and we will no
longer be subject to any foreign currency risk.

Interest Rates

We currently have no direct borrowings and therefore are not exposed to market
rate risk for changes in interest rates.

ITEM 4. CONTROLS AND PROCEDURES

The Company's management, including the Company's principal executive officer
and principal financial officer, has evaluated the effectiveness of the
Company's disclosure controls and procedures (as defined in Rules 13(a) - 15(e)
and 15(d) - 15(e) under the Securities Exchange Act of 1934) as of the six
months ended June 30, 2010. Based upon that evaluation, the Company's principal
executive officer and principal financial officer have concluded that the
disclosure controls and procedures were effective as of June 30, 2010 to insure
that the information required to be disclosed by us in the reports filed or
submitted by us under the Securities Exchange Act of 1934, as amended, was
recorded, processed, summarized or reported within the time periods specified in
the rules and regulations of the SEC, and included controls and procedures
designed to ensure that information required to be disclosed by us in such
reports was accumulated and communicated to management, including our principal
executive officer and principal financial officer, as appropriate to allow
timely decisions regarding required disclosures.

There were no changes in the Company's internal control over financial reporting
that occurred during the Company's last fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Company's internal
control over financial reporting.

Management has determined that the newly acquired business of Action Computer
Systems is an exception to the above comments. The disclosure controls and
procedures and the internal control over financial reporting has not been
adequate within Action Computer Systems. Management is taking steps to implement
internal controls and disclosure controls and procedures to insure that the
information required to be disclosed by us in the reports filed or submitted by
us under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized or reported within the time periods specified in the rules
and regulations of the SEC, and included controls and procedures designed to
ensure that information required to be disclosed by us in such reports is
accumulated and communicated to management, including our principal executive
officer and principal financial officer, as appropriate to allow timely
decisions regarding required disclosures.



                                       20
<PAGE>
PART II - OTHER INFORMATION

Item 1. Legal Proceedings.  None

Item 6. Exhibits.
    a.  The following exhibits are filed as part of this report or incorporated
        herein as indicated.

        3.1  Articles of Incorporation, as amended (incorporated by reference to
             the Company's Registration Statement on Form SB-2, Commission File
             No. 33-98662, filed on October 30, 1995 and amended on January 5,
             1996 and January 23, 1996).

        3.2  Certificate of Designation (incorporated by reference to the
             Company's Registration Statement on Form SB-2, Commission File No.
             33-98662, filed on October 30, 1995 and amended on January 5, 1996
             and January 23, 1996).

        3.2A Amended Certificate of Designation (incorporated by reference to
             the Company's Registration Statement on Form SB-2, Commission File
             No.33-98662, filed on October 30, 1995 and amended on January 5,
             1996 and January 23, 1996).

        3.3  Bylaws (incorporated by reference to the Company's Registration
             Statement on Form SB-2, Commission File No. 33-98662, filed on
             October 30, 1995 and amended on January 5, 1996 and January 23,
             1996).

        10.1 Second Amended and Restated Creditors Subordination Agreement
             (incorporated by reference to the Company's Quarterly Report on
             Form 10-Q for the Quarter ended June 30, 2008, Commission File No.
             0-27210, filed August 14, 2008)

        10.2 Purchase and Sale agreement between AlphaNet Hospitality Systems,
             Inc. Advanced Computer Software, Inc. dated March 30, 2010
             (incorporated by reference to the Company's Annual Report on Form
             10-K for the Fiscal year ended December 31, 2009, Commission File
             No. 000-27210, filed April 7, 2010)

        14.1 Code of Ethics and Business Conduct as adopted March 30, 2004
             (incorporated by reference to the Company's Annual Report on Form
             10-K for the Fiscal Year ended December 31, 2003, Commission File
             No. 0-27210, filed March 31, 2004)

        31.1 Certification of Chief Executive Officer Pursuant to Section 302 of
             the Sarbanes-Oxley Act of 2002*

        31.2 Certification of Chief Financial Officer Pursuant to Section 302 of
             the Sarbanes-Oxley Act of 2002*

        32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C.
             Section 1350, as adopted Pursuant to Section 906 of the
             Sarbanes-Oxley Act of 2002*




                                       21
<PAGE>
        32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C.
             Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-
             Oxley Act of 2002*
-----------------
* Filed herewith.




















































                                       22
<PAGE>
                                    Signature
                                    ---------

     Pursuant to the requirements 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.



                                       Zunicom, Inc.
                                       -----------------------------
                                       (Registrant)

Date:  August 14, 2010                 /s/ John C. Rudy
                                       --------------------------------
                                       John C. Rudy
                                       Chief Financial Officer
                                       (principal financial officer)







































                                       23