UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, StateD.C. 20549

                                    FORM 10-Q

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

                  For the quarterly period ended March 31, 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 April 30, 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 March 31, 2010
and Consolidated Balance Sheet at December 31, 2009. . . . . . . . . . 4

Unaudited Consolidated Statements of Operations for the
three months ended March 31, 2010 and 2009 . . . . . . . . . . . . . . 6

Unaudited Consolidated Statements of Cash Flows for the three months
ended March 31, 2010 and 2009. . . . . . . . . . . . . . . . . . . . . 7

Notes to Unaudited Consolidated Financial Statements . . . . . . . . . 8

Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . . .  13

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.  16

Item 4.  Controls and Procedures. . . . . . . . . . . . . . . . . .   16


PART II - Other Information

Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . . .  17

Item 6.  Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . .  17

Signature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18

Certifications

















                                        3

<PAGE>



PART  I  -  FINANCIAL  INFORMATION
----------------------------------
Item  1.  Financial  Statements

                                  ZUNICOM, INC.
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS


                                                March 31, 2010 December 31,2009
                                                           (unaudited)
                                                -------------- ----------------
CURRENT ASSETS
 Cash and cash equivalents                       $  5,513,098 $    5,680,943
 Accounts receivable - trade                               --          7,723
 Inventories - finished goods                           6,224          6,224
 Prepaid expenses and other current assets             17,037         35,084
                                                 ------------  -------------
    Total current assets                            5,536,359      5,729,974
                                                 ------------  -------------
PROPERTY AND EQUIPMENT
 Business center equipment                            237,309        329,925
 Machinery and equipment                              448,234        448,234
 Computer equipment                                   149,220        149,220
 Furniture and fixtures                                30,097         30,097
 Leasehold improvements                                12,377         12,377
                                                 ------------  -------------
    Total property and equipment                      877,237        969,853

 Less accumulated depreciation and amortization      (864,635)      (949,992)
                                                 ------------  -------------
    Net property and equipment                         12,602         19,861
                                                 ------------  -------------

INVESTMENT IN UNCONSOLIDATED INVESTEE               3,542,766      3,345,697
                                                 ------------  -------------
TOTAL ASSETS                                     $  9,091,727  $   9,095,532
                                                 ============  =============












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

                                        4

<PAGE>



                                  ZUNICOM, INC.
                     CONSOLIDATED BALANCE SHEETS - Continued

                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                                March 31, 2010 December 31,2009
                                                           (unaudited)
                                                -------------- ----------------
CURRENT LIABILITIES
 Accounts payable                                     316,489         275,196
 Accrued liabilities                                   85,428         114,989
                                                -------------   -------------
    Total current liabilities                         401,917         390,185
                                                -------------   -------------
NON-CURRENT DEFERRED TAX LIABILITY                  2,481,306       2,461,396
                                                -------------   -------------
TOTAL LIABILITIES                                   2,883,223       2,851,581
                                                -------------   -------------
STOCKHOLDERS' EQUITY

Preferred  stock - $1.00 par value, 1,000,000
  shares  authorized;  60,208 and 60,208 Class
  A Preferred Shares issued and outstanding;
  liquidation preference of $316,092 as of
  March 31, 2010                                       60,208          60,208
Common stock - $0.01 par value; 50,000,000
  shares authorized; 9,733,527 and
  9,733,527 shares issued and out-
  standing                                             97,335          97,335
Additional paid-in capital                          9,114,773       9,102,096
Accumulated deficit                                (3,063,812)     (3,015,688)
                                                -------------   -------------
      Total stockholders' equity                    6,208,504       6,243,951
                                                -------------   -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $   9,091,727   $   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 Ended March 31, 2010 and 2009

                                                         2010          2009
REVENUES                                           -------------- -------------
   Service revenue                                 $      81,175  $    161,511

COST OF REVENUES
   Direct servicing costs                                 25,790        26,138
                                                   -------------  ------------
GROSS PROFIT                                              55,385       135,373
                                                   -------------  ------------
OPERATING EXPENSES
   Selling, general and administrative                   272,769       302,280
   Depreciation and amortization of
     property and equipment                                4,340        16,320
                                                   -------------  ------------
     Total operating expenses                            277,110       318,600
                                                   -------------  ------------
LOSS FROM OPERATIONS                                    (221,725)     (183,227)

OTHER INCOME (EXPENSE)
   Interest income (expense) net, including
   $74,543 from related parties in 2009                    6,408        75,378
   Equity (Loss) in earnings of investee                 197,069      (723,504)
   Loss on equity transactions of investee                    --       (68,106)
   Loss on impairment                                         --    (5,793,679)
   Loss on sale of assets - net                           (2,918)       (6,345)
   Other Loss, net                                        (1,178)       (5,251)
                                                   -------------  ------------
     Total other income (expense)                        199,381   (6,521,507)
                                                   -------------  ------------
LOSS BEFORE PROVISION FOR INCOME TAXES                  (22,344)   (6,704,734)
                                                   -------------  ------------
PROVISION FOR INCOME TAXES                              (19,910)     2,240,673
                                                   -------------  ------------
NET LOSS                                           $    (42,254)   $(4,464,061)
                                                   =============  ============
Net loss attributable
    to common stockholders                         $    (48,124)   $(4,470,105)
                                                   =============  ============
Net loss per share attributable to
    common stockholders
   Basic                                           $     (0.005)  $      (0.46)
                                                   =============  ============
   Diluted                                         $     (0.005)  $      (0.46)
                                                   =============  ============
Number of weighted average shares of common
    stock outstanding
   Basic                                               9,733,527     9,733,527
                                                   =============  ============
   Diluted                                             9,733,527     9,733,527
                                                   =============  ============

            The accompanying footnotes are an integral part of these
                  unaudited consolidated financial statements.
                                        6

<PAGE>



                                  ZUNICOM, INC.
                 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
               For The Three Months Ended March 31, 2010 and 2009

                                                         2010          2009
                                                   -------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                           $     (42,254)  $(4,464,061)
Adjustments to reconcile net loss to net
   cash used in operating activities:
 Depreciation and amortization of property
   and equipment                                           4,340        16,320
 Impairment of investment in UPG                               -     4,367,891
 Impairment in value of UPG notes                              -     1,425,788
 Write off of property and equipment                       2,918         6,345
 Loss on equity transactions of investee                       -        68,106
 Equity (loss) in earnings of investee                  (197,069)      723,504
 Non-cash stock-based compensation                        12,678        12,678
 Provision for income taxes                               19,910    (2,240,673)
  Change in operating assets and liabilities:
 Accounts receivable - trade                               7,723        (4,776)
 Accounts receivable - other                                   -         1,322
 Inventories                                                   -        (1,248)
 Prepaid expenses and other current assets                18,047        11,910
 Accounts payable                                         41,293        23,166
 Accrued liabilities                                     (29,561)      (81,199)
                                                    -------------  ------------
 Net cash used in operating
   activities                                           (161,975)     (134,927)
                                                   -------------  ------------
CASH FLOWS FROM INVESTING ACTIVITIES

 Purchase of UPG stock                                         -      (20,400)
                                                   -------------  ------------
 Net cash (used in) investing
   activities                                                  -      (20,400)
                                                   -------------  ------------
CASH FLOWS FROM FINANCING ACTIVITIES
   Principal payments on notes receivable                      -       365,625
   Dividends paid on preferred stock                      (5,870)       (6,044)
                                                   -------------  ------------
 Net cash (used in) provided by financing
   activities                                             (5,870)      359,581
                                                   -------------  ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS                167,845       204,254
Cash and cash equivalents at beginning of period       5,680,943     1,522,831
                                                   -------------  ------------
Cash and cash equivalents at end of period             5,513,098     1,727,085
                                                   =============  ============


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

                                        7

<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"),  is a provider of guest  communication
services  to the  hospitality  market.  Zunicom  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 month  period  ended March 31,  2010.  The results for the three month
period ended March 31, 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  months  ended  March 31,  2010 and 2009,  of  $12,678  and  $12,678,
respectively  represents the  amortization of the restricted  stock grant to our
chairman in 2007.

As of March 31,  2010,  $63,529 of the  restricted  stock grant to our  chairman
remains unamortized,  and $41,656 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 three
months ended March 31, 2010 or 2009.




                                        8

<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 March 31, 2010              525,000   $           0.85
                                           ===============    ===============

The following table summarizes stock options outstanding under the 1999 and 2000
stock option plans at March 31, 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         0.5 $   0.90     400,000 $   0.90

$ 1.75               25,000         6.8 $   1.75      25,000 $   1.75

$ 0.45              100,000         3.0 $   0.45     100,000 $   0.45
                ----------- ----------- -------- ----------- --------
$ 0.45 - $ 1.75     525,000         1.3 $   0.85     425,000 $   0.85
                =========== =========== ======== =========== ========

At March 31, 2010,  the aggregate  intrinsic  value of options  outstanding  was
$20,000 and the aggregate  intrinsic  value of options  exercisable was $20,000.
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 March 31, 2010, all outstanding options were fully vested.












                                        9

<PAGE>

NOTE D - NET INCOME (LOSS) PER SHARE

Basic net income per share is computed by dividing  net income  decreased by the
preferred stock dividends of $5,870 and $6,044 for the three months ending March
31, 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
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 three
months ended March 31, 2010 or 2009 as the effect would be anti-dilutive.

NOTE E - UNCONSOLIDATED SUBSIDIARY - INVESTEE

The  Company's  investment  in UPG is accounted  for under the equity  method of
accounting  for the three month period ended March 31, 2010 and 2009.  Following
is a summary of  financial  information  of UPG for the three months ended March
31, 2010 and 2009:
                                                   Three Months Ended March 31,
                                                   ----------------------------
                                                         ($ in thousands)
                                                        2010           2009
                                                   -------------  -------------
Net revenues                                       $     26,035   $     27,689
Cost of revenues                                         21,602         22,731
Gross profit                                              4,433          4,958
Operating expenses                                        3,473          6,164
Income (Loss) from operations                               960         (1,206)
Interest expense                                           (161)          (248)
Other income                                                  -              -
Income (Loss) from operations
    before income tax provision                             799         (1,454)
Income tax provision                                       (293)          (296)
                                                   ------------   ------------
Net income (Loss)                                   $       506  $      (1,750)
                                                   ============   ============

Following is a summary of the balance  sheets for UPG for the three months ended
March 31, 2010 and 2009.
                                               March 31, 2010  December 31, 2009
                                                       ($ in thousands)
                                               --------------  -----------------
Current assets                                        46,498             50,824
Noncurrent assets                                      2,464              2,579
Current liabilities                                   28,316             31,137
Noncurrent liabilities                                 1,059              5,336
Shareholders' equity                                  19,587             16,930

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.
                                       10

<PAGE>

NOTE E - UNCONSOLIDATED SUBSIDIARY - INVESTEE (CONTINUED)

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 (loss) of $4,367,891 to adjust the cost basis in the
investment to its estimated  fair value.  As a result the carrying  value of the
Company's investment in UPG as of March 31, 2010, is $3,335,425.

Note F: Fair Value of Financial Assets and Financial Liabilities

Effective  January 1, 2008,  the Company  adopted the provisions of SFAS No. 157
that  relate to our  financial  assets  and  financial  liabilities  ("financial
instruments").  SFAS No. 157 establishes 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.  As
required by SFAS No. 157, 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.

Nonrecurring Fair Value Measures

                           March 31,                                 Total
(in millions)                2010      Level 1   Level 2  Level 3    Losses
------------------------------------------------------------------------------
Assets
Equity method investments $3,335,425  $3,335,425  $  --  $  --    $(3,335,425)
------------------------------------------------------------------------------

                                       11

<PAGE>

NOTE E - UNCONSOLIDATED SUBSIDIARY - INVESTEE (CONTINUED)

In  accordance  with  Accounting  Principles  Board  ("APB") No. 18, "The Equity
Method of Accounting  for  Investments  in Common Stock," we recognized an other
than temporary  impairment to other income (expense) of $4,367,891 to adjust our
cost basis in our 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.

NOTE G - RELATED PARTY NOTES

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 a total of  $3,771,141  in  settlement.  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 months  ended March 31, 2010 and 2009,  the Company paid a cash
dividend  of $5,870  and  $6,044,  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
March 31, 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  and  employees  work from home.  AlphaNet  leased
certain equipment  located at customer sites as part of its Office(TM)  product.
The following table presents the Company's commitments on those leases.

------------- ---------
Lease            2010
------------- ---------
Equipment      $15,400
------------- ---------

                                       12

<PAGE>

NOTE K - SUBSEQUENT EVENT

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.

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.

REVENUES

For the three month  period ended March 31,  2010,  Zunicom,  through its wholly
owned subsidiary Alphanet, had consolidated revenues of $81,175 compared to
$161,511 for the same period in 2009,  a decrease of $80,336 or 49.7%.  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, Subsequent Event, to the
Consolidated  Financial  Statements  below.)  Management has determined that the
Office(TM)  product line is no longer viable and is taking steps to  discontinue
that product line.



                                       13

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

COST OF REVENUES

For the three month period ended March 31, 2010, Zunicom's  consolidated cost of
revenues is $25,790  compared to $26,138 for the same period in 2008, a decrease
of $348 or 1.3%. The small decrease is due to decreases in direct servicing
costs for the Office(TM)  product  consistent  with the decline in the number of
installations offset by a credit of licensing fees received in the first quarter
of 2009.

OPERATING EXPENSES

For the  three  month  period  ended  March  31,  2010,  Zunicom's  consolidated
operating expenses,  consisting of selling,  general and administrative expenses
and  depreciation  and  amortization  of property  and  equipment  decreased  to
$277,110 compared to $318,600 for the same period in 2009, a decrease of $41,490
or 13.0%. The decrease is due to a decrease in operating expenses of
AlphaNet of $48,425, offset by an increase in Zunicom's expenses of $18,915, and
a decrease in depreciation of $11,980.

AlphaNet's  selling,  general and  administrative  expenses  for the three month
period  ending  March 31, 2010 were  $140,864  compared to $187,484 for the same
period in 2009, a decrease of $46,620 or 24.9%. The decrease is primarily
attributable to decreased  compensation  expense,  decreased occupancy costs and
decreased  equipment  costs. One position was eliminated in 2009 and in February
2009,  AlphaNet's  Canadian employees were put on a four day week reflecting the
decline in workload due to decreased  business for the Office (TM)  product.  In
January 2010,  AlphaNet  vacated its office in Toronto and the  employees  began
working from home.

Zunicom's  selling,  general  and  administrative  expenses  for the three month
period  ending  March 31, 2010 were  $131,905  compared to $114,796 for the same
period in 2009, an increase of $17,109 or 14.9%. The increase is attributable to
increased  accounting  and legal fees partially  offset by decreased  consulting
fees.  Increased  legal  fees  are  due to  the  acquisition  of the  restaurant
point-of-sale software product line.

For the three month period ending March 31, 2010, the Company recorded $4,340 in
depreciation and amortization  expense compared to $16,320 in 2009. The decrease
is principally due to declining  equipment purchases in AlphaNet consistent with
the decline in the Office(TM) product.

OTHER INCOME / EXPENSE

Zunicom's  consolidated  interest  income for the three month period ended March
31, 2010 was $6,408 compared to interest income of $75,378 for the same period
in 2009, a decrease of $68,970,  or 91.5%.  The decrease is due to the payoff of
the UPG notes. Since the note payoff date of December 16, 2009,  interest income
consists  of interest  on the UPG notes has  consisted  only of interest on bank
cash balances.

Equity (loss) in earnings of investee of $197,069 represents  Zunicom's share of
UPG's net income for the three month  period  ended  March 31, 2010  recorded in
accordance with the equity method of accounting for an unconsolidated investee.

                                       14

<PAGE>

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

Loss on sale of assets for the three months ended March 31, 2010, is $2,918
compared to a loss of $6,345 for the same period in 2009.  The  decrease in loss
on disposal of AlphaNet equipment reflects the declining number of installations
remaining.

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 March 31, 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
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 K below).

The  Company  recognized  the other than  temporary  decline in the value of its
investment  in UPG and the  valuation  loss in the  long  term  note  receivable
totaling
$5,793,679  in other income  (expense) in its  statement of  operations  for the
three months ended March 31, 2009.

LIQUIDITY

Zunicom, on a consolidated basis, had cash and cash equivalents of $5,513,098 at
March 31, 2010.

Net  cash  used  in  operating  activities  was  $161,975  for the  three  month
periodended  March 31, 2010 as compared to $134,927 for the same period in 2009.
The cash used in operating activities is primarily  attributable to the net loss
of $42,254 offset by depreciation of $4,340, write off of property and equipment
of $2,918,  non-cash stock based compensation of $12,678,  provision for federal
income taxes of $19,910,  and an increase in working capital of $37,502,  offset
by an increase in equity in earnings of investee of $197,069.

For the three months ended March 31, 2010 there was no cash flow from  investing
activities.

Net cash used in financing activities for the three-month period ended March
31, 2010 was $5,870  representing  payment of a cash  dividend on the  Company's
preferred stock.
                                       15

<PAGE>

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

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

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange

Our  customers  are  primarily  located  in  the  country-regionU.S.  and  a few
customers in Canada.  Our exchange rate risk between the US and Canadian  dollar
is minimal  because we conduct so little  business in Canada.  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 though we may choose to do so in the future.

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 three
months ended March 31, 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 March 31, 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.












                                       16

<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*

        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.                       17
<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:  May 14, 2010                    /s/ John C. Rudy
                                       --------------------------------
                                       John C. Rudy
                                       Chief Financial Officer
                                       (principal financial officer)




































                                       18