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SECTION 2 – FINANCIAL INFORMATION
Item 2.03.				Creation of a Direct Financial Obligation or an Obligation under an Off-
				Balance Sheet Arrangement of a Registrant.
		As previously reported, on June 2, 2006 the Company consummated a private placement
with Laurus Master Fund, Ltd., a Cayman Islands corporation (“Laurus”), pursuant to which the
Company issued to Laurus a secured term note in the principal amount of $1,700,000 (the
“Note”). The Note was divided into two pieces, consisting of an “Amortizing Principal Amount”
of $650,000 and a “Non-Amortizing Principal Amount” of $1,050,000. On June 2, 2006, the
Company received the Amortizing Principal Amount, and the Non-Amortizing Principal Amount
was placed in a restricted cash account and held in escrow pending a future transaction. The
Company received the Non-Amortizing Principal Amount on November 15, 2006, because it met
certain performance milestones that had been established by Laurus. The Note matures on May
31, 2009 and requires monthly principal payments beginning on June 1, 2007. Interest is
payable on the unpaid principal on the Note at a rate per annum equal to the “prime rate”
published in The Wall Street Journal from time to time, plus two percent (2%).
		Please see Item 1.01 of the Company’s June 2, 2006 Current Report on Form 8-K, which
is incorporated herein by reference, for a description of the terms of the sale of the Note to
Laurus.
SECTION 3 – SECURITIES AND TRADING MARKETS
Item 3.02.				Unregistered Sales of Equity Securities.
		On November 20, 2006, the Company paid to Source Capital Group, Inc. (“Source
Capital”), in consideration of the introduction made by Source Capital of Laurus to the Company,
a finder’s fee in the amount of $84,000 and issued to or at the direction of Source Capital
common stock purchase warrants (the “Source Warrants”) to purchase up to an aggregate of
400,000 shares of Common Stock at an exercise price of $0.21 per share. The Source Warrants
expire on November 15, 2010. The Source Warrants were issued in reliance on the exemption
from registration provided by Section 4(2) of the Act, on the basis that their issuance did not
involve a public offering and satisfied the conditions of Rule 506 of the Act, and Source Capital
represented to us that it is an “accredited investor,” as defined in the Act.
SECTION 9 – FINANCIAL STATEMENT AND EXHIBITS
Item 9.01				Financial Statements and Exhibits.
(c)		Exhibits.
404839/04081.00042

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Number		Documents
10.1		Securities Purchase Agreement, dated as of May 31, 2006, between eLEC
		Communications Corp. and Laurus Master Fund, Ltd., incorporated by
		reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K
		dated June 2, 2006
10.2		Secured Term Note, dated as of May 31, 2005, between eLEC
		Communications Corp. and Laurus Master Fund, Ltd. incorporated by
		reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K
		dated June 2, 2006.
10.3		Reaffirmation and Ratification Agreement, dated as of May 31, 2006,
		executed by eLEC Communications Corp., New Rochelle Telephone
		Corp., Telecarrier Services, Inc., Vox Communications Corp., Line One,
		Inc., AVI Holding Corp. and TelcoSoftware.com Corp., incorporated by
		reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K
		dated June 2, 2006.
10.4		Form of Common Stock Purchase Warrant, dated as of November 15,
		2006, issued by eLEC Communications Corp. to or on the order of Source
		Capital Group, Inc., incorporated by reference to Exhibit 10.6 to the
		Company’s Current Report on Form 8-K dated June 2, 2006.
404839/04081.00042
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
			eLEC COMMUNICATIONS CORP.
Date:  November 20, 2006		By:	/s/ Paul H. Riss
			Paul H. Riss
			Chief Executive Officer
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