SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
   [X]   Quarterly report under Section 13 or 15(d) of the Securities Exchange

         Act of 1934 for the quarterly
         period ended December 31, 1999.

   [ ]   Transition  report  under  Section  13 or  15(d)  of the  Securities
         Exchange Act of 1934 for the transition period from ______ to ______ .


         Commission file number:  33-2128-D
                                -----------


                              ERLY INDUSTRIES, INC.
        (Exact name of small business issuer as specified in its charter)





          California                                   95-2312900
          ----------                                   ----------
   (State or other jurisdiction of                 (I.R.S. Employer
    incorporation or organization)                 Identification No.)





      8641 United Plaza Blvd., Suite 300, Baton Rouge, LA       70809
    --------------------------------------------------------------------
        Address of principal executive office)               (Zip Code)


                                 (225) 922-4540
                           (Issuer's telephone number)


Check whether the issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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
                        ------                   -----

The number of outstanding shares of the issuer's common stock,  $0.001 par value
(the only class of voting stock), as of December 4, 2000 was 15,000,000.


                                        1

<PAGE>



                                TABLE OF CONTENTS

                         PART I - FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS..................................................3

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS..................................4


                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.....................................................5

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K......................................5

SIGNATURES.....................................................................6

INDEX TO EXHIBITS..............................................................7












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                                        2

<PAGE>



                          ITEM 1. FINANCIAL STATEMENTS

As used herein, the term "Company" refers to Erly Industries, Inc., a California
corporation,  its  consolidated  entities,  and  predecessors  unless  otherwise
indicated.   Unaudited,  condensed  consolidated  interim  financial  statements
including a balance sheet for the Company as of the quarter  ended  December 31,
1999 and statements of operations,  and statements of cash flows for the interim
period up to the date of such  balance  sheet  and the  period  from  inception,
August 21, 1999,  through  December 31, 1999,  are attached  hereto as Pages F-1
through F-5 and are incorporated herein by this reference.













                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY.]




                                        3

<PAGE>



                          INDEX TO FINANCIAL STATEMENTS
                                                                            PAGE


Condensed Consolidated Balance Sheet.........................................F-2

Statements of Unaudited Condensed Consolidated Operations....................F-3

Statements of Unaudited Condensed Consolidated Cash Flows....................F-4

Notes to Unaudited Financial Statements......................................F-5
































                                       F-1

<PAGE>





                              Erly Industries, Inc.
                          (A Development Stage Company)
                 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
                                December 31, 1999



                                                                    Unaudited
                                                              December 31, 1999
                                                               ---------------
    ASSETS

     CURRENT ASSETS
            Cash                                                    $        0
                                                                       -------
     Total Current Assets                                                    0

    TOTAL ASSETS                                                    $        0
                                                                       =======


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
       Accounts payable                                             $        0
       Compensation payable to Officer                                       0
                                                                       -------
Total Current Liabilities                                                    0

TOTAL LIABILITIES                                                            0
                                                                       -------

SHAREHOLDERS' EQUITY/ (DEFICIT)
       Preferred stock, $100 par value, 6,000 shares
          authorized; issued and outstanding -0- shares                      0
       Common stock, $0.01 par value, 15,000,000 shares
           authorized,  issued and outstanding 5,762,088                     0
       Deficit accumulated during the development stage                      0
                                                                       -------
       Total Stockholders' Equity (Deficit)                                  0
                                                                       -------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)                $        0
                                                                      ========






                       See Notes To Financial Statements.


                                       F-2

<PAGE>


<TABLE>

                              Erly Industries, Inc.
                          (A DEVELOPMENT STAGE COMPANY)
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
       From August 21, 1999 (Date of Inception) through December 31, 1999

<CAPTION>

                                                                                From inception,
                                                             Three Months       August 21, 1999,
                                                                 Ended            through
                                                              December 31,      December 31,
                                                                 1999              1999
                                                          ----------------       ------------
<S>                                                         <C>                <C>
Sales                                                       $            0     $            0
General and Administrative                                               0                  0
                                                               -----------       ------------
     Income (Loss) From Operations                                       0                  0
                                                               -----------       ------------

Other Income (Expense)
Refund of funds previously expended                                      0                  0
Interest income                                                          0                  0
                                                               -----------       ------------
     Total Other Income (Expense)                                        0                  0
                                                               -----------       ------------
Net gain (loss)                                                          0                  0

Income taxes                                                             0                  0
                                                               -----------       ------------
Net Income (Loss)                                           $            0     $            0
                                                               -----------       ------------

                                                               -----------       ------------

Income (Loss) per share                                     $          .00     $          .00


Weighted average shares outstanding                              5,762,088          5,762,088
                                                              ============       ============
</TABLE>





                       See Notes to Financial Statements.






                                       F-3

<PAGE>

<TABLE>


                                                 ERLY INDUSTRIES, INC.
                                             (A DEVELOPMENT STAGE COMPANY)
                              UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                          From August 21, 1999 (Date of Inception) through December 31, 1999
<CAPTION>


                                                                                                       From inception,
                                                                             For the three             August 21, 1999,
                                                                             months ended                  through
                                                                             December 31,                December 31,
                                                                                 1999                        1999
                                                                          -------------------       ----------------------
<S>                                                                     <C>                       <C>
Cash Flows from Operating Activities
   Net Gain (Loss)                                                      $                   0     $                      0
      Adjustments to reconcile net loss to
         net cash provided (used in) operating activities:
           Increase (decrease) in accounts payable                                          0                            0
           Increase (decrease) in other current liabilities                                 0                            0
                                                                          -------------------       ----------------------
Net Cash Provided (Used in) Operating Activities                                            0                            0
                                                                          -------------------       ----------------------

Cash flow from Investing Activities                                                         0                            0
                                                                          -------------------       ----------------------

Cash flow from Financing Activities                                                         0                            0
                                                                          -------------------       ----------------------

Net Increase (Decrease) in Cash                                                             0                            0

Cash at Beginning of Period                                                                 0                            0
                                                                          -------------------       ----------------------

Cash at End of Period                                                   $                   0     $                      0
                                                                          -------------------       ----------------------


Supplemental Disclosures
      Interest paid                                                     $                   0     $                      0
      Income taxes paid                                                                     0                            0

</TABLE>



                       See Notes to Financial Statements.











                                       F-4

<PAGE>



                              ERLY INDUSTRIES, INC.
                          (A Development Stage Company)
            Notes to the Unaudited Consolidated Financial Statements
                                December 31, 1999

NOTE 1 - PRELIMINARY NOTE

         The  accompanying  condensed  financial  statements  have been prepared
         without audit,  pursuant to the rules and regulations of the Securities
         and Exchange  Commission.  Certain information and disclosures normally
         included  in the  financial  statements  prepared  in  accordance  with
         generally  accepted  accounting   principles  have  been  condensed  or
         omitted.  These financial  statements reflect all adjustments which, in
         the opinion of management, are necessary to present a fair statement of
         the  results  for the  periods  included.  It is  suggested  that these
         condensed  financial   statements  be  read  in  conjunction  with  the
         financial  statements and notes thereto  included in the form 8-K dated
         November 8, 1999.

         In  accordance  with  the  American   Institute  of  Certified   Public
         Accountants (AICPA) Statement of Position 90-7,  Financial Reporting by
         Entities in  Reorganization  under the Bankruptcy  Code, which requires
         that assets and  liabilities  be adjusted to their fair values  ("fresh
         start  values"),  the company has valued the assets,  liabilities,  and
         equity to the values determined as a result of the  restructuring  plan
         approved by the Bankruptcy Court on August 20, 1999.

 NOTE 2 -INCOME TAXES

         The  Company  is not able to  determine  its net  operating  loss (NOL)
         carryforwards due to significant tax sharing agreements with its former
         subsidiary,  American Rice,  Inc. Due to the inability of management to
         determine  the  amount  of NOL as well  as the  uncertainty  of  future
         taxable income,  management has established the valuation  allowance to
         be any amount necessary to reduce the tax benefit of any NOL to zero.

         Related to the uncertainty associated with NOLs, the possibility exists
         that the Company could ultimately be liable for income taxes.  Although
         management  believes that the Company should not have taxable income or
         liabilities,  the possibility does exist. These financial statements do
         not provide for any possible income taxes that could ultimately be owed
         by the Company.

NOTE 3 -COMPARABLE PERIODS

         Normally,  the  presentation  of  financial  statements  for an interim
         period  include  comparable  amounts from the previous  year.  However,
         since the Company  emerged  from  Chapter 11  Bankruptcy  on August 20,
         1999, as a  development  stage  company,  comparable  period  financial
         statements  are not  presented  as they  would  not  represent  a valid
         comparison.

NOTE 4 -CONSOLIDATED ENTITIES

         The   presentation   of   financial   statements   represents   amounts
         consolidated  from the following  subsidiaries  many of which have been
         defunct for some time:

          *  Watch-Edge   International   (WEI,   formerly  known  as  Chemonics
          Industries, Inc)
                * Chemonics International, Inc. 100% owned by WEI

                                       F-5

<PAGE>



               * Chemonics Fire-Trol, Inc. 100% owned by WEI
               * Chemonics Industries LTD (Canada) 100% owned by WEI
               * Transcontinental  Distribution  Company LTD (South Africa) 100%
                 owned by WEI
         * The Beverage Source (discontinued FY 1990)
         * Erly Juice, Inc. (discontinued 1993)
         * Worldmark, Inc. 99% owned by ERLY, Inc (discontinued Dec. 1993)
               *  Eau  Claire  Packing  Co.,  100%  owned  by  Worldmark,   Inc.
               (discontinued Dec. 1993)

                                       F-6

<PAGE>




ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Plan of Operations

As used herein the term "Company" refers to Erly Industries,  Inc., a California
corporation, its consolidated entities, and its predecessors, unless the context
indicates otherwise. The Company emerged from bankruptcy on August 21, 1999. The
Company is currently a shell company whose purpose will be to acquire operations
through an acquisition, merger or begin its own start-up business.

The Company is in the process of  attempting to identify and acquire a favorable
business  opportunity.  On March 22, 2000,  the Board of Directors  accepted the
terms of an agreement to provide a  controlling  interest of ERLY's common stock
to a group of investors.  As of the date of this filing that transaction has not
been  finalized  and therefore the parties  involved are  undisclosed  until the
transaction is consummated and the appropriate  Form 8-K is filed.  There can be
no  assurance  offered  that  ERLY will be  successful  in  developing  a viable
business plan and obtaining capital necessary to carry out a business plan or to
continue as a going concern.

The Company has no plans for the purchase or sale of any plant or equipment.

The Company is a development  stage company and currently has no employees.  The
Company has no current plans to make any changes in the number of employees.

Results of Operations

The Company had no sales  revenues for the three months ended December 31, 1999.
The Company had no sales in for the three months ended December 31, 1999 because
it  emerged  from  bankruptcy  on  August  21,  1999,  without  operations  as a
development stage company.

The Company had no costs of sales  revenues for the three months ended  December
31,  1999  because it  emerged  from  bankruptcy  on August  21,  1999,  without
operations as a development stage company.

General and  administrative  expenses  were $0 three months  ended  December 31,
1999.  Since there were no  operations  during the  periods,  no  expenses  were
incurred.

The Company  recorded net income of $0 for the three  months ended  December 31,
1999.

Capital Resources and Liquidity

At December 31, 1999,  the Company had current  assets of $0 and total assets of
$0. The Company had neither a working  capital surplus or deficit as of December
31, 1999.

Net stockholders' equity in the Company was $0 as of December 31, 1999.






                                        4

<PAGE>



                            PART II-OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

On August 9, 1999,  the Bankruptcy  Court  enclosed in order (the  "Confirmation
Order") which confirmed a Chapter 11 Joint Plan of Reorganization as modified by
ERLY and WEI (the "Debtors").  The Confirmation Order provides that all entities
who have held,  hold or may hold a claim  against the  debtors  are  permanently
enjoined on or after the confirmation  date (August 20, 1999) from making demand
on, commencing, or continuing in any manner any action or proceeding of any kind
with respect to any claim against the Debtors.

Since  emerging from  bankruptcy on August 20, 1999, the Company is not aware of
any legal  proceedings  that have been  brought  or may be brought  against  the
Company.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits Exhibits required to be attached by Item 601 of Regulation S-B
         are listed in the Index to Exhibits on page 6 of this Form 10-QSB,  and
         are incorporated herein by this reference.































                                        5

<PAGE>



                                   SIGNATURES


In  accordance  with  Section 13 or 15(d) of the Exchange  Act,  the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized, this 4th day of December, 2000.


Erly Industries, Inc.


/s/ Richard Surber
----------------------
Richard Surber, Vice President


















                                        6

<PAGE>


INDEX TO EXHIBITS



EXHIBIT       PAGE
NO.      NO.                DESCRIPTION

27       7   Financial Data Schedule "CE"

                                        7