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 June 30, 2002.

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


         Commission file number: 001-07894
                                -----------


                         TORCHMAIL COMMUNICATIONS, INC.
                        --------------------------------
        (Exact name of small business issuer as specified in its charter)





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





            268 West 400 South, Suite 300, Salt Lake City, Utah 84101
     ----------------------------------------------------------------------
               (Address of principal executive office) (Zip Code)


                                 (801) 575-8073
                           (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 August 1, 2002 was 3,773,375.



<PAGE>



                                TABLE OF CONTENTS

                         PART I - FINANCIAL INFORMATION



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

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION...........4


                           PART II - OTHER INFORMATION

ITEM 3.  CHANGES IN SECURITIES AND USE OF PROCEEDS...........................5

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

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












                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]









                                        2

<PAGE>



ITEM 1.           FINANCIAL STATEMENTS

As used herein, the term "Company" refers to Torchmail  Communications,  Inc., a
Delaware  corporation,   its  consolidated  entities,  and  predecessors  unless
otherwise indicated. Unaudited, condensed interim financial statements including
a balance  sheet for the  Company as of the  quarter  ended June 30,  2002,  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 June 30, 2002,  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 Unaudited Balance Sheet......................................F-2

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

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

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
































                                       F-1

<PAGE>





                         TORCHMAIL COMMUNICATIONS, INC.
                          (A Development Stage Company)
                        UNAUDITED CONDENSED BALANCE SHEET
                                  June 30, 2002


<TABLE>
<S>                                                                          <C>

                                                                                Unaudited
                                                                              June 30, 2002
                                                                               -----------

    ASSETS

     CURRENT ASSETS
            Investments, available for sale                                    $    12,500
                                                                               -----------
     Total Current Assets                                                           12,500

    TOTAL ASSETS                                                               $    12,500
                                                                               -----------

                                                                               -----------

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
       Accounts Payable                                                             17,614
       Related party payable                                                        21,332
                                                                               -----------
Total Current Liabilities                                                           38,946

TOTAL LIABILITIES                                                              $    38,946
                                                                               -----------

                                                                               -----------

SHAREHOLDERS' EQUITY
       Preferred stock, $.001 par value, 10,000,000 shares authorized;
            issued and outstanding -0- shares                                            -
       Common stock, $0.001 par value, 200,000,000 shares authorized,
            3,773,375 shares issued and outstanding                                  3,773
       Additional Paid in Capital                                                  181,922
       Deficit accumulated during the development stage                          (212,141)
                                                                               -----------
       Total Stockholders' Deficit                                                (26,446)
                                                                               -----------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                    $    12,500
                                                                               -----------

</TABLE>





                       See Notes To Financial Statements.


                                       F-2

<PAGE>



                         TORCHMAIL COMMUNICATIONS, INC.
                          (A Development Stage Company)
                       UNAUDITED STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>

                                                                                            From inception
                                                                                               (August 21,
                                                             For the three months ended          1999)
                                                                    June 30,                      to
                                                                                               June 30,
                                                              2002             2001              2002
                                                         -----------       -----------      -------------
<S>                                                     <C>               <C>              <C>


Sales                                                    $         -       $         -      $           -
General and Administrative                                     2,330            33,728            505,083
                                                         -----------       -----------      -------------
      Loss From Operations                                   (2,330)          (33,728)          (505,083)
                                                         -----------       -----------      -------------

Other Income
Refund of funds previously expended                                -                 -            194,382
Interest income                                                    -                 -              7,329
                                                         -----------       -----------      -------------
     Total Other Income                                            -                 -            201,711
                                                         -----------       -----------      -------------

Loss before taxes and extraordinary items                    (2,330)          (33,728)          (303,372)

Provision for income taxes                                         -                 -                  -
                                                         -----------       -----------      -------------

Loss before extraordinary items                              (2,330)          (33,728)          (303,372)

Extraordinary items - gain on forgiveness of
debt, net of $0 taxes                                              -                 -             91,231
Net Loss                                                 $   (2,330)       $  (33,728)      $   (212,141)


Loss per share                                           $         -       $    (0.22)


Weighted average shares outstanding*                       3,773,000           153,000
                                                         -----------       -----------

     * adjusted for 5 for 1 forward split

</TABLE>


                       See Notes to Financial Statements.






                                       F-3

<PAGE>



                         TORCHMAIL COMMUNICATIONS, INC.
                          (A Development Stage Company)
                  UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                                                     From
                                                                                                   inception
                                                                    For the Three Months          (August 21,
                                                                            Ended                    1999)
                                                                          June 30,                    to
                                                                                                   June 30,
                                                                    2002            2001            2002
                                                                --------       -----------       ----------
<S>                                                            <C>            <C>               <C>

Cash Flows from Operating Activities
   Net Loss                                                      (2,330)       $  (33,728)       $ 212,141)
      Adjustments to reconcile net loss to net cash
       used in operating activities:
           Increase in accounts payable                                -                 -           17,614
           Issuance of common stock for services                       -            33,728           46,228
           Increase in related party payable                       2,330                 -           28,299
                                                                --------       -----------       ----------
Net Cash Used in Operating Activities                                  -                 -         120,000)
                                                                --------       -----------       ----------


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


Cash flow from Financing Activities
      Issuance of common stock for cash                                -                 -          120,000
                                                                --------       -----------       ----------
Net Cash Provided by Financing Activities                              -                 -          120,000
                                                                --------       -----------       ----------



Net Increase (Decrease) in Cash                                        -                 -                -

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

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


Supplemental Disclosures
      Interest paid                                             $      -       $         -       $        -
      Income taxes paid                                                -                 -                -

</TABLE>


                       See Notes to Financial Statements.











                                       F-4

<PAGE>



                         TORCHMAIL COMMUNICATIONS, INC.
                          (A Development Stage Company)
                   Notes to the Unaudited Financial Statements
                                  June 30, 2002

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
          financial  statements  be  read  in  conjunction  with  the  financial
          statements and notes thereto  included in the Company's  Annual Report
          on Form 10KSB for the period ended March 31, 2002.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Marketable Securities

          The Company  classifies its marketable  debt and equity  securities as
          "held to maturity"  if it has the positive  intent and ability to hold
          the  securities  to  maturity.  All other  marketable  debt and equity
          securities  are   classified  as  "available  for  sale."   Securities
          classified  as  "available  for sale"  are  carried  in the  financial
          statements at fair value. Realized gains and losses,  determined using
          the  specific  identification  method,  are  included  in  operations;
          unrealized  holding  gains  and  losses  are  reported  as a  separate
          component  of equity.  Securities  classified  as held to maturity are
          carried at amortized cost. For both categories of securities, declines
          in fair value below amortized cost

NOTE 3 - COMMON STOCK SPLITS

          On March 17, 2002,  the Company  approved a 5-for-1 common stock split
          and on  January  26,  2001,  as part of the merger  agreement  between
          Torchmail and Erly, the Company  completed a 1-for-100  reverse common
          stock split.  All common share amounts and per share  information have
          been  retroactively  adjusted to reflect  these common stock splits in
          the accompanying consolidated financial statements.
















                                       F-5

<PAGE>




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

Plan of Operations

As used herein the term "Company"  refers to Torchmail  Communications,  Inc., a
Delaware corporation,  its consolidated entities,  and its predecessors,  unless
the context indicates  otherwise.  The Company emerged from bankruptcy on August
21, 1999 as Erly  Industries,  Inc. The  Company's  business  plan is to acquire
operations through an acquisition, merger or to begin its own start-up business.
The Company has no current operations and no significant current cash needs. One
of the Company's major  shareholders,  Hudson  Consulting  Group,  Inc. has been
funding cash needs due to the lack of assets and is expected to continue funding
needs at least through the end of the coming year. 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 the Company's common stock to a subsidiary of
Axia Group,  Inc.  (Hudson  Consulting  Group,  Inc.) for  $120,000  cash.  This
transaction  was  ratified at a special  board  meeting on October 9, 2000.  The
Company then issued  9,237,912  shares of common stock to Hudson.  The Company's
board of directors  then  appointed  Richard Surber to the board on November 14,
2000.  All other  members of the  Company's  Board of  Directors  then  resigned
leaving  Richard  D.  Surber  as the  sole  member  of the  Company's  Board  of
Directors.

On January 24, 2001, the Company merged with  Torchmail  Communications  Inc., a
Delaware  corporation  ("Torchmail").   In  the  merger,  shareholders  of  Erly
Industries,  Inc.  common stock  received 1 share of Torchmail  common stock for
every 100 shares of Erly stock owned.  Fractional  shares were rounded up to the
next whole share.  The  authorized  number of shares of Torchmail is 200,000,000
shares.  Following the reverse  stock split,  the Company had a total of 150,000
shares issued and outstanding.

On  June  15,  2001,   the  Company   issued  500,000  shares  of  common  stock
(post-reverse  split) to Hudson Consulting Group, Inc., a Nevada Corporation for
services rendered in preparing financial statements and also to pay for expenses
previously  paid by Hudson in the Company's  behalf.  The Company is currently a
78.5% owned  subsidiary of Nexia Holdings,  Inc.,  which is a subsidiary of Axia
Group, Inc.

On  March  17,  2002,  the  Company  effected  a 5 for 1  forward  split  to all
shareholders  of  record on the date  March 15,  2002.  Fractional  shares  were
rounded up to the nearest share.

The Company's plan of operation for the coming year is to identify and acquire a
favorable business  opportunity.  The Company does not plan to limit its options
to any particular industry, but will evaluate each opportunity on its merits.

The  Company  recently  signed a letter  of intent  to merge  with a company  in
California.  However, since the deal has not been finalized, management believes
it would be premature to disclose the  specifics of the letter of intent.  It is
expected that this will be completed  within the 2nd quarter of the year.  Since
the  Company  has no  operations  at present,  its cash needs are  minimal.  The
Company believes it can meet its cash needs for the foreseeable  future from its
current assets or from payments made in its behalf by Hudson  Consulting  Group,
Inc.

The  Company  has no plans for the  purchase  or sale of any plant or  equipment
during the coming fiscal year.

                                        4

<PAGE>



The  Company  was  briefly a  holding  company  but is now,  at the time of this
filing, a development stage company and currently has no employees.  The Company
has no current plans to make any changes in the number of employees.


                            PART II-OTHER INFORMATION

ITEM  3.  CHANGES IN SECURITIES AND USE OF PROCEEDS

None.

                                   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 1st day of August, 2002.


                                       Torchmail Communications, Inc.

                                        /s/ Rowan S. Campbell
                                       ----------------------------
                                       Rowan S. Campbell, President

In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.




/s/ Rowan S. Campbell
--------------------------------------
Rowan S. Campbell, President & Director            August 7, 2002


/s/ Christina Barnes
-------------------------
Christina Barnes, Director                         August 7, 2002


/s/ Richard Surber
-----------------------
Richard Surber, Director                           August 7, 2002




                                        5

<PAGE>





                                INDEX TO EXHIBITS

EXHIBIT           PAGE
NO.               NO.          DESCRIPTION

3(i)              *                 Articles of Incorporation of Torchmail
                                    Communications, Inc. (Incorporated by
                                    reference from Form 14C filed 12/19/2000).

3(ii)             *                 Agreement of Merger of Erly Industries, Inc.
                                    into Torchmail Communications, Inc.
                                    (Incorporated by reference from Form 10-QSB
                                    filed August 1, 2001).



* Incorporated by reference from previous filings of the Company.
















                                        6

<PAGE>