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UNITED STATES
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 ___September 30, 2003______________________________
|                                                                                  
|[ ]                                                                                | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
    ACT                  
|For the transition period from _________________ to
    _________________         
|                                                                                  
|Commission file number ___0-30118____________________________________             



EMPYREAN
COMMUNICATIONS INC.

(exact name of small
business issuer as specified in its charter)

2537 South Gessner,
Suite 114,

Houston, TX 77063

(address of principal
executive offices)

Issuers telephone
number: (713) 260 7236



|                                                                                                                                                                            
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                            
|___NEVADA_____________________________________
    (State or other jurisdiction of incorporation or organization)                                                           
|                                                                                                                                                                            
|                                                                                                                                                                            
|                                                                                                                                                                            
|(713) 260-7236
    (Issuer's telephone number)( 713) 260 7236                                                                                                               
|                                                                                                                                                                            
|_________________________________________________________________________________
    (Former name, former address and former fiscal year, if changed since last
    report)



Check whether the issuer

1. filed all documents and reports required to be filed by Section 13 or
  15(d) of the Exchange Act during the last 12months(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 (X) Yes
  ( ) No





_As of September 30, 2003 there2003 there were 9,715,951 shares
of common stock issued and outstanding

Transitional Small Business Disclosure Format (Check one): Yes [
] No [ X[  ]X]





PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Following are the un-audited financial statements for the period
ended September 30, 2003:









EMPYREAN
COMMUNICATIONS INC.

(A Development Stage
Company)

STATEMENT OF CASH
FLOWS

For the three month
periods ended September 30, 2003 and 2002 and the nine month periods ended
September 30, 2003 and 2002

and for the period
October 30,2000 (Date of Incorporation) to September 30, 2003

(Unaudited)

|                                       |                                                                      | For the Three Months Ended September 30, 2003 |  | For the Three Months Ended September 30, 2002 |  | For the Nine Months Ended September 30, 2003 |  | For the Nine Months Ended September 30, 2002 |  | October 30,2000 (Date of Incorporation) to September
    30,2003
|-------------------------------------- | -------------------------------------------------------------------- | --------------------------------------------- |  | --------------------------------------------- |  | -------------------------------------------- |  | -------------------------------------------- |  | ----------------------------------------------------------------
|Cash Flows used in Operating Activites |                                                                      |                                               |  |                                               |  |                                              |  |                                              | 
|                                       | Net loss for the period                                              | (4,531)                                       |  | (6,052)                                       |  | (24,749)                                     |  | (554,847)                                    |  | (10,344,031)                                                    
|                                       | Items not affecting cash:                                            |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | Accounts Payable written off                                         |                                               |  |                                               |  |                                              |  |                                              |  | (68,227)                                                        
|                                       | Investments written-off                                              | -                                             |  | -                                             |  |                                              |  |                                              |  | 2,600,000                                                       
|                                       | Loss on write-off of technology                                      | -                                             |  | -                                             |  |                                              |  |                                              |  | 5,843,140                                                       
|                                       | Gain on forgiveness of debt                                          | -                                             |  | -                                             |  |                                              |  |                                              |  | (29,578)                                                        
|                                       | Non-cash:                                                            |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | Legal expenses                                                       | -                                             |  | -                                             |  |                                              |  |                                              |  | 56,100                                                          
|                                       | Consulting expenses                                                  | -                                             |  | -                                             |  |                                              |  |                                              |  | 750,966                                                         
|                                       | Changes in non-cash working capital balances                         |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | balances related to operations:                                      |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | Prepaid expenses                                                     | 0                                             |  | 0                                             |  | (148,043)                                    |  | (451,500)                                    |  | (132,043)                                                       
|                                       | Accounts Payable                                                     | 3,787                                         |  | 275,998                                       |  | 8,516                                        |  | (489,827)                                    |  | 1,101,670                                                       
|                                       | Net Cash (used by) from operating activities                         | (744)                                         |  | 269,946                                       |  | (164,276)                                    |  | (1,496,174)                                  |  | (222,003)                                                       
|                                       |                                                                      |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|Investing Activities                   |                                                                      |                                               |  |                                               |  |                                              |  |                                              | 
|                                       | Investment in Basalt Fiber Company                                   |                                               |  | 0                                             |  |                                              |  | (900,000)                                    |  |                                                                 
|                                       | Cash acquired on business acquisition                                |                                               |  |                                               |  |                                              |  |                                              |  | 316                                                             
|                                       | Short Term note issued May 7, 2003                                   | (4,500)                                       |  | 0                                             |  | 3,000                                        |  |                                              |  | 3,000                                                           
|                                       | Increase(Decrease) in shareholder loans                              | (738)                                         |  | 0                                             |  | (11,500)                                     |  | 12,388                                       |  | 22,511                                                          
|                                       | Net Cash (used by) from Investing Activities                         | (5,238)                                       |  | 0                                             |  | (8,500)                                      |  | (887,612)                                    |  | 25,827                                                          
|                                       |                                                                      |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|Financing Activities                   |                                                                      |                                               |  |                                               |  |                                              |  |                                              | 
|                                       | Exchange of debt for common shares                                   |                                               |  | (270,000)                                     |  |                                              |  | 1,024,476                                    |  |                                                                 
|                                       | Exchange of prepaid services for common shares                       | 0                                             |  | 0                                             |  | 156,000                                      |  | 459,000                                      |  | 156,000                                                         
|                                       | Exchange of common shares for investment in Basalt Fiber
    Company |                                               |  | 0                                             |  |                                              |  | 900,000                                      |  |                                                                 
|                                       | Proceeds from issuance of common shares                              | 6,000                                         |  | 0                                             |  | 16,800                                       |  |                                              |  | 40,200                                                          
|                                       | Net Cash (used by) from Financing Activities                         | 6,000                                         |  | (270,000)                                     |  | 172,800                                      |  | 2,383,476                                    |  | 196,200                                                         
|                                       |                                                                      |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | Net increase (decrease) in cash during the period                    | 18                                            |  | (54)                                          |  | 24                                           |  | (310)                                        |  | 24                                                              
|                                       |                                                                      |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | Cash, beginning of the period                                        | 6                                             |  | 65                                            |  | 0                                            |  | 256                                          |  | 0                                                               
|                                       |                                                                      |                                               |  |                                               |  |                                              |  |                                              |  |                                                                 
|                                       | Cash, end of the period                                              | 24                                            |  | 11                                            |  | 24                                           |  | (54)                                         |  | 24                                                              







EMPYREAN
COMMUNICATIONS INC.

(A Development Stage
Company)

BALANCE SHEETS

for the periods ended
September 30, 2003 and December 31, 2002



|                                    |                                                  |                         | September 30, 2003 |              | December 31, 2002
|----------------------------------- | ------------------------------------------------ | ----------------------- | ------------------ | ------------ | -----------------
|                                    |                                                  |                         | Unaudited          |              |                  
|Assets                              |                                                  |                         |                    |              |                  
|                                    | Cash                                             |                         | 24                 |              | -                
|                                    | Prepaid expenses                                 | 406,722                 |                    | 258,679     
|                                    |                                                  | to financial statements |                    |              |                  
|                                    |                                                  |                         |                    |              |                  
|Total Assets                        |                                                  | 406,746                 |                    | 258,679     
|                                    |                                                  |                         |                    |              |                  
|                                    |                                                  |                         |                    |              |                  
|Liabilities                         |                                                  |                         |                    |              |                  
|                                    | Accounts Payable                                 | 75,407                  |                    | 66,891      
|                                    | Short Term Note Payable                          | 3,000                   |                    | -           
|                                    | Due to shareholders                              | 22,511                  |                    | 34,011      
|                                    |                                                  |                         |                    |              |                  
|Total Liabilities                   |                                                  | 100,918                 |                    | 100,902     
|                                    |                                                  |                         |                    |              |                  
|Stockholders Equity                 |                                                  |                         |                    |             
|                                    | Capital Stock                                    |                         |                    |             
|                                    | Authorized:                                      |                         |                    |             
|                                    | 50,000,000 common shares, $0.001 par value       |                         |                    |             
|                                    | 10,000,000 preferred sharess, $0.001 par value   |                         |                    |             
|                                    | Issued:                                          |                         |                    |              |                  
|                                    | 8,565,951 (2002: 2,525,951) common shares        | 8,540                   |                    | 2,500       
|                                    | 10,000,000 preferred sharessshares               | 10,000                  |                    | 10,000      
|                                    | Additional paid in capital                       | 10,631,319              |                    | 10,464,559  
|                                    | Deficit accumulated during the development stage | (10,344,031)            |                    | (10,319,282)
|                                    |                                                  |                         |                    |              |                  
|Total Stockholders Equity/(Deficit) | 305,828                                          |                         | 157,777           
|                                    |                                                  |                         |                    |              |                  
|                                    | Liabilities and Shareholders Equity/(Deficit)    | 406,746                 |                    | 258,679     







EMPYREAN
COMMUNICATIONS INC.

(A Development Stage
Company)

Income Statement

for the Three Months
and Six Months Periods Ended September 30, 2003 and 2002

with
cummulativecumulative since inception



|(UNAUDITED)            
|-----------------------
|                       
|                       
|                       
|                       
|                       
|Operating Expenses     
|                       
|Operating Loss         
|                       
|Other Income/(Expenses)
|                       
|                       
|                       
|                       
|                       
|                       
|Net Loss for the period







(A Development Stage
Company)

STATEMENT OF
STOCKHOLDERS EQUITY/(DEFICIT)

forFor the period
ended Septemberended September 30, 2003

(Unaudited)



|                                                        |  | Preferred Shares issued | Par Value | Common Shares, issued | Par Value | Additional Paid in Capital | Deficit Accumulated During the Development Stage | Total      
|------------------------------------------------------- |  | ----------------------- | --------- | --------------------- | --------- | -------------------------- | ------------------------------------------------ | -----------
|Balance, December 31, 2001                              |  | -                       | -         | 63,451                | 38        | 5,828,770                  | (6,818,678)                                      | (989,870)  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued for acquisition of subsidiary                    |  | 10,000,000              | 10,000    |                       |           | 1,290,000                  |                                                  | 1,300,000  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (104,023)                                        | (104,023)  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, March 31, 2002                                 |  | 10,000,000              | 10,000    | 63,451                | 38        | 7,118,770                  | (6,922,701)                                      | 196,107    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued for controlling interest in Basalt Fiber Company |  |                         |           | 500,000               | 500       | 1,299,500                  |                                                  | 1,300,000  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued pursuant to consulting fee agreements            |  |                         |           | 1,775,000             | 1,775     | 612,225                    |                                                  | 614,000    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (444,772)                                        | (444,772)  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, June 30, 2002                                  |  | 10,000,000              | 10,000    | 2,338,451             | 2,313     | 9,030,495                  | (7,367,473)                                      | 1,665,335  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued pursuant to consulting fee agreements            |  |                         |           | 187,500               | 187       | 1,434,064                  |                                                  | 1,434,251  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (6,052)                                          | (6,052)    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, September 30, 2002                             |  | 10,000,000              | 10,000    | 2,525,951             | 2,500     | 10,464,559                 | (7,373,525)                                      | 3,093,534  
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (2,945,757)                                      | (2,945,757)
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, December 31, 2002                              |  | 10,000,000              | 10,000    | 2,525,951             | 2,500     | 10,464,559                 | (10,319,282)                                     | 157,777    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued for cash at $0.02                                |  |                         |           | 200,000               | 200       | 3,800                      |                                                  | 4,000      
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (5,890)                                          | (5,890)    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, March 31, 2003                                 |  | 10,000,000              | 10,000    | 2,725,951             | 2,700     | 10,468,359                 | (10,325,172)                                     | 155,887    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued for cash at $0.02                                |  |                         |           | 340,000               | 340       | 6,460                      |                                                  | 6,800      
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued pursuant to consulting fee agreements            |  |                         |           | 5,200,000             | 5,200     | 150,800                    |                                                  | 156,000    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (14,328)                                         | (14,328)   
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, June 30, 2003                                  |  | 10,000,000              | 10,000    | 8,265,951             | 8,240     | 10,625,619                 | (10,339,500)                                     | 304,359    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Issued for cash at $0.02                                |  |                         |           | 300,000               | 300       | 5,700                      |                                                  | 6,000      
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Net loss for the period                                 |  |                         |           |                       |           |                            | (4,531)                                          | (4,531)    
|                                                        |  |                         |           |                       |           |                            |                                                  |            
|Balance, September 30, 2003                             |  | 10,000,000              | 10,000    | 8,565,951             | 8,540     | 10,631,319                 | (10,344,031)                                     | 305,828    





Item 2. Management's Plan of Operation.

The company is in its initial stages of development with no
revenues or income and is subject to all the risks inherent in the creation of a
new business. Since the company's principal activities to date have been limited
to organizational activities, prospect development, and acquisition of interest,
it has no record of revenue-producing operations. Consequently, there is no
operating history upon which to base an assumption that the company will be able
to achieve its business plans

The company's business focus is to pursue all different avenues
in order to obtain the funding required to commence the manufacture and sales of
continuous basalt fiber and related products.

The company's wholly owned subsidiary, Basalt Fiber Company
terminated the lease for the factory building in South Hill, Virginia to reduce
monthly expenditures. The action taken however does not affect in any way the
Industrial Revenue Bonds, various grants and tax abatements granted to the
company by the State of Virginia, provided the company sets up it's
manufacturing facilities in the county of Mecklenburg, before the end of 2004.
Should circumstances be advantageous for the company, Management will either
reinstate this lease or secure another suitable lease property in Mecklenburg
Ccounty and install manufacturing facilities as soon as the financing is
obtained. Production of basalt fiber is expected to commence within a year of
financing being obtained and conservative gross sales revenues are projected to
be in excess of $2.50 million in the second year and should exceed $8.50 million
by the fifth year.

In brief, Basalt fiber is the newest fiber application
technology available to the Western Hemisphere. Basalt Fiber can effectively
replace fiberglass in all its applications. It is also stronger, ecologically
safer and more cost effective than fiberglass. As the properties of Basalt Fiber
are far superior to fiber glass, it will command premium prices for all its
products. The many exciting uses of basalt fiber include its application in
industry, the military, local law enforcement and fire safety. Furthermore,
Basalt Fiber's superior strength and advanced thermal properties will aid in the
construction of much stronger and more fire resistant structures. It can also be
used to enhance fire resistant apparel for firefighters and stronger bulletproof
vests for law enforcement personnel.

Principal Product

Until the company's recently formulated diversification policy
makes significant progress, Management will continue to give priority to
obtaining the financing that it's wholly owned subsidiary, Basalt Fiber Company,
requires to manufacture continuous Fiber products for resale in the world
market. The company is expected to grow at a 20% to 25% rate from start up. The
list of the main objectives to be strictly pursued by management is:

- to provide Basalt Fiber Company the market presence, which is necessary to
  support production, marketing and sale goals and to attract customers from the
  niche markets for the Basalt Fiber products
- Generate a fair return for shareholders and finance continued growth and
  development of quality products with earned profits
- To have sales of more than 8.50 million by the fifth year.
- To achieve a gross margin of 73 % and to have checks and balances in place
  to maintain this level
- To continue research and development into the next generation of fiber
  products and
- Achieve a steady and reliable production stream

Liquidity

During the next 12 months, the company will need significant
working capital to fund its marketing efforts and to commence the manufacturing
of Basalt Fiber products. The Company continues to actively pursue financing
from all available sources both in the U.S. and overseas. An application for a
$100 million line of credit to provide working capital, is presently being
processed by a company with established overseas principals. Consideration will
also be given to raising funds through either a private placement or the sale of
corporate bonds backed by an insurance company bond guarantee.

Latest Developments

During August 2003, Management engaged in merger talks with an
established company with an expanding business, but negotiations were
terminated, as the original terms offered by this party could not be met.

During September 2003, consideration was given for the company's
wholly owned subsidiary, Basalt Fiber Company, to enter into a teaming agreement
with an established company that indicated a strong interest in purchasing
basalt fiber. Talks with this company continue, and on October 14, 2003 a letter
of intent to pursue a merger was signed with the Golden Ratio Group of Emigrant,
Montana. All these events were covered in the press releases made during this
period. Details were also provided in the reports on Form 8-K filed.

PART II - OTHER INFORMATION

Item 5. Other information

Board Meetings

The Board of Directors, at a special meeting held in Houston on
September 25, 2003, approved the issuance of 7,000,000 common shares through an
S 8 filing, for prepaid legal fees and in lieu of future consulting fees. Shares
were however only issued to the following during October 2003:

James B. Parsons 1,000,000 shares for prepaid legal fees of
$20,000

Anthony Fanale 3,000,000 shares for prepaid consulting fees of
$60,000

Robert L. Lee 3,000,000 shares for prepaid consulting fees of
$60,000

Sale of restricted stock

During the quarter, 300,000 shares of restricted share were sold
to an investor. The proceeds of $6,000 obtained were used for the part repayment
of a loan provided by this investor.

Item 6. Exhibits and Reports on Form 8-K

Exhibit No. Document Location

3(i) Articles of Incorporation Previously Filed

3(ii) Bylaws Previously filed

________________________________________________________________________

Reports on Form 8-K

On August 29, September 29, and October 14, 2003 the company
filed current reports on Form 8-K reporting in Item 5- Other events.







SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

EMPYREAN COMMUNICATIONS, INC.







/s/ Robert L. LeeDateNovember 7, 2003

Robert L. Lee, President
and Director







/s/ Anthony FanaleDateNovember 7, 2003

Anthony Fanale, Director

*Print the name and
title of each signing officer under his signature.





CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Robert L. Lee, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of
Empyrean Communication, Inc. for the quarter ended September 30, 2003;

2. Based on my knowledge, this quarterly report does not
contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by
this quarterly report;

3. Based on my knowledge, the financial statements, and
other financial information included in this quarterly report, fairly present in
all material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this quarterly
report.

4. The registrant's other certifying offering officers and
I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and we have: a) designed such disclosure controls and procedures to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and c) presented in this quarterly
report our conclusions about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the registrant's auditors and
the audit committee of registrant's board of directors (or persons performing
the equivalent function): a) all significant deficiencies in the design or
operation of internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in internal
controls; and b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

6. The registrant's other certifying officers and I have
indicated in this quarterly report whether or not there were significant changes
in internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies and
material weaknesses.

Date: November 7, 2003



/s/ Robert L. Lee
Robert L. Lee
President and CEO



CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)





In connection with the Quarterly Report of Empyrean
Communications, Inc.., a Nevada corporation (the "Company"), on Form 10-QSB for
the quarter ending September 30, 2003 as filed with the Securities and Exchange
Commission (the "Report"), I, Robert L. Lee,  President, President of the
Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.
Section 1350), that to my knowledge:



(1) The Report fully complies with the requirements of section
13(a) or 15(d) of the Securities Exchange Act of 1934; and



(2) The information contained in the Report fairly presents, in
all material respects, the financial condition and result of operations of the
Company.







/s/ Robert L. Lee

Robert L. Lee, President
and CEO

Dated: November 7, 2003