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, 2002______________________________
|                                                                                  
|[ ]                                                                                | 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

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|___NEVADA_____________________________________
      (State or other jurisdiction of incorporation or organization)                                                             
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|_________________________________________________________________________________
      (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, 2002 there were 3,675,951 shares of common
stock issued and outstanding

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





PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Following are the un-audited financial statements for the period
ended September 30, 2002:





|EMPYREAN COMMUNICATIONS INC.                                                                                                  
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|(A Development Stage Company)                                                                                                 
|STATEMENT OF CASH FLOWS                                                                                                       
|For the three month periods ended September 30, 2002 and
      2001and the nine month period ended September 30, 2002 and 2001
|and for the period October 30,2000 (Date of
      Incorporation) to September 30, 2002                                        
|(Unaudited)                                                                                                                   
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|Cash Flows used in Operating Activites                                                                                        
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|Investing Activities                                                                                                          
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|Financing Activities                                                                                                          
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|EMPYREAN COMMUNICATIONS INC.                                        
|--------------------------------------------------------------------
|(A Development Stage Company)                                       
|BALANCE SHEETS                                                      
|for the periods ended September 30, 2002 and December
      31, 2001
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|Assets                                                              
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|Total Assets                                                        
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|Liabilities                                                         
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|Total Liabilities                                                   
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|Stockholders Equity                                                 
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|Total Stockholders Equity/(Deficit)                                 
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|EMPYREAN COMMUNICATIONS INC.                                                        
|------------------------------------------------------------------------------------
|(A Development Stage Company)                                                       
|Income Statement                                                                    
|for the Three Months and Nine Months Periods Ended
      September 30, 2002 and 2001
|with cumulative since inception                                                     
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|(UNAUDITED)                                                                         
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|Operating Expenses                                                                  
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|Operating Loss                                                                      
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|Other Income/(Expenses)                                                             
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|Net Loss for the period                                                             
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|Basic loss per share                                                                
|Shares Outstanding, 9/30/02,9/30/01                                                 
|Weighted Average Shares Outstanding                                                 
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|EMPYREAN COMMUNICATIONS INC.                                       
|-------------------------------------------------------------------
|(A Development Stage Company)                                      
|STATEMENT OF STOCKHOLDERS EQUITY/(DEFICIT)                         
|for the period ended September 30, 2002                            
|(Unaudited)                                                        
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|Issued for Cash                                                    
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|Net Loss for the period                                            
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|Balance, December 31, 2000                                         
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|Issued for cash pursuant to exercise of warrants - at $
      10.00
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|Issued for acquisition of subsidiary                               
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|Net loss for the period                                            
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|Balance, December 31, 2001                                         
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|Issued for debt extinguishments and future services                
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|Net loss for the period                                            
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|Balance, March 31, 2002                                            
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|Issued for controlling interest in Basalt Fiber Company            
|                                                                   
|Reverse Split 1:20 on April 26, 2002 on shares outstanding         
|                                                                   
|Issued for debt extinguishments and future services                
|                                                                   
|Net loss for the period                                            
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|Balance, June 30, 2002                                             
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|Rescission of shares issued for debt                               
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|Net loss for the period                                            
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|Balance, September 30, 2002                                        
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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 it's business plans

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

Its wholly owned subsidiary, Basalt Fiber Company has terminated
the lease for the factory building in South Hill, Virginia in order to reduce
expenditure, until a firm commitment for the financing being sought is received.
The action taken does not affect the Industrial Revenue Bonds, various grants
and tax abatements granted to the company by the State of Virginia, provided the
company sets up its manufacturing facilities in the county of Mecklenburg before
the end of 2004. Management will either reinstate this lease or secure another
suitable lease property in Mecklenburg County, 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 gross sales
revenues are projected to be in excess of $2.50 million in the second year,
exceeding $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 stronger, ecologically safer
and more cost effective than fiberglass. As the properties of Basalt Fiber are
far superior to fiberglass, it will command premium prices for all its products.
The many uses of basalt fiber include application in industry, the military,
local law enforcement and fire safety. In addition, 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.

Management is presently in negotiations to obtain for Basalt
Fiber Company the exclusive world wide marketing rights for quality basalt fiber
being manufactured in Eastern Europe. It is planned for Basalt Fiber Company to
initially market basalt fiber in the U.S., while promoting the product to the
overseas market on a selective basis. Should these marketing rights be
successfully obtained, Basalt Fiber Company is expected to be revenue producing
within 6 months.

Principal Product

The company's principal business is therefore for its wholly
owned subsidiary, Basalt Fiber Company, to manufacture continuous fiber products
for resale in the world market. From start up, the company is expected to grow
at a 20% to 25% rate and the list of the main objectives to be strictly pursued
by top 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 than8.50 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 manufacture of
Basalt Fiber products. The Company is actively pursuing financing from domestic
Lenders, foreign banks and private investment groups overseas. The interest from
Banks and Private investors, generated by management's visit to Panama in July
2002, continues to be pursued and evaluated, but to date no firm financing
commitments have been received. To utilize another financing avenue available,
the Company is in the process of finalizing a Private Placement Memorandum to be
used to raise $5 million from accredited Investors.

PART II - OTHER INFORMATION

Item 5. Other Information

Board Meetings:

The Board of Directors, at a Special meeting held in Houston,
Texas on July 26, 2002, approved that the restricted common shares issued in the
name of a third party and held in escrow by the Company's Attorney, be
cancelled and returned to Treasury as the agreement under consideration by
management for debt settlement, was not consummated.

Item 6. Exhibits and Reports on

> Exhibit No. Document Location
>     3(i) Articles of Incorporation Previously Filed
>     3(ii) BY Laws Previously filed
>     99.1 Certificate of the Chief Executive Officer of the
>     Company pursuant to Sections 906 and 302 of the Sarbanes-Oxley Act of 2002.
>     ________________________________________________________________________

Reports on Form 8-K

On August 12,2002, the company filed a Current Report on Form
8-K reporting on 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.
Lee            Dated
November 12, 2002

Robert L. Lee,
President and Director







/s/ Anthony Fanale       
Dated November 12, 2002

Anthony Fanale, Director

CERTIFICATION PURSUANT TO SECTIONS 902 AND 302

OF THE SARBANES-OXLEY ACTOF 2002



I, Robert L. Lee, certify that:

1. I have reviewed this quarterly report on Form 10-Q of
Empyrean Communications, Inc. for the quarter ended September 30, 2002;

2. Based on my knowledge, this quarterly report does not
contained 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.

Date: November 13, 2002

/s/ Robert L. Lee

Robert L. Lee

Chief Executive Officer