SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
    EXCHANGE ACT OF 1934.

For the quarterly period ended May 31, 2003.
                               ------------


                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
    SECURITIES EXCHANGE ACT OF 1934.

For the transition period from        to      .
                               ------   ------

                          Commission file number 0-4465
                                                 ------

                            eLEC Communications Corp.
--------------------------------------------------------------------------------
          ( Name of Small Business Issuer as Specified in Its Charter)


      New York                                              13-2511270
--------------------------------------------------------------------------------
 (State or Other Jurisdiction                            (I.R.S. Employer
  of Incorporation or Organization)                      Identification No.)


   543 Main Street New Rochelle, New York                        10801
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                      (Zip Code)

Issuer's Telephone Number, Including Area Code                914-633-6500
                                                              ------------


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  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    .
                                              ---   ---
     Indicate  the  number of  shares  outstanding  of each of the  registrant's
classes of common stock, as of the latest practicable date: 15,608,282 shares of
                                                            --------------------
Common Stock, par value $.10 per share, as of July 1, 2003.
----------------------------------------------------------

<PAGE>


                          PART 1. FINANCIAL INFORMATION
                          -----------------------------

Item 1.  Financial Statements
-----------------------------
                   eLEC Communications Corp. and Subsidiaries
                      Condensed Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                                         May 31, 2003
                                                                         ------------
                                                                          (Unaudited)
<S>                                                                      <C>
Assets
Current assets:
  Cash and cash equivalents                                               $    333,289
   Accounts receivable, net                                                    344,912
   Investment securities                                                        36,997
   Other investments                                                            29,113
   Prepaid expenses and other current assets                                   428,351
                                                                          ------------
   Total current assets                                                      1,172,662

Property, plant  and equipment, net                                          1,758,486

Other assets                                                                    43,170
                                                                          ------------
Total assets                                                              $  2,974,318
                                                                          ============

Liabilities and stockholders' equity deficiency
Current liabilities:
  Short-term borrowings                                                   $    150,000
  Current maturities of long-term debt and capital lease obligations            24,138
  Accounts payable and accrued expenses                                      4,038,389
  Due to related party                                                          59,286
  Liabilities assumed in sale                                                7,021,713
                                                                          ------------
 Total current liabilities                                                  11,293,526
                                                                          ------------



Long-term debt and capital lease obligations, less current
     maturities                                                              1,127,803
                                                                          ------------
Stockholders' equity deficiency:
  Preferred stock, $.10 par value, 1,000,000 shares authorized
    Series B issued, 16 shares,  liquidation  preference $1,000 per
     share                                                                           2
  Common stock $.10 par value, 50,000,000 shares authorized,
    15,619,282 shares issued                                                 1,561,928
  Capital in excess of par value                                            25,671,342
  Deficit                                                                  (36,682,660)
  Treasury stock at cost, 11,000 shares                                        (27,500)
  Accumulated other comprehensive income, unrealized gain on
    securities                                                                  29,877
                                                                          ------------
    Total stockholders' equity deficiency                                   (9,447,011)
                                                                          ------------
 Total liabilities and stockholders' equity deficiency                    $  2,974,318
                                                                          ============
</TABLE>

See notes to the condensed consolidated financial statements


                                       2

<PAGE>

<TABLE>
<CAPTION>

                   eLEC Communications Corp. and Subsidiaries
 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
                                   (Unaudited)

                                                    For the Six Months Ended             For the Three Months Ended
                                                 May 31, 2003      May 31, 2002       May 31, 2003       May 31, 2002
                                                 ------------      ------------       ------------       ------------


<S>                                              <C>                <C>                <C>                <C>
Revenues                                         $  2,500,445       $  8,175,683       $  1,153,416       $  3,700,591
                                                 ------------       ------------       ------------       ------------
Costs and expenses:
 Costs of services                                  1,337,129          5,484,594            579,434          2,454,267
 Selling, general and administrative                2,780,871          5,039,292          1,247,456          2,571,063
 Depreciation and amortization                         63,643            136,219             32,827             82,084
                                                 ------------       ------------       ------------       ------------
               Total costs and expenses             4,181,643         10,660,105          1,859,717          5,107,414
                                                 ------------       ------------       ------------       ------------

Loss from operations                               (1,681,198)        (2,484,422)          (706,301)        (1,406,823)
                                                 ------------       ------------       ------------       ------------
Other income (expense):
Interest expense                                      (69,444)          (298,903)           (34,357)          (154,046)
Interest and other income                             164,680             10,603             79,622              6,098
Gain on sale of assets                              2,256,855                 --            659,966                 --
Gain  on sale of  investment securities and
other investments                                      83,761            684,233             49,925            630,952
                                                 ------------       ------------       ------------       ------------
                                                    2,435,852            395,933            755,156            483,004
                                                 ------------       ------------       ------------       ------------
Net income (loss)                                     754,654         (2,088,489)            48,855           (923,819)
Other comprehensive income - unrealized
income on marketable securities                         4,226            514,817             13,796            483,721
                                                 ------------       ------------       ------------       ------------
Comprehensive income (loss)                      $    758,880       ($ 1,573,672)      $     62,651       ($   440,098)
                                                 ============       ============       ============       ============
Basic and diluted earnings (loss) per share      $       0.05       ($      0.13)      $       0.00       ($      0.06)
                                                 ============       ============       ============       ============
Weighted average number of common shares
outstanding
   Basic                                           15,608,282         15,606,079         15,608,282         15,608,282
                                                 ============       ============       ============       ============
   Diluted                                         15,629,293         15,606,079         15,632,209         15,608,282
                                                 ============       ============       ============       ============
</TABLE>

See notes to the condensed consolidated
financial statements.


                                       3
 <PAGE>



                   eLEC Communications Corp. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                              For the Six Months Ended
                                                                          May 31, 2003      May 31, 2002
                                                                          ------------      ------------
<S>                                                                       <C>               <C>
Net cash (used in) provided by operating activities:                      ($  745,399)      $   870,480
                                                                          -----------       -----------
Cash flows from investing activities:
   Proceeds from sale of investment securities and other investments          153,227           679,162
   Proceeds from the sale of property and equipment                            15,650             4,000
   Proceeds from note                                                          29,102            29,108
                                                                          -----------       -----------
   Net cash provided by investing activities                                  197,979           712,270
                                                                          -----------       -----------
Cash flows from financing activities:
   Repayment of long-term debt                                                (57,819)       (1,750,486)
   Proceeds from exercise of stock options                                         --            45,000
                                                                          -----------       -----------
 Net cash used in financing activities                                        (57,819)       (1,705,486)
                                                                          -----------       -----------
Decrease in cash and cash equivalents                                        (605,239)         (122,736)
Cash and cash equivalents at beginning of period                              938,528           797,616
                                                                          -----------       -----------
Cash and cash equivalents at the end of period                            $   333,289       $   674,880
                                                                          ===========       ===========
Supplemental disclosures of cash flow information
Cash paid during the period for:
     Interest                                                             $    69,444       $   302,433
                                                                          -----------       -----------

</TABLE>

See notes to the condensed consolidated financial statements.


                                       4
<PAGE>


                            eLEC COMMUNICATIONS CORP.
                            -------------------------
        Notes To Condensed Consolidated Financial Statements (Unaudited)
        ----------------------------------------------------------------


Note 1-Basis of Presentation
----------------------------

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the  instructions  to Form 10-QSB of Regulation
S-B.  Accordingly,  they do not include  all of the  information  and  footnotes
required by generally  accepted  accounting  principles  for complete  financial
statements. In the opinion of management,  all adjustments (consisting of normal
recurring  accruals)  considered  necessary  for a fair  presentation  have been
included.  Operating results for the six-month period ended May 31, 2003 are not
necessarily  indicative  of the results  that may be expected for the year ended
November 30, 2003. For further information,  refer to the consolidated financial
statements  and footnotes  thereto  included in our Annual Report on Form 10-KSB
for the year ended November 30, 2002.

Note 2-Principal Financing Arrangements
---------------------------------------

Our  financing  arrangements  consist of a mortgage  loan of $1.1 million due in
December  2005,  with monthly  payments of interest  only at the rate of 11% per
annum,  and no prepayment  penalty,  and a $150,000  working capital loan to our
wholly-owned subsidiary, Telecarrier Services, Inc. ("Telecarrier"), which filed
for relief under Chapter 11 of the United States Bankruptcy Code. See Note 7.

Note 3-Investment Securities
----------------------------

Details as to investment securities at May 31, 2003 are as follows:

                                             Fair       Unrealized
                                  Cost       Value     Holding Gain
                                  ----       -----     ------------

Equity securities                $7,120     $36,997      $29,877

Our  investment  securities  consisted  of 4,143  common  shares of Talk America
Holdings Inc. ("Talk") valued at $8.93 per share at May 31, 2003.

Note 4-Major Customer
---------------------

During the three and six months  ended May 31,  2003 and 2002,  no one  customer
accounted for more than 10% of revenue.

Note 5-Income Taxes
-------------------

At November 30, 2002, we had net operating loss carryforwards for Federal income
tax  purposes of  approximately  $24,000,000  expiring in the years 2003 through
2022. There is an annual limitation of approximately $187,000 on the utilization
of approximately  $1,500,000 of such net operating loss carryforwards  under the
provisions of Internal Revenue Code Section 382.

                                       5


<PAGE>

Note 6- Earnings (Loss) Per Common Share
----------------------------------------

Basic  earnings  (loss) per common  share is  calculated  by dividing net income
(loss) by the weighted  average number of common shares  outstanding  during the
period.  Diluted  earnings (loss) per share is calculated by dividing net income
(loss) by the sum of the weighted  average  number of common shares  outstanding
plus  all  additional   common  shares  that  would  have  been  outstanding  if
potentially  dilutive  securities had been issued unless such inclusion  reduced
the loss per share. A  reconciliation  of the shares used in the  computation of
our basic and  diluted  earnings  (loss) per common  share for the six and three
months ended May 31, 2003 and 2002 is as follows:

                                                         Six Months Ended
                                                              May 31,
                                                      2003               2002
                                                   ---------           -------

Weighted average common shares outstanding        15,608,282        15,609,079
Dilutive effect of securities                         21,011                 -
                                                ------------       -----------
                                                  15,629,293        15,606,079
                                                ============       ===========

                                                        Three Months Ended
                                                              May 31,
                                                     2003                 2002
                                                   ---------           -------

Weighted average common shares outstanding        15,608,282        15,608,282
Dilutive effect of securities                         23,927                 -
                                                ------------       -----------
                                                  15,632,209        15,608,282
                                                ============       ===========

For the six months  ended May 31,  2003 and May 31,  2002,  the  computation  of
diluted earnings (loss) per share excludes the effect of the assumed exercise of
approximately  1,750,000 and 3,000,000  stock options,  warrants and convertible
preferred stock that were outstanding because the effect would be anti-dilutive.

Note 7-Petition for Relief Under Chapter 11
-------------------------------------------

On  July  29,  2002  (the  "Petition  Date"),   Telecarrier,   our  wholly-owned
subsidiary, which has licenses to resell local and long distance service in four
states,  filed a voluntary  petition for relief under  Chapter 11 of the federal
bankruptcy laws in the United States  Bankruptcy Court for the Southern District
of New York and was assigned Case No. 02-20379 (ASH).  Under Chapter 11, certain
claims  (liabilities  subject to  compromise)  against  Telecarrier in existence
prior to the  Petition  Date are stayed  while  Telecarrier  continues  business
operations as a debtor-in-possession.  Additional claims (liabilities subject to
compromise) may arise  subsequent to the filing date resulting from rejection of
executory  contracts,  including equipment leases, and from the determination by
the  court  (or  agreed  to by  parties  in  interest)  of  allowed  claims  for
contingencies and other disputed amounts.  A claim for $150,000,  which a lender
maintains  is  secured by  Telecarrier's  assets  (See Note 2), is also  stayed,
although the claimant has the right to move the Court for relief from the stay.

As of May 31, 2003,  Telecarrier had total assets of approximately  $494,000 and
total liabilities of approximately  $1,196,000,  of which approximately $871,000
represented  pre-petition


                                       6
<PAGE>

liabilities and approximately  $325,000 represented  post-petition  liabilities.
Pre-petition liabilities subject to compromise are reflected below:

  Line of credit                                               $150,000
  Trade payables                                                618,000
  Other accrued expenses                                        103,000

Note 8-Legal Proceedings
------------------------

Our wholly-owned subsidiary,  Essex Communications Inc. ("Essex"), is a party to
several  legal  actions over amounts owed to  creditors.  While legal counsel is
unable to predict the outcome of these actions, we believe such actions will not
result  in a  liability  that  will  have  a  material  adverse  effect  on  our
consolidated  financial condition.  Any judgment against Essex,  however,  could
result in the liquidation of Essex,  as it no longer has any significant  liquid
assets  that can be  utilized  to settle any  judgments.  The legal  actions are
seeking  aggregate  damages of  approximately  $1,600,000 from Essex.  Essex has
counterclaims  for the  actions and it has  accrued  payables  of  approximately
$250,000,  which the  management  of Essex  believes is a amount  sufficient  to
settle such claims.  See Note 10 below  regarding the sale of assets by Essex on
December 31, 2002.

Included in the legal  proceedings  against Essex is an action taken by a former
lessor  against  both  Essex and us for  failure  to pay rent  under a  sublease
agreement.  In April 2003,  we received a summons  filed in the Supreme Court of
the State of New York, County of Suffolk  seeking  unpaid rent of  approximately
$134,000 plus interest, legal fees and other fees.

Note 9-Risks and Uncertainties
------------------------------

We buy  substantially all of our  telecommunication  services from Regional Bell
Operating Companies ("RBOCs"),  and are, therefore,  highly dependent upon them.
We believe our  relationship  with the RBOCs from which we purchase  services is
satisfactory.   We  also  believe   there  are  less   desirable   suppliers  of
telecommunication  services in the  geographical  locations  in which we conduct
business.  In  addition,  we are at risk to price  increases  in the rates RBOCs
charge us, which are determined by individual state public service  commissions.
In light of the  foregoing,  it is possible  that the loss of one or more of our
relationships  with the RBOCs or a significant  unfavorable  change in the state
pricing  regulations  would  have a severe  near-term  impact on our  ability to
conduct our telecommunications business.

Future  results  of  operations  involve a number  of risks  and  uncertainties.
Factors  that could  affect  future  operating  results and cash flows and cause
actual results to vary materially from historical results,  include, but are not
limited  to: - Our  business  strategy  with  respect to bundled  local and long
distance services may not succeed.

-    Failure to manage, or difficulties in managing,  our growth,  operations or
     restructurings,  including attracting and retaining qualified personnel and
     opening up new territories for its service with favorable gross margins.

-    Dependence  on  the   availability  or  functionality  of  incumbent  local
     telephone  companies'  networks,  as they relate to the  unbundled  network
     element platform or the resale of such services.


                                      7
<PAGE>

-    Increased price competition in local or long distance service.

-    Failure or inteHrruption in our network or information systems. - - Changes
     in  government  policy,  regulation  or  enforcement.  - -  Failure  of our
     collection management system and credit controls efforts for customers.

-    Inability to adapt to technological change.

-    Competition in the telecommunications industry.

-    Inability to manage  customer  attrition or bad debt  expense.  - - Adverse
     change in our relationship with third party carriers.

-    Failure or bankruptcy of other  telecommunications  companies upon which we
     rely for services and revenues.

-    Our  operations  are  currently  using  cash,  and  our  cash  position  is
     deteriorating. We may run out of cash and be unable to conduct business.

Note 10-Asset Sale
------------------

On September 3, 2002, we entered into an agreement with Essex  Acquisition Corp.
("EAC"), a wholly-owned  subsidiary of BiznessOnline.com,  Inc. ("Biz"), to sell
substantially  all the assets of Essex  (amounting to $1,273,945 at December 31,
2002),  for five dollars plus the  assumption  of certain  liabilities  of Essex
amounting to $10,552,512 at December 31, 2002, including all obligations due and
payable to Essex's largest vendor, Verizon Services Corp. ("Verizon").  EAC also
paid us  $270,000  to  reimburse  us for  amounts  paid by us to Essex's  former
lender,  Textron Financial  Corporation.  The sale, which closed on December 31,
2002, is expected to result in a potential gain of approximately  $9,300,000. In
connection with the acquisition, EAC entered into an agreement with Verizon that
provides a payment  schedule  for the  Verizon  liabilities  assumed by EAC from
Essex.  Verizon granted EAC a discount on the assumed  liabilities  provided EAC
adheres to the payout schedule.


The  agreement  with  Verizon   provides  that  Essex  will  remain  liable  for
substantially  all the  obligations  assumed in the sale until such time as they
are paid by EAC. The last publicly available unaudited  financial  statements of
Biz as of June 30, 2002 indicate that Biz had a stockholders'  equity deficiency
of  approximately  $20,500,000 and had negative working capital of approximately
$3,500,000. The most recent independent auditor's report of Biz for the calendar
year 2001 expressed significant doubt about Biz's ability to continue as a going
concern.  These factors  indicate  there is  significant  uncertainty  as to the
ability of Biz and its  subsidiaries to repay the obligations  described  above.
Accordingly,  we will only record gains when Verizon  reports to us that EAC has
made payments to them to reduce the Essex  obligations that were assumed by EAC.
In the six months ended May 31, 2003,  EAC made payments to Verizon and other of
Essex's  creditors of  $3,530,800,  which reduced the  liabilities  of Essex and
resulted  in gains to us of  approximately  $2,257,000.  We have been  unable to
obtain other  information with respect to the repayment of liabilities by EAC to
substantially   all  other  vendors



                                       8
<PAGE>

and creditors other than Verizon, and accordingly, we have not recorded any gain
or other settlements, which may have been consummated during the period.

Essex has been billed for certain amounts from its service  providers in certain
states,  which are disputed by Essex.  Essex contends that the related invoicing
of taxes,  subscriber  line  charges  and  other  fees and  features  are not in
accordance with the agreements between Essex and the service  providers.  At May
31, 2003 and 2002,  Essex has not paid for or accrued  approximately  $3,200,000
and $4,000,000, respectively, of such disputed amounts. Substantially all of the
disputed liabilities are with Verizon, and have been transferred pursuant to the
asset sale. We believe Essex will prevail in these  disputes if Verizon deems us
liable.

Assets  and  liabilities  transferred  to EAC,  as  adjusted,  consisted  of the
following at December 31, 2002:

         Assets:
           Cash                                              $       44,024
           Accounts receivable, net                               1,070,013
           Property and equipment, net                               35,851
           Security deposits                                        124,057
                                                              -------------

                                                             $    1,273,945
                                                              =============

         Liabilities:
           Accounts payable and accrued expenses             $    9,671,563
           Taxes payable                                            782,572
           Capital lease obligations                                 98,377
                                                              -------------

                                                             $   10,552,512
                                                              =============


For the six months ended May 31, 2003, we recorded a gain on the  transaction of
approximately  $2,257,000.  This gain was  calculated by taking all  liabilities
assumed by EAC that were paid by EAC  before  June 1, 2003 and  subtracting  the
book value of the assets transferred.

          Assumed liabilities paid by EAC                        $3,530,800
          Assets transferred to EAC                               1,273,945
                                                                  ---------
          Gain                                                   $2,256,855
                                                                 ==========

For the three months ended May 31, 2003,  we recorded a gain on the  transaction
of  approximately  $660,000.  This gain was calculated by taking all liabilities
assumed by EAC that were paid by EAC  before  June 1, 2003 and  subtracting  the
book value of the assets transferred.

          Assumed liabilities paid by EAC                          $739,310
          Assets transferred to EAC                                  79,344
                                                                     ------
          Gain                                                     $659,966
                                                                   ========

We will  continue to recognize  additional  amounts of gain on the asset sale in
subsequent quarters, if and when EAC pays the liabilities it assumed from Essex.

The  following  unaudited  pro forma  summary  presents  consolidated  financial
information of our  operations for the six-month  periods ended May 31, 2003 and
2002,  as if the sale of Essex's



                                       9
<PAGE>


assets had  occurred at the  beginning of each period  presented.  The pro forma
amounts include certain  adjustments  that eliminate all the operations of Essex
for the  periods  presented.  The pro  forma  information  does not  necessarily
reflect the actual results that would have occurred had the sale taken place for
the periods presented, nor is it necessarily indicative of the future results of
operations of the remaining company:

                                                           Unaudited
                                                   Six months ended May 31,
                                              ----------------------------------

                                                    2003                2002
                                                    ----                ----

       Revenues                                  $1,607,249          $141,410
                                                 ----------          --------

       Net loss                                 ($1,222,220)      ($2,296,398)
                                                ------------       ----------

       Basic and diluted loss per share            ($0.08)            ($0.15)
                                                    -----              -----

The  following  unaudited  pro forma  summary  presents  consolidated  financial
information of our operations for the three-month periods ended May 31, 2003 and
2002,  as if the sale of Essex's  assets had  occurred at the  beginning of each
period  presented.  The pro  forma  amounts  include  certain  adjustments  that
eliminate all the operations of Essex for the periods  presented.  The pro forma
information  does not  necessarily  reflect the actual  results  that would have
occurred  had  the  sale  taken  place  for  the  periods  presented,  nor is it
necessarily  indicative  of the future  results of  operations  of the remaining
company:

                                                            Unaudited
                                                    Three months ended May 31,
                                                    --------------------------

                                                        2003            2002
                                                        ----           ------

       Revenues                                      $1,153,416        $78,251
                                                     ----------        -------

       Net income (loss)                              ($624,928)   ($1,262,191)
                                                      ----------      --------

       Basic and diluted Income (loss) per share        ($0.04)         ($0.08)
                                                         -----          -----

Note 11-Reclassifications
-------------------------

Certain  amounts  in the May  31,  2002  Condensed  Consolidated  Statements  of
Operations and Comprehensive Income (Loss), have been reclassified to conform to
the May 31, 2003 presentation.



                                       10
<PAGE>



Item 2. Management's  Analysis and Discussion of Financial Condition and Results
--------------------------------------------------------------------------------
of Operations
-------------


     The statements  contained in this Report that are not historical  facts are
"forward-looking   statements"   which   can  be   identified   by  the  use  of
forward-looking   terminology,   such  as  "estimates,"   "projects,"   "plans,"
"believes,"  "expects,"  "anticipates,"  "intends,"  or the negative  thereof or
other variations  thereon,  or by discussions of strategy that involve risks and
uncertainties.  Management  wishes to caution the reader of the  forward-looking
statements,  that such statements,  which are contained in this Report,  reflect
our current  beliefs with respect to future events and involve known and unknown
risks, uncertainties and other factors, including, but not limited to, economic,
competitive,  regulatory,  technological,  key  employee,  and general  business
factors affecting our operations,  markets, growth, services, products, licenses
and  other  factors  discussed  in our other  filings  with the  Securities  and
Exchange   Commission,   and  that  these   statements  are  only  estimates  or
predictions.  No assurances  can be given  regarding the  achievement  of future
results, as actual results may differ materially as a result of risks facing us,
and actual events may differ from the assumptions underlying the statements that
have been made regarding  anticipated events.  Factors that may cause our actual
results, performance or achievements,  or industry results, to differ materially
from those  contemplated by such  forward-looking  statements  include,  without
limitation:  (1) the availability of additional funds to successfully pursue our
business plan; (2) the impact of changes the Federal  Communications  Commission
or State Public Service Commissions may make to existing  telecommunication laws
and regulations;  (3) the cooperation of incumbent  carriers in implementing the
unbundled  network  elements  platform  required by the  Federal  Communications
Commission;  (4)  our  ability  to  maintain,  attract  and  integrate  internal
management,  technical  information and management  information systems; (5) our
ability to market  its  services  to  current  and new  customers  and  generate
customer demand for its product and services in the geographical  areas in which
we  operate;  (6) our  success  in  gaining  regulatory  approval  to access new
markets;  (7) our ability to  negotiate  and maintain  suitable  interconnection
agreements with the incumbent carriers;  (8) the availability and maintenance of
suitable vendor  relationships,  in a timely manner, at reasonable cost; (9) the
intensity of competition;  and (10) general economic conditions. All written and
oral forward  looking  statements  made in connection  with this Report that are
attributable  to us or persons  acting on our behalf are expressly  qualified in
their entirety by these  cautionary  statements.  Given the  uncertainties  that
surround such statements, prospective investors are cautioned not to place undue
reliance on such forward-looking statements.

Overview

eLEC  Communications  Corp. is a  full-service  telecommunications  company that
focuses on developing  integrated  telephone service in the emerging competitive
local  exchange  carrier  ("CLEC")  industry.  We  offer  small  businesses  and
residential  consumers  an  integrated  set of  telecommunications  products and
services,  including local exchange,  local access,  domestic and  international
long  distance  telephone,  data and a full suite of local  features and calling
plans.  We have built a scalable  operating  platform that can provision a local
telephone line,  provide  dial-tone to our customers,  read usage records,  rate
telephone calls for billing  purposes,  prepare  monthly  invoices to customers,
provide real-time on-line customer support services at our inbound call centers,
capture credit and collection  data,  calculate  gross margins for each line and
perform  any moves,  adds,  changes  and repairs  that a customer  requests. We
utilize  universal


                                       11
<PAGE>


client  technology  that enables our  employees  and agents to access our system
from any PC using any Internet browser.

We  believe  that the  Telecommunications  Act of 1996 (the  "Telecommunications
Act"),  which opened the local exchange  market to  competition,  has created an
attractive  opportunity for CLECs.  Like most CLECs,  our entry in this industry
was dependent upon the provisions of the Telecommunications Act that allow CLECs
to lease  various  elements of the  networks  of the  incumbent  local  exchange
carriers  ("ILECs") that are necessary to provide local  telephone  service in a
cost-effective  manner. This aspect of the Telecommunications Act is referred to
as  "unbundling"  the ILEC networks,  and allows us to lease  unbundled  network
elements on an as-needed  basis and provide such  elements to our customers at a
lower cost than that which the ILEC is charging.

Although  we  believe  the  opportunity  for  CLECs  is  attractive,  it is also
challenging.  We must  contend  with  federal and state  government  regulators,
rapidly changing  technologies,  incumbent  carriers that are better staffed and
capitalized  than  us and  real-time  business  partners  that  also  carry  our
customer's  telephone call, whether it is local, long distance or international.
At the same time that we are  managing  these  challenges,  we also must provide
connectivity, superior customer service and a culture of continuous improvement.
Because of the  complexity  of the  business,  we have  focused our  energies on
simplifying   our  working   environment  and  improving   performance   through
automation.

Other   CLECs   have   invested   a   substantial   amount  of  capital  to  buy
circuit-switched  equipment and rollout fiber, only to find that their equipment
is severely  underutilized  and that there is a  significant  shortfall in their
revenue  stream when  compared  to their  capital  investment.  We refer to this
strategy as a "facilities-first"  strategy, because the CLEC has invested in its
equipment  and placed the  equipment in service  before the CLEC has developed a
customer  base.  Our  strategy  is a  "customer-first,"  or  a  "deferred-build"
strategy.  We invested our capital in our  Operations  Support System ("OSS") to
support our customers and we lease  facilities on an as-needed  basis from ILECs
while  we  build  our  customer  base.  After  we have  obtained  a  substantial
geographical  concentration of customers,  we will make decisions  regarding the
purchase and installation of our own network equipment.  This strategy allows us
to be more flexible with our customer base as we grow our business.  We can move
our customer base to alternative access, if appropriate,  and we do not become a
captive   of  our  own   underutilized   equipment,   as  can   happen   with  a
"facilities-first"  CLEC.  The  technological  advances  in  equipment  and  the
lowering of equipment prices have substantiated our deferred-build  strategy and
have enabled us to better utilize our limited capital.

When we lease lines from an ILEC, we use the unbundled network elements platform
("UNE-P")  service  offering.  UNE-P allows us to lease the network  elements we
need,  such as the  local  line and the port on a local  switch,  so that we can
provide  local dial tone service to our  customers.  We are capable of providing
virtually all of the same additional  voice services  provided by any ILEC, such
as three-way calling,  call waiting,  call forwarding and caller ID. We sell our
services  at a fee  that is at least  10% and as much as 25% less  than the rate
charged  by the ILEC.  We also  offer a bundled  package  of local and  regional
calling minutes with popular voice service features.

We believe UNE-P is the preferable  platform for any CLEC to operate under while
it is growing  and  building a customer  base.  We have  designed  our OSS to be
flexible and scalable so that any company  that wants to begin  providing  local
exchange  services  utilizing  UNE-P can rely on our OSS. UNE-P has  substantial
value  because  it allows a CLEC to provide  service  with



                                       12
<PAGE>

significantly  lower capital  requirements  than either  fiber-based or wireless
systems,  and to offer services to a broader customer base more quickly and at a
lower price. The ability to rapidly  provision  accounts and to deliver reliable
service  at a lower  price  than  offered  by the ILECs  should  provide us with
certain  competitive  advantages as we market our services to small business and
residential  customers.  Recently,  several  ILECs have  petitioned  the Federal
Communications Commission ("FCC") to make changes to regulatory requirements for
the UNE-P  service  offering.  These ILECs have  attempted  to lobby the FCC and
state public utility  commissions to impose  restrictions on certain  individual
network  elements  that  would  destroy  the  competitive  value  of  the  UNE-P
structure.  If the ILECs  succeed in their  lobbying  efforts,  it is likely the
resulting amendments to the existing UNE-P structure will significantly harm our
operations and gross margins.

In March 2002, UNE-P became more valuable to us when the costs charged to us for
providing  local voice services on the UNE-P service  offering in New York State
were lowered.  We believe  current rates are also very  attractive in New Jersey
and  Pennsylvania.  Our  original  CLEC  business,  built  in  our  wholly-owned
subsidiary,  Essex,  began as a reseller with  approximately  10% gross margins.
This subsidiary was unable to operate  profitably and we sold the Essex customer
base and related assets on December 31, 2002.  Another CLEC  subsidiary  that we
own, Telecarrier, is operating under the protection of Chapter 11 of the Federal
Bankruptcy Code. As with Essex,  Telecarrier  began as a reseller and was unable
to operate profitably.  Our primary operating CLEC, New Rochelle Telephone Corp.
("NRTC"),  is  selling  services  in New York  State  and  Pennsylvania,  and is
currently  achieving gross margins over 45%. As a start-up CLEC, NRTC is not yet
profitable. If we are able to obtain an appropriate working capital facility, or
a sufficient amount of cash from the sale of our building,  we project NRTC will
be able to reach a breakeven level this year. However, there can be no assurance
that this will occur,  nor can there be any  assurance we will be able to obtain
the  financing  we are  seeking.  Failure  to  reach a  breakeven  level  in our
operations  could cause us to seek to  reorganize  under  applicable  bankruptcy
laws.

Six Months Ended May 31, 2003 vs. Six Months Ended May 31, 2002
---------------------------------------------------------------

Our  net  revenues  for  the  six  months  ended  May  31,  2003   decreased  by
approximately  $5,675,000,  or approximately 69%, to approximately $2,500,000 as
compared to approximately  $8,176,000  reported for the six months ended May 31,
2002.  The  decrease  in sales is directly  attributable  to the sale of Essex's
customer base on December 31, 2002,  discussed  above.  For the six months ended
May 31, 2003, Essex's sales were approximately  $893,000,  which represented the
sales of this  subsidiary from the period December 1, 2002 to December 31, 2002,
the date on which  certain of its assets  were sold to EAC (See Note 10).  After
the sale of the  customer  base on  December  31,  2002,  Essex did not have any
additional  sales,  and we believe  Essex will  eventually be dissolved or sold.
Sales of $893,000 represent a decrease in Essex's sales for the six months ended
May 31, 2003 of approximately  $7,140,000,  or 89%, as compared to approximately
$8,033,000  reported  for the six months  ended May 31,  2002.  The  decrease in
Essex's  sales  was  offset,  in  part,  by  aggregate  sales  of  approximately
$1,496,000  reported by NRTC and  Telecarrier,  each of which had no  comparable
sales for the six months ended May 31, 2002.  We  anticipate  sales for NRTC and
Telecarrier  to continue to  increase in the second half of fiscal  2003,  as we
work to add new  customers.  In June  2003,  we  invoiced  NRTC and  Telecarrier
customers a total of approximately  $480,000 for approximately  9,300 lines. Our
line count and customer base has continued to grow in July 2003,  but additional
growth  will be  directly  related  to the cash we have  available  for new line
acquisition costs. See the discussion on liquidity below.



                                       13
<PAGE>

Our  gross  profit  for  the   six-months   ended  May  31,  2003  decreased  by
approximately   $1,528,000  to  approximately   $1,163,000  from   approximately
$2,691,000  reported in for the  six-months  ended May 31,  2002,  and the gross
profit  percentage  increased  to 46.5% from 32.9%  reported in the prior fiscal
period.  The decrease in gross profit is directly related to the sale of Essex's
customer  base as  discussed  above.  The  increase in gross  profit  percentage
reflects our sales  strategy to sell in only those states in which we believe we
will be able to  achieve a margin of at least  40%.  In the first half of fiscal
2003, NRTC and Telecarrier  sold telephone  service in New York State and in New
Jersey.  During June 2003, we started to expand NRTC's  service  offerings  into
Pennsylvania and we are currently  negotiating for an interconnection  agreement
to provide NRTC's  service  offerings to business and  residential  consumers in
Michigan.

Selling, general and administrative expenses ("SG&A") decreased by approximately
$2,258,000, or approximately 45%, to approximately $2,781,000 for the six-months
ended May 31, 2003 from  approximately  $5,039,000  reported in the prior fiscal
period.  This decrease in expense is directly  related to the curtailment of our
Essex  operations  and our on going  efforts to implement  various  cost-cutting
measures,  which  included,  among other things,  a reduction in staffing.  SG&A
expenses incurred by Essex represented  approximately $646,000 of the $2,739,000
in SG&A costs for the period ended May 31, 2003. Currently,  our SG&A costs have
averaged  approximately  $350,000  per  month,  approximately  $60,000  of which
represents  new line  acquisition  expenses.  In June  2003,  we  curtailed  our
in-house  telemarketing efforts and reduced staff and associated overhead costs,
such as telephone expense.  We will focus on third party  telemarketing firms to
generate new sales,  as we believe this is a more efficient  means of generating
new sales as we only pay for lines that we accept.  We continue to evaluate  our
operations for  efficiencies,  and we are looking for ways to implement  further
SG&A reductions in the remainder of fiscal 2003.

Depreciation and amortization  expense  decreased by approximately  $72,000,  to
approximately  $64,000  for the six months  ended May 31,  2003 as  compared  to
approximately  $136,000 for the six months  ended May 31,  2002.  The decline in
depreciation expense was partially attributable to the sale of certain assets to
EAC on December 31, 2002.

Interest expense decreased by approximately  $230,000,  to approximately $69,000
for the six months ended May 31, 2003 as compared to approximately  $299,000 for
the six months ended May 31, 2002.  The  decrease in interest  expense  resulted
from the  termination  of our  credit  facility  that was in place in the  prior
period.

Interest  and other  income for the six months  ended May 31, 2003  increased by
approximately  $154,000  from  amounts  reported  in  the  prior  fiscal  period
resulting primarily from commission and rental income.

Gain on the  sale  of  assets  for  the  six  months  ended  May  31,  2003  was
approximately $2,257,000 (See Note 10).

Gain on the sale of  investment  securities  and other  investments  for the six
months ended May 31, 2003 was  approximately  $84,000,  which  resulted from the
sale of Cordia  Corporation  ("Cordia") and Talk shares, as compared to $684,000
for the six months  ended May 31,  2002,  which  resulted  from the sale of Talk
shares.


                                     14

<PAGE>


Three Months Ended May 31, 2003 vs. Three Months Ended May 31, 2002
-------------------------------------------------------------------

Our  net  revenues  for  the  three  months  ended  May 31,  2003  decreased  by
approximately  $2,548,000,  or approximately 69%, to approximately $1,153,000 as
compared to approximately $3,701,000 reported for the three months ended May 31,
2002.  The  decrease  in sales is directly  attributable  to the sale of Essex's
customer base on December 31, 2002,  discussed above. For the three months ended
May 31,  2003,  Essex  had no  sales as  compared  to  approximately  $3,622,000
reported for the three months ended May 31, 2002.  The decrease in Essex's sales
was offset, in part, by aggregate sales of approximately  $1,084,000 reported by
NRTC and Telecarrier, each of which had no comparable sales for the three months
ended May 31, 2002. We anticipate  sales for NRTC and Telecarrier to continue to
increase in the second  quarter of fiscal 2003, as we work to add new customers.
See the discussion on liquidity below.

Our  gross  profit  for the  three  months  ended  May  31,  2003  decreased  by
approximately $672,000 to approximately  $574,000 from approximately  $1,246,000
reported in the three months ended May 31, 2002, and the gross profit percentage
increased to 49.8% from 33.7% reported in the prior fiscal period.  The decrease
in gross  profit is  directly  related to the sale of Essex's  customer  base as
discussed  above.  The  increase in gross profit  percentage  reflects our sales
strategy  to sell in only  those  states in which we  believe we will be able to
achieve a margin of at least 40%, as discussed above.

Selling, general and administrative expenses ("SG&A") decreased by approximately
$1,324,000,  or  approximately  51%, to  approximately  $1,247,000 for the three
months ended May 31, 2003 from approximately $2,571,000 reported in prior fiscal
period.  As discussed above, this decrease in expense is directly related to the
curtailment  of our Essex  operations  and our  on-going  efforts  to  implement
various cost-cutting measures,  which included,  among other things, a reduction
in staffing.

Depreciation and amortization  expense  decreased by approximately  $49,000,  to
approximately  $33,000  for the three  months  ended May 31, 2003 as compared to
approximately  $82,000 for the three months  ended May 31, 2002.  The decline in
depreciation expense was partially attributable to the sale of certain assets to
EAC on December 31, 2002.

Interest expense  decreased by approximately  $120,000 to approximately  $34,000
for the three-months  ended May 31, 2003 as compared to  approximately  $154,000
for the three  months  ended May 31,  2002.  The  decrease in  interest  expense
resulted from the  termination  of our credit  facility that was in place in the
prior period.

Interest and other  income for the three months ended May 31, 2003  increased by
approximately $74,000 from amounts reported in the prior fiscal period resulting
primarily from commission and rental income.

Gain  on the  sale of  assets  for the  three  months  ended  May 31,  2003  was
approximately $660,000 (See Note 10).

Gain  on the  sale  of  investment  securities  and  other  investments  for the
three-month  periods  ended May 31, 2003 and 2002 of  approximately  $50,000 and
$631,000, respectively, resulted from the sale of Talk shares.



                                       15
<PAGE>

Liquidity and Capital Resources
-------------------------------

At May 31, 2003, we had cash and cash  equivalents  of  approximately  $333,000,
including approximately $218,000 in Telecarrier, and negative working capital of
approximately  $10,121,000 as compared to cash and cash equivalents available of
approximately $675,000, and negative working capital of approximately $9,573,000
at  May  31,  2002.  Of  such  working  capital  deficiency  at  May  31,  2003,
approximately  $7,021,000  in  liabilities  were  assumed by EAC on December 31,
2002, for which we remain liable.

Net cash (used in) provided by  operating  activities  aggregated  approximately
($745,000)  and $870,000 in the  six-month  periods ended May 31, 2003 and 2002,
respectively. The principal source of cash in fiscal 2003 was the net profit for
the period of approximately  $800,000,  which was offset by a non-cash item, the
net  effect  of the  gain on the  transfer  of  assets  to EAC of  approximately
$2,257,000. The principal use of cash in fiscal 2002 was the loss for the period
of  approximately  $2,088,000,  which was  offset by the  increase  in  accounts
payable,  principally  through the  delaying  of  payments  to vendors,  and the
reduction in accounts  receivable  of  approximately  $3,080,000  and  $398,000,
respectively.

Net cash provided by investing activities aggregated  approximately $198,000 and
$712,000 in the six-month periods ended May 31, 2003 and 2002, respectively. The
principal source of cash in fiscal 2003 and 2002 were the proceeds from the sale
of investment  securities and other  investments of  approximately  $153,000 and
$679,000, respectively.

Net cash used in  financing  activities  aggregated  approximately  $58,000  and
$1,705,000 in the six-month  periods ended May 31, 2003 and 2002,  respectively.
In  fiscal  2003,  net  cash  used in  financing  activities  resulted  from the
repayment  of debt.  In  fiscal  2002,  net cash  used in  financing  activities
resulted  from  the  repayment  of short  and  long-term  debt of  approximately
$1,750,000,  which was  partially  offset by the  proceeds  from the exercise of
stock options of approximately $45,000.

For the six-month period ended May 31, 2003, we had no capital expenditures.  We
do not expect to make any significant capital  expenditures for the remainder of
fiscal 2003.

At May 31, 2003, we owned 4,143 shares of Talk  (NASDAQ:TALK)  and 83,180 shares
of Cordia  (OTCBB:CORG).  We have the  right to  purchase  approximately  95,000
additional  shares of Talk if we exercise a warrant.  The warrant exercise price
is $6.30 per share and, at May 31, 2003, was in-the-money,  as Talk common stock
was trading at approximately $8.93 per share at such date.

The  report  of the  independent  auditors  on  our  2002  financial  statements
indicates  there is  substantial  doubt about our ability to continue as a going
concern.  We have worked  during the course of the year to improve our financial
condition  and,  as  discussed  previously,  the sale of most of the  assets and
liabilities of our wholly-owned subsidiary,  Essex, in December 2002, has helped
us to continue our business operations.  However, we do not believe we currently
have enough working capital to build our business to a profitable level. We have
been seeking,  for more than six months,  a working  capital  facility that will
provide us with financing of up to 80% of our outstanding accounts  receivables.
We anticipate that with such  financing,  we will be able to achieve our plan of
becoming  profitable  before the end of this fiscal year.


                                       16
<PAGE>

However,  our current  operating losses and the current  reluctance of financing
sources to lend to the  telecom  sector have  contributed  to our  inability  to
secure such financing. In lieu of such asset-based financing, new debt or equity
financing of up to $1 million,  or a sale of  additional  assets of such amount,
would be required to fund our operations.  Given the current market price of our
common stock and the current market conditions in the telecom sector,  there can
be no  assurances  that we will be able to obtain such funding  when needed,  or
that such funding, if available, will be obtainable on acceptable terms. We have
determined that an appropriate source of approximately $1 million of cash can be
obtained from the sale our  corporate  headquarters  building.  In June 2003, we
signed a contract to sell our building  that has several  conditions to closing.
We  believe  this sale  will  generate  sufficient  cash for us to  satisfy  our
mortgage indebtedness and to obtain a number of lines that will allow us to move
toward our goal of reaching profitability.  We anticipate working with the buyer
to close the  transaction  as soon as possible so that the cash proceeds will be
available  to us.  The  buyer  plans to  demolish  our  building  and  construct
residential  units.  The local  zoning board and  planning  board have  meetings
scheduled at the end of July 2003 to consider  approval of the buyer's plans for
demolition  and new  construction.  The buyer is not  required to  complete  the
building purchase if such approvals are not obtained.  The failure to close this
transaction  promptly,  to secure bridge financing until such transaction closes
or to raise the necessary  funds to finance our operations  will have an adverse
effect on our ability to carry out our business plan. The inability to carry out
this plan may result in the  continuance  of  unprofitable  operations,  and the
eventual inability to pay our operating  expenses,  which would adversely affect
our ability to continue operating as a going concern.


                                       17
<PAGE>

                            PART II-OTHER INFORMATION
                            -------------------------

Item 1.           Legal Proceedings
-------           -----------------

                  See Note 8-Legal Proceedings

Item 2.           Changes in Securities
-------           ---------------------

                  None

Item 3.           Controls and Procedures
-------           -----------------------

                       (a) Within the 90 days prior to the date of this report,
         we carried out an evaluation, under the supervision and with the
         participation of our management, including our Chief Executive Officer
         and principal accounting officer, of the effectiveness of the design
         and operation of our disclosure controls and procedures pursuant to
         Exchange Act Rule 13a-14. Based upon that evaluation, our Chief
         Executive Officer and principal accounting officer concluded that our
         disclosure controls and procedures are effective in timely alerting him
         to material information relating to our company (including its
         consolidated subsidiaries) required to be included in our periodic SEC
         filings.

                    (b) There have been no significant changes in our internal
         controls or in other factors that could significantly affect our
         internal controls subsequent to the date we carried out this
         evaluation, including any corrective actions with regard to significant
         deficiencies and material weaknesses.

Item 6.           Exhibits and Reports on Form 8-K
-------           --------------------------------

                  (a)  Exhibits.
                       99.1 Certification of Principal Executive Officer
                            and Principal Financial Officer
                            Pursuant to 18 U.S.C. 1350
                            (Section 906 of the Sarbanes-Oxley Act of 2002)





                                       18


<PAGE>

                  (b) Reports on Form 8-K

                      On April 21, 2003, we filed a Current Report on Form 8-K
         providing certifications of our Principal Executive Officer and
         Principal Financial Officer with respect to our Quarterly Report on
         Form 10-QSB for the fiscal period ended February 28, 2003, as required
         by Section 906 of the Sarbanes-Oxley Act of 2002.



                                     19


<PAGE>


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                               eLEC Communications Corp.



  July 15, 2003                            By: /s/ Paul H. Riss
------------------                             ---------------------------------
Date                                           Paul H. Riss
                                               Chief Executive Officer
                                               (Principal Financial and
                                               Accounting Officer)


                                       20

<PAGE>


                                 Certifications
                                 --------------


         I, Paul H. Riss, certify that:

         1. I have reviewed this quarterly report on Form 10-QSB of eLEC
Communications Corp.;

         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. I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for
the registrant and I 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 me 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 my conclusions about the
         effectiveness of the disclosure controls and procedures based on my
         evaluation as of the Evaluation Date;

         5. I have disclosed, based on my 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



                                       21

<PAGE>



                  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. 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 my most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.


Date: July 15, 2003

                                        /s/ Paul H. Riss
                                        ----------------------------------------
                                        Paul H. Riss
                                        Chief Executive Officer and Principal
                                        Financial and Accounting Officer


                                       22