SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

For the quarterly period ended August 31, 2000.

                                       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.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


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


    509 Westport Avenue, Norwalk, Connecticut                 06851
--------------------------------------------------------------------------------
    (Address of Principal Executive Offices)                (Zip Code)


Registrant's Telephone Number, Including Area Code     203-229-2400
                                                       ------------

--------------------------------------------------------------------------------
(Former  Name,  Former  Address and Former  Fiscal Year,  if Changed  Since Last
Report)


     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: 13,827,921 shares of
                                                            --------------------
common stock, par value $.10 per share, as of October 1, 2000.
--------------------------------------------------------------

<PAGE>

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


Item 1.  Financial Statements
-----------------------------

                   eLEC Communications Corp. and Subsidiaries
                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                      Aug. 31, 2000              Nov. 30, 1999
                                                                      -------------              -------------
                                                                       (Unaudited)                (See note)
Assets
Current assets:
<S>                                                                   <C>                        <C>
  Cash and cash equivalents                                           $   1,119,010              $   591,299
  Marketable securities                                                  13,490,298                        -
  Accounts receivable                                                     3,249,225                1,245,078
   Inventory                                                                496,688                  876,460
   Prepaid expenses                                                          61,747                   52,636
   Other current assets                                                      65,181                  177,680
   Land and building held for sale                                          587,133                  596,304
                                                                      -------------              -----------
Total current assets                                                     19,069,282                3,539,457
                                                                      -------------              -----------

Property and equipment at cost                                            1,279,204                  322,734
Less accumulated depreciation                                               225,345                  111,036
                                                                      -------------              -----------
Net property and equipment                                                1,053,859                  211,698
                                                                      -------------              -----------

Other assets                                                                332,081                   97,108
Investment in and advances to subsidiary                                    380,913                  424,575
Investments under the equity method                                       1,019,896                        -
Investments under cost method                                               194,929                1,469,929
Goodwill                                                                  3,126,842                1,554,370
                                                                      -------------              -----------
                                                                          5,054,661                3,545,982
                                                                      -------------              -----------
Total assets                                                          $  25,177,802              $ 7,297,137
                                                                      =============              ===========

Liabilities and stockholders' equity
Current liabilities:
  Loans payable to financial institutions and current
   maturities of long-term debt                                       $   1,361,704              $   523,695
  Due to related parties                                                          -                   34,725
  Accounts payable                                                        1,467,834                1,302,714
  Accrued expenses and taxes                                              1,638,571                1,779,704
                                                                      -------------              -----------
Total current liabilities                                                 4,468,109                3,640,838
                                                                      -------------              -----------

Long-term debt, less current maturities                                     119,970                  197,772
                                                                      -------------              -----------

Stockholders' equity:
  Preferred stock, $.10 par value, 1,000,000 shares authorized
    Series B issued, 116 issued in 2000 and 196 issued in 1999                   12                       20
  Common stock $.10 par value, 50,000,000 shares authorized,
    13,825,249 issued (2000), 11,287,164 issued (1999)                    1,382,525                1,128,715
  Capital in excess of par value                                         24,340,574               18,808,397
  Retained earnings (deficit)                                           (18,511,235)             (16,370,088)
  Treasury stock at cost                                                    (27,500)                 (27,500)
  Accumulated other comprehensive income                                 13,405,347                  (81,017)
                                                                      -------------              -----------
    Total stockholders' equity                                           20,589,723                3,458,527
                                                                      -------------              -----------
Total liabilities and stockholders' equity                              $25,177,802               $7,297,137
                                                                      =============              ===========
</TABLE>

See notes to the condensed financial statements

Note:  The balance  sheet at November  30, 1999 has been  derived  from  audited
financial  statements at that date but does not include all the  information and
footnotes required by generally accepted accounting principles.

                                       2
<PAGE>

                   eLEC Communications Corp. and Subsidiaries
    Condensed Consolidated Statements of Operations and Comprehensive Income
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                   For the Nine Months Ended           For the Three Months Ended
                                                               Aug. 31, 2000       Aug. 31, 1999     Aug. 31, 2000    Aug. 31, 1999
                                                              --------------      --------------     --------------  ---------------
<S>                                                             <C>                 <C>               <C>             <C>
Revenues                                                         $9,460,940          $2,696,745        $4,078,312      $1,029,455
Cost of revenues                                                  6,678,187           1,845,654         2,917,494         713,846
                                                                -----------         -----------       -----------     -----------
Gross profit                                                      2,782,753             851,091         1,160,818         315,609
                                                                -----------         -----------       -----------     -----------
Costs and expenses:
   Selling and general and administrative                         5,619,125           1,592,304         2,383,157         685,433
   Depreciation and amortization                                    509,909             222,906           209,641          72,907
   Equity in loss of investee                                       255,104           1,463,472            92,135         419,122
                                                                -----------         -----------       -----------     -----------
            Total costs and expenses                              6,384,138           3,278,682         2,684,933       1,177,462
                                                                -----------         -----------       -----------     -----------

Loss from operations                                             (3,601,385)        (2,427,591)        (1,524,115)       (861,853)
                                                                -----------         -----------       -----------     -----------
Other (income) expense:
Interest expense                                                     59,713              11,476            32,839           8,394
Interest income                                                     (33,583)               (173)           (7,601)              -
Miscellaneous income, net                                        (1,305,013)                  -        (1,237,734)              -
                                                                -----------         -----------       -----------     -----------
                                                                 (1,278,883)             11,303        (1,212,496)          8,394
                                                                -----------         -----------       -----------     -----------
Loss from continuing operations                                  (2,322,502)         (2,438,894)         (311,619)       (870,247)
                                                                -----------         -----------       -----------     -----------
Loss from discontinued operations                                         -          (3,259,999)                -      (1,614,579)
Gain (loss) on disposal of discontinued
operations                                                          181,355            (720,230)          181,355        (720,230)
                                                                -----------         -----------       -----------     -----------
                                                                    181,355          (3,980,229)          181,355      (2,334,809)
                                                                -----------         -----------       -----------     -----------

Net loss                                                         (2,141,147)         (6,419,123)         (130,264)     (3,205,056)

Other comprehensive income, principally unrealized
gain on marketable securities                                    13,486,364                  -         13,494,721               -
                                                                -----------         -----------       -----------     -----------

Comprehensive income                                            $11,345,217         ($6,419,123)      $13,364,457     ($3,205,056)
                                                                ===========        ============       ===========     ===========

Basic and diluted income (loss) per share
Continuing operations                                                ($0.18)             ($0.28)            (0.02)         ($0.09)
Discontinued operations                                                0.01              ( 0.45)             0.01          (0.22)
                                                                -----------         -----------       -----------     -----------

Net loss                                                             ($0.17)             ($0.73)           ($0.01)        ($0.31)
                                                                ===========        ============       ===========     ===========

Weighted average number of common shares
outstanding                                                      12,919,425           8,740,979        13,590,597      10,209,134
                                                                ===========        ============       ===========     ===========
</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 Nine Months Ended
                                                                                Aug. 31, 2000    Aug. 31, 1999
                                                                                -------------    -------------
<S>                                                                                <C>            <C>

Net cash (used in) provided by operating activities:                               ($4,362,372)      $248,169
                                                                                   -----------    -----------

Cash flows from investing activities:
   Purchase of property and equipment                                                 (637,796)       (68,896)
   Proceeds from sale of marketable securities                                       1,305,013             --
   Other                                                                                35,944         30,968
                                                                                   -----------    -----------
Net cash provided by (used in) investing activities                                    703,161        (37,928)
                                                                                   -----------    -----------

Cash flows from financing activities:
   Increase (decrease) in loans payable to financial institutions
     and related parties                                                               356,060     (1,284,814)
   Proceeds from exercise of warrants                                                1,751,609             --
   Proceeds from private placement of common stock                                   1,829,500        364,100
   Proceeds from private placement of preferred stock                                       --        196,000
   Proceeds from exercise of stock options                                             238,918        291,000
                                                                                   -----------    -----------
Net cash provided by (used in) financing activities                                  4,176,087       (433,714)
                                                                                   -----------    -----------

Effect of exchange rate changes on cash                                                 10,835         54,611
                                                                                   -----------    -----------

Increase (decrease) in cash and cash equivalents                                       527,711       (168,862)
Cash and cash equivalents at beginning of period                                       591,299        352,489
                                                                                   -----------    -----------
Cash and cash equivalents at the end of period                                     $ 1,119,010    $   183,627
                                                                                   ===========    ===========

Supplemental  disclosures of cash flow  information
Cash paid during the period for:

    Interest                                                                       $    63,505    $   243,997
                                                                                   -----------    -----------
</TABLE>


See Part II, Item 2., Changes in Securities,  for non-cash financing  activities
during the nine-month period ending August 31, 2000.

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-Q and Article 10 of
Regulation  S-X.  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 nine-month period ended August 31, 2000
are not necessarily  indicative of the results that may be expected for the year
ended  November 30, 2000.  For further  information,  refer to the  consolidated
financial statements and footnotes thereto included in our Annual Report on Form
10-K for the year ended November 30, 1999.

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

On March 3, 1999, our subsidiary, Essex Communications,  Inc. ("Essex"), entered
into a receivable  sale agreement with  Receivables  Funding Corp.  ("RFC") that
provides for Essex to sell up to $500,000 of its eligible  receivables to RFC on
a  periodic  basis  and to grant  RFC a  security  interest  in the  receivables
purchased  by RFC.  The  agreement  was amended in December  1999 to increase to
$1,000,000,  and again in August 2000, to increase to  $2,000,000  the amount of
eligible  receivables  Essex could sell to RFC. The agreement  does not transfer
the risk of loss to RFC, and has been treated by us as a financing for financial
statement purposes. As of August 31, 2000, Essex had borrowings of approximately
$917,000 under the Agreement.

Our subsidiary,  Telecarrier Services Inc. ("Telecarrier"),  has a $150,000 line
of credit with a bank.  Amounts drawn on the line of credit bear interest at the
rate of 9.75% per annum.  The line is  payable  on demand  subject to sixty (60)
days written notice. At August 31, 2000, the entire line was utilized.

Our Canadian subsidiary,  Sirco International (Canada) Ltd., has a real property
mortgage  loan with its bank,  National  Bank of Canada.  The mortgage  loan was
payable in monthly installments of approximately  $3,300,  including interest at
10.25% per annum,  with a balloon payment of approximately  $295,000 due in July
2000. We have informed the National Bank of Canada of our intention to sell this
property and the bank has agreed to continue  the  mortgage  loan under a demand
note until the property is sold. We are actively  pursuing  potential buyers for
this  property and intend to sell the  property  upon  receiving  an  acceptable
offer. At August 31, 2000, the mortgage loan was approximately $295,000.

                                       5
<PAGE>


Note 3- Marketable Securities
-----------------------------

On August 9, 2000,  pursuant to an agreement  between the shareholders of Access
One Communications Corp. ("Access One") and Talk.Com Inc. ("Talk"), we exchanged
all of our  remaining  ownership  interest  in Access One  (3,284,598  shares of
Access) for 1,876,911  shares of Talk, a company whose shares are traded.  As of
August 31, 2000, we held  1,876,911  shares of Talk and a warrant to purchase an
additional  285,714 shares. On August 31, 2000, Talk shares closed at $ 7.19 per
share. In accordance with Statement of Financial  Accounting  Standards No. 115,
we have  accounted  for this  investment  in Talk  shares as  available-for-sale
securities,  and reported such securities at fair value,  with unrealized  gains
and losses  excluded from earnings and reported in other  comprehensive  income.
Our   investment  in  Talk  is  subject  to   potentially   significant   market
fluctuations.  Pursuant  to the  agreement,  sale of any of the Talk  shares  is
restricted  until  October 31, 2000.  Further,  187,691 of our Talk shares (10%)
have been  placed in escrow for a period of one year ending on August 9, 2001 to
secure certain representations and warranties made by shareholders of Access One
in connection with the transaction.

During the quarter ended August 31, 2000, prior to the aforementioned  exchange,
we sold 745,042  shares of Access.  Since our  investment  in Access had already
been  reduced  to zero value  (accounted  for on the  equity  method),  the sale
resulted  in a net gain of $  1,237,107,  which  is  included  in  miscellaneous
income,  net.  Included  in the above  were  99,640  shares  sold on behalf of a
related party for which no gain has been recorded.

Note 4-Discontinued Operations
------------------------------

On August 11, 1999, we sold certain assets and assigned  certain licenses of our
former domestic luggage division to Interbrand L.L.C., an unaffilated  accessory
company,  and  subsequently  discontinued  operations of our  wholesale  luggage
segment.

The  operating  results  of our  former  wholesale  luggage  segment  have  been
accounted for as a  discontinued  operation  and the results of operations  have
been  excluded  from  continuing   operations  in  the  condensed   consolidated
statements of operations for all periods  presented,  including the prior period
financial  statements  in which we have  restated the  operating  results of our
former wholesale luggage segment as a discontinued  operation.  Interest expense
relating to borrowings by our former  wholesale  luggage  segment is included as
operating  expenses  of such  discontinued  segment.  Operating  results  of the
discontinued  operation for the three and  nine-month  periods ending August 31,
2000 and August 31, 1999 are as follows:

<TABLE>
<CAPTION>
                                            For the Nine Months Ended       For the Three Months Ended
                                         Aug.31, 2000    Aug. 31, 1999     Aug. 31, 2000    Aug. 31, 1999
                                        --------------  ---------------  ---------------- ----------------

<S>                                       <C>             <C>               <C>              <C>
Revenues                                  $        -      $6,267,355        $        -       $2,360,489
Cost of revenues                                   -       5,618,226                 -        2,139,178
Operating expenses                                 -       3,909,128                 -        1,835,890
Loss from discontinued operations                  -      $3,259,999)                -      ($1,614,579)
                                          ----------      ----------        ----------      -----------
</TABLE>

                                        6

<PAGE>


Note 5 - Operating Segment Information
--------------------------------------

We are organized into two operating segments, a full-service  telecommunications
segment and a specialty  retail  segment.  A  discussion  of segment  results is
presented  in "Item  2".  Management's  Analysis  and  Discussion  of  Financial
Condition and Results of Operations.

Segment information is summarized as follows:

<TABLE>
<CAPTION>
                                              For the Nine Months Ended       For the Three Months Ended
                                            Aug.31, 2000   Aug. 31, 1999     Aug. 31, 2000   Aug. 31, 1999
                                            ------------- --------------    --------------   --------------
<S>                                         <C>            <C>                  <C>           <C>
Telecommunications
Revenues                                     $7,965,728     $1,331,310          $3,560,374      $532,105
Loss from continuing operations             ($2,413,654)   ($2,390,672)          ($373,784)    ($866,408)

Specialty retail
Revenues                                     $1,495,212     $1,365,435            $517,938      $497,350
 Income (loss) from continuing operations       $91,152       ($48,222)            $62,165       ($3,839)

Total
Revenue                                      $9,460,940     $2,696,745          $4,078,312    $1,029,455
Loss from continuing operations             ($2,322,502)   ($2,438,894)          ($311,619)    ($870,247)

</TABLE>


Note 6 - Major Customer
-----------------------

During  the  nine  months  and  three  months  ended  August  31,  2000,  we had
telecommunications revenue from one customer which accounted for 19.3% and 27.2%
of telecommunications revenue.

Note 7 - Income Taxes
---------------------

At November 30, 1999, we had net operating loss carryforwards for Federal income
tax  purposes of  approximately  $15,000,000  expiring in the years 2001 through
2019. There is an annual limitation of approximately $187,000 on the utilization
of approximately  $2,300,000 of such net operating loss carryforwards  under the
provisions of Internal Revenue Code Section 382.

As of August 31, 2000,  we had an  unrealized  gain on our  ownership of Talk of
approximately  $13,490,000.  Upon the sale of the Talk stock,  the net operating
loss  will  be  reduced  to  the  extent  of any  realized  gain  on  the  sale.
Accordingly, deferred taxes have not been provided on the unrealized gain.

                                       7

<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"   that   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.  We wish 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 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  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) our ability to  maintain,  attract and  integrate  internal
management,  technical  information and management  information systems; (3) the
time and expense to construct our planned network  operating  center and digital
subscriber  line  network;   (4)  the  cooperation  of  incumbent   carriers  in
implementing  the unbundled  network elements  platform  required by the Federal
Communications Commission; (5) our ability to market our services to current and
new customers and to generate  customer  demand for our products and services in
the  geographical  areas in which we can  operate;  (6) our  success  in gaining
regulatory  approval to access new  markets;  (7) our ability to  negotiate  and
maintain suitable  interconnection  agreements with incumbent carriers;  (8) the
availability  and  maintenance  of suitable  vendor  relationships,  in a timely
manner, at reasonable cost; (9) the impact of changes in telecommunication  laws
and  regulations;  (10) the intensity of competition;  and (11) 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  an  integrated  set of
telecommunications  products  and  services,  including  local  exchange,  local
access,  domestic and  international  long distance  telephone,  calling  cards,
paging,  Internet access,  dedicated access,  Web site design, Web site hosting,
Internet-based   yellow-pages   directory   listings  and  other   enhanced  and
value-added  telecommunications  services  tailored  to meet  the  needs  of our
customers  and the  growing  marketplace  demand  from  small- and  medium-sized
businesses for reliability and speed.

The nature of our  telecommunications  business  is rapidly  evolving  and has a
limited operating history. It has rapidly grown and is now substantially  larger
in revenues than a specialty  retail  business we also own, which sells products
over  the  Internet  and  in  three  retail  stores.  As a  result,  we  believe
period-to-period  comparisons of our revenues and operating  results,  including
our network  operations  and other  operating  expenses as a percentage of total
revenue,  are not

                                       8

<PAGE>

meaningful and should not be relied upon as indicators of future performance. We
also believe our  historical  growth rates are not  indicative  of future growth
rates.

We  primarily  utilize the  Unbundled  Network  Elements  Platform  ("UNE-P") to
provide local  telephone  service to our customers.  The UNE-P service  offering
allows us to lease, on an as-needed basis,  multiple  unbundled network elements
and combine them into our own full service  platform.  The major  categories  of
network elements include loops, local circuit-switching  facilities,  operations
support systems,  network interface devices,  transport between central offices,
and signaling and call-related  databases.  We have chosen this platform to grow
our customer base because it allows us to rapidly enter new markets with minimal
capital  expenditures.  For  example,  we can  build  a  customer  base  without
deploying either a local switch or last-mile  infrastructure.  Instead of buying
and  maintaining  our own  equipment  in the  field,  we  utilize  the  reliable
equipment owned by the Regional Bell Operating Companies and focus our resources
on building a customer base.

We are in the process of applying for certification in 48 states to operate as a
facilities-based CLEC so that we can operate under the UNE-P service offering in
the entire  continental United States. We are also building a network operations
center in Norwalk,  Connecticut to provide us with  surveillance  and deployment
capabilities  for  high-speed  Internet  access  via  Digital  Subscriber  Lines
("DSL"). We plan to build our own packet-switched data network,  initially to be
offered to our existing voice  customer base, and utilizing the  packet-switched
technology to route local and long distance voice traffic over the Internet.

Building and expanding our business has required and will continue to require us
to make  significant  expenditures  in  excess of the  amounts  of cash that our
business is generating.  As part of our "smart build" network strategy, we defer
the  purchase of equipment in the field and focus first on building our customer
base.  We believe  our  strategy of leasing the  circuit-switched  networks  and
building our own packet-switched  network,  will help our operations to generate
positive cash flow much sooner than the strategy used by other CLECs of building
a circuit-switched network before a customer base has been established.  We have
experienced  operating  losses and  generated  negative cash flow since we began
operating as a CLEC and we expect to continue to generate negative cash flow for
a period of time while we continue  to expand our  network  and develop  product
offerings  and our  customer  base.  We cannot  assure  you that our  revenue or
customer  base  will  increase  or that we will be able to  achieve  or  sustain
positive cash flow.

                                       9
<PAGE>

Three and Nine Months Ended August 31, 2000 vs. August 31, 1999
---------------------------------------------------------------

Continuing operations

Our net  revenues  for the three and  nine-month  periods  ended August 31, 2000
increased  by  approximately   $3,049,000  and  $6,764,000,   respectively,   or
approximately  296% and 251%,  respectively,  to  approximately  $4,078,000  and
$9,461,000,   respectively,   as  compared  to   approximately   $1,029,000  and
$2,697,000, respectively, reported for the same periods in fiscal 1999.

Net  revenues of our  telecommunications  division  increased  by  approximately
$3,028,000  and  $6,635,000,  respectively,  or  approximately  569%  and  498%,
respectively, to approximately $3,560,000 and $7,966,000,  respectively, for the
three and nine-month periods ending August 31, 2000 from approximately  $532,000
and $1,331,000,  respectively, reported for the same periods in fiscal 1999. The
increase was  attributable to the rapid growth in the number of installed access
lines that we  provisioned  during the twelve  months ended August 31, 2000 from
approximately   4,200   installed   access  lines  as  of  August  31,  1999  to
approximately 31,000 installed access lines as of August 31, 2000.

Net revenues of our specialty retail  division,  consisting of the operations of
Airline Ventures, Inc. ("AVI"), increased by approximately $21,000 and $130,000,
respectively,  for the three and  nine-month  periods  ending August 31, 2000 to
approximately $518,000 and $1,495,000, respectively, from approximately $497,000
and $1,365,000,  respectively,  reported in the same fiscal periods in 1999. AVI
operates  three  retail  stores in Texas for  professional  airline  flight-crew
members and sells pilot uniforms, study guides and travel products. Its products
are sold on the E-commerce site, www.avishop.com.

Our gross profit for the three and  nine-month  periods  ending  August 31, 2000
increased  by   approximately   $845,000  and   $1,932,000,   respectively,   to
approximately  $1,161,000  and  $2,783,000,   respectively,  from  approximately
$316,000  and  $851,000,  respectively,  reported in the same fiscal  periods in
1999, and the gross profit percentage decreased to 28.5% from 30.7% and to 29.4%
from 31.6% for the three and nine  months  ended  August 31, 2000 as compared to
the  prior  fiscal  periods.   The  decrease  in  gross  profit   percentage  is
attributable to the significant  increase in  telecommunications  revenue during
the fiscal 2000  periods.  Although  gross  margins  for the  telecommunications
division have  increased in the fiscal 2000 periods,  they remain lower than the
gross margins of the specialty retail division. The telecommunications  division
recorded  gross  margins  of  approximately  26.1%  and  26.8% for the three and
nine-month  periods  ending  August 31,  2000,  as compared to gross  margins of
approximately 25.9% and 21.5% for the three and nine-month periods ending August
31,  1999.  We  anticipate  that the  gross  margins  in our  telecommunications
division will increase  somewhat in the fourth  quarter as we are able to switch
more of our customer base to the UNE-P service  offering.  Approximately  66% of
our  customers  were on the UNE-P  service  offering as of August 31, 2000.  Our
specialty retail division has recorded gross margins of approximately  44.6% and
43.2% for the three and  nine-month  periods ending August 31, 2000, as compared
to  approximately  35.7% and 41.4% in the comparable  periods in 1999. We expect
the gross  margin of our  specialty  retail  segment to  continue at its current
level of over 40%.

Selling,   general  and  administrative   expenses  increased  by  approximately
$1,698,000  and  $4,027,000,   respectively,  to  approximately  $2,383,000  and
$5,619,000,  respectively,  for the three and nine months ending August 31, 2000
from  approximately  $685,000 and  $1,592,000,  respectively,  reported in prior
fiscal periods.  A major portion of this increase was  attributable to the costs
of our  expanded  marketing  efforts  and to the  labor  and  facility  expenses
incurred by our telecommunications division. This increase in operating expenses
is directly related to the significant increase in  telecommunications  revenues
in the three and nine  months  ending  August 31,  2000 as compared to the prior
fiscal period in 1999.

                                       10
<PAGE>

At  August  31,  2000,  we  owned  approximately  27% of the  capital  stock  of
RiderPoint,  Inc.  ("RiderPoint").  RiderPoint specializes in the development of
comparative rating insurance software and sells motorcycle insurance through its
wholly owned subsidiary.  As our investment in RiderPoint is accounted for under
the  equity  method of  accounting,  we are  required  to  include a portion  of
RiderPoint's  net loss in our  results  of  operations.  For the  three and nine
months ending August 31, 2000, we have recorded a loss of approximately  $92,000
and $255,000,  respectively,  relating to our  investment in  RiderPoint.  As of
August 31, 1999, we owned 19% of  RiderPoint,  which was at such date  accounted
for under the cost method of accounting.

At August 31,  1999,  we were the  largest  shareholder  of Access  One,  owning
approximately  39% of Access One' capital stock. As our investment in Access One
was  accounted for under the equity  method of  accounting,  we were required to
include a portion of Access One's net loss in our results of operations. For the
three  and  nine  months  ending   August  31,  1999,  we  recorded   losses  of
approximately $419,000 and $1,463,000,  respectively, relating to our investment
in Access  One.  As of  November  30,  1999,  our  investment  in Access One was
recorded at zero. Subsequent to that date, we no longer recognized any operating
losses generated by Access One. We sold  approximately  16% of our investment in
Access One during the quarter  ended  August 31, 2000 and recorded a net gain on
the  sale of  approximately  $1,237,000.  On  August  9,  2000,  pursuant  to an
agreement  between  the  shareholders  of Access One and Talk,  a Company  whose
shares are  publically  traded,  we  exchanged  all of our  remaining  ownership
interest  in Access One for  1,876,911  shares of Talk and a warrant to purchase
285,714 additional shares of Talk.

Interest  expense for the three and  nine-month  periods  ending August 31, 2000
increased by approximately  $24,000 and $48,000,  respectively,  from the amount
reported in the three and  nine-month  periods  ending August 31, 1999 primarily
due to increased average borrowings.

Miscellaneous  income of  approximately  $1,305,000  for the  nine-month  period
ending  August 31,  2000  resulted  from the sale of shares of Access One common
stock.

Discontinued operations

On August 11, 1999, we sold certain assets and assigned  certain licenses of our
former domestic luggage division to Interbrand L.L.C., an unaffilated  accessory
company,  and  subsequently  discontinued  operations of our  wholesale  luggage
segment.

The operating  results of our wholesale  luggage segment have been accounted for
as a  discontinued  operation and the results of  operations  have been excluded
from  continuing  operations  in  the  condensed   consolidated   statements  of
operations  for all periods  presented,  including  the prior  period  financial
statements  in  which we have  restated  the  operating  results  of our  former
wholesale luggage segment as a discontinued operation. Interest expense relating
to borrowings by our former  wholesale  luggage segment is included as operating
expenses of such discontinued segment.

We reported no results from discontinued operations for the three and nine-month
periods ending August 31, 2000 as compared to losses of approximately $1,615,000
and $3,260,000, respectively, for the three and nine-month periods ending August
31, 1999.

                                       11

<PAGE>


For the three and  nine-month  periods ending August 31, 2000, we reported gains
on disposal of discontinued operations of approximately $181,000, as compared to
losses on disposal of discontinued operations of approximately $720,000 reported
in prior fiscal  period.  The gains were a result of the  liquidation of certain
liabilities at a discount from the amount originally incurred.

Liquidity and Capital Resources

At August 31, 2000, we had cash and cash equivalents  available of approximately
$1,119,000, and working capital of approximately $14,601,000 as compared to cash
and cash  equivalents  available  of  approximately  of  $591,000,  and negative
working capital of approximately $101,000 at November 30, 1999.

Net cash (used in)  provided by  operating  activities  (including  discontinued
operations)  aggregated  approximately  ($4,362,000)  and  $248,000  in the nine
months  ended August 31, 2000 and 1999,  respectively.  The increase in net cash
used in  operating  activities  in fiscal  2000 was  primarily  the result of an
increase of approximately $2,300,000 in accounts receivable,  resulting from the
significant increase in revenues recorded by our telecommunications division and
the operating loss for the period.

Net cash provided by (used in)  investing  activities  aggregated  approximately
$703,000  and  ($38,000)  in the nine  months  ended  August 31,  2000 and 1999,
respectively.  The source of cash provided from  investing  activities in fiscal
2000 was the  proceeds  from the sale of  marketable  securities  offset  by the
purchase of property and equipment.

Net cash provided by (used in)  financing  activities  aggregated  approximately
$4,176,000  and  ($434,000)  in the nine months  ended August 31, 2000 and 1999,
respectively.  For the  period  ended  August 31,  2000,  net cash  provided  by
financing   activities  resulted  primarily  from  the  proceeds  of  short-term
borrowings of approximately $356,000; the proceeds from the exercise of warrants
of  approximately  $1,752,000;  the proceeds from a private  placement of common
stock of approximately  $1,830,000;  and the proceeds from the exercise of stock
options of  approximately  $239,000.

On  March 3,  1999,  our  subsidiary,  Essex,  entered  into a  receivable  sale
agreement with Receivables Funding Corp. ("RFC") that provides for Essex to sell
up to $500,000 of its  eligible  receivables  to RFC on a periodic  basis and to
grant RFC a security interest in the receivables purchased by RFC. The agreement
was amended in December 1999 to increase to

                                       12

<PAGE>

$1,000,000,  and again in August 2000, to increase to  $2,000,000  the amount of
eligible  receivables  Essex could sell RFC. The agreement does not transfer the
risk of loss to RFC,  and has been  treated by us as a financing  for  financial
statement purposes. As of August 31, 2000, Essex had borrowings of approximately
$917,000 under the Agreement.

Our subsidiary,  Telecarrier, has a $150,000 line of credit with a bank. Amounts
drawn on the line of credit bear  interest  at the rate of 9.75% per annum.  The
line is payable on demand subject to sixty (60) days written  notice.  At August
31, 2000, the entire line was utilized.

Our Canadian subsidiary,  Sirco International (Canada) Ltd., has a real property
mortgage  loan with its bank,  National  Bank of Canada.  The mortgage  loan was
payable in monthly installments of approximately  $3,300,  including interest at
10.25% per annum,  with a balloon payment of approximately  $295,000 due in July
2000. We have informed the National Bank of Canada of our intention to sell this
property and the bank has agreed to extend the monthly  payments on the mortgage
loan under a demand note until the property is sold.  We are  actively  pursuing
potential  buyers for this property and intend to sell the property upon receipt
of an acceptable  offer. At August 31, 2000, the mortgage loan was approximately
$295,000.

For the nine months ended August 31, 2000,  we added  approximately  $956,000 in
capital  expenditures.  We  plan  to  make an  additional  $300,000  in  capital
expenditures in fiscal 2000 in conjunction  with the  establishment of a network
operations  center in Norwalk,  Connecticut  and with the planned  expansion  to
become a nationwide  CLEC. We anticipate  financing these  expenditures  through
equipment leases and by using our existing working capital.

On  August  9,  2000,  Talk.com  Inc.  ("Talk"),  an  integrated  communications
provider,   merged  with  Access  One.  As  a  result  of  the  merger,  we  own
approximately  1.9 million  shares of Talk's  common stock and have warrants for
approximately 286,000 additional shares. The stock becomes freely tradable after
October 31,  2000.  At August 31,  2000,  our  investment  in Talk was valued at
approximately $13,490,000.

Although  our  operating  activities  may  provide a source  of cash in  certain
periods,  to the extent we continue to experience rapid growth in the future, we
anticipate that our operating and investing activities will use large amounts of
cash in excess of the cash generated from  operating  activities.  Consequently,
future rapid growth will require us to  liquidate,  from time to time, a portion
of our  investment in Talk, or obtain  additional  equity or debt financing that
may  not be  available  on  attractive  terms,  or at all,  or may be  dilutive.
Although we believe we have negotiated an appropriate debt facility to fund some
of our anticipated  growth,  and we believe we can monetize portions of the Talk
stock to fund our  remaining  growth  capital  needs,  changes  in the  value or
liquidity  of the Talk  stock may  require us to  modify,  delay or abandon  our
current  business plan,  which is likely to materially and adversely  affect our
business.

                                       13

<PAGE>


                            eLEC COMMUNICATIONS CORP.

                            PART II-OTHER INFORMATION

Item 2.           Changes in Securities

                  In August 2000, we issued an  aggregate of 225,000  shares  of
                  our  common  stock  in  conjunction   with  a  private  equity
                  placement.  Such transaction  was effected pursuant to Section
                  4(2) of the Securities Act of 1933, as amended


                                       14

<PAGE>





Item 6.           Exhibits and Reports on Form 8-K

(a)      Exhibits.
(1)      Audit Committee Charter approved and adopted by the Board of Directors
         of the Company, on May 24, 2000.

27--              Financial Data Schedule.

(b)      Reports on Form 8-K
                  None.



                                       15

<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.



        October 16, 2000                     By: /s/ Paul H. Riss
-------------------------------------           -------------------------
Date                                            Paul H. Riss
                                                Chief Executive Officer
                                               (Principal Financial and
                                                Accounting Officer)



                                       16

<PAGE>



                                  EXHIBIT INDEX

No.                      Description                          Page No.
---                      -----------                          --------

27                Financial Data Schedule.                       18



                                       17