UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

           For the quarterly period ended:  October 31, 2000


 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
      For the transition period from _________________ to _________________

             Commission file number:  000-28499

                         JAGGED EDGE MOUNTAIN GEAR, INC.
        (Exact name of small business issuer as specified in its charter)


                  COLORADO                           84-144-8778
     (State or other jurisdiction of
      incorporation or organization)           (IRS Employer Identification No.)

                     52 PILOT KNOB LANE, TELLURIDE, CO 81435
                    (Address of principal executive offices)

                                  970-728-0175
                         (Registrant's telephone number)



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 the  filing
requirements for at least the past 90 days.

                                  Yes  X       No
                                     -----        ------

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

SHARES  OUTSTANDING of common stock,  $0.001 par value per share, as of December
15, 2000 are 16,743,578.


<PAGE>




                         JAGGED EDGE MOUNTAIN GEAR, INC.
                              Index to Form 10-QSB
                                October 31, 2000


                                                                          Page
Part I.  FINANCIAL INFORMATION

Item 1:  Financial Statements (Unaudited)

         Balance Sheets as of:                                               F-3
                  October 31, 2000 and July 31, 2000

         Statements of Operations for the Three Months Ended                 F-4
                  October 31, 2000 and 1999

         Statements of Cash Flows for the Three Months Ended                 F-5
                  October 31, 2000 and 1999

         Notes to Financial Statements                                  F-6, F-7


Item 2:  Management's Discussion and Analysis of Financial Condition   F-8, F-10
                  And Results of Operations

Item 3:  Quantitative and Qualitative Disclosure About Market Risk          F-11


Part II. OTHER INFORMATION:

Item 1:  Legal Proceedings                                                    12

Item 6:  Exhibits and Reports on Form 8-K                                     12

Signature Page                                                                13


                                       2

<PAGE>



                                     Part I

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                         JAGGED EDGE MOUNTAIN GEAR, INC.
                                  BALANCE SHEETS

                                              October 31,             July 31,
                                                2000                    2000
                                              -----------            ----------

                  ASSETS

Current Assets:
Cash                                            $ 57,536               $ 64,277
Accounts receivable, less allowance for
   doubtful accounts of $10,000 and $10,000      163,973                 28,854
Other receivables                                     -0                 29,341
Inventories                                    1,257,280                851,087
Prepaid expenses                                  89,701                  2,977
                                                ---------               --------
  Total Current Assets                         1,568,490                976,536

Equipment and Leasehold Improvements, net        216,137                234,649

Other Assets:
Trade name, net                                   18,834                 19,667
Deposits                                          22,951                 22,951
                                               ----------             ----------
Total Assets                                  $1,826,412             $1,253,803
                                               ==========             ==========

                           LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
Accounts payable and accrued liabilities       $ 854,069              $ 526,909
Credit cards                                      62,760                 70,461
Current portion of long-term debt                672,055                181,157
                                                ---------              ---------
  Total Current Liabilities                    1,588,884                778,527

Long-Term Debt, net of current portion           143,272                164,041
                                               ----------             ----------
Total Liabilities                              1,732,156                942,568
                                               ----------             ----------
Stockholders' Equity:
Preferred stock $.001 par value;
  10 million shares authorized, none issued
Common stock $.001 par value;
  50 million shares authorized,
  16,743,578 and 16,741,978 shares issued
  and outstanding                                 16,744                 16,742
Additional paid-in capital                     2,208,628              2,208,262
Accumulated (deficit)                         (2,131,115)            (1,913,769)
                                               ----------             ----------
Total Stockholders' Equity                        94,257                311,235
                                               ----------             ----------
Total Liabilities and Stockholders' Equity    $1,826,412             $1,253,803
                                               ==========             ==========

                                    See accompanying notes.

                                      F-1

<PAGE>


                         JAGGED EDGE MOUNTAIN GEAR, INC.
                             STATEMENTS OF OPERATIONS
                For the Three Months Ended October 31, 2000 and 1999

                                                  2000              1999
                                              ----------          ----------
Sales                                          $ 606,739         $ 807,301
Cost of Goods Sold                               406,485           506,992
                                              ----------        ----------
Gross Profit                                     200,254           300,309
Operating Expenses:
Selling                                          224,089           214,285
General and administrative                       156,308           163,051
Depreciation and amortization                     21,866             7,730
                                              ----------        ----------
                                                 402,263           385,066

Operating loss                                  (202,009)          (84,757)

Other Income (Expense):
Interest expense                                 (15,337)          (20,237)
Other income                                          -0             2,464
                                               ----------       ----------
Net Loss Before Income Tax                      (217,346)         (102,530)
Provision for Income Tax                              -0                -0
                                               ----------        ----------
Net (Loss)                                     $(217,346)        $(102,530)
                                               ==========        ==========
Basic and Diluted (Loss) Per Share               $ (0.01)          $ (0.01)
                                               ==========        ==========
Weighted Average Shares                        16,741,978        13,893,420
                                               ==========        ==========

                            See accompanying notes.

                                      F-2

<PAGE>

<TABLE>
<CAPTION>


                         JAGGED EDGE MOUNTAIN GEAR, INC.
                             STATEMENTS OF CASH FLOWS
               For the Three Months Ended October 31, 2000 and 1999


                                                                    2000                     1999
                                                                 ----------               ----------
<S>                                                             <C>                      <C>

Cash Flows from Operating Activities:
Net (loss)                                                       $ (217,346)              $ (102,530)
Depreciation and amortization                                        21,866                    7,730
Common stock issued as compensation                                      -0                   24,708
Common stock issued in lieu of interest                                 368                   19,225
Changes in assets and liabilities
(Increase) in accounts receivable                                  (105,778)                (128,752)
(Increase) / Decrease in inventories                               (406,193)                  40,954
(Increase) in prepaid expenses                                      (86,724)                      -0
(Increase) in other assets                                                0-                 (23,477)
Increase / (Decrease) in accounts payable                           327,160                  (61,523)
  and accrued liabilities
Increase / (Decrease) in credit cards                                (7,701)                   2,825
                                                                  ----------               ----------
Net Cash Used by Operating Activities                              (474,348)                (220,840)
                                                                  ----------               ----------

Cash Flows from Investing Activities
Purchase of equipment                                                (2,359)                  (4,157)
                                                                  ----------               ----------
Net Cash Used by Investing Activities                                (2,359                   (4,157)
                                                                  ----------               ----------

Cash Flows from Financing Activities
Proceeds from short-term debt                                       487,285                        -
Principal payments on short-term debt                               (17,318)                 (99,284)
Proceeds from long-term debt                                              0-                  52,121
Proceeds from issuance of stock                                           0-                 313,375
                                                                  ----------               ----------
Net Cash Provided by Financing Activities                           469,967                  266,212
                                                                  ----------               ----------
(Decrease) / Increase in Cash
  and Cash Equivalents                                               (6,741)                  41,215

Cash and Cash Equivalents - Beginning of Period                      64,277                   42,606
                                                                  ----------               ----------
Cash and Cash Equivalents - End of Period                          $ 57,536                 $ 83,821
                                                                  ==========               ==========
Supplemental disclosures:
Cash paid for interest                                              $ 6,513                  $ 9,357


</TABLE>

                            See accompanying notes.

                                      F-3

<PAGE>



 Notes to Financial Statements:

 Note 1 - Management's Representation:
The management of Jagged Edge Mountain Gear, Inc. (JEMG,  "The Company") without
audit, has prepared the attached financial  statements pursuant to the rules and
regulations of the Securities and Exchange  Commission.  Certain information and
footnote  disclosures  normally included in annual financial statements prepared
in accordance with generally accepted accounting  principles have been condensed
or omitted  pursuant to such rules and  regulations.  Accordingly,  the interim,
unaudited financial  statements should be read in conjunction with the financial
statements included in the Company's Annual Report on Form 10-KSB for the fiscal
year ended July 31, 2000 (the Form "10-KSB").

These  financial  statements  have  been  prepared  by the  Company  in a manner
consistent  with  that  used  in the  preparation  of the  financial  statements
included in the Form  10-KSB.  In the opinion of  Management,  the  accompanying
financial  statements  reflect all  adjustments  considered  necessary  for fair
presentation of financial  position and results of operations and cash flows for
the periods  presented.  All adjustments were of a normal recurring nature,  and
the attached financial  statements present fairly the financial position for the
three-month  period ended on October 31, 2000. The results of operations for the
three-month  period ended on October 31, 2000 are not necessarily  indicative of
the results to be expected  for the fiscal  year ending July 31,  2001.  Certain
amounts recorded in the fiscal year 2000 (FY2000)  three-month  period have been
reclassified to conform to the fiscal year 2001 (FY2001) presentation.

Note 2 - Basis of Presentation:
Going Concern  Consideration.  The Company has incurred significant losses since
its  inception,  and  this,  coupled  with  a  shortage  of  liquidity,   raises
substantial  doubt  about its  ability to  continue  as a going  concern.  These
conditions  are partially the result of less than expected  sales volumes during
fiscal  2000 and 1999;  in  addition,  the  Company  incurred  substantial  cost
inefficiencies  associated  with rapid  expansion  in fiscal 2000 and 1999.  The
Company  hopes  to  achieve  increased  future  sales  volume  by  substantially
increasing the distribution of their mail order catalog and adding a new product
brand  targeted  at younger  customers.  Management  hopes to improve  the gross
margin by increasing  sales prices and controlling  discounting.  The success of
these plans will directly  affect the Company's  ability to meet its  short-term
obligations.

Note 3 - Debt:
During  August  and  September  2000,  the  Company  borrowed  $475,000  from an
individual through a corporation controlled by him. The loan bears interest at 1
1/4% over the London  Interbank Offer Rate, is due in 120 days and is secured by
inventory.  As consideration for making the loan, the lender was granted options
to purchase 400,000 shares of common stock at $.28 per share for three years. As
of October 31, 2000 no principle  payments have been made on this loan. The loan
is due in December 2000, but company managment feels confident that the due date
will be renegotiated although no assurances can be given.

Note 4 - Stock Issued as Compensation:
During the current  three-month  period ended  October 31, 2000 no Company stock
was issued as  compensation.  During the  comparative  three-month  period ended
October 31, 1999, the Company issued 3,333 shares of restricted  common stock to
employees as  compensation.  During the current  three-month  period the company
issued 1,600 shares of restricted  common stock to comply with a requirement  of
one of its loan  agreements.  The  Company  recorded  $368 of  interest  expense
related to this transaction.  During the comparative  period, the Company issued
27,250 shares of restricted  common stock valued at $19,225 as compensation  for
accrued  interest.  During the current  three-month  period no Company stock was
issued as payment for miscellaneous expenses. During the comparative three-month
period  the  Company   issued  2,750  shares  of  restricted   common  stock  as
compensation for miscellaneous  expenses.  Total expense recognized and recorded
by the Company during the comparative period was $24,708.

Note 5 - Stock Sales:
The Company did not sell any of its common stock during the current  three-month
period ended October 31, 2000. During the comparative  three-month  period ended
October 31, 1999 the Company sold 1,005,834 shares of restricted common stock to
accredited investors for $313,375 cash.

                                      F-4

<PAGE>


Note 6 - Earnings Per Share:
Basic  earnings  per share  (EPS) are  computed  by  dividing  net income by the
weighted average number of common shares outstanding for the period. Diluted EPS
is computed by dividing  net income by the diluted  weighted  average  number of
common shares outstanding during the period. Dilutive EPS reflects the potential
dilution that could occur upon exercise of dilutive  instruments,  such as stock
options.  The Company  does not present  dilutive EPS for the three months ended
October 31, 2000 and 1999 because the inclusion would be anti-dilutive.

                                      F-5

<PAGE>



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

As discussed  in Note 2 to the  financial  statements,  the Company has suffered
recurring  losses,  negative cash flows from  operations  and resulting  working
capital  shortages.  Unless the  Company can raise  additional  equity or obtain
additional  debt,  there is  substantial  doubt as to the  Company's  ability to
continue  as a going  concern.  The  financial  statements  do not  include  any
adjustments that might result from the outcome of this uncertainty.

Results of Operations
---------------------
Company operations for the three-month period ended October 31, 2000 as compared
to three months ended October 31, 1999  resulted in a net loss of  approximately
$217,346 as compared to a net loss of $102,530, respectively. Net loss per share
for the periods was $(0.01) and  $(0.01),  based upon  weighted  average  shares
outstanding of 16,741,978 and 13,893,420,  respectively.  Net sales decreased by
$(200,561)  to $606,739 for the  three-month  period ended October 31, 2000 from
$807,301 during the comparative period of 1999.  Company  Management  attributes
the  reduced  sales and  increased  loss  during  the  period  primarily  to the
following factors.

        o        Reduced  retail sales volumes.  The Company  currently owns and
                 operates  three  retail  store  locations.  During  last  years
                 comparative period the Company had five  retail  locations. Net
                 retail  store sales  were down  $(108,406) from the comparative
                 period. See revenue discussion below.
        o        Reduced wholesale sales volumes. Company wholesale volumes were
                 down $(93,907)  from  the  comparative three-month period.  See
                 revenue discussion below.
        o        Company  difficulties  getting  overseas Jagged Edge production
                 shipped to the  warehouse facility and retail  locations  on  a
                 timely  basis.  Management believes  the latenessof  some ship-
                 ments,  and  resultant availability,  had a detrimental  effect
                 on sales volumes,  both retail and wholesale.
        o        Increased depreciation and amortization expense to $21,866 dur-
                 ing  the current  three-month period  from $7,730 recognized in
                 the comparative period.

Revenues
--------
The  Company's  total  net  product  sales for all sales  divisions  during  the
three-month   periods   ended  October  31,  2000  and  October  31,  1999  were
approximately $606,739 and $807,301  respectively,  for a decrease of $(200,561)
or (24.8)%.

Retail store gross sales for the three-month  periods ended October 31, 2000 and
1999 were approximately  $295,222 and $403,628  respectively,  for a decrease of
$(108,406)  or (26.9)%.  Retail store gross sales  comprised  48.7% and 50.0% of
total net product sales, respectively. The primary reason retail sales were down
during the current period is the retail store closings of the Ouray and Mountain
Village,  Colorado  locations  during  March and April  2000.  Additionally,  as
mentioned above, the Company had difficulty receiving certain product to support
sales efforts.

Wholesale  division  gross sales for the  three-month  periods ended October 31,
2000 and 1999 were  approximately  $286,180  and  $380,087  respectively,  for a
decrease of  $(93,907) or (24.7)%.  Wholesale  gross sales  comprised  47.2% and
47.1% of total  net  product  sales,  respectively.  Wholesale  sales  were down
primarily as a result of lost sales resulting from Company  difficulties getting
overseas  Jagged Edge production  shipped to the warehouse  facility on a timely
basis.

Catalog and Mail Order  division gross sales for the  three-month  periods ended
October 31, 2000 and 1999 were approximately  $36,661 and $33,092  respectively,
for an increase of $3,569 or 10.8%. Catalog and Mail Order gross sales comprised
6.0% and 4.1% of total net product sales, respectively.

                                       3

<PAGE>


Sales returns for the  three-month  periods ended October 31, 2000 and 1999 were
approximately  $15,897 and $14,584  respectively,  for an increase in returns of
$1,313 or 9.0%.  Sales  divisions  in this  analysis  do not break down data for
sales returns.

The following table is provided as an aid to further understand Company sales.

<TABLE>
<CAPTION>

                                                                               ---------------------------
                                      %    Three Months     %    Three Months   Change From October 31,
                                           thru                  thru           1999 to October 31, 2000
                                                                               ---------------------------
Revenues:                           Total  October 31,    Total  October 31,       %         $
                                    -----  ------------   -----  ------------
                                           2000                    1999
                                           ----                    ----
<S>                                  <C>    <C>         <C>     <C>            <C>      <C>

 Retail Division                      48.7% $  295,222    50.0% $  403,628     -26.9%   $ (108,406)
 Wholesale Division                   47.2%    286,180    47.1%    380,087     -24.7%   $  (93,907)
 Catalog Mail Order Division           6.0%     36,661     4.1%     33,092      10.8%   $    3,569
                                  ---------------------------------------------------------------------
Total Gross Sales Revenues           101.9%    618,063   101.2%    816,807     -24.3%     -198,744
  Less: Returns                       -2.6%    (15,897)   -1.8%    (14,584)      9.0%       (1,313)
                                  ---------------------------------------------------------------------
Net Sales Revenues                    99.2%    602,166    99.4%    802,223     -24.9%     -200,057
Shipping & Freight Collected           0.8%      4,574     0.6%      5,078      -9.9%         -504
                                  ---------------------------------------------------------------------
Total Net Revenues                   100.0% $  606,739   100.0% $  807,301     -24.8%   $ (200,561)
                                  =====================================================================

</TABLE>

Management  believes that some, but not all, of the sales losses attributable to
late  shipments  may be timing  differences  and will be  recovered  in the next
financial  quarter,  although the  materiality  of, and eventual  sales  dollars
recognized  are not  measurable  at this time.  There can be no assurance  these
sales recoveries will occur.

Cost of Goods Sold
------------------
The  Company's  total product cost of sales for all sales  divisions  during the
three-month periods ended October 31, 2000 and 1999 were approximately  $406,485
and  $506,992  or 67.0% and 62.8% of net sales  respectively,  for a decrease of
$(100,507) or (20)%.

Cost of sales as a  percentage  of total sales in the  three-month  period ended
October 31, 2000 increased to 67.0% from 62.8% in the  comparative  period ended
October 31, 1999.  This  increase was primarily the result of the higher cost of
non-Jagged Edge products sold in the retail locations,  as overseas shipments of
Jagged Edge product were not received and available for sale in a timely manner.
When desired  Jagged Edge product is  unavailable,  the sales mix of Jagged Edge
versus non-Jagged Edge product is changed, typically resulting in higher overall
cost of  sales  and  overall  lower  margins.  Small  surplus  inventory  sales,
primarily via the internet, below standard markup price, also contributed to the
increased cost percentages.

Selling & Marketing Expenses
----------------------------
Selling and  marketing  expenses for the  three-month  periods ended October 31,
2000 and 1999 were  approximately  $224,089 and $214,285,  respectively,  for an
increase of $9,804 or 4.6%.

The small increase in selling and marketing  expenses over the comparable period
of last year was attributable to the addition of key sales/marketing  personnel,
and an increase in national magazine print advertisements.

General & Administrative Expenses
---------------------------------
General and  Administrative  expenses for the three-month  periods ended October
31, 2000 and 1999 were approximately $156,308 and $163,051,  respectively, for a
decrease  of  $(6,743)  or (4.1)%.  The  decrease  in  general &  administrative
expenses is consistent with fixed G&A costs within the organization.

                                       4

<PAGE>

Interest Expense
----------------
Interest expense for the three-month periods ended October 31, 2000 and 1999 was
approximately  $15,337  and $20,237  respectively,  or a decrease of $(4,900) or
(24)%.  Interest  expense  decreased due to fewer non-cash  charges for the fair
market value of stock issued as payment for interest expense.

Liquidity and Capital Resources
--------------------------------
During the three months ended October 31, 2000, the Company's current ratio
Declined  to .99 as  compared  to 1.25 at July 31,  2000.  Net  working  capital
decreased  $218,403 to $(20,394)  at October 31, 2000 from  $198,009 at July 31,
2000. The Company's cash balances decreased to $57,536 at October 31, 2000, from
$64,277 at July 31, 2000.

Principal  changes in the components of net working  capital for the three-month
period  ended  October  31,  2000 as  compared  to fiscal year end July 31, 2000
consist of:

<TABLE>
<CAPTION>

                                                                                                    ----------------------
                                                         %                       %                  Change From July 31,
                                                                                                     2000 to October 31,
                                                                                                            2000
                                                                                                    ----------------------
Working Capital Components:                                     October 31,             July 31, 2000           $
                                                                ------------            -------------           -
                                                        Total 2000          Total 2000
<S>                                                    <C>    <C>               <C>   <C>             <C>

Cash                                                      3.7%         57,536     6.6%       64,277   $      (6,741)
Account receivable                                       10.5%        163,973     3.0%       28,854   $     135,119
Other receivable                                          0.0%              0     3.0%       29,341   $     (29,341)
Inventories                                              80.2%      1,257,280    87.2%      851,087   $     406,193
Prepaid expenses                                          5.7%         89,701     0.3%        2,977   $      86,724
                                                      ---------------------------------------------- ---------------------
Current Assets                                          100.0%      1,568,490   100.0%      976,536   $     591,954

Accounts payable and accrued liabilities                 53.8%        854,069    67.7%      526,909   $     327,160
Current maturities of notes payable                      42.3%        672,055    23.3%      181,157   $     490,898
Other current payables                                    3.9%         62,760     9.1%       70,461   $      (7,701)
                                                      ---------------------------------------------- ---------------------
Current Liabilities                                     100.0%      1,588,884   100.0%      778,527   $     810,357
                                                              ----------------        -------------- ---------------------
Working Capital                                                $ (20,394)              $198,009       $    (218,403)
                                                              ================        ============== =====================

</TABLE>

The principal  reasons for the decrease in working capital during the period are
the  following.  The Company  increased  short-term  borrowings  by  receiving a
120-day loan of $475,000. Trade accounts payable increased by $327,000. The loan
proceeds  and  increases  in accounts  payable  were used  primarily  to release
overseas goods and increase  inventory  levels in  anticipation of expected fall
and winter sales seasons. Other portions of the proceeds were used primarily for
operating expenses including prepayments on the fall/winter catalog mailing.

                                       5

<PAGE>



Item 3. Quantitative and Qualitative Disclosure About Market Risk.

The company is exposed to market risks,  which include  foreign  currency risks,
interest  rate  risks,  and  inflation  risk.  The  Company  does not  engage in
financial transactions for trading or speculative purposes.

Foreign Currency Exchange Rate Risk
-----------------------------------
The Company's  inventory  purchases from contract  manufacturers in the Far East
are  denominated  in United States  dollars;  however,  purchase  prices for the
Company's  products may be impacted by fluctuations in the exchange rate between
the United States dollar and the local currencies of the contract manufacturers,
which  may have the  effect of  increasing  the  Company's  cost of goods in the
future.

In addition, the Company's sales in Japan and Canada are denominated at the time
of order  commitment,  in the United  States  dollar,  which may have a negative
impact  on order  completion  or  fulfillment  or the rate of growth of sales in
those countries if the U.S. dollar were to strengthen  significantly  versus the
related foreign currency.  Due to the number of foreign currencies  involved and
the fact that not all of these foreign  currencies  fluctuate in the same manner
against the United States dollar,  the Company cannot quantify in any meaningful
way the potential effect of such fluctuations on future income.

Furthermore, the Company may be affected by economic and political conditions in
each of the  countries in which it transacts  business.  Risks  associated  with
operating in the international arena include: o Economic instability,  including
the possible revaluation of currencies.
        o       Extreme currency exchange fluctuations where the Company has not
                entered into foreign  currency  forward and option  contracts to
                manage exposure to certain foreign currency  commitments  hedged
                any forward transactions.
        o       Changes to import or export regulations (including quotas).
        o       Labor or civil unrest.
        o       In certain parts of the world, political instability.

The Company  has not as yet been  materially  affected  by any such  risks,  but
cannot  predict the likelihood of such  developments  occurring or the impact of
any such risks to the future profitability of the Company.

Interest Rate Risk
-------------------
The  interest  payable  on some of the  Company's  loans is  based  on  variable
interest rates and therefore  affected by changes in market  interest  rates. If
interest  rates on existing  variable  rate debt rises due to  increases  in the
prime  rate,  the  Company's  results  from  operations  and cash flows would be
impacted, although the Company believes, not materially.

Inflation Risk
--------------
The Company  believes that the  relatively  moderate rates of inflation over the
last three years in the United States, where it primarily competes, have not had
a significant effect on its net sales or results of operations.  Higher rates of
inflation have been  experienced  in a number of foreign  countries in which the
Company's  products are manufactured,  but this has not had a material effect on
the Company's net sales or results of  operations.  In the past, the Company has
been able to offset its cost increases by negotiation or changing suppliers.

                                       6

<PAGE>



                           Part II. OTHER INFORMATION

Item 1.  Legal Proceedings.

          For information on legal proceedings,  see Item 3 of the July 31, 2000
          Form 10-KSB.

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         27.1 Financial Data Schedule

(b)      Reports on Form 8-K

          No  reports  on form 8-K were  filed by the  Company  during the three
          months ended October 31, 2000.

                                       7

<PAGE>



                                   SIGNATURES

In  accordance  with  Section 12 of the  Securities  Exchange  Act of 1934,  the
registrant caused this registration  statement to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                           Jagged Edge Mountain Gear, Inc.
                                           (Registrant)

Dated:   December 15, 2000                    By:  /s/ Margaret A. Quenemoen
                                                   -----------------------------
                                              Margaret A. Quenemoen
                                              President


Dated:   December 15, 2000                    By:  /s/ Craig K. Carr
                                                 -------------------------------
                                                 Craig K. Carr
                                                 Chief Financial Officer

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