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: January 31, 2002


[ ]  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.)

                           55 E. 100 S. MOAB, UT 84532
                    (Address of principal executive offices)

                                  435-259-8900
                         (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 March 18,
2002 are 17,770,478.

<PAGE>


                         JAGGED EDGE MOUNTAIN GEAR, INC.
                              Index to Form 10-QSB
                                January 31, 2002


                                                                            Page
Part I.  FINANCIAL INFORMATION

Item 1:  Financial Statements (Unaudited)

         Balance Sheets as of:                                               F-1
                  January 31, 2002 and July 31, 2001

         Statements of Operations for the Three Month and                    F-2
                  Six Month Periods Ended
                  January 31, 2002 and 2001

         Statements of Cash Flows for the Six Months Ended                   F-3
                  January 31, 2002 and 2001

         Notes to Financial Statements                                  F-4, F-5


Item 2:  Management's Discussion and Analysis of Financial    F-6, F-7, F-8, F-9
                  Condition 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



<PAGE>

                                     Part I

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements


                            JAGGED EDGE MOUNTAIN GEAR
                                 BALANCE SHEETS

                                                    January 31,       July 31,
                                                        2002            2001
                                                    -----------     -----------

ASSETS:
Current Assets:
Cash                                                $         0     $   200,163
Accounts receivable, less allowance for                  63,704          14,904
  doubtful accounts of $45,000 and $45,000
Inventories                                             475,234         288,467
Prepaid expenses                                         67,772           4,894
                                                    -----------     -----------
 Total Current Assets                                   606,709         508,428

                                                    -----------     -----------
Equipment and leasehold Improvements, net                86,565         113,806

Other Assets:
 Trade name, net                                         16,667          17,667
 Deposits                                                11,361          11,361
                                                    -----------     -----------
                                                         28,028          29,028

                                                    -----------     -----------
Total Assets                                        $   721,302     $   651,262
                                                    ===========     ===========


LIABILITIES & EQUITY:
Current Liabilities:
 Accounts payable and accrued liabilities           $   814,696     $   370,680
 Credit cards                                           117,222          77,165
 Current portion of long-term debt                      151,780         113,564
                                                    -----------     -----------
Total Current Liabilities                             1,083,698         561,409

Notes Payable:
 Long-term debt, net of current portion                 255,000         255,000
                                                    -----------     -----------
Sub Total                                               255,000         255,000

                                                    -----------     -----------
Total Liabilities                                     1,338,698         816,409

Stockholders' Equity:
Preferred stock $.001 par value;
 10 million shares authorized, none issued
Common  stock $.001 par value;
  50 million shares authorized,
 17,768,978 and 16,759,978 shares issued
  and outstanding                                        17,769          16,760
 Additional paid in capital                           2,371,715       2,210,449
 Accumulated (deficit)                               (3,006,880)     (2,392,356)
                                                    -----------     -----------
Total Stockholders' Equity                             (617,396)       (165,147)

                                                    -----------     -----------
Total Liabilities and Stockholders' Equity          $   721,302     $   651,262
                                                    ===========     ===========


                             See accompanying notes.

                                       F-1
<PAGE>
<TABLE>
<CAPTION>


                                   JAGGED EDGE MOUNTAIN GEAR, INC.
                                      STATEMENTS OF OPERATIONS
              For the Three Month and Six Month Periods Ended January 31, 2002 and 2001

                                                    Three Months                     Six Months
                                                  Ended January 31,               Ended January 31,
                                                2002            2001            2002            2001
                                            ------------    ------------    ------------    ------------
<S>                                         <C>             <C>             <C>             <C>

Sales                                       $    837,864    $  1,651,540    $  1,107,798    $  2,258,279
Cost of Goods Sold                               412,363         876,695         581,582       1,283,180
                                            ------------    ------------    ------------    ------------

Gross Profit                                     425,501         774,845         526,216         975,099

Selling expenses                                 529,119         613,333         641,375         837,422
General & administrative                         176,657         179,289         323,015         335,597
                                            ------------    ------------    ------------    ------------
(Loss) Before Interest, Tax, Depreciation       (280,275)        (17,777)       (438,174)       (197,920)
  and Amortization

 Interest expense                                 26,052          31,053          45,968          46,390
Depreciation & amortization                       14,121          21,366          28,241          43,232
                                            ------------    ------------    ------------    ------------
Net (Loss) from Operations                      (320,448)        (70,196)       (512,383)       (287,542)

                                            ------------    ------------    ------------    ------------
Other income / (expense)                           1,842               0           1,842               0

                                            ------------    ------------    ------------    ------------
Net (Loss) from continuing Operations           (318,606)        (70,196)       (510,541)       (287,542)

                                            ------------    ------------    ------------    ------------
Extraordinary gain from settlement                     0               0          18,065               0
  of debt

                                            ------------    ------------    ------------    ------------
NET (LOSS)                                  $   (318,606)   $    (70,196)   $   (492,476)   $   (287,542)
                                            ============    ============    ============    ============

Basic and Diluted (Loss) Per Share
Loss Before Extraordinary Income            $      (0.02)   $      (0.00)   $      (0.03)   $      (0.02)
Extraordinary Income                        $       0.00    $       0.00    $       0.00    $       0.00
                                            ------------    ------------    ------------    ------------
Net (Loss)                                  $      (0.02)   $      (0.00)   $      (0.03)   $      (0.02)
                                            ============    ============    ============    ============
Weighted Average Shares                       17,765,236      16,743,153      17,655,041      16,741,978
                                            ============    ============    ============    ============


                                       See accompanying notes.

                                                 F-2
<PAGE>


                             JAGGED EDGE MOUNTAIN GEAR, INC.
                                STATEMENTS OF CASH FLOWS
                   For the Six Months Ended January 31, 2002 and 2001

                                                                     2002          2001
                                                                   ---------    ---------
Cash Flows from Operating Activities:
Net (loss)                                                         $(492,476)   $(287,542)
Depreciation and amortization                                         28,241       43,232
Common stock issued in lieu of interest                                  315          518

Changes in assets and liabilities:
(Increase) decrease in accounts receivable                           (48,800)    (158,335)
Decrease in other accounts receivable                                      0       29,341
(Increase)decrease in inventories                                   (186,767)     173,130
(Increase) decrease in prepaid expenses and other current assets     (62,878)      (8,533)
Increase in accounts payable and accrued liabilities                 443,928      244,211
Increase in credit cards payable                                      40,057        6,646
                                                                   ---------    ---------

Net Cash Used by Operating Activities                               (278,380)      42,668
                                                                   ---------    ---------


Cash Flows from Investing Activities
Deposits                                                                   0            0
Purchase of equipment                                                      0            0
                                                                   ---------    ---------

Net Cash Used by Investing Activities                                      0            0
                                                                   ---------    ---------


Cash Flows from Financing Activities
Principle payments on short-term debt                               (126,784)    (482,972)
Proceeds from short-term debt                                        165,000      487,285
Proceeds from exercise of stock options                               40,000            0
                                                                   ---------    ---------

Net Cash Provided by Financing Activities                             78,216        4,313
                                                                   ---------    ---------


Decrease in Cash and Cash Equivalents                               (200,164)      46,981

Cash and Cash Equivalents - Beginning of Year                        200,163       64,277
                                                                   ---------    ---------

Cash and Cash Equivalents - End of period                          $      (0)   $ 111,258
                                                                   =========    =========

Supplemental disclosures:
Cash paid for interest                                             $  12,743    $  15,846
                                                                   =========    =========

                                  See accompanying notes.

                                           F-3
</TABLE>
<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, 2001 (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
six-month period ended on January 31, 2002. The results of operations for the
three-month and six-month periods ended on January 31, 2002 are not necessarily
indicative of the results to be expected for the fiscal year ending July 31,
2002. Certain amounts recorded in the fiscal year 2001 (FY2001) three-month and
six-month periods have been reclassified to conform to the fiscal year 2002
(FY2002) presentation.

Note 2 - Basis of Presentation:
The Company has incurred significant recurring losses since inception. This,
coupled with a shortage of liquidity at January 31, 2002, raises substantial
doubt about its ability to continue as a going concern. As a consequence, the
Company requires significant additional financing to satisfy outstanding
obligations and continue operations. Unless the Company successfully obtains
suitable significant additional financing there is substantial doubt about the
Company's ability to continue as a going concern. A plan to reduce losses by
increasing sales through greater distribution of mail order catalogs achieved
disappointing results for the fiscal year 2002 catalog season. Other plans such
as reducing general and administrative costs, including payroll and rent have
been more successful. The continued success of these plans, and others, will
directly affect the Company's ability to meet its obligations.

Note 3 - Debt:
Notes payable additions and subsequent payments during the six-month period
ended January 31, 2002 consisted of the following:

     o    A short-term note payable in the amount of $75,000 to a banking
          institution dated October 22, 2001, interest at 7.5%, due date
          December 22, 2001. This note has been paid in full.
     o    A short-term note payable in the amount of $60,000 to a private
          individual dated October 15, 2001, interest at 21%, due date January
          15, 2001. $50,000 has been paid. A remaining balance of $10,000 is
          due.
     o    A short-term note payable in the amount of $30,000 to a related party
          dated October 12, 2001, interest at 5.5%, indefinite due date. No
          principle payments have been made to date.

Total notes payable as of January 31, 2002 consist of the following:

     Short-term notes payable balance        $151,780
     Long-term notes payable balance         $255,000
                                             --------
     TOTAL BALANCE                           $406,780
                                             ========


                                       F-4
<PAGE>


Note 4 - Stock Issued in lieu of Interest:
During the current three-month period the company issued 4,500 shares of
restricted common stock to comply with a requirement of one of its loan
agreements. The Company recorded $158 of interest expense related to this
transaction. For the year-to-date six-month period the Company has issued 9,000
shares of restricted common stock. Total non cash interest expense recorded is
$315. During the comparative six-month period, the Company issued 3,100 shares
of restricted common stock valued at $518 as compensation for accrued interest.

Note 5 - Exercise of Stock Option:
During August 2001 the Company issued 1,000,000 shares of restricted common
stock through the exercise of common stock options by an outside investor group.
Net proceeds to the Company were $40,000. No common stock options were exercised
during the comparative period.

Note 6 - Earnings Per Share:
Basic earnings (loss) per share are computed by dividing net income (loss) by
the weighted average number of shares common stock outstanding during each
period. Diluted earnings per share are computed on the basis of the average
number of common shares outstanding plus the dilutive effect of convertible
debt, stock options and warrants. The basic and the dilutive earnings per share
are the same in fiscal 2002 and 2001 since the Company had net losses and
inclusion of the effect of stock options 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 January 31, 2002 as compared
to the three months ended January 31, 2001 resulted in a net loss of
approximately $318,606 as compared to a net loss of $70,196 respectively for the
comparative period. Net loss per share for the comparative three-month period
was $0.02 and $0.00, based upon weighted average shares outstanding of
17,765,236 and 16,743,153, respectively. Net sales decreased by $813,676 to
$837,864 for the three-month period ended January 31, 2002 from $1,651,540
during the comparative three-month period of 2001. Company operations for the
six-month period ended January 31, 2002 as compared to the six-months ended
January 31, 2001 resulted in a net loss of approximately $492,476 as compared to
a net loss of $287,542 respectively. Net loss per share for the comparative
six-month period was $0.03 and $0.02, based upon weighted average shares
outstanding of 17,655,041 and 16,741,978, respectively. Net sales decreased by
$1,178,465 to $1,107,798 for the six-month period ended January 31, 2002 from
$2,258,279 during the comparative six-month period of 2001. Management
attributes the decreased sales to disappointing mail order sales results,
significantly reduced emphasis on wholesale customer sales, no turbo clothing
sales, and reduced retail store sales.

The following describes areas of significant change within the Company for the
current three-month reporting period.

     o    Reduced mail order sales. Company mail order sales were down
          approximately $129,986 from the comparative three-month period. See
          revenue discussion below.

     o    Reduced wholesale sales. Company wholesale sales were down
          approximately $614,052 from the comparative three-month period. See
          revenue discussion below.

     o    Reduced retail store sales. Company retail sales were down
          approximately $84,793 from the comparative three-month period. See
          revenue discussion below.

     o    Improved product profit margins of 48% during the current three-month
          period versus profit margins of 45% during the comparative three-month
          period. Primarily due to concentration on higher margin sales prices
          and products.

     o    Reduced selling costs of $529,119 during the current period versus
          selling costs of $613,333 during the comparative period. See selling
          expense discussion below.

     o    Reduced depreciation and amortization expense of $14,120 versus
          $21,366 during the comparative period.


                                       F-6
<PAGE>


Revenues
--------
The Company's total net product sales during the three-month periods ended
January 31, 2002 and January 31, 2001 were approximately $837,864 and $1,651,540
respectively, a decrease in net revenues of $813,676 or 49% from the comparative
period. For the six-month periods ended January 31, 2002 and January 31, 2001
net sales revenues were approximately $1,107,798 and $2,258,279 respectively, a
decrease in net revenues of $1,150,481 or 51% from the comparative period.

Retail store gross sales for the three-month periods ended January 31, 2002 and
2001 were approximately $294,469 and $379,262 respectively, a decrease in net
revenues of $84,793 or 22%. Retail store gross sales comprised 35% and 23% of
total net product sales, respectively for the three-month periods. For the
six-month periods ended January 31, 2002 and 2001 retail revenues were
approximately $557,068 and $653,967 respectively, a decrease in net revenues of
$96,899 or 15%. Retail store gross sales comprised 50% and 29% of total net
product sales, respectively for the six-month periods. Fundamental reasons
retail sales were down during the current three-month period versus the
comparative period were:

     o    Destination tourism decreased temporarily after the tragedy of
          September 11, 2001 and necessary airport security measures.
          Understandably, people were reluctant to travel, vacation, and spend
          as they did prior to the tragedy. November and December revenues were
          down although January 2002 experienced an upturn in sales.
     o    The country had officially entered its first economic recession in
          over ten years.
     o    Inventory procurement issues at the store locations. Essentially, the
          Company had difficulty receiving certain popular products by resort
          opening days, required to support and or maximize sales efforts.

     The Company is cautiously optimistic regarding improved retail sales
     through this current fiscal year and beyond and is taking steps to increase
     retail sales. The Company opened two additional retail stores in February
     2002 in an effort to capitalize on the Winter 2002 Salt Lake City Olympics
     and to gauge consumer acceptance in these locations. The stores are located
     in Park City Utah and Salt Lake City Utah. Although no assurances can be
     given as to the long-term success of these locations, Management feels that
     customer support has been positive to date and believes it will continue.
     However weather, tourism and uncertainties related to the economy are
     factors beyond management control, all of which affect retail sales in the
     ski resort towns where Jagged Edge operates. Therefore, no assurances can
     be given as to the success of the Company's retail efforts.

Wholesale gross sales for the three-month periods ended January 31, 2002 and
2001 were approximately $64,305 and $678,357 respectively, for a decrease of
$614,052 or 91% from the comparative period. Wholesale gross sales for the
three-month period comprised 8% and 41% of total net product sales,
respectively. For the six-month periods ended January 31, 2002 and 2001
wholesale sales were approximately $69,342 and $997,892 respectively, for a
decrease of $928,550 or 93%. Wholesale gross sales for the six-month period
comprised 6% and 44% of total net product sales, respectively. A Management
decision to focus limited product purchasing and manufacturing resources on the
sales divisions (retail and catalog) expected to contribute the maximum gross
profit to the Company had been made in spring 2001. Additionally, in the short
run, Management's analysis of total direct wholesale costs including, but not
limited to, salaries, commissions, warehousing, discounting, freight, etc.
indicated a net deficit contribution to the Company for the division, when
operating at the current sales volumes. Management believes that in the long run
the wholesale division can provide profit opportunities for the Company, but
requires decreasing economies of scale and tight management control to
capitalize on the potential opportunities.

                                      F-7
<PAGE>

Mail Order gross sales for the three-month periods ended January 31, 2002 and
2001 (winter catalog season) were approximately $434,811 and $564,797
respectively, a decrease of $129,986 or 23%. Catalog and Mail Order gross sales
comprised 52% and 34% of total net product sales, respectively for the
three-month periods. Management was extremely disappointed in the resultant
sales numbers as selling costs allocated to the catalog division, and the number
of catalogs mailed were increased significantly. Management attributes, in part,
the following as factors contributing to the disappointing sales:

     o    The country entering a recession.
     o    The September 11 tragedy. The following article reflected the
          country's economic belief during that time frame:
          o    NEW YORK (Reuters) -- "Nearly half of all Americans believe the
               attacks on the United States on Sept. 11 will push the country
               into recession, according to a special survey released on Friday
               by The Conference Board, a global business research
               organization."
     o    The anthrax letters and resultant slowdown in mail delivery.
     o    The Company establishing a relationship with an outside catalog
          fulfillment company to handle both the call center and fulfillment
          functions. There were numerous problems encountered in establishing
          this relationship, in particular with this company's computer system
          and capabilities. The timing of, and resolution of the problems
          impaired sales, which must take place over a limited calendar time
          frame.

Sales returns for the three-month periods ended January 31, 2002 and 2001 were
approximately $1,105 and $21,382 respectively, for a decrease in returns of
$20,277 or 95%. For the six-month periods ended January 31, 2002 and 2001
returns were approximately $1,151 and $36,233 respectively, for a decrease in
returns of $36,233 or 97%. Sales in this analysis do not break down data by line
for sales returns however significantly all returns during the comparative
period were wholesale orders.

The following table is provided as an aid to further understand Company sales
for the three-month period ended January 31, 2002:

<TABLE>
<CAPTION>
                                                                     Change From January 31, 2001
                                                                          to January 31, 2002
                                  %      Three Months  %    Three Months  -------------------
Revenues:                       Total      1/31/02   Total     1/31/01       %         $
                                -----      -------   -----     -------       -         -
<S>                              <C>      <C>        <C>       <C>          <C>     <C>

Retail                           35.1%    $294,469   23.0%     379,262     -22.4%   $ (84,793)

 Wholesale                       7.7%       64,305   41.1%     678,357     -90.5%   $(614,052)

 Mail Order                     51.9%      434,811   34.2%     564,797     -23.0%   $(129,986)
                               ----------------------------------------    -------------------
Total Gross Sales Revenues      94.7%      793,585   98.2%   1,622,416     -51.1%    -828,831
  Less: Returns                 -0.1%      (1,105)   -1.3%    (21,382)     -94.8%      20,277
                               ----------------------------------------    -------------------
Net Sales Revenues              94.6%      792,480   96.9%   1,601,034     -50.5%    -808,554
Shipping & Freight Collected     5.4%       45,384    3.1%      50,506     -10.1%      -5,122
                               ----------------------------------------    -------------------
Total Net Revenues             100.0%     $837,864  100.0%  $1,651,540     -49.3%   $(813,676)
                               ========================================    ===================


The following table is provided as an aid to further understand Company sales
for the six-month period ended January 31, 2002:

                                                                       Change From January 31, 2001
                                                                           to January 31, 2002
                              %     Six Months     %      Six Months       -------------------
Revenues:                   Total    1/31/02     Total     1/31/01          %            $
                            -----    -------     -----     -------          -            -

Retail                      50.3%   $  557,068   29.0%    $  653,967      -14.8%    $   (96,899)

 Wholesale                   6.3%       69,342   44.2%       997,892      -93.1%    $  (928,550)

 Mail Order                 39.3%      434,874   26.0%       587,890      -26.0%    $  (153,016)
                           -----------------------------------------     ----------------------
Total Gross Sales Revenues  95.8%    1,061,284   99.2%     2,239,749      -52.6%     -1,178,465
  Less: Returns             -0.1%      (1,151)   -1.6%      (36,233)      -96.8%         35,082
                           -----------------------------------------     ----------------------
Net Sales Revenues          95.7%    1,060,133   97.6%     2,203,516      -51.9%     -1,143,383
Shipping & Freight
Collected                    4.3%       47,665    2.4%        54,763      -13.0%         -7,098
                           -----------------------------------------     ----------------------
Total Net Revenues         100.0%   $1,107,798  100.0%    $2,258,279      -50.9%    $(1,150,481)
                           =========================================     ======================
</TABLE>

                                      F-8
<PAGE>


Cost of Goods Sold
------------------
The Company's total product cost of sales for all sales during the three-month
periods ended January 31, 2002 and 2001 were approximately $412,363 and $876,695
or 37% and 23% of net sales respectively, for a decrease of $464,332 or 53% from
the comparative period. Total product cost of sales for all sales during the
six-month periods ended January 31, 2002 and 2001 were approximately $581,582
and $1,283,180 or 50% and 29% of net sales respectively, for a decrease of
$701,598 or 55% from the comparative period.

Cost of sales as a percentage of total sales in the three-month period ended
January 31, 2002 decreased to 52% from 55% in the comparative period ended
January 31, 2001. This decrease was primarily the result of the sales of product
at retail prices through the Jagged Edge stores and catalog mail order.
Management also maintained control over sale dates as to when product would be
discounted at the retail level. During the comparative period, the overall mix
of sales between retail stores and the wholesale division (at 50% of retail
price) resulted in a higher cost of products sold by the Company.

Selling Expenses
----------------
Selling expenses for the three-month periods ended January 31, 2002 and 2001
were approximately $529,119 and $613,333, respectively, a decrease in expense of
$84,214 or 13% over the comparative period. For the six-month periods ended
January 31, 2002 and 2001 selling expenses were approximately $641,375 and
$837,422, respectively, a decrease in expense of $196,047 or 23% over the
comparative period.

The reduction in selling expenses were a direct result of the reduction in
wholesale sales described above, the elimination of the support infrastructure
required to service wholesale customers properly, and the ancillary support
expenses typical of a wholesale operation. Significant savings were realized as
follow:

     o    Net savings in advertising expense for the period ended January 31,
          2002 of $57,075 over the comparative six-month period.
     o    Elimination of sales and support salaries & wages and associated taxes
          to $0 from $106,106 during the comparative six-month period.
     o    Elimination of contract employee expenses of $20,400 incurred during
          the comparative six-month period.
     o    Materially reduced trade show and other miscellaneous sales expenses.

                                       F-9
<PAGE>

General & Administrative Expenses
---------------------------------
General and  Administrative  expenses for the three-month periods ended January
31, 2002 and 2001 were approximately $176,657 and $179,289, respectively, for a
decrease of $2,632 from the comparative three-month period. Expenses for the
six-month periods ended January 31, 2002 and 2001 were approximately $323,015
and $335,597, respectively, for a decrease of $12,582 from the comparative
six-month period. The decrease in general & administrative expenses was the net
result in large part of a combination of expenses eliminated, offset by certain
expense increases. In large part the expense reductions were the result of the
Company downsizing and its subsequent move to Moab, Utah from Telluride,
Colorado. The following are key decreases and increases in general and
administrative expense:

     o    A reduction or elimination of administrative and clerical salaries &
          wages during the six-month period of approximately $22,000 over the
          comparative period.
     o    Reduced employee benefits during the six-month period by $13,000 over
          the comparative period.
     o    A reduction in administrative office rents resulting in savings of
          $15,600 for the six-month period. Annualized savings may approach
          $50,200 although no assurances can be given as to final realizable
          savings.
     o    Reductions in travel and associated costs resulting in savings of
          approximately $11,000.
     o    An increase of $60,000 of consultant costs during the current period
          related to senior management guidance, logistics, production, and
          inventory issues.

Interest Expense
----------------
Interest expense for the three-month periods ended January 31, 2002 and 2001 was
Approximately $26,052 and $31,053 respectively, or a decrease of $5,000 or 16%.
Expense for the six-month periods ended January 31, 2002 and 2001 was
approximately $45,968 and $46,390 respectively, or a decrease of $422.

Liquidity and Capital Resources
-------------------------------
During the six months ended January 31, 2002, the Company's current ratio
Declined to .56 as compared to .91 at July 31, 2001. Net working capital
decreased $424,007 to $(476,988) at January 31, 2002 from $(52,981) at July 31,
2001.

Principal changes in the components of net working capital for the six-month
period ended January 31, 2002 as compared to fiscal year end July 31, 2001
consist of:

<TABLE>
<CAPTION>
                                                                       Change From July 31, 2001
                                                                          to January 31, 2002
                                    %                    %                -------------------
Working Capital Components:       Total      1/31/02   Total     7/31/01           $
                                  -----      -------   -----     -------           -
<S>                                <C>       <C>       <C>       <C>           <C>

Cash & cash equivalents            0.0%            0   39.4%     200,163       $(200,163)

Trade receivables                 10.5%       63,704    2.9%      14,904       $  48,800

Inventories                       78.3%      475,234   56.7%     288,467       $ 186,767

Pre-paid expenses                 11.2%       67,772    1.0%       4,894       $  62,878
                                 ---------------------------------------       ---------
Current Assets                   100.0%      606,710  100.0%     508,428          98,282

Accounts payable and accrued
  liabilities                     75.2%      814,696   66.0%     370,680       $ 444,016
Current maturities of notes
  payable                         14.0%      151,780   20.2%     113,564       $  38,216

Other current payables            10.8%      117,222   13.7%      77,165       $  40,057
                                 ---------------------------------------       ---------
Current Liabilities              100.0%    1,083,698  100.0%     561,409         522,289
                                           ---------           ---------       ---------
Working Capital                            $(476,988)          $ (52,981)      $(424,007)
                                           =========           =========       =========
----------------------------------------------------------------------------------------
Current Ratio                                   0.56                0.91           (0.35)
</TABLE>

The principal reasons for the net decrease in working capital during the period
are the following:

     o    The Company's cash balances decreased to $0 at January 31, 2002, from
          $200,163 at July 31, 2001 primarily as a result of inventory purchases
          and use of cash in day to day operations.
     o    Inventory increased by $186,767 due to a poor catalog selling season.
     o    An increase in prepaid expenses primarily related to the fall / winter
          catalog mailing.
     o    The Company increased short-term borrowings by receiving three loans
          totaling $165,000.
     o    Trade accounts payable increased by $444,016.

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.

                                       F-10
<PAGE>


Item 3. Quantitative and Qualitative Disclosure About Market Risk.

The Company is exposed to certain 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 Korea 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 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, although the Company
believes this risk is minimal. Potential risks associated with operating in the
international arena include:

     o    Economic instability, including the possible revaluation of
          currencies.
     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.


                                      F-11
<PAGE>


                           Part II. OTHER INFORMATION

Item 1.  Legal Proceedings.

         For information on legal proceedings, see Item 3 of the July 31, 2001
         Form 10-KSB.

Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibits

         None

(b)      Reports on Form 8-K

         No reports on form 8-K were filed by the Company during the six months
         ended January 31, 2002.



                                       12
<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:   March 22, 2002                    By: /s/ Margaret A. Quenemoen
                                           -----------------------------
                                           Margaret A. Quenemoen
                                           President


Dated:   March 22, 2002                    By: /s/ Craig Carr
                                           -----------------------------
                                           Craig Carr
                                           CFO





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