|FORM 10-QSB

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
|----------------------------------------------------------------



|[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------



|For the quarterly period ended March 31, 2004

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  000-30797

EP GLOBAL COMMUNICATIONS, INC.
(Exact name of registrant as specified in its charter)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|DELAWARE
(State or other jurisdiction of
incorporation or organization) | 14-1818396
(I.R.S. Employer
Identification No.)
|----------------------------------------------------------------------- | -----------------------------------------------



|C/O Exceptional Parent, 65 East Route 4, River Edge, New Jersey 07661
(201) 489-4111
(Address and telephone number, including area code, of
registrant's principal executive office)

EAST COAST AIRLINES, INC.
(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 issuer's classes of common stock, as of the latest practicable date.

At March 31, 2004 there were 20,279,710  shares of Common Stock, $.0001 par value, outstanding.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







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|EP GLOBAL COMMUNICATIONS, INC.

INDEX
|-------------------------------------



|                                                                                                | Page   
|----------------------------------------------------------------------------------------------- | -------
|                                                                                                |        
|Part I.
Financial Information                                                                   |        
|Item 1.
Financial Statements                                                                    | 1      
|Balance Sheets as of March 31, 2004 (unaudited)                                                 | 2 - 3  
|Statements of Operations for the
Three and Six Months Ended March 31,
2004 and 2003 (unaudited) | 4      
|Statements of Cash Flows for the Three
Months Ended March 31, 2004 and 2003
(unaudited)         | 6  7  
|Notes to Financial Statements (unaudited)                                                       | 8  16 
|Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of
Operations   | 17  23
|Item 14.
Controls and Procedures                                                                | 23     
|                                                                                                |        
|Part II.
Other Information                                                                      |        
|Item 1.
Legal Proceedings                                                                       | 24     
|Item 2.
Changes in Securities                                                                   | 24     
|Item 3.
Defaults upon Senior Securities                                                         | 24     
|Item 4.
Submission of Matters to a Vote of Security
Holders                                     | 24     
|Item 5.
Other Information                                                                       | 24     
|Item 6.
Exhibits and Reports on Form 8-K                                                        | 25     
|Signatures                                                                                      | 26     
|                                                                                                |        





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PART I.

Financial Information



Item 1.   Financial Statements



Certain information and footnote disclosures required under accounting principles generally accepted in the United States of America have been condensed or omitted from the following consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission.  It is suggested that the following consolidated financial statements be read in conjunction with the year-end consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2003.



The results of operations for the three months ended March 31, 2004 and 2003 are not necessarily indicative of the results for the entire fiscal year or for any other period.



-1 -

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| | EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY  |                       
| | ---------------------------------------------- | ----------------------
| | CONSOLIDATED BALANCE SHEET                    
| |                                                |                       
| | ASSETS                                        
| |                                                |                       
| |                                                | March 31,             
| |                                                | 2004                  
| |                                                | (Unaudited)           
| | Current Assets:                                |                       
| | Cash                                           | $               72,140
| | Accounts receivable - less allowance for       |                       
| | doubtful accounts of $54,000 at March 31, 2004 | 312,346               
| | Inventory                                      | 24,500                
| | Prepaid expenses and other current             |                       
| | assets                                         | 5,500                 
| |                                                |                       
| | Total Current Assets                           | 414,486               
| |                                                |                       
| | Property and equipment - net                   | 73,557                
| |                                                |                       
| | Other assets                                   | 25,745                
| |                                                |                       
| |                                                |                       
| |                                                |                       
| | TOTAL ASSETS                                   | $             513,788 
| |                                                |                       
| | See notes to financial statements             
| |                                                |                       
| | - 2 -                                         
| |                                                |                       





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| | EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY                
| | -------------------------------------------------------------
| | CONSOLIDATED BALANCE SHEET                                   
| |                                                              
| | LIABILITIES AND STOCKHOLDERS' DEFICIENCY                     
| |                                                              
| |                                                              
| |                                                              
| | Current Liabilities:                                         
| | Current portion of  long term debt                           
| | Current portion of capitalized lease obligations             
| | Accounts payable                                             
| | Accrued expenses                                             
| | Notes payable                                                
| | Due to shareholder                                           
| | Deferred subscriptions and other revenues                    
| |                                                              
| | Total Current Liabilities                                    
| |                                                              
| | Long-Term Liabilities:                                       
| | Deferred subscriptions and other revenues                    
| | Capitalized lease obligations                                
| |                                                              
| | Total Long-Term Liabilities                                  
| |                                                              
| | Total Liabilities                                            
| |                                                              
| | Stockholders' Deficiency:                                    
| |                                                              
| | Preferred stock:                                             
| | Series A, $.01 par value; authorized 5,000,000 shares;       
| | outstanding 3,333 shares                                     
| |                                                              
| | Series B, $1.00 par value; authorized 5,000,000 shares;      
| | outstanding 309 shares                                       
| |                                                              
| | Common stock, $.0001 par value; authorized 60,000,000 shares;
| | outstanding 20,279,710 shares                                
| | Additional paid in capital                                   
| | Deficit                                                      
| |                                                              
| |                                                              
| | Total Stockholders' Deficiency                               
| |                                                              
| | TOTAL LIABILITIES AND                                        
| | STOCKHOLDERS' DEFICIENCY                                     
| |                                                              
| | See notes to financial statements                            
| |                                                              
| | - 3 -                                                        





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| | EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY
| | ---------------------------------------------
| | CONSOLIDATED STATEMENT OF OPERATIONS         
| | (Unaudited)                                  
| |                                              
| |                                              
| |                                              
| |                                              
| |                                              
| | Net Sales                                    
| |                                              
| | Cost of goods sold                           
| |                                              
| | Gross profit                                 
| |                                              
| | Selling, general and administrative          
| | expenses                                     
| |                                              
| | Income (loss) from operations                
| |                                              
| | Interest expense                             
| |                                              
| | Income (loss) before provision for           
| | income tax                                   
| |                                              
| | Provision for income tax                     
| |                                              
| | Net income (loss)                            
| |                                              
| | Earnings (loss) per common share - basic     
| |                                              
| | Earnings (loss) per common share - diluted   
| |                                              
| | Weighted average common shares               
| | outstanding - basic                          
| |                                              
| | Weighted average common shares               
| | outstanding - diluted                        
| |                                              
| | See notes to financial statements            
| |                                              
| | - 4 -                                        



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| | EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY           
| | --------------------------------------------------------
| | CONSOLIDATED STATEMENTS OF CASH FLOWS                   
| | (Unaudited)                                             
| |                                                         
| |                                                         
| |                                                         
| |                                                         
| |                                                         
| | Cash flows from operating activities:                   
| | Net Income (loss)                                       
| | Adjustment to reconcile net loss to net cash            
| | Depreciation and amortization                           
| | Decrease in bad debts reserve                           
| | (Increase) decrease in operating assets and liabilities:
| | Accounts receivable                                     
| | Inventory                                               
| | Accounts payable                                        
| | Accrued expenses                                        
| | Deferred subscriptions and other revenues               
| | Net cash provided by  (used in)  operating              
| | activities                                              
| |                                                         
| | Cash flows from financing activities:                   
| | Payments on debt                                        
| | Principal payments on capitalized lease obligation      
| |                                                         
| | Net cash flows used in financing                        
| | activities                                              
| |                                                         
| | Net increase (decrease) in cash                         
| |                                                         
| | Cash - beginning of period                              
| |                                                         
| | Cash - end of period                                    
| |                                                         
| | See notes to financial statements                       
| |                                                         
| | - 6 -                                                   
| |                                                         



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| | EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY |                            |                            
| | --------------------------------------------- | -------------------------- | ---------------------------
| | CONSOLIDATED STATEMENTS OF CASH FLOWS         |                            |                            
| | (Unaudited)                                  
| |                                               |                            |                            
| |                                               | For the Three Months Ended |                            
| |                                               | March 31,                 
| |                                               | 2004                       | 2003                       
| | Supplementary information:                    |                            |                            
| | Cash paid during the year for:                |                            |                            
| |                                               |                            |                            
| | Interest                                      | $            11,271        | $              11,194      
| | Taxes                                         | $                       -  | $                         -
| |                                               |                            |                            
| | See notes to financial statements            
| |                                               |                            |                            
| | - 7 -                                        
| |                                               |                            |                            





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EP GLOBAL COMMUNICATIONS, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)



1.

Basis of Presentation



The consolidated balance sheet as of March 31, 2004, and the consolidated statements of operations and cash flows for the periods presented herein have been prepared by EP Global Communications, Inc. (the "Company" or "EP") and are unaudited.  In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly, the financial position, results of operations and cash flows for all periods presented have been made.



On November 28, 2003, East Coast Airlines, Inc. ("East Coast") entered into a share exchange agreement with Psy-Ed Corporation.  In connection with the share exchange, East Coast acquired the assets and assumed the liabilities of Psy-Ed Corporation.  For accounting purposes, the share exchange agreement has been treated as a recapitalization of Psy-Ed Corporation as the acquirer.  The financial statements prior to November 28, 2003 are those of Psy-Ed Corporation.  See Note 2 of Notes to Consolidated Financial Statements.



DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Organization



EP Global Communications, Inc., formerly East Coast Airlines, Inc., and Subsidiary (EP or the Company), operates its business through its subsidiary, Psy-Ed Corporation (d/b/a Exceptional Parent Magazine).  EP publishes and distributes Exceptional Parent Magazine, an international publication, designed to serve the information needs of families and professionals who are involved in the care and development of children and adults with disabilities and special health care needs.   EP also develops and implements online accredited Continued Medical Education Programs; has its own library of over 1,000 disability book titles and publishes clinical monographs which are disseminated to physicians, researchers and allied health care professionals as well as families and caregivers all over the world.



SIGNIFICANT ACCOUNTING POLICIES



Principles of Consolidation



The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary.  All intercompany transactions and balances have been eliminated.



Use of Estimates



The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.



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Concentration of Credit Risk



Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of accounts receivable.  The Company grants credit primarily to advertisers based on an evaluation of the customers financial condition, without requiring collateral.  Exposure to losses on these receivables is principally dependent on each customers financial condition.  A majority of the subscription income is received in advance and presents little risk to the Company.  The Company controls its exposure to credit risk through monitoring procedures and establishes appropriate allowances for anticipated losses.



Inventories



Inventories, consisting primarily of books, are stated at the lower of cost or market.



Revenue Recognition



The Company recognizes revenue in accordance with the guidance contained in SEC Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB101).



Online services advertising revenues, primarily derived from the sale of banner advertisements and sponsorships on the Company's web sites, is recognized in the period the advertising is displayed. The costs to develop this internet income are period costs and are expensed when incurred.  Print publication advertising and circulation revenues are recognized, net of agency commissions and estimated returns and allowances, when publications are issued.  List rental income is recognized, net of commission, when a list is sold or rented.



Deferred subscription income, net of agency commission is recorded when subscription orders are received.  The Company uses a fulfillment house, which calculates the revenue to be recorded for all periods.  Customers generally subscribe to the magazine for a three year period of time.  Deferred subscription income represents the portion of the prepaid subscription not earned by the Company and paid for in advance of fulfillment by the Company to the customer.



Depreciation



Property and equipment are stated at cost less accumulated depreciation and amortization.  Depreciation of property and equipment is calculated on the straight-line method over the estimated useful lives of the respective assets, ranging from three to five years.  Leasehold improvements are amortized over the lesser of the useful life of the asset or the term of the lease.



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Stock-Option Plan



The Company accounts for equity-based compensation issued to employees in accordance with Accounting Principles Board (ABP Opinion No.25 Accounting for Stock Issued to Employees.  APB No.25 requires the use of the intrinsic value method, which measures compensation cost as the excess, if any, of the quoted market price of the stock at the measurement date over the amount an employee must pay to acquire the stock.  The Company makes disclosures of pro forma net earnings and earnings per share as if the fair-value-based method of accounting had been applied as required by SFAS No.123 Accounting for Stock-Based Compensation-Transition and Disclosure.



In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based Compensation-Transition and Disclosure, an amendment of FASB Statement No. 123.  SFAS No. 148 provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation.  It also requires disclosure in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results.  SFAS No. 148 is effective for annual and interim periods beginning after December 15, 2002.  The Company will continue to account for stock-based employee compensation under the recognition and measurement principle of APB Opinion No. 25 and related interpretations.



The Company has adopted the disclosure-only provisions of Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based Compensation"(SFAS No. 123). Had compensation cost for the Company's stock option plan been determined based on the fair value at the grant date for awards in 2003 and 2002 consistent with the provisions of SFAS No. 123, the Company's net earnings and earnings per share would have been reduced to the pro forma amounts indicated below:



| |                                   | For the Three Months |               
| | --------------------------------- | -------------------- | --------------
| |                                   | Ended March 31,      |               
| |                                   | 2004                 | 2003          
| |                                   |                      |               
| | Net earnings (loss) - as reported | $     (138,404)      | $      110,019
| |                                   |                      |               
| | Stock-based compensation expense  |                      |               
| | using fair value method           | -                    | (16,510)      
| |                                   |                      |               
| | Net earnings (loss) - pro forma   | $     (138,404)      | $       93,509
| |                                   |                      |               
| | Earnings (loss) per share-        |                      |               
| | basic - as reported               | $          (0.01)    | $1.59         
| | Earnings (loss) per share-        |                      |               
| | basic - pro forma                 | $          (0.01)    | $1.35         
| | Earnings (loss) per share-        |                      |               
| | diluted - as reported             | $          (0.01)    | $1.42         
| | Earnings (loss) per share-        |                      |               
| | diluted - pro forma               | $          (0.01)    | $1.21         
| |                                   |                      |               





No options or warrants were granted during the three months ended March 31, 2004.



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Income Taxes



The Company accounts for income taxes using an asset and liability approach under which deferred income taxes are recognized by applying enacted tax rates applicable to future years to the differences between the financial statement carrying amounts and the tax bases of reported assets and liabilities.



The principal items giving rise to deferred taxes are certain expenses which have been deducted for financial reporting purposes which are not currently deductible for income tax purposes and the future tax benefit of certain net operating loss carryforward.



Evaluation of Long-Lived Assets



The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable in accordance with guidance in SFAS No. 144 Accounting for the Impairment or Disposal of Long-Lived Assets. If the carrying value of the long-lived asset exceeds the present value of the related estimated future cash flows, the asset would be adjusted to its fair value  and an impairment loss would be charged to operations in the period identified.



Earnings (Loss) Per Share - Basic earnings (loss) per common share are computed by dividing net earnings (loss) by the weighted average number of common shares outstanding during the year.  Diluted earnings per common share are computed by dividing net earnings (loss) by the weighted average number of common shares and potential common shares outstanding during the year. Potential common shares used in computing diluted earnings (loss) per share relate to stock options, warrants and convertible preferred stock which, if exercised, would have a dilutive effect on earnings (loss) per share.



The following table includes a reconciliation of shares used in the calculation of basic and diluted earnings (loss) per share:



| |                                               | Three Months Ended |       
| | --------------------------------------------- | ------------------ | ------
| |                                               | March 31,         
| |                                               | 2004               | 2003  
| |                                               |                    |       
| | Weighted average shares outstanding - basic   | 20,279,710         | 69,053
| |                                               |                    |       
| | Dilutive impact of options, warrants and      |                    |       
| | convertible prefered stock outstanding        | -                  | 8,230 
| |                                               |                    |       
| | Weighted average shares outstanding - diluted | 20,279,710         | 77,283
| |                                               |                    |       



During the three months ended March 31, 2004, preferred stock convertible into 744,786 shares of common stock were not included in the foregoing computations because they were antidilutive.



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Fair Value of Financial Instruments



For financial instruments including cash, accounts payable, accrued expenses and notes payable, it was assumed that the carrying amount approximated fair value because of the short maturities of such instruments.





2.

SHARE ACQUISITION AGREEMENT



On November 28, 2003, East Coast entered into a share acquisition agreement with Psy-Ed Corporation d/b/a Exceptional Parent ("EParent").  See Note 1 of Notes to Consolidated Financial Statements.



As provided for in the share acquisition agreement, the stockholders of EParent received 173 shares of East Coast common stock in exchange for each share of EParent common stock they held.  A total of 13,010,984 shares of East Coast were issued to EParent stockholders in consummation of the share acquisition exchange.  Immediately following the share acquisition exchange, East Coast had a total of 20,279,710 shares of common stock issued and outstanding excluding shares issuable upon conversion of Eparent's Series A and Series B Preferred Stock.  In addition, the resignations of Robert Salluzzo and Charles Youngblood from the Board of Directors of East Coast and from their positions as President and Chief Executive Officer and a Secretary, respectively, took effect upon the close of the share acquisition exchange.  The EParent Board of Directors became the Board of Directors of East Coast and Joseph M. Valenzano, Jr. became the President and Chief Executive Officer.  The name of the new parent company was changed to EP Global Communication, Inc.  Assuming the EParent stockholders owning all of the 3,642 EParent Series A and Series B preferred shares first convert them to EParent common shares and then exchange their common shares for 630,066 East Coast common shares, the EParent stockholders will then own approximately 65% of East Coast's outstanding common stock.  While the former stockholders now own more then a majority of the issued and outstanding shares of East Coast, no individual stockholder holds enough shares to assert control over East Coast and neither East Coast or EParent is aware of any group of stockholders that is acting together in order to assert control over East Coast.





3.

PROPERTY AND EQUIPMENT



Property and equipment consists of the following:



| |                                | March 31,           2004
| | ------------------------------ | ------------------------
| | Furniture and Fixtures         | $ 272,497               
| | Less: Accumulated Depreciation | 198,940                 
| |                                | $   73,557              
| |                                |                         



Depreciation expense for the three months ended March 31, 2004 and 2003 was $5,535 and $4,905, respectively.





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4.        ACCRUED EXPENSES

Accrued expenses consists of the following:



| |                    | March 31,      
| | ------------------ | ---------------
| |                    | 2004           
| |                    |                
| | Commissions        | $        23,477
| | Professional fees  | 46,000         
| | Interest           | 4,227          
| | Corporate expenses | 775            
| | Taxes payable      | 100            
| |                    | $        74,579
| |                    |                





5.

DEBT



Short-term bank obligations at March 31, 2004, consists of the following:



| |                                                                                                                                                      | March 31,
| | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ---------
| | Secured line of credit with
Provident Bank in the amount of
$500,000, interest at 1% over bank's
prime lending rate (5.0% at March 31,
2004) (1) (2) | $ 496,119
| | Unsecured line of credit with Sun Trust
Credit for $30,000, interest
at 20.25% at March 31, 2004                                                     | 25,598   
| |                                                                                                                                                      | $521,717 



(1)

The line of credit is secured by the Companys accounts receivable, inventory and property and equipment.  The line of credit matures August 5, 2004.





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Long-term debt at March 31, 2004 consists of the following:



| |                                                       | March 31,   
| | ----------------------------------------------------- | ------------
| |                                                       | 2004        
| |                                                       |             
| | Note payable to Cardinal Debt Associates,             |             
| | L.P., interest at 8%, due September, 2004.            |             
| | The note is secured by a second position on the       |             
| | Company's accounts receivable and other               |             
| | assets. (2)                                           | $ 90,000    
| |                                                       |             
| | Note payable to Exceptional Associates, L.P.          |             
| | Interest is payable in common shares of the           |             
| | Company (51 shares through March, 2004).              |             
| | The fair value of the shares issued is based on an    |             
| | interest rate of comparable debt owed by the Company. |             
| | The note is due October 1, 2004                       | 20,000      
| |                                                       |             
| | Note payable to Cardinal Debt Associates, L.P.        |             
| | Interest at 7% due November 30, 2004.  The note       |             
| | is secured by 200,000 shares of Deer Park             |             
| | Technologies, Inc. common stock (3)                   | 100,000     
| |                                                       | 210,000     
| | Less current portion                                  | 210,000     
| |                                                       | $          -
| |                                                       |             



(2)

This note is subordinated to Provident Banks working capital line of credit.

(3)

A shareholder of the Company collateralized the loan with shares of another public entity owned by the shareholder.



The following are maturities of long-term debt:



Years Ending December 31,



2004

$210,000





Recent Financial Accounting Pronouncements



In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities."  This Statement requires recording costs associated with exit or disposal activities at their fair values when a liability has been incurred.  Under previous guidance, certain exit costs were accrued upon management's commitment to an exit plan.  The Company adopted SFAS No. 146 on January 1, 2003. The adoption of SFAS No. 146 did not have a material impact on the Company's result of operations or financial position.



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In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement No. 133 on Derivative Instruments and Hedging Activities."  This statement amends and clarifies financial accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts and for hedging activities under FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities."  This Statement is effective for contracts entered into or modified after June 30, 2003, and for hedging relationships designated after June 30, 2003.  Management believes that this statement did not have a material impact on the Company's results of operations or financial position.



In November 2002, the FASB issued FASB Interpretation No. 45 (FIN 45), Guarantors Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others, and interpretation of FASB Statements No. 5, 57,and 107 and Rescission of FASB Interpretation No. 34.  FIN 45 clarifies the requirements of FASB Statement No. 5, Accounting for Contingencies, relating to the guarantors accounting for, and disclosure of, the issuance of certain types of guarantees.  This interpretation clarifies that a guarantor is required to recognize, at the inception of certain types of guarantees, a liability for the fair value of the obligation undertaken in issuing the guarantee.  The initial recognition and initial measurement provisions of this Interpretation are applicable on a prospective basis to guarantees issued or modified after December 31, 2002, irrespective of the guarantors fiscal year-end.  The disclosure requirements in this interpretation were effective for financial statements of interim or annual periods ending after December 15, 2002.  The Company adopted FIN 45 on January 1, 2003.  The adoption of FIN 45 did not have a material impact on the Company's results of operations or financial position.



In January 2003, the FASB issued FIN No. 46, Consolidation of Variable Interest Entities.  In December 2003, the FASB issued FIN No. 46 (Revised) (FIN 46-R) to address certain FIN 46 implementation issues.  This interpretation requires that the assets, liabilities, and results of activities of a Variable Interest Entity (VIE) be consolidated into the financial statements of the enterprise that has a controlling interest in the VIE.  FIN 46R also requires additional disclosures by primary beneficiaries and other significant variable interest holders.  For entities acquired or created before February 1, 2003, this interpretation is effective no later than the end of the first interim or reporting period ending after March 15, 2004, except for those VIEs that are considered to be special purpose entities, for which the effective date is no later than the end of the first interim or annual reporting period ending after December 15, 2003.  For all entities that were acquired subsequent to January 31, 2003, this interpretation is effective as of the first interim or annual period ending after December 31, 2003.  The adoption of FIN 46 did not have a material impact on the Company's results of operations or financial position.



In May 2003, the FASB issued SFAS No. 150, Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity.  SFAS No. 150 clarifies the accounting for certain financial instruments with characteristics of both liabilities and equity and requires that those instruments be classified as liabilities in statements of financial position.  Previously, many of those financial instruments were classified as equity.  SFAS No. 150 is effective for financial instruments entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003.  The adoption of the provisions of SFAS No. 150 did not have a material impact on the Companys financial position.



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In December 2003, the FASB issued SFAS No. 132 (Revised) (SFAS No. 132-R), Employers Disclosure about Pensions and Other Postretirement Benefits.  SFAS No. 132-R retains disclosure requirements of the original SFAS No. 132 and requires additional disclosures relating to assets, obligations, cash flows, and net periodic benefit cost for defined benefit pension plans and defined benefit post retirement plans. SFAS No. 132-R is effective for fiscal years ending after December 15, 2003, except that certain disclosures are effective for fiscal years ending after June 15, 2004.  Interim period disclosures are effective for interim periods beginning after December 15, 2003.  The adoption of the disclosure provisions of revised SFAS No. 132-R did not have a material impact on the Companys historical disclosure.



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



Critical Accounting Policies



The Company's discussion and analysis of its financial condition and results of operations are based upon the Company's financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amount of assets, liabilities and expenses, and related disclosure of contingent assets and liabilities. The Company bases its estimates on historical experience and on other various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis form making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under difference assumptions or conditions.



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS



This report contains forward-looking statements. Forward-looking statements include

statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical facts.

Words such as, "expects," "anticipates," "estimates," "believes" and similar expressions are

intended to identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties are set forth below. Our expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, including, without limitation, our examination of historical operating trends, data contained in our records and other data available from third parties, but there can be no assurance that our expectations, beliefs or projections will result, be achieved or be accomplished.



Plan of Operation



The Company had been in the development stage since inception on November 17, 1999 and had intended to initiate regional airline service as its primary business purpose. As noted previously, the tragic events of September 11, 2001 caused the Company's original plan to be severely and adversely impacted to the point that management refocused its business plan to seek a consolidation with a strategic partner, either through a joint venture, acquisition, merger or share exchange transaction in order to preserve value for its shareholders.



During February, 2003, we began preliminary discussions with a private entity to enact a consolidation through either a merger or acquisition transaction. On November 28, 2003, pursuant to unanimous adoption by the Boards of Directors of Psy-Ed Corporation and East Coast Airlines, Inc., the companies entered into a Share Acquisition Agreement that authorizes  East Coast Airlines, Inc. (the Company or East Coast) to offer  (the Offering) 173 shares of its Common Stock (the Common Stock) for each share of Psy-Ed Corporation (Psy-Ed)



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Common Stock held of record by all Psy-Ed Stockholders. This Offering resulted in the issuance of   13,010,984 shares of the Companys common stock to 50 Psy-Ed shareholders.



Having completed the merger we are now a global communications company dedicated to providing quality, reliable information for people with disabilities and special health care needs. We will continue Psy-Eds 33 years of providing publications and services to this community focusing on the flagship Exceptional Parent Magazineand the creation and development of seminars for special needs individuals and families.



We can give no assurance that the share acquisition transaction will result in material value being added to the Company and our shareholders.



The Company has incurred, and will continue to incur, expenses relating to its operations. Specifically, as long as the Company is required to file reports under the Exchange Act, the Company will continue to incur accounting and legal fees relating to the filing of current, quarterly and annual reports with the Securities and Exchange Commission.



With the share acquisition transaction complete, however we are a thirty three year old communications company recognized as the leader in the field of communication and education to the special needs market and have embarked on a growth strategy that is to result in revenue growth in our core business segment, that being magazine publishing as well as expansion of our sponsored editorial programs, introduction of a new On Line CME/CEU accredited information series and expansion of special events focusing on special needs. EP is also contemplating the initiation of a web based periodical to further increase the Companys market reach.



Specifically, the following has been undertaken to further this plan.



The Company has forged strategic alliances with several major professional medical societies who endorse and support the Company and its mission.  These include the following:

| | -
The Child Neurology Society (1,450 pediatric neurologists in the USA)
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The American Academy of Developmental Medicine and Dentistry
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The Society for Special Needs Dentistry (1,000 members in USA)
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MOVE International
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Oral Health America
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Mr. Joseph M. Valenzano, Jr, President of the Company serves as the Chair of the Executive Advisory Board  to the Child Neurology Society and Child neurology Foundation and is a member of the board of directors of the CNF.  Mr. Valenzano also serves as Chair of the American Academy of Developmental Medicine and Dentistry Advisory Board and is  a voting member of that prestigious medical societys board of directors.  Finally, Mr. Valenzano serves on the board of directors of each of  the aforementioned non profit organizations and is the only non-physician to do so.



The Company also enjoys strong strategic relationships with virtually every major non-profit organization and association serving people with disabilities and special needs.  Among these are:



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| | -
Special Olympics International
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Spina Bifida Association of America
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Epilepsy Foundation
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United Cerebral Palsy
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Easter Seals
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Muscular Dystrophy Association of America
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Rett Syndrome Society
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Fragile X Foundation
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Cure Autism Now (CAN)
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National Alliance for Autism Research (NAAR)
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Hunters Hope Foundation
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United Mitochondrial Disorders Foundation
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American Academy of Pediatrics
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American Academy of Cerebral Palsy and Developmental Medicine
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International Child Neurology Foundation
and many, many others
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





The significance of these relationships is a key strategic marketing component in

our effort to build circulation and exposure for the Company and specifically

some of its major initiatives such as Newborn Screening.



In its thirty three year history, EP Magazine has received seven (7) EDI Awards from Easter Seals for Equality, Dignity and Independence.  Recently, over the past three years EP has received two back to back Gold medal Awards from FOLIO and the Magazine Publishers Awards for Superior Editorial Journalism and one Silver Medal in 2003.  In 2004 EP was the recipient of the Presidential New Freedom Initiative Award symbolic of the Best Publication and Web Site in the Nation for People with Disabilities and Special Needs.



In addition to the Gold and Silver  Medals for Editorial Excellence and New Freedom Initiative, EP has been chosen as the exclusive publisher for the forthcoming Presidents Report on People with Intellectual Disabilities from the Presidents Commission on People with Intellectual Disabilities.  This Report, which will bear the Seal of the Office of the President of the United States will be disseminated in September 2004 barring any unforeseen circumstances on the international scene that may delay it.  It marks the first time since the inception of this Presidential Commission created under John F. Kennedy, that an independent company will be accorded this honor.



The Company has conceptualized and developed several successful on line CME (Continuing Medical Education) and CEU (Continuing Education Credit) Educastion Programs directed to physicians, allied health care professionals and families involved in the care and development of patients with chronic disabilities and special health care needs.  Some of these include:



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| | -
The Management and Control of Refractory Seizures in People with Mental Retardation and Developmental Disabilities Using VNS Therapy (six such seminars have been developed and offered on this subject alone funded by unrestricted educational grants from a major medical equipment manufacturer;
-
Universal Newborn Screening
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The Management of Pediatric Gait Deficiencies Utilizing Dynamic Bracing, scheduled for May 22, 2004 and already exceeding the largest attended on line conference offered by the Company with 310 confirmed registrations to date.
-
Understanding Childhood Movement Disorders
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



On balance these seminars run two hours in length and utilize distinguished physicians and allied health care professionals recruited by the Company.  Content is owned by EP and can be disseminated on the internet or converted into DVD or CD-Rom for further dissemination of enduring materials.  The Newborn Screening Program for example has been developed into a one hour forty five minute DVD featuring world renowned experts in this scientific field;



The Company is embarking on a major effort to help facilitate the adoption of Newborn Screening Technology and capabilities in the United States Military, specifically the Navy and Marine Corps.  To this end, the Companys President and CEO will be meeting with key military physicians and researchers at Balboa Naval Hospital in San Diego, California May 11th and 12.



The Company is the architect and developer of the World Congress & Exposition on Disabilities (WCD) a major international event now in its fifth year.  This is a joint venture with a specialized marketing company with experience in event marketing such as large scale trade shows and exhibits.  In 2004 the WCD will take place in Orlando, Florida offering 144 CME and CEU accredited educational programs over a weekend and some 250 exhibitors displaying their innovative products designed t improve the quality of life for people of all ages with disabilities and special needs.  The WCD was a natural extension of the business strategy and plan developed by Mr. Valenzano and has now become a reality for the fifth consecutive year.  Our plans call for the expansion of this event on the west coast and possibly international.

The Company desires to explore possible international licensing arrangements with publishing companies in Latin America and Europe and part of the strategy of accessing the public market is to help fuel this worthy initiative.



The Company has developed a unique, high profile marketing program involving Major League Baseball Teams across the United States.  The program called Disability Awareness Night (DAN) was launched two years ago in 2002 and involved only the New York Yankees and Boston Red Sox.  The idea was to feature and recognize in a moving pre-game ceremony at home plate, individuals who either because of how they have chosen to live their lives have become an inspiration to all of us or who have through their own research, medical training or good old fashioned caregiving demonstrated how all people with special needs should be treatedas people to be respected, not as problems to be confronted.  In 2002 we honored General James L. Jones, 32nd Commandant of the Marine Corps and his wife Diane Jones and daughter Jennifer who has Fragile X Syndrome, in recognition of the General and his wifes commitment to the Exceptional Family Member Program in the U.S. Military.  General Jones is



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now Supreme Allied Commander NATO, the first marine in history to rise to that post.  EP also honored Bill Porter, a 70 Year-Old Man with Cerebral Palsy whose life story as a door to door salesman was made into a Turner Broadcasting made-for-TV Movie entitled Door to Door starring William Macy.  In Boston we honored State Senator Fred Berry, who has CP himself and Bob and Anita Hall, both disabled but inventors of the special wheelchair use din the Boston Marathon.  From this humble beginning in 2002, DAN expanded to fourteen teams participating in 2003 and now in 2004 twenty seven teams are participating in this proprietary EP National Program.  The Company owns all rights to DAN and has been successful in attracting the national sponsorship of Mass Mutual Financial Services for all twenty seven events in twenty seven cities.  Other potential sponsors include Delta Airlines, Allergan, Medtronic, Sunrise Medical, Invacare and Genzyme Pharmaceuticals.  DAN begins June 8, 2004 with the New York Yankees and concludes in September with the Montreal Expos.



Finally, The Company has begun the transition of its sales force from being represented predominantly by independent outside sales reps to an in-house sales force.  This requires training of personnel about the philosophies, mission goals and objectives of the company and this process has begun.



It is the Companys plan to increase its revenue base to over 4 million dollars in 2004 through the efforts noted above as well.



Liquidity



The working capital shortfall which was consumed by a loss sustained by the Company for the three months of operations ended March 31, 2004 is expected to be restored through an improvement in operational results and an acceleration of its capital formation plans.



It is the Company's intent in 2004, to provide additional liquidity through a combined debt restructuring, raising of capital and revenues produced from the selective joint venturing on the development and production of educational programs dedicated to specific special needs communities.  At present the Company is also in negotiations which may result in the relocation of the Company from its present headquarters office in River Edge, New Jersey. Financial incentives that will inure to the Company over a two year period are to be provided to the Company by state and local agencies at the intended location to facilitate this transition. Discussions are ongoing and have not been concluded. Should the move occur, the Company will benefit not only from the incentives being provided but also from planned decreases in operating expenses, principally rent and utilities from what is currently being paid.  Negotiations are expected to be concluded in the second quarter of 2004.  The result of this would be to provide liquidity to the Company in the range of $500,000 to $650,000.



The Company's working capital line was renewed until August 2004. While the Company cannot assure that the institutional lender will provide a continuation, it should be noted that the Company has maintained a line of credit despite having experienced negative working capital ratio that has in part been caused by the recording of deferred subscription and special project revenue that would be recognized for financial statement purposes in future periods. In addition the company is a thirty three year old entity that has always maintained an excellent relationship with its lenders.



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Results of Operations



Three Months Ended March 31, 2004 compared to Three Months Ended March 31, 2003



Sales



Sales for the three months ended March 31, 2004 decreased by approximately $91,000- over the preceding three month period ending March 31, 2003. The decrease was due almost exclusively to a decrease in page advertising over 2003. A decrease in page advertising has also been experienced in April 2004. It is believed that the overall downturn in economic conditions in the United States have contributed in part to the decrease experienced which has been exacerbated in the publishing industry based on available economic reports from the magazine Publishers Association and other information sources.   Management has addressed this issue by increasing its internal efforts to sell page advertising by increasing the number of personnel selling Company products and by initiating discussions with a national sales representative firm to represent the Company nationwide for page advertising sales.



An additional sales emphasis on special projects and sponsored editorial projects has also been initiated that has resulted in the continuation and expansion of a major project undertaking, Disabilities Awareness Night (DAN) at 25 major league ball parks throughout the United States and Canada. National sponsorship in the amount of $125,000 has been provided by a Fortune Five Hundred financial services company. Regional sponsorships are also being sought. The program will run from June 2004 through September 2004 and there is consideration being given to extending the program to minor league baseball as well as the National Football League, National Hockey League and the National Basketball Association. Disabilities Awareness Night is a trademarked undertaking that recognizes those who have supported the special needs cause in a significant manner and recognition is given to those special needs individuals who have succeeded in overcoming their respective disabilities and contribute to their communities on a daily basis through example and action.



Cost of Goods Sold



A decrease in cost of goods sold of approximately $20,000 was experienced for the three months ended March 31, 2004 compared to the three months ended March 31, 2003. This decrease in cost is associated with a cost containment program initiated in February 2004 which among other actions included a reduction in the number of controlled circulation copies distributed, elimination of an outdated reader service card program and a modification to the manner in which the publication is laid out. These cost saving measures are intended to provide the Company with monthly savings estimated at $13,000 to $17,000 per month.



Selling, General and Administrative Expense



This grouping of expenses increased by approximately $175,000 in the first quarter of 2004 compared to the same quarter in 2003. This increase is attributable to professional fees incurred for the finalization of the share exchange agreement with East Coast Airlines Inc.



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agreed to in November 2003 as well as planned additions to senior management, a commitment to a new accounting system and increased travel associated with an expanded sales effort.



Item 14.  Controls and Procedures



(a)  Disclosure controls and procedures.  As of the end of the Companys most recently completed fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) covered by this report, the Company carried out an evaluation, with the participation of the Companys management, including the Companys Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Companys disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-15.  Based upon that evaluation, the Companys Chief Executive Officer and Chief Financial Officer concluded that the Companys disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SECs rules and forms.



(b)  Changes in internal controls over financial reporting. There have been no changes in the Companys internal controls over financial reporting that occurred during the Companys last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.





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PART II  OTHER INFORMATION



ITEM 1.  LEGAL PROCEEDINGS



The Company is a plaintiff against a former director and shareholder who has not satisfied the terms of his agreement with the Company of April, 1998. The action resulted in the Company suspending payments to him under that agreement which at the time of suspension had a balance of $119,651. It is the opinion of the Companys attorneys that the Company will not be liable for the payments and that the amount of damages being sought as compensation to the Company far exceeds the contract balance.





ITEM 2.  CHANGES IN SECURITIES



The Company filed a Certificate of Amendment of Certificate of Incorporation with the Delaware Secretary of State effectively changing its name to EP Global Communications, Inc. and increasing the number of shares it is authorized to issue to sixty million shares with a par value of one one-hundredth of one cent ($.0001) each.



On November 28, 2003, pursuant to unanimous adoption by the Boards of Directors of  Psy-Ed Corporation and East Coast Airlines, Inc., the companies entered into a Share Acquisition Agreement that authorizes  East Coast Airlines, Inc. (the Company or East Coast) to offer  (the Offering) 173 shares of its Common Stock (the Common Stock) for each share of Psy-Ed Corporation (Psy-Ed) Common Stock held of record by all Psy-Ed Stockholders. The Offering was submitted to all shareholders of Psy-Ed with nearly unanimous acceptance. Voting closed on February 2, 2004 and all of the shares were exchanged during the quarter ended March 31, 2004.





ITEM 3.  DEFAULTS UPON SENIOR SECURITIES



Not applicable.



ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



On November 28, 2003, pursuant to unanimous adoption by the Boards of Directors of  Psy-Ed Corporation and East Coast Airlines, Inc., the companies entered into a Share Acquisition Agreement that authorizes  East Coast Airlines, Inc. (the Company or East Coast) to offer  (the Offering) 173 shares of its Common Stock (the Common Stock) for each share of Psy-Ed Corporation (Psy-Ed) Common Stock held of record by all Psy-Ed Stockholders. The Offering was submitted to all shareholders of Psy-Ed with nearly unanimous acceptance. Voting closed on February 2, 2004.



ITEM 5.  OTHER INFORMATION



Not applicable



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ITEM 6.  Exhibits and Reports on Form 8-K



(a)  Exhibits:

Exhibit 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.



Exhibit   31.2  Certification   of  Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.



Exhibit  32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



Exhibit 32.2 Certification of  Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.



(b)  Current Reports on Form 8-K were filed by the registrant on January 20, 2004 and February 13, 2004 during the quarter ended March 31, 2004.  The January 20, 2004 Form 8-K announced the stock exchange agreement with Psy-Ed Corporation and the February 13, 2004 Form 8-K announced that Donald Chadwick was appointed to the Companys Board of Directors and Robert J. Salluzzo and Charles G.Youngblood resigned, that Joseph M. Valenzano, Jr. and John F. Crowley were appointed Directors of the Company and that by unanimous written consent of the Board of Directors, the Companys By-Laws were amended to increase the Board of Directors to seven (7) members and David Hirsch, Gregg LaPonte, Raymond C. Smith and Ed McCabe were appointed to fill the new seats on the Board. It also announced that the Company filed a Certificate of Amendment of Certificate of Incorporation with the Delaware Secretary of State effectively changing its name to EP Global Communications, Inc. and increasing the number of shares it is authorized to issue to sixty million shares with a par value of one one-hundredth of one cent ($.0001) each.



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SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934 The Registrant has caused this  report caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|    | EP GLOBAL COMMUNICATIONS, INC.                                 
|--- | ---------------------------------------------------------------
|    | f/k/a East Coast Airlines Inc.
(Registrant)                    
|By: | /s/ Joseph M. Valenzano, Jr.                                   
|    | Joseph M. Valenzano, Jr.,
President and Chief Executive Officer
|    | Dated:  May 19, 2004                                           



In accordance with the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.



|By: | /s/ Donald S. Chadwick      
|--- | ----------------------------
|    | Donald S. Chadwick, Director
|    |                             
|    | /s/ Raymond C. Smith        
|    | Raymond C. Smith, Director  
|    |                             
|    |                             
|    | Dated: May 19, 2004         
|    |                             
|    |                             



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