|FORM 10-QSB
AMENDMENT No. 1
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, 2003

OR.
|--------------------------------------------------



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



|For the transition period from ____________ to _________________

Commission File Number  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 May 28, 2003 there were 19,013,400 shares of Common Stock, $.0001 par value, outstanding.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



EAST COAST AIRLINES, INC.



INDEX



|                  |                                                                                                                                                                     | Page   
|----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------
|Part I.
Financial | Information                                                                                                                                                         |        
|Item 1.           | Financial Statements                                                                                                                                                | 1      
|                  | Balance Sheets as of March 31, 2003 (unaudited) and December 31, 2002                                                                                               | 2      
|                  | Statements of Operations for the
Three Months Ended March 31,
2003 and 2002 (unaudited) and
the Period November 17, 1999 (Date of
Formation) through March 31, 2003 | 3      
|                  | Statements of Cash Flows for the Three
Months Ended March 31, 2003 and 2002
(unaudited) and the Period November 17, 1999  (Date of Formation) through March 31 2003 | 4      
|                  | Notes to Financial Statements (unaudited)                                                                                                                           | 5 - 11 
|Item 2.           | Management's Discussion and Analysis
of Financial Condition and Results of Operations                                                                               | 12 - 19
|Item 14.          | Controls and Procedures                                                                                                                                             | 19 -20 
|Part II.
Other    | Information                                                                                                                                                         |        
|Item 1.           | Legal Proceedings                                                                                                                                                   | 21     
|Item 2.           | Changes in Securities                                                                                                                                               | 21     
|Item 3.           | Defaults upon Senior Securities                                                                                                                                     | 21     
|Item 4.           | Submission of Matters to a Vote of Security Holders                                                                                                                 | 21     
|Item 5.           | Other Information                                                                                                                                                   | 21     
|Item 6.           | Exhibits and Reports on Form 8-K                                                                                                                                    | 21     
|Signatures        |                                                                                                                                                                     | 22     



PART I.

FINANCIAL INFORMATION



Item 1.

Financial Statements



Certain information and footnote disclosures required under generally accepted accounting principles in the United States of America have been condensed or omitted from the following financial statements pursuant to the rules and regulations of the Securities and Exchange Commission. It is suggested that the following financial statements be read in conjunction with the year-end financial statements and notes thereto included in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2002.



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



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[f10qsba002.jpg]

See notes to financial statements.

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[f10qsba004.jpg]



See notes to financial statements.

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[f10qsba006.jpg]

See notes to financial statements.

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EAST COAST AIRLINES, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS



1.  DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES



Organization



The Company was incorporated in the State of Delaware on November 17, 1999.  From inception, November 17, 1999, through December 31, 2002, the Company has not yet commenced operations and no revenue has been derived.  Accordingly, the Company is considered a development stage enterprise.  There is no assurance that operations will be achieved or that the Company will achieve a profitable level of operations. The Company intended to become a fully certified Federal Aviation Regulation Part 121 air carrier.  The Company is currently pursuing a share exchange with a company that publishes and distributes a national magazine.



Basis of Presentation



The balance sheet as of March 31, 2003 and the statements of operations and cash flows for the periods presented herein have been prepared by the Company 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.  The information for the balance sheet as of December 31, 2002 was derived from audited financial statements.



The Company’s financial statements for the three months ended March 31, 2003 have been prepared on a going concern basis which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business.  Management recognizes that the Company’s continued existence is dependent upon its ability to obtain needed working capital through additional equity and/or debt financing and the commencement after the consummation of any share exchange or merger.  At March 31, 2003 operations had not yet commenced and no revenue has been derived; accordingly, the Company is considered a development stage enterprise.  There is no assurance the Company will achieve a profitable level of operation.



The Company’s business is subject to most of the risks inherent in the establishment of a new business enterprise.  The likelihood of success of the Company must be considered in light of the expenses, difficulties, delays and unanticipated challenges encountered in connection with the formation of a new business, raising operating and development capital, and the marketing of a new product.





-5-





The Company presently does not have sufficient liquid assets to finance its anticipated funding needs and obligations.  Management is actively seeking additional capital to ensure the continuation of its development activities.  However, there is no assurance that additional capital will be obtained.  These uncertainties raise substantial doubt about the ability of the Company to continue as a going concern.



The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.



Management’s Plans and Intentions



During February 2003, the Company began preliminary discussions with a private entity to enact a consolidation through either a merger or acquisition transaction.  As of this date, the Company has not entered into any definitive agreement with this private entity and cannot predict that its discussions will lead to a negotiation of a definitive agreement.  The Company can give no assurance that it will have the ability to acquire or merge with this private entity and that if it does, the results will be of material value to the Company.  Management cannot predict at this time that it will be in a position to successfully negotiate a transaction with this private entity, or if negotiated, whether it will meet all of the potential conditions to consummate such a transaction.  The Company may be required to raise capital to consummate the transaction.  Prior to the successful negotiation of a definitive agreement with the subject private entity and attendant due diligence investigation of its financial condition and business, the Company is unable to currently identify the risks of any transactions with this entity.  There can, therefore, be no assurance following consummation of any acquisition or merger, with the private entity with whom the Company is currently in discussion or another, that any successfully concluded transaction with a private business will develop into a going concern, or, if the business is already operating as the case with the current private entity with whom the Company is in discussion, that it will continue to operate successfully.



2.  LOSS PER SHARE



Basic loss per common share is computed using the weighted average number of common shares outstanding during the period.  Diluted earnings (loss) per common share are computed by dividing net earnings by the weighted average number of common and potential common shares outstanding during the period.  For the three months ended March 31, 2003 and 2002 there were no potential common shares.





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3.

STOCK BASED COMPENSATION



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".  ABP No. 25 requires the use of the intrinsic value method which measures compensation cost as the excess, if any, of the quoted marked 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 shares 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".



4.

ACCRUED EXPENSES



Accrued expenses consist of the following:

|March 31, | December 31,
|--------- | ------------

[f10qsba008.jpg]





5.

COMMON STOCK



a)  The Company has a single class of common stock with a par value of $0.0001 per share.  At December 31, 2002, 754,500 shares were issued and outstanding.  The president of the Company purchased 475,000 shares in April 2000 and the secretary of the Company purchased 25,000 shares in April 2000 at $0.001 per share.



In May 2001, the Company issued 150,000 shares of common stock for services rendered at $0.001 per share.



Such shares were issued without registration in reliance on the exemption from registration, with the United States Securities and Exchange Commission (the "Commission") confirmed in sections 3(b) and 4(2) of the Securities Act 1933 and Rule 504 of Regulation D promulgated there under for small offerings.



b)  On March 4, 2003 the Board of Directors authorized the Company to issue eighteen million two hundred fifty eight thousand nine hundred (18,258,900) shares of the authorized and unissued common stock of the Company payable on March 6, 2003 to holders of record of said stock at the close of business on March 5, 2003 in proportion to their holdings. The 25.2 forward stock split was in the form of a stock dividend. As of March 31, 2003 there were 19,013,400 shares of common stock outstanding.





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6.

RELATED PARTY TRANSACTIONS



As described in Note 5, the president and secretary of the Company purchased 475,000 and 25,000 shares of stock respectively.



7.

PRIOR FINANCIAL STATEMENT



Although the Company was incorporated November 17, 1999, no capitalization took place until the year 2000 and there was no activity for the period November 17, 1999 (Date of Formation) through December 31, 1999.



8.

RECENT ACCOUNTING PRONOUNCEMENTS



In August 2001, the FASB issued SFAS No. 143 “Accounting for Asset Retirement Obligations”.  SFAS No. 143 addresses financial accounting and reporting for obligations and costs associated with the retirement of tangible long-lived assets.  The Company adopted SFAS 143 on January 1, 2003.  The adoption of SFAS No.143 did not have a material impact on the Company's results of operations or financial position.



In August 2001, the FASB issued SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, effective for fiscal years beginning after December 15, 2001.  Under SFAS  No. 144 assets held for sale will be included in discontinued operations if the operations and cash flows will be or have been eliminated from the ongoing operations of the entity and the entity will not have any significant continuing involvement in the operations of the component.  The Company adopted SFAS No. 144  on January 1, 2002.  The adoption of SFAS No. 144 did not have a material impact on the Company’s results of operations or financial position.



In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections". This statement eliminates the automatic classification of gain or loss on extinguishment of debt as an extraordinary item of income and requires that such gain or loss be evaluated for extraordinary classification under the criteria of Accounting Principles Board No. 30 "Reporting Results of Operations". This statement also requires sales-leaseback accounting for certain lease modifications that have economic effects that are similar to sales-leaseback transactions, and makes various other technical corrections to existing pronouncements. This statement will be effective for the Company for the year ending December 31, 2003.  This statement did not have a material effect on the Company's results of operations or financial position.



-8-





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.



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 complied with the additional annual and interim disclosure requirements effective December 31, 2002 and March 31, 2003.



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 adopting this statement will not have a material effect on the Company's results of operation 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 are 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.





-9-





In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, "Consolidation of Variable Interest Entities," which addresses consolidation by business enterprises of variable interest entities. In general, a variable interest entity is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A variable interest entity often holds financial assets, including loans or receivables, real estate or other property. A variable interest entity may be essentially passive or it may engage in research and development or other activities on behalf of another company. The objective of Interpretation No. 46 is not to restrict the use of variable interest entities but to improve financial reporting by companies involved with variable interest entities. Until now, a company generally has included another entity in its consolidated financial statements only if it controlled the entity through voting interests.  Interpretation No. 46 changes that by requiring a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns or both. The consolidation requirements of Interpretation No. 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements apply in all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. The Company does not have any variable interest entities, and, accordingly, adoption is not expected to have a material effect on the Company's results of operations or financial position.



In May 2003, the FASB issued SFAS No. 150 "Accounting for Financial Instruments with the Characteristics of Both Liabilities and Equities".  SFAS No. 150 establishes standards regarding the manner in which an issuer classifies and measures certain types of financial instruments having characteristics of both liabilities and equity.  Pursuant to SFAS No. 150, such freestanding financial instruments (i.e. those entered into separately from an entity's other financial instruments or equity transactions or that are legally detachable and separately exercisable) must be classified as liabilities or, in some cases, assets.  In addition, SFAS No. 150 requires that financial instruments containing obligations to repurchase the issuing entity's equity shares and, under certain circumstances, obligations that are settled by delivery of the issuer's shares be classified as liabilities.  The Statement is effective for financial instruments entered into or modified after May 31, 2003 and for other instruments at the beginning of the first interim period after June 15, 2003.  Management is currently evaluating the provisions of SFAS No. 150 and will determine the impact, if any, the adoption will have on the financial statements.



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9.

SUBSEQUENT EVENTS

a.

In August 2003, the Company received funding from a private fund by entering into an agreement for $100,000.  The note is due in August 2004, interest at 6% payable quarterly and secured by 200,000 shares of DeerPark Technology, Inc. common stock owned by a shareholder of the Company.  The Company received $50,000 on August 13, 2003 with the balance due to be received by September 15, 2003.



b.

On August 11, 2003, the Company sold 100,000 restricted shares of the Company's common stock to another private fund for $.05 per share.



-11-

Item 2.

Management’s Discussion and Plan of Operations



Forward Looking Statements



Certain information contained herein should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which is subject to a number of risks and uncertainties.  The preparation of forward-looking statements requires the use of estimates of future revenues, expenses, activity levels and economic and market conditions, many of which are outside the control of East Coast Airlines, Inc. (“Company”) control.  Specific factors that could cause actual results to differ materially from those set forth in the forward-looking statements include: economic conditions, labor costs; aviation fuel costs; competitive pressures on pricing; weather conditions; government legislation; consumer perceptions of the Company’s products; demand for air transportation in the markets intended to be served by the Company; other operational matters discussed herein and other risks and uncertainties.



Other factors and assumptions not identified above are also involved in the preparation of forward-looking statements, and the failure of such other factors and assumptions to be realized may also cause actual results to differ materially from those discussed.



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 accounting principles generally accepted in the United States of America.  The preparation of these financial statements requires the Company to make estimates and judgements that affect the reported amount of asset, 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 judgements about carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.



Plan of Operation



The Company is in the initial stages of startup and is exploring the feasibility of raising sufficient capital to implement its business plan.  The Company has been in the development stage since inception November 17, 1999.





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The Company has registered its class of common stock on a Form 10-SB registration statement filed pursuant Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”).



The Company has limited capital and is unable to commence the operations described in its business plan until it raises equity or debt funding.  At the present time, the Company has not commenced operations or any activities beyond the planning stage.



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 these filings.  The Company enjoys the non-exclusive use of office, telecommunication and incidental supplies of stationary, provided by its officers.  As of the date of this report, the Company has not generated any revenues.



The Company must rely upon loans and investments from affiliates to pay its operating expenses.  There are no assurances that such affiliates will continue to advance funds to the Company or will continue to invest in the Company’s securities.  In the event the Company is unable to obtain additional capital or funding it may be unable to pursue its business plan.



Liquidity



The Company has no current operations and have not generated any revenue.  The Company must rely entirely on loans from the officer to pay operating expenses.



At March 31, 2003, the Company had a working capital deficit of $ 93,959 and continues to operate at a loss. Since the Company currently has no source of revenue, working capital deficit will continue to increase as additional operating expenses are incurred.  Presently the Company has no external sources of cash and is dependent upon loans from management and stockholders and future placement of equity or debt to meet development stage operating needs.



The Company’s ability to continue as a going concern is dependent upon the Company’s ability to obtain funds to meet obligations on a timely basis, to identify and close an acquisition with a suitable target company, obtain additional financing or refinancing as may be required, and/or merge with a suitable partner, and ultimately to attain profitability.  There are no assurances that the Company will be able to identify a suitable acquisition target and close such acquisition, successfully negotiate a merger, obtain any additional financing or if the Company is able to obtain additional financing, that such financing will be on favorable terms.  The inability to obtain additional financing when needed would have a material adverse effect on operating results.



-13-





Further, as a result of the devastation of  September 11, 2001 on the airline industry, and the prolonged deterioration of market  conditions within that industry, management has concluded that an extraordinarily unfavorable business environment now exists within which to raise capital and begin an airline of the nature proposed by East Coast Airlines Inc. In that regard, management has begun to consider alternatives that will allow shareholder value to be preserved in the face of the uncertainty of being able to complete its original plan.



During February, 2003, the Company began preliminary discussions with a private entity to enact a consolidation through either a merger or acquisition transaction.  To date, the Company has not entered into any definitive agreement with this private entity and cannot predict that its discussions will lead to a negotiation of a definitive agreement. The Company can give no assurance that it  will have the ability to acquire or merge with this private entity and that if it does, the result will be of material value to the Company.  Management cannot predict at this time that it will be in a position to successfully negotiate a transaction with this private entity, or if negotiated, whether it will meet all of the potential conditions to consummate such a transaction. The Company may be required to raise capital to consummate the transaction.  Prior to the successful negotiation of a definitive agreement with the subject private entity and attendant due diligence investigation of its financial condition and business, the Company was unable to currently identify the risks of any transaction with this entity. There can, therefore, be no assurance following consummation of any acquisition or merger, with the private entity with whom the Company is currently in discussions or another,  that any successfully concluded transaction with a private business  will develop into a going concern or, if the business is already operating as is the case with the current private entity with whom the Company is in discussions, that it will continue to operate successfully.



-14-





Presently, the Company cannot predict the manner in which it might participate in a prospective business opportunity. Each separate potential opportunity will be reviewed and, upon the basis of that review, a suitable legal structure or method of participation will be chosen. The particular manner in which the Company participates in a specific business opportunity will depend upon the nature of that opportunity, the respective needs and desires of the Company and management of the opportunity, and the relative negotiating strength of the parties involved. Actual participation in a business venture may take the form of an asset purchase, lease, joint venture, license, partnership, stock purchase, reorganization, merger or consolidation. The Company may act directly or indirectly through an interest in a partnership, corporation, or other form of organization, however, the Company does not intend to participate in opportunities through the purchase of minority stock positions. Because of the Company's current status and its dearth of assets and operations, it is likely that any potential merger or acquisition with another operating business will require substantial dilution of our existing shareholders.  It is also assumed, that there will probably be a change in control of our Company.  Generally, in consolidation transactions between public companies such as ours,  the  owners of the merger or acquisition candidate take over control of the public company. Management has not proposed or established any benchmarks as to the amount of control it will offer to prospective business opportunity candidates, since this issue, as well as others will be negotiated on the basis of economic strength and desirability of each candidate.  However, management will endeavor to negotiate the best possible terms for the benefit of the Company's Shareholders as the case arises.



The Independent Auditors’ Report and Note 1 of the Notes to Financial Statements for the year ended December 31, 2002 dated March 8, 2003 stated that substantial doubt has been raised about the Company’s ability to continue as a going concern.  Present business operations do not generate any revenues with which to cover expenses.  The Company will have to acquire or merge with other business operations or severely reduce expense to remain viable and the Company cannot assure that it will be able to do so.



In August 2003, the Company received funding from a private fund by entering into an agreement for $100,000.  The note is due in August 2004, interest at 6% payable quarterly and secured by 200,000 shares of DeerPark Technology, Inc. common stock owned by a shareholder of the Company.  The Company received $50,000 on August 13, 2003 with the balance due to be received by September 15, 2003.



On August 11, 2003, the Company sold 100,000 restricted shares of the Company's common stock to another private fund for $.05 per share.



-15-



Results of Operations



Three Months Ended March 31, 2003 compared to

Three Months Ended March 31, 2002



General and administrative expenses increased from $3,757 for the three months ended March 31, 2002 to $38,072 for the three months ended March 31, 2003.  The Company attributes this increase primarily to an increase in professional fees.



Interest expense increased from $-0- for the three months ended March 31, 2002 to $910 for the three months ended March 31, 2003.  The Company attributes this increase primarily to interest due on loan balances.



Other Matters



Accounting Pronouncements



In August 2001, the FASB issued SFAS No. 143 “Accounting for Asset Retirement Obligations”.  SFAS No. 143 addresses financial accounting and reporting for obligations and costs associated with the retirement of tangible long-lived assets.  The Company is required to implement SFAS No. 143 on January 1, 2003. Management believes the effect of implementing this pronouncement will not have a material impact on the Company's results of operations or financial position.



In April 2002, the FASB issued SFAS No. 145 "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections". This statement eliminates the automatic classification of gain or loss on extinguishment of debt as an extraordinary item of income and requires that such gain or loss be evaluated for extraordinary classification under the criteria of Accounting Principles Board No. 30 "Reporting Results of Operations". This statement also requires sales-leaseback accounting for certain lease modifications that have economic effects that are similar to sales-leaseback transactions, and makes various other technical corrections to existing pronouncements. This statement will be effective for the Company for the year ending December 31, 2003. This statement did not have a material effect on the Company's results of operations or financial position.



-16-





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.  Adoption of this Statement is required with the beginning of fiscal year 2003.  The Company adopted SFAS No. 146 on January 1, 2003.  The adoption of SFAS No. 146 did not have a material effect on the Company's results or operation or financial position.



In January 2003, 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 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 complied with the additional annual and interim disclosure requirements effective December 31, 2002 and March 31, 2003.



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 are effect 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.



-17-





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 adopting this statement will not have a material effect on the Company's results of operations or financial position.



In May 2003, the FASB issued SFAS No. 150 "Accounting for Financial Instruments with the Characteristics of Both Liabilities and Equities".  SFAS No. 150 establishes standards regarding the manner in which an issuer classifies and measures certain types of financial instruments having characteristics of both liabilities and equity.  Pursuant to SFAS No. 150, such freestanding financial instruments (i.e. those entered into separately from an entity's other financial instruments or equity transactions or that are legally detachable and separately exercisable) must be classified as liabilities or, in some cases, assets.  In addition, SFAS No. 150 requires that financial instruments containing obligations to repurchase the issuing entity's equity shares and, under certain circumstances, obligations that are settled by delivery of the issuer's shares be classified as liabilities.  The Statement is effective for financial instruments entered into or modified after May 31, 2003 and for other instruments at the beginning of the first interim period after June 15, 2003.  Management is currently evaluating the provisions of SFAS No. 150 and will determine the impact, if any, the adoption will have on the financial statements.



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In January 2003, the Financial Accounting Standards Board issued Interpretation No. 46, "Consolidation of Variable Interest Entities," which addresses consolidation by business enterprises of variable interest entities. In general, a variable interest entity is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A variable interest entity often holds financial assets, including loans or receivables, real estate or other property. A variable interest entity may be essentially passive or it may engage in research and development or other activities on behalf of another company. The objective of Interpretation No. 46 is not to restrict the use of variable interest entities but to improve financial reporting by companies involved with variable interest entities. Until now, a company generally has included another entity in its consolidated financial statements only if it controlled the entity through voting interests.  Interpretation No. 46 changes that by requiring a variable interest entity to be consolidated by a company if that company is subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns or both. The consolidation requirements of Interpretation No. 46 apply immediately to variable interest entities created after January 31, 2003. The consolidation requirements apply to older entities in the first fiscal year or interim period beginning after June 15, 2003. Certain of the disclosure requirements apply in all financial statements issued after January 31, 2003, regardless of when the variable interest entity was established. The Company does not have any variable interest entities, and, accordingly, adoption is not expected to have a material effect on the Company's results of operations or financial position.



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.



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(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



There are no legal proceedings against the Company and the Company is unaware of such proceedings contemplated against it.



ITEM 2.  CHANGES IN SECURITIES



Not applicable.



ITEM 3.  DEFAULTS UPON SENIOR SECURITIES



Not applicable.



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



Not applicable.



ITEM 5.  OTHER INFORMATION



Not applicable



Item 6.  Exhibits and Reports on Form 8-K



(a)  Exhibits:

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



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



(b)  There were no Current Reports on Form 8-K filed by the registrant during the quarter ended March 31, 2003.





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SIGNATURES



In accordance with the requirements of the Exchange Act, the registrant has 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.

BY: /s/ Robert J. Salluzzo

Robert J. Salluzzo

Principal Financial and

Chief Accounting Officer



Dated:  March 9, 2004







EXHIBIT INDEX





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



Exhibit 32.1 - Certification of the Chief Executive Officer and Vice President of Finance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.