U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB


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

                For the quarterly period ended September 30, 2002

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



                          Crescent Communications, Inc.
             (Exact name of registrant as specified in its charter)

                        Commission file number: 0-22711


             Nevada                                      76-0640970
(State or Other Jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or Organization)


701  North  Post  Oak,  Road,  Suite  630,  Houston,  Texas           77024
      (Address  of  Principal  Executive  Office)                   (Zip Code)

                                 (713) 682-7400
              (Registrant's Telephone Number, Including Area Code)


                            BERENS INDUSTRIES, INC.
                                  (Former Name)

Check whether the issuer: (1) filed all reports required to be filed by Section
 13 or 15(d) of the Exchange Act during the past 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  [ ]

      November 5, 2002 the registrant had 12,999,833 shares of Common Stock
                                  outstanding.


<PAGE>
<TABLE>
<CAPTION>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
                                TABLE OF CONTENTS
                                   __________



PART I.   FINANCIAL INFORMATION
<S>                                                            <C>
  Item 1. Financial Statements . . . . . . . . . . . . . . .    F-1

            Condensed Balance Sheet. . . . . . . . . . . . . .  F-2
              as of September 30, 2002 and December 31, 2001

            Condensed Statement of Operations. . . . . . . . .  F-3
              for the three months and nine months ended
              September 30, 2002

           Condensed Statement of Stockholders' Equity. . . .   F-4
              for the nine months ended September 30, 2002

            Condensed Statement of Cash Flows. . . . . . . . .  F-5
              for the nine months ended September 30, 2002

            Notes to Condensed Financial Statements. . . . . .  F-6

  Item 2.   Management's Discussion and Analysis . . . . . . .  I-1

  Item 3.   Evaluation of Disclosure Controls and Procedures .  I-3


PART II.  OTHER  INFORMATION

  Item 2.   Changes in Securities . . . . . . . . . . . . . .  II-1

  Item 6.   Exhibits and Reports on Form 8-K. . . . . . . . .  II-2

            Signatures. . . . . . . . . . . . . . . . . . . .  II-2

            Certifications. . . . . . . . . . . . . . . . . .  II-3
</TABLE>


                                        2
<PAGE>
ITEM  1.   FINANCIAL  STATEMENTS




                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
                                   __________




                    UNAUDITED CONDENSED FINANCIAL STATEMENTS
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002


                                      F-1
<PAGE>
<TABLE>
<CAPTION>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
                        UNAUDITED CONDENSED BALANCE SHEET
                                   __________


                                                             SEPTEMBER 30,    DECEMBER 31,
ASSETS                                                           2002             2001
------                                                      ---------------  --------------
<S>                                                         <C>              <C>
Current assets:
  Cash and cash equivalents                                 $      256,705   $      10,773
  Accounts receivable, net of allowance for doubtful
    accounts of $4,171 and $10,982 at September 30, 2002
    and December 31, 2001, respectively                            282,315         176,223
  Prepaid and other                                                281,843          21,453
                                                            ---------------  --------------

    Total current assets                                           820,863         208,449

Property and equipment, net of accumulated depreciation
  of $143,292 and $57,200 at September 30, 2002 and
  December 31, 2001, respectively                                  552,221         529,134
Goodwill                                                           200,346         200,346
Other assets                                                        56,361          46,958
                                                            ---------------  --------------

    Total assets                                            $    1,629,791   $     984,887
                                                            ===============  ==============


LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities:
  Current portion of long-term debt                         $       24,310   $      36,350
  Current portion of notes payable to related party                 70,690         248,685
  Accounts payable                                                 476,726         566,676
  Accrued liabilities                                              266,696         340,712
  Deferred revenue                                                 116,832          88,985
                                                            ---------------  --------------

    Total current liabilities                                      955,254       1,281,408

Long-term debt                                                           -          34,166
Notes payable to related parties                                   234,000         100,000
Commitments and contingencies

Stockholders' equity:
  Common stock, $.001 par value, 50,000,000 shares
    authorized, 12,485,181 and 4,278,699 shares issued
    and outstanding at September 30, 2002 and December 31,
    2001, respectively                                              12,485           4,278
  Series A Convertible Non-Redeemable Preferred stock,
    $.001 par value, 20,000,000 shares authorized; 600
    issued and outstanding at September 30, 2002 and
    December 31, 2001, respectively                                      1               1
  Additional paid-in capital                                     3,374,050       1,172,784
  Receivable from stockholders                                                    (136,976)
  Deferred compensation                                            (39,862)       (257,407)
  Accumulated deficit                                           (2,906,137)     (1,213,367)
                                                            ---------------  --------------

    Total stockholders' equity                                     440,537        (430,687)
                                                            ---------------  --------------

      Total liabilities and stockholders' equity            $    1,629,791   $     984,887
                                                            ===============  ==============
</TABLE>


                            See accompanying notes.
                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
                  UNAUDITED CONDENSED STATEMENT OF OPERATIONS
          FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2002
                                   __________


                                               THREE MONTHS      NINE MONTHS
                                                   ENDED            ENDED
                                               SEPTEMBER 30,    SEPTEMBER 30,
                                                   2002             2002
                                              ---------------  ---------------
<S>                                           <C>              <C>

Service revenue                               $      466,210   $    1,328,723
Cost of services                                     283,569          908,214
                                              ---------------  ---------------
  Gross margin                                       182,641          420,509

Selling, general and administrative expenses         797,193        1,955,299
                                              ---------------  ---------------

Loss from operations                                (614,552)      (1,534,790)

Interest expense                                       6,967          157,980
                                              ---------------  ---------------

Net loss                                      $     (621,519)  $   (1,692,770)
                                              ===============  ===============


Basic and diluted net loss per common share   $        (0.12)  $        (0.34)
                                              ===============  ===============

Weighted average shares outstanding                5,030,479        5,030,479
                                              ===============  ===============
</TABLE>


                            See accompanying notes.
                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                                                 CRESCENT COMMUNICATIONS, INC.
                                              (FORMERLY BERENS INDUSTRIES, INC.)
                                               STATEMENT OF STOCKHOLDERS' EQUITY
                                          FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
                                                           __________


                                 COMMON STOCK        PREFERRED STOCK    ADDITIONAL    RECEIVABLE
                              -------------------  -------------------   PAID-IN         FROM          DEFERRED      ACCUMULATED
                                SHARES    AMOUNT    SHARES    AMOUNT     CAPITAL      STOCKHOLDER    COMPENSATION      DEFICIT
                              ----------  -------  --------  ---------  -----------  -------------  --------------  -------------
<S>                           <C>         <C>      <C>       <C>        <C>          <C>            <C>             <C>
Balance at December 31,
  2001                         4,278,699  $ 4,278       600  $       1  $ 1,172,784  $   (136,976)  $    (257,407)  $ (1,213,367)

Collection of subscription
  receivable from stock-
  holder                               -        -         -          -       13,024       136,976               -              -

Issuance of common stock
  for compensation               467,500      468         -          -      268,117             -               -              -

Value of conversion feature
  associated with conver-
  tible debt                           -        -         -          -      134,000             -               -              -

Compensatory stock options
  issued to employees and
  others (1,200,288 options)           -        -         -          -      166,839             -         217,545              -

Issuance of common stock
  for cash                     7,738,982    7,739         -          -    1,619,286                             -              -

Net loss                               -        -         -          -            -             -               -     (1,692,770)
                              ----------  -------  --------  ---------  -----------  -------------  --------------  -------------

Balance September 30, 2002    12,485,181  $12,485       600  $       1  $ 3,374,050  $          -   $     (39,862)  $ (2,906,137)
                              ==========  =======  ========  =========  ===========  =============  ==============  =============



                                TOTAL
                              ------------
<S>                           <C>
Balance at December 31,
  2001                        $  (430,687)

Collection of subscription
  receivable from stock-
  holder                          150,000

Issuance of common stock
  for compensation                268,585

Value of conversion feature
  associated with conver-
  tible debt                      134,000

Compensatory stock options
  issued to employees and
  others (1,200,288 options)      384,384

Issuance of common stock
  for cash                      1,627,025

Net loss                       (1,692,770)
                              ------------

Balance September 30, 2002    $   440,537
                              ============
</TABLE>


                            See accompanying notes.
                                      F-4
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
                  UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
                                   __________


Cash flows from operating activities:
  Net loss                                        $    (1,692,770)
  Adjustments to reconcile net loss to net cash
    used in operating activities:                        (361,057)
                                                  ----------------

      Net cash used in operating activities            (1,331,713)
                                                  ----------------

Cash flows from investing activities:
  Capital expenditures                                   (109,179)
                                                  ----------------

      Net cash used in investing activities              (109,179)
                                                  ----------------

Cash flows from financing activities:
  Proceeds from notes payable to related parties          134,000
  Payments on notes payable to related parties           (177,995)
  Payments on notes payable                               (46,206)
  Collection of receivable from stockholder               150,000
  Issuance of common stock for cash                     1,627,025
                                                  ----------------

      Net cash provided by financing activities         1,686,824
                                                  ----------------

Net increase in cash and cash equivalents                 245,932

Cash and cash equivalents at beginning of period           10,773
                                                  ----------------

Cash and cash equivalents at end of period        $       256,705
                                                  ================


                            See accompanying notes.
                                      F-5
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
                                   __________

1.   BASIS  OF  PRESENTATION
     -----------------------

     The  accompanying unaudited interim financial statements have been prepared
     in  accordance  with generally accepted accounting principles and the rules
     of  the  U.S.  Securities  and  Exchange  Commission, and should be read in
     conjunction  with  the  audited  financial  statements  and  notes  thereto
     contained  in the Company's Annual Report of Form 10-KSB for the year ended
     December  31,  2001.  In  the  opinion  of  management,  all  adjustments,
     consisting  of  normal  recurring  adjustments,  necessary  for  a  fair
     presentation  of  financial  position and the results of operations for the
     interim  periods  presented  have  been  reflected  herein.  The results of
     operations  for  interim  periods  are  not  necessarily  indicative of the
     results to be expected for the full year. Notes to the financial statements
     which would substantially duplicate the disclosure contained in the audited
     financial  statements  for  the  most recent fiscal year ended December 31,
     2001,  as  reported  in  the  Form  10-KSB,  have  been  omitted.


2.   REVERSE  ACQUISITION
     --------------------

     Effective  July 23, 2001, Berens Industries, Inc. ("Berens") acquired Solis
     Communications,  Inc.  ("Solis")  in a reverse acquisition transaction (the
     "Transaction")  accounted  for  using  the  purchase  method. Because Solis
     shareholders  emerged from the Transaction with approximately 88% ownership
     of  the  combined entity, Berens Industries was the "acquired" company, but
     remains  the surviving legal entity. Prior to the transaction, Berens was a
     public  corporation  with  certain  long-lived  assets  that had ceased all
     current operations. Accordingly, the transaction was treated as an issuance
     of  stock  by  Solis  for Berens' net assets and liabilities resulting in a
     purchase  price  of  $423,220 paid through the assumption of liabilities as
     follows:

     Assets  acquired
     ----------------

       Cash                                                     $    4,553
       Property and equipment                                      218,324
       Goodwill                                                    190,230
       Other intangibles                                            10,113
                                                                ----------

                                                                $  423,220
                                                                ==========

     Liabilities  assumed
     --------------------

       Note  payable to a related party (Yolana Berens)             32,500
       Accounts  payable                                           154,606
       Payroll  liability                                           45,035
       Payroll  tax  liability                                      86,114
       Liability  for  asset  acquisition                          104,965
                                                                ----------

                                                                $  423,220
                                                                ==========


     Under  the  terms  of  the  stock exchange agreement (the "Agreement") that
     formed the basis of the Transaction, Berens issued 600 shares of new Series
     A  convertible  non-redeemable  preferred  stock  for  100%  of  issued and
     outstanding  shares  of  Solis.


                                   Continued
                                      F-6
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
          NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS, CONTINUED
                                   __________


2.   REVERSE  ACQUISITION,  CONTINUED
     --------------------------------

     Solis,  at the time of the Agreement, was a newly established, closely held
     corporation  that  was  formed  for  the  purpose  of  capitalizing  on the
     telecommunications  industry  downturn.  The  Company believes that it will
     achieve  its  purpose  by  providing  affordable  co-location facilities to
     internet  service  providers.  Subsequent  to  the Agreement, the Company's
     stockholders  approved  a  change  in  the  Company's  name  from  Berens
     Industries,  Inc.  to  Crescent  Communications,  Inc.


3.   STOCKHOLDERS'  EQUITY
     ---------------------

     During  the  nine  months  ended September 30, 2002, the Company engaged in
     various  transactions  affecting  stockholders'  equity,  as  follows:

     -    The  Company  entered  into  convertible  debt  agreement with certain
          stockholders/officers  of  the Company and recognized interest expense
          of  $134,000  related  to  the  conversion  feature.

     -    The  Company  collected  $150,000  from  certain  stockholders  for  a
          $136,976  subscription  receivable  and  as  a capital contribution of
          $13,024.

     -    The  Company  issued common stock to consultants for services totaling
          $268,585.

     -    Due to cash constraints on the Company, $166,839 of compensatory stock
          options  were  issued  by the Company to retain and compensate certain
          key  employees.

     -    The Company sold certain common shares to accredited private investors
          for  cash  under a Private Placement Memorandum pursuant to regulation
          D,  rule  506  small business offering. A total of 500,000 shares were
          sold  during  April  and  June to two investors at prices ranging from
          $.10  to $.25 per share. No discounts or commissions were paid and the
          aggregate  amount  raised  was  $110,000.

     -    In June the Company entered into an agreement with Pacific Continental
          Securities  UK  to  sell  common  stock  under Regulation S to various
          foreign  investors. Among other things, the agreement provided for the
          company  to  issue up to 3,000,000 shares of Regulation S stock at 35%
          of  the  average  bid  price  for  the preceding 5 day period prior to
          exercise.  The  term  was originally set to expire August 31, 2002 and
          required a floor price of $.40. The agreement has been amended several
          times  and  as  of September 30, 2002 the Company has issued 7,238,982
          shares  for $1,517,025 in connection with this arrangement. On October
          24,  2002,  the  Company  entered into a second agreement with similar
          terms  allowing  for  up  to  10  million  shares to be issued through
          January  31,  2003. The first 3 million have a floor price of $.40 and
          the  remainder  have  a  floor  price  of  $.70.

     -    The  Company  issued  common  stock  to  two consultants for legal and
          financial  services.  As  of  September  30,  467,500 shares have been
          issued  under  these  agreements.  Of this amount, 400,000 shares were
          issued  to a consultant under a one year agreement to provide guidance
          to  the  Company,  develop  a  business  plan and assist in evaluating
          merger  and  acquisition possibilities. The 400,000 shares were valued
          at  $239,000 and included in prepaid and other assets at September 30,
          2002 and are being amortized to expense over the term of the contract.


                                   Continued
                                      F-7
<PAGE>
                          CRESCENT COMMUNICATIONS, INC.
                       (FORMERLY BERENS INDUSTRIES, INC.)
          NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS, CONTINUED
                                   __________


3.   STOCKHOLDERS'  EQUITY,  CONTINUED
     ---------------------------------

     -    The  Company  issued  options  to  acquire  certain  common  shares to
          employees  in  lieu  of  cash  compensation  under  section 4.2 of the
          Securities  Act  of  1933. The options are exercisable after a vesting
          period  at  the  employee's  election,  at an option price of $.10 per
          share.


4.   COMPREHENSIVE  INCOME
     ---------------------

     The  Company  has  adopted  Statement  of  Financial  Accounting  Standards
     (ASFAS@)  No. 130, Reporting Comprehensive Income, which requires a company
     to  display  an  amount  representing  comprehensive  income as part of the
     Company's  basic  financial  statements. Comprehensive income includes such
     items  as  unrealized  gains or losses on certain investment securities and
     certain  foreign  currency translation adjustments. The Company's financial
     statements  include  none  of  the  additional  elements  that  affect
     comprehensive  income. Accordingly, comprehensive income and net income are
     identical.


5.   INCOME  TAX
     -----------

     The difference between the Federal statutory income tax rate of 34% and the
     Company's  effective  rate  is  primarily  attributable to increases in the
     valuation  allowance offset against deferred tax assets associated with the
     Company's  net  operating  losses.



6.   NOTES  PAYABLE  TO  RELATED  PARTIES
     ------------------------------------

     Certain notes payable to related parties are convertible into common shares
     of the Company's stock at $.05 per share, at the election of the payee, any
     time  prior  to  repayment of the note. At September 30, 2002 the notes are
     convertible  into  6,003,700  common  shares.

     In  order  to meet cash requirements, one of the Company's officers entered
     into  an  agreement  to  factor  certain  receivables  of  the Company. The
     arrangement, which began in May allows for receivables to be sold at 90% of
     their  book  value. At September 30, 2002 no amounts were outstanding under
     this  agreement.


                                      F-8
<PAGE>
ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS

     This  management's Discussion and Analysis as of September 30, 2002 and for
the  nine  months  ended September  30, 2002, should be read in conjunction with
the unaudited condensed financial statements and notes thereto set forth in Item
1  of  this  report.

     The  information  in  this  discussion  contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.  Such statements
are  based  upon current expectations that involve risks and uncertainties.  Any
statements  contained  herein that are not statements of historical facts may be
deemed  to  be  forward-looking  statements.  For example, words such as, "may,"
"will,"  "should,"  "estimates," "predicts," "potential," continue," "strategy,"
"believes,"  "anticipates,"  "plans,"  "expects,"  "intends,"  and  similar
expressions  are  intended  to  identify forward-looking statements.  Our actual
results  and  the  timing  of  certain  events may differ significantly from the
results  discussed  in the forward-looking statements.  Factors that might cause
or  contribute  to  such a discrepancy include, but are not limited to the risks
discussed in our other SEC filings.  These forward-looking statements speak only
as  of  the date hereof.  We expressly disclaim any obligation or undertaking to
release  publicly  any  updates  or  revisions to any forward-looking statements
contained  herein  to reflect any change in our expectations with regard thereto
or any change in events, conditions or circumstances on which any such statement
is  based.

GENERAL

     We  are  a  Nevada  corporation  that  began  operations  on July 23, 2001,
providing  co-location  hosting  and  connectivity  systems to small to mid-size
businesses  in  Texas.

     The  Company  was  formed  through a Stock Exchange Agreement ("Agreement")
whereby  the  shareholders  of Solis Communications, Inc ("Solis") exchanged all
the issued and outstanding shares of Solis for 600 shares of newly issued Series
A  Convertible  Non-Redeemable  Preferred  Stock  of  Berens  Industries,  Inc.
("Berens").  Solis,  the  ultimate  acquirer  of  Berens in this reverse merger,
agreed  to  contribute  $600,000  cash  and  cash  equivalents.  Berens  was  a
development  stage  enterprise  involved in the development of an online auction
site for exclusive paintings and other art works.  At the date of the Agreement,
Berens  had  ceased  all  activity due to their inability to generate sufficient
revenue  or  obtain additional capital funding.  This transaction is exempt from
section  4.2  of  the  Securities  Act.

     On  September  17,  Berens  filed a name change to Crescent Communications,
Inc.  d.b.a. Crescent Broadband and approved a 5-for-1 reverse stock split to be
effective  on  September 24, 2001.  On a fully convertible post-split basis, the
former  shareholders  of  Solis beneficially owned an aggregate of approximately
28,000,000  shares  of  common  stockAs  a  result,  and  based  upon  stock
transactions  occuring  throughout  2002,  the  former  shareholders  control
approximately 67% of the outstanding common stock.  The Series A Preferred Stock
does  not  receive  dividends.

     Of  the  $600,000  committed  under  the  Agreement,  $105,000  was used to
purchase certain assets of Crescent Services Corporation, a Houston, Texas based
company  that  provided  broadband  and  wireless  services.   The  assets  were
purchased  under  the review and approval of the court appointed trustee as part
of  an  involuntary  petition under Chapter 7 of the U.S. Bankruptcy Code, filed
against  Crescent in the U.S. Bankruptcy Court in the Southern District of Texas
in January 2001.  Approximately $165,000 of connectivity assets were contributed
by  Solis  as  partial  satisfaction of its $600,000 commitment and $194,000 was
used  to fund working capital requirements.  An additional $136,000 remained due
under  the agreement which was paid by the shareholders of Solis in January 2002
and  used  for  working  capital.

     The  Company  has  incurred  a  significant  loss  from  operations  since
inception,  and is in a negative working capital position at September 30, 2002.
The  Company remains dependent on outside sources of funding for continuation of
its  operations. Based on these factors, our auditors issued a qualified opinion
at  December  31,  2001  that reflects the significant doubt about the company's
ability  to  continue  as  a  going  concern.


                                      I-1
<PAGE>
RESULTS  OF  OPERATIONS

     During the nine months ended September 30, 2002, the Company's revenue from
connectivity  systems, web site hosting, engineering services and hardware sales
was  $1,328,723.  The Company began its operations on July 23, 2001, therefore a
comparison  to  the  prior  year or previous nine month period is not completely
appropriate.  Revenue growth has, however, been achieved with improvements noted
primarily  in  the  connectivity  system  and hardware segments of the business.
Connectivity  revenues  were $898,929 during the first nine months of 2002. On a
quarter  over  quarter  basis, revenues from connectivity during the three month
period  ended September 30 were $316,619, representing an improvement of $10,642
versus  the  three  month  period  ended  June  30.  This  increase  represents
consecutive  quarterly growth from connectivity for the Company during the year.
Hardware  sales  were $167,537 for the nine months ended September 30, 2002 with
$76,599  realized  in  the  most  recent  quarter.

     Cost  of  sales  for  the  nine  month period ended September 30, 2002 were
$908,214,  with  a  gross  margin of $420,509.  On a quarter over quarter basis,
cost  of  sales during the third quarter of $283,569 are  significantly improved
when  compared  to  the  quarter  ended June 30 of $315,992.  Gross margins were
39.1%  for  the  quarter  as  compared  to year to date of 31.6%.  These amounts
compare  favorably  to  the  gross margin percentage of 9.9% realized during the
period  from  the  Company's  inception  through  December  31,  2001.

     Selling,  general  and administrative expenses were $1,955,299 for the nine
month  period  ended  September  30, 2002. On a quarter over quarter basis these
expenses  aggregated $797,193 during the most recent quarter versus $618,687 for
the three month period ended in June. Higher selling, general and administrative
expenses  are  primarily  attributable  to  the  Company's  incurring additional
payroll,  consulting  and professional expenses in connection with its expansion
from  its  core  business  of  internet  connectivity  for small and medium size
businesses  into  a  medical  vertical  market  under  the  Bluegate brand name.
Bluegate seeks to capitalize on the adoption of the Health Insurance Portability
and  Accountability  Act ("HIPAA") as mandated by the United States Congress for
the  healthcare industry. HIPAA is a standardization of communication, including
billing,  record  storage, etc., of information and is to be effective April 14,
2003.  Bluegate  seeks  to  provide  the  medical  industry  with  highly secure
broadband  private  network  service  to  maintain  compliance  with  HIPAA
requirements.  Also included in selling, general and administrative expenses are
costs  associated  with the Company's expensing of non-qualified stock options .
The  Company has issued non-qualified stock options to certain employees in lieu
of  cash  compensation.  These  options have been valued based on the difference
between the option price and the market price of the Company's stock on the date
of  the  grant  and  that amount is included as a reduction of current earnings.
Total  expense  associated  with  such  compensation  arrangements  accumulated
$292,798  through  September  30,  2002.

     Capital  expenses aggregated $109,179 through September 30, 2002 almost all
of  which occurred in the third quarter. These expenses are primarily associated
with  software  in  preparation  for  the expansion into the healthcare industry
market.

PLAN  OF  OPERATIONS,  LIQUIDITY  AND  CAPITAL  RESOURCES

     At  September  30,  2002  the  Company  had  cash  and  cash equivalents of
$256,705.  Operations  for  the nine month period ended September 30, 2002  have
been  funded by the issuance of common stock for cash of  $1,627,025,  the final
payment  due  from  stockholders related to the  purchase Agreement of $150,000,
newly  issued  convertible  notes  payable  to  stockholders  for  $134,000, and
nonqualified  stock  options issued to certain employees and contractors in lieu
of  cash  compensation.  The  Company  has continued to take steps to reduce its
monthly  operating  expenses relating to  its core business and has expanded its
efforts  in  creating  a  market  for  the health care industry.  Because of the
uncertainty  associated  with  this  new  market,  break  even  cash flow is not
expected  until  late  2003  at  the  earliest.

     The  Company is seeking additional capital to fund expected operating costs
and  has  engaged  in negotiations  to merge or sell part or all of the Company.
No  commitments  for mergers or acquisitions have been obtained at this time and
the Company continues to negotiate with certain parties to address the operating
cash  flow  shortfalls.  During  the  nine months ended September 30 the Company
raised  $1,627,025  from  the  sale  of  equity  securities.  We  believe future
fundings  may be obtained from public or private offerings of equity securities,
debt  or  convertible  debt  securities  or  other sources.  Stockholders should
assume  that  any  additional  funding  will  likely  be  dilutive.


                                      I-2
<PAGE>
     If  we  are  unable  to  raise additional funding, we may have to limit our
operations  to  an  extent that we cannot presently determine. The effect on our
business may include the sale of certain assets, the reduction or curtailment of
new  customer  acquisition,  reduction in the scope of current operations or the
cessation  of  business  operations.

     Our  ability to achieve profitability will depend upon our ability to raise
additional  operating  capital,  continued  growth  in  demand  for connectivity
services  and  our  ability  to  execute  and  deliver  high  quality,  reliable
connectivity  services.


ITEM 3.  EVALUATION  OF  DISCLOSURE  CONTROLS  AND  PROCEDURES

     Manfred Sternberg, our Chief Executive Officer and Chief Financial Officer,
has  concluded  that  our disclosure controls and procedures are appropriate and
effective.  He  has  evaluated these controls and procedures as of a date within
90  days  of  the  filing  date  of  this  report of Form 10-QSB.  There were no
significant  changes  in  our  internal  controls or in other factors that could
significantly  affect  these  controls subsequent to the date of his evaluation,
including  any  corrective  actions  with regard to significant deficiencies and
material  weaknesses.


                                      I-3
<PAGE>
                                    PART II

Item 2.  Changes  in  Securities

     The  Company sold certain common shares to accredited private investors for
cash  under  a  Private  Placement Memorandum pursuant to regulation D, rule 506
small  business  offering.  These  transactions  were exempt pursuant to Section
4(2)  of  the Securities Act of 1933. A total of 500,000 shares were sold during
April  and  June to two investors at prices ranging from $.10 to $.25 per share.
No  discounts  or  commissions  were  paid  and  the aggregate amount raised was
$110,000.

     In  June  the  Company  entered into and agreement with Pacific Continental
Securities  UK  to  sell  common  stock  under  Regulation  S to various foreign
investors.  Among  other things, the agreement provided for the company to issue
up to 3,000,000 shares of Regulation S stock at 35% of the average bid price for
the preceding 5 day period of the exercise with a floor price of $.40.  The term
was  originally  to  expire  August  31,  2002.  The  Agreement has been amended
several  times  and  as  of  September 30, 2002 the Company has issued 7,238,982
shares  for  $1,517,025 under this arrangement.  On October 24, 2002 the Company
entered into a second agreement with similar terms allowing for up to 10 million
shares to be issued through January 31, 2003.  The first 3 million shares have a
floor  price  of  $.40  and  the  remainder  have  a  floor  price of $.70.  The
transactions  were  as  follows:

          Date  Issued          Title  of  Securities          Shares
          ------------          ---------------------          ------
          June 28, 2002             Common Shares             620,743
          July 17, 2002             Common Shares           1,173,686
          July 31, 2002             Common Shares           2,223,989
          August 16, 2002           Common Shares           1,291,219
          September 3, 2002         Common Shares           1,389,357
          September 17, 2002        Common Shares             539,988


     The  Company issued common stock to two consultants for legal and financial
services.  These  transactions  were  exempt  pursuant  to  Section  4(2) of the
Securities  Act of 1933.  Through September 30, 2002, 467,500 shares aggregating
$268,585  as  shown  below  have  been  issued  under  this  arrangement.

          Date  Issued          Title  of  Securities          Shares
          ------------          ---------------------          ------
          January 9, 2002           Common Shares              47,500
          June 25 2002              Common Shares             300,000
          July 24, 2002             Common Shares             100,000
          August 15, 2002           Common Shares              20,000



     The Company issued options to acquire certain common shares to employees in
lieu of cash compensation under section 4(2) of the Securities Act of 1933.  The
options are exercisable after  a vesting period at the employees election, at an
option  price  of  $.10  per  share:



       Date Issued     Title of Securities  Vesting Period  Shares Granted
     ----------------  -------------------  --------------  --------------
     July 1, 2002      Common Shares        Adjustment          -491,537
     July 1, 2002      Common Shares        One Month            270,000
     July 1, 2002      Common Shares        Seven Months         710,000


                                      II-1
<PAGE>
Item 6.  Exhibits  and  Reports  on  Form  8-K

     (a)     Exhibits  -  None
     (b)     Reports  on  Form  8-K  -  None


                                   SIGNATURES



In  accordance  with  the  Exchange Act, the registrant caused this report to be
signed  on  its  behalf  by  the  undersigned,  thereunto  duly  authorized




                                            Crescent  Communications,  Inc.

Date:  November  14,  2002
                                            --------------------------------
                                            /s/  Manfred  Sternberg
                                            Manfred  Sternberg,
                                            Chief  Executive  Officer  and
                                            Chief  Financial  Officer


                                      II-2
<PAGE>
Certification  of  Chief  Executive  Officer  of  Crescent  Communications, Inc.
--------------------------------------------------------------------------------
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18
--------------------------------------------------------------------------------
U.S.C. 63.
----------

I,  Manfred  Sternberg,  the Chief Executive Officer of Crescent Communications,
Inc.,  hereby  certify  that  Crescent Communications, Inc.'s periodic report on
Form  10-QSB,  for the period ending September 30, 2002, fully complies with the
requirements  of  Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
and  that  information  contained  in  the periodic report on Form 10-QSB fairly
presents,  in  all material respects, the financial condition and results of the
operations  of  Crescent  Communications,  Inc.


                                         ------------------------------
Date:   November 14, 2002                /s/    Manfred Sternberg
                                                Manfred Sternberg
                                                Chief Executive Officer



Certification  of  Chief  Financial  Officer  of  Crescent  Communications, Inc.
--------------------------------------------------------------------------------
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Section 1350 of 18
--------------------------------------------------------------------------------
U.S.C. 63.
----------

I,  Manfred  Sternberg,  the Chief Financial Officer of Crescent Communications,
Inc.,  hereby  certify  that  Crescent Communications, Inc.'s periodic report on
Form  10-QSB,  for the period ending September 30, 2002, fully complies with the
requirements  of  Section 13(a) or 15(d) of the Securities Exchange Act of 1934,
and  that  information  contained  in  the periodic report on Form 10-QSB fairly
presents,  in  all material respects, the financial condition and results of the
operations  of  Crescent  Communications,  Inc.



                                         ------------------------------
Date:   November 14, 2002               /s/     Manfred  Sternberg
                                                Manfred  Sternberg
                                                Chief  Financial  Officer


                                      II-3
<PAGE>
CERTIFICATIONS
--------------

I,  Manfred  Sternberg,  the Chief Executive Officer of Crescent Communications,
Inc,  certify  that:

1.  I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Crescent
Communications,  Inc.;
2.  Based  on  my  knowledge,  this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;
3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;
4.  The  registrant's  other  certifying  officers  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:
a)  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;
b)  evaluated  the  effectiveness  of  the  registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and
c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on  our  evaluation as of the
Evaluation  Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
functions):
a)  all significant deficiencies in the design or operation of internal controls
which  could  adversely  affect  the  registrant's  ability  to record, process,
summarize  and  report  financial  data and have identified for the registrant's
auditors  any  material  weaknesses  in  internal  controls;  and
b)  any  fraud,  whether  or  not  material,  that  involves management or other
employees who have a significant role in the registrant's internal controls; and
6.  The  registrant's  other  certifying  officers  and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.

Date:  November  14,  2002


----------------------------
/s/  Manfred  Sternberg
Manfred  Sternberg
Chief  Executive  Officer


                                      II-4
<PAGE>
CERTIFICATIONS
--------------

I,  Manfred  Sternberg,  the Chief Financial Officer of Crescent Communications,
Inc,  certify  that:

1.  I  have  reviewed  this  quarterly  report  on  Form  10-QSB  of  Crescent
Communications,  Inc.;
2.  Based  on  my  knowledge,  this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report;
3.  Based  on  my  knowledge,  the  financial  statements,  and  other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;
4.  The  registrant's  other  certifying  officers  and  I  are  responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  have:
a)  designed  such  disclosure  controls  and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;
b)  evaluated  the  effectiveness  of  the  registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and
c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on  our  evaluation as of the
Evaluation  Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most  recent evaluation, to the registrant's auditors and the audit committee of
registrant's  board  of  directors  (or  persons  performing  the  equivalent
functions):
a)  all significant deficiencies in the design or operation of internal controls
which  could  adversely  affect  the  registrant's  ability  to record, process,
summarize  and  report  financial  data and have identified for the registrant's
auditors  any  material  weaknesses  in  internal  controls;  and
b)  any  fraud,  whether  or  not  material,  that  involves management or other
employees who have a significant role in the registrant's internal controls; and
6.  The  registrant's  other  certifying  officers  and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.

Date:  November 14, 2002


----------------------------
/s/  Manfred  Sternberg
Manfred  Sternberg
Chief  Financial  Officer


                                      II-5
<PAGE>