<SUBMISSION>
<ACCESSION-NUMBER>0000788738-02-000223
<TYPE>10QSB
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<PERIOD>20020630
<FILING-DATE>20020828
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>AXIA GROUP INC/UT
<CIK>0000788738
<ASSIGNED-SIC>8742
<IRS-NUMBER>870509512
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
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<FORM-TYPE>10QSB
<ACT>34
<FILE-NUMBER>001-09418
<FILM-NUMBER>02751473
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>268 W 400 S STE 300
<CITY>SALT LAKE CITY
<STATE>UT
<ZIP>84101
<PHONE>8015758073
</BUSINESS-ADDRESS>
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<STREET1>268 WEST 400 SOUTH
<STREET2>STE 300
<CITY>SALT LAKE CITY
<STATE>UT
<ZIP>84101
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CANTON INDUSTRIAL CORP
<DATE-CHANGED>19950412
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CYBERAMERICA CORP
<DATE-CHANGED>19960620
</FORMER-COMPANY>
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<TYPE>10QSB
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<FILENAME>axia10qjune02.txt
<TEXT>
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
[X]      Quarterly report under Section 13 or 15(d) of the Securities Exchange
         Act of 1934 for the quarterly period ended June 30, 2002.

[ ]      Transition report under Section 13 or 15(d) of the Securities Exchange
         Act of 1934 for the transition period from              to            .


         Commission file number:  I-9418
                                  ------


                                 AXIA GROUP INC.
        (Exact name of small business issuer as specified in its charter)





                Nevada                             87-0509512
               --------                           ------------
   (State or other jurisdiction of              (I.R.S. Employer
    incorporation or organization)             Identification No.)





                 268 West 400 South, Salt Lake City, Utah 84101
            ---------------------------------------------------------
               (Address of principal executive office) (Zip Code)


                                 (801) 575-8073
                         ------------------------------
                           (Issuer's telephone number)


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  XX                    No
                          ----                      ----


The number of outstanding shares of the issuer's common stock, $0.001 par value
(the only class of voting stock), as of August 27, 2002 was 9,756,488.



<PAGE>




                                TABLE OF CONTENTS

                                     PART I

ITEM 1.  FINANCIAL STATEMENTS.................................................3

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS.................................4


                                     PART II

ITEM 1.  LEGAL PROCEEDINGS....................................................9

ITEM 2.  RECENT SALES OF UNREGISTERED SECURITIES.............................10

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.................10

ITEM 5.  OTHER INFORMATION...................................................10

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K....................................10

SIGNATURES...................................................................11

INDEX TO EXHIBITS............................................................12











                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]








                                        2

<PAGE>



ITEM 1.           FINANCIAL STATEMENTS

As used herein,  the term "Axia" or the "Company" refers to Axia Group,  Inc., a
Nevada  corporation,  and its  subsidiaries  and  predecessors  unless otherwise
indicated.  Consolidated,  unaudited,  condensed  interim  financial  statements
including  a  balance  sheet for Axia as of June 30,  2002,  and  statements  of
operations,  and  statements of cash flows for the interim  periods of three and
six months up to the date of such balance  sheet and the  comparable  periods of
the  preceding  year are  attached  hereto  as  Pages  F-1  through  F-7 and are
incorporated herein by this reference.










                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]















                                        3

<PAGE>





ITEM 1.       FINANCIAL STATEMENTS

INDEX TO FINANCIAL STATEMENTS
                                                                            PAGE

Consolidated Unaudited Condensed Balance Sheet June 30, 2002 ................F-2

Consolidated Unaudited Condensed Statements of Operations for the Three and
Six Months Ended June 30, 2002 and 2001......................................F-4

Consolidated Unaudited Condensed Statements of Cash Flows for the Six
Months Ended June 30, 2002 and 2001..........................................F-5

Notes to Consolidated Unaudited Condensed Financial Statements June 30, 2002.F-6









                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]
















                                       F-1

<PAGE>



                        AXIA GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED UNAUDITED CONDENSED BALANCE SHEETS
                                  June 30, 2002


                                                               June 30, 2002
                                                               ------------
ASSETS

   Current Assets
      Cash                                                     $    468,263
      Accounts receivable - trade, net of allowance                 175,695
      Accounts receivable - related parties                           2,930
      Notes receivable - current                                     67,500
      Prepaid expenses                                               90,619
      Securities available for sale                                  75,283
          Total Current Assets                                      880,290

   Fixed Assets
      Property and equipment                                      5,021,610
            Less: Accumulated depreciation                        (699,153)
      Land                                                        1,090,535
                                                               ------------
          Total Fixed Assets                                      5,412,992

   Other Assets
      Real property held for sale                                   195,511
      Investment securities at lower of cost or market              754,892
      Notes receivable                                              299,082
          Total Other Assets                                      1,249,485

TOTAL ASSETS                                                   $  7,542,767
                                                               ============


            See accompanying notes to unaudited financial statements

                                       F-2

<PAGE>



                        AXIA GROUP, INC. AND SUBSIDIARIES
           CONSOLIDATED UNAUDITED CONDENSED BALANCE SHEETS (Continued)
                                  June 30, 2002

<TABLE>
<S>                                                                     <C>

                                                                         June 30, 2002
                                                                         --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
   Current Liabilities
      Accounts payable                                                   $       93,377
      Accrued liabilities                                                        67,837
      Unearned rent                                                              33,853
      Current portion long-term debt                                            537,989
          Total Current Liabilities                                             733,056
                                                                         --------------

   Long-Term Liabilities
      Notes and mortgages payable                                             4,204,728
      Notes payable - related parties                                            16,515
      IEPA liability                                                            212,629
      WVDEP liability                                                            20,000
      Less current portion                                                    (537,989)
          Total Long-Term Liabilities                                         3,915,883

TOTAL LIABILITIES                                                             4,648,939

MINORITY INTEREST                                                               714,717

STOCKHOLDERS' EQUITY
      Preferred stock - 20,000,000 shares authorized at $5.00 par,
           1,000 shares issued                                                    5,000
      Common stock - 200,000,000 shares authorized at $0.001 par;
           9,756,488 shares issued                                                9,756
      Additional paid in capital                                             17,027,638
      Treasury stock - 2,675,336 shares @ $.46/share                        (1,250,643)
      Accumulated deficit                                                  (13,651,943)
      Unrealized gain on securities available for sale                           39,303
TOTAL STOCKHOLDERS' EQUITY                                                    2,179,111
                                                                         --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                               $    7,542,767
                                                                         ==============
</TABLE>

            See accompanying notes to unaudited financial statements

                                       F-3

<PAGE>




                        AXIA GROUP, INC. AND SUBSIDIARIES
                 CONSOLIDATED UNAUDITED CONDENSED STATEMENTS OF
               OPERATIONS For the Three and Six Months Ended June
                                30, 2002 and 2001
<TABLE>
<CAPTION>


                                                              Three Months Ended                      Six Months Ended
                                                                    June 30                                June 30
                                                            2002               2001               2002                2001
                                                       --------------      -------------      -------------       -------------
<S>                                                   <C>                 <C>                <C>                 <C>

Revenue
     Sale of property                                  $            -      $           -      $   2,332,000       $           -
     Consulting revenue                                        31,540            330,981            111,265             502,034
     Rental revenue                                           197,445            186,201            515,303             417,329
                                                       --------------      -------------      -------------       -------------
Total Revenue                                                 228,985            517,182          2,958,568             919,963

Costs of Revenue
     Costs associated with sale of property                         -                  -          2,330,386                   -
     Costs associated with consulting revenue                  16,527            203,219            226,430             375,886
     Costs associated with rental revenue                     131,720            312,319            435,799             485,078
     Interest associated with rental revenue                   82,147                  -            198,439               6,773
                                                       --------------      -------------      -------------       -------------
Total Costs of Revenue                                        230,394            515,538          3,191,054             867,737

Gross Profit                                                  (1,409)              1,644          (232,486)              52,226

Selling, General & Administrative Expense                     309,594            180,890            538,994             281,780
                                                       --------------      -------------      -------------       -------------

Operating Profit (Loss)                                     (311,003)          (179,246)          (771,480)           (229,554)

Other Income (Expense)
     Interest Income                                                -                 45                126              49,821
     Interest Expense                                           2,960          (131,467)                  -           (259,777)
     Gain (loss) from sale of securities                     (93,043)            (5,786)          (172,487)           (306,730)
     Other income (expense)                                    25,803            (6,020)             31,935             (7,748)
                                                       --------------      -------------      -------------       -------------
Total Other Income (Expense)                                 (64,280)          (143,228)          (140,426)           (524,434)

Income (Loss) Before Minority Interest                      (375,283)          (322,474)          (911,906)           (753,988)

Minority Interest in Loss                                      25,795                  -            107,878                   -
                                                       --------------      -------------      -------------       -------------

Net Profit (Loss)                                      $    (349,488)      $   (322,474)      $   (804,028)       $   (753,988)

Income (Loss) Per Common Share

     Loss before minority interest                     $       (0.05)      $      (0.07)      $      (0.12)       $      (0.16)
     Minority interest in gain                                   0.00                  -               0.01                   -

                                                       --------------      -------------      -------------       -------------
     Net loss per weighted average common
          share outstanding                                    (0.05)             (0.07)             (0.11)              (0.16)

     Weighted Average common shares
          outstanding
                                                            7,904,000          4,819,378          7,358,000           4,628,549
                                                       ==============      =============      =============       =============

</TABLE>



            See accompanying notes to unaudited financial statements

                                       F-4

<PAGE>



                        AXIA GROUP, INC. AND SUBSIDIARIES
            CONSOLIDATED UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
                 For the Six Months Ended June 30, 2002 and 2001

<TABLE>
<CAPTION>

                                                                                 Six Months Ended
                                                                                     June 30
                                                                              2002             2001
                                                                          ------------      -----------
<S>                                                                      <C>               <C>

Cash Flows From Operating Activities
    Net Income (Loss)                                                     $  (804,028)      $ (753,988)
    Adjustments to reconcile net income (loss) to net cash provided
    (used):
       (Gain) Loss from sale of investments                                    172,487          306,730
       Minority interest in gain (loss)                                      (107,878)                -
       Closing costs on sale of property                                       100,701                -
       Closing costs added to loan                                               3,981                -
       Marketable securities as payment for receiveables                     (170,109)                -
       Depreciation & amortization                                              89,045           93,768
       Issued stock for services                                               282,500          218,400
       Decrease (increase) in assets:
          Accounts & notes receivable                                         (31,484)        (139,385)
          Prepaid expenses                                                    (29,649)            3,550
       Increase (decrease) in liabilities
          Accounts  payable                                                     57,162           24,369
          Accrued liabilities                                                (127,113)         (98,775)
                                                                          ------------      -----------
Net Cash Provided (Used) by Operating Activities                          $  (564,385)      $ (345,331)

Activites

Cash Flows From Investing Activities
    Purchase of fixed assets                                                 (210,819)           65,779
    Cash received in acquisition                                                18,545                -
    Purchase of investments                                                    (2,875)        (592,114)
    Proceeds from sale of property                                             391,539                -
    Proceeds from sale of investments                                          167,015          279,705
                                                                          ------------      -----------
Net Cash Provided (Used) by Investing Activities                          $    363,405      $ (246,630)

Cash Flows from Financing Activities
    Sale of common stock for cash                                               30,000          331,614
    Purchase of treasury stock                                                (30,418)                -
    Payments on long term debt                                                (90,448)                -
    Increase in long-term debt                                                 464,975          266,318
                                                                          ------------      -----------
Net Cash Provided (Used) by Financing Activities                          $    374,109      $   597,932

Increase (Decrease) in Cash                                                    173,129            5,971

Cash at Beginning of Period                                                    295,134          178,420
                                                                          ------------      -----------

Cash at End of Period                                                     $    468,263      $   184,391
                                                                          ============      ===========

</TABLE>

            See accompanying notes to unaudited financial statements


                                       F-5

<PAGE>



                        AXIA GROUP, INC. AND SUBSIDIARIES
         NOTES TO CONSOLIDATED UNAUDITED CONDENSED FINANCIAL STATEMENTS
                                  June 30, 2002

1.  BASIS OF PRESENTATION

The accompanying consolidated unaudited condensed financial statements have been
prepared by management in accordance  with the  instructions in Form 10-QSB and,
therefore,  do not include all information and footnotes  required by accounting
principles  generally  accepted  in the US and  should,  therefore,  be  read in
conjunction  with Axia's  Annual Report to  Shareholders  on Form 10-KSB for the
fiscal year ended  December 31,  2001.  These  statements  do include all normal
recurring  adjustments which Axia believes  necessary for a fair presentation of
the statements. The interim operations results are not necessarily indicative of
the results for the full year ended December 31, 2002.

2.   TREASURY STOCK

During the six months ended June,  2002, the Company  purchased 98,100 shares of
its own stock in the open market for a cost of $30,418.  Of the total  2,675,336
shares  in  treasury  stock,   all  are  held  in  the  accounts  of  subsidiary
corporations.  Since Axia's stock buyback program began in October of 2001, Axia
has purchased a total of 249,885 shares in the open market.

Also during the quarter ended June 30, 2002, the Company issued 1,365,070 shares
of restricted  stock in exchange for resolution of debts to Wichita  Development
Corporation.  Since  Wichita  is a  consolidated  subsidiary,  these  shares are
reflected in the above treasury stock numbers.

3.   REFINANCING OF DEBT

During the  quarter  ended June 30,  2002,  West  Jordan  Real  Estate  Holdings
(WJREH), an 88.3% owned subsidiary,  refinanced its Glendale shopping plaza with
Imperial  Capital Bank. The new loan, in the amount of  $1,072,500,  paid off an
existing mortgage with US Bank in the approximate amount of $631,000,  set aside
$110,000 for capital improvements,  repaid the Company $213,000 spent on capital
projects,  losses, and other expenditures,  and reserved $62,000+ in an earn out
provision.  The new  note is  based  on a 20 year  amortization,  with a 10 year
balloon payment, and carries a LIBOR + 4.5% (currently at 6.4%) APR.

In addition to the above refinancing,  Kearns Development  Corporation (Kearns),
an 86.9% owned subsidiary, was able to extend its primary mortgage with Brighton
Bank on July 11, 2002 for a period of 2 years.  The terms of the  extended  note
are essentially the same as the primary  mortgage with the addition of a $50,000
collateral  agreement of which the Company can use $30,000 to fund any potential
cash  shortages.  The note is now due on July 12, 2004, has a 9.0% interest rate
with monthly  principal  and interest  payments of  $5,631.80.  As the refinance
occurred prior to the filing of this Form 10QSB, this note has been reflected as
a long term liability.

4.  ACQUISITION

Pursuant to a stock  purchase  and  asset/subsidiary  purchase  agreement  dated
February 15, 2002,  the Company  received  255,100,000  newly issued  restricted
common shares of Nexia Holdings,  Inc.(Nexia) in exchange for certain assets and
liabilities of Axia. The net effect of this  transaction is that Nexia became an
83.5% owned  subsidiary of Axia, in exchange,  Nexia  received a majority of the
assets,  liabilities  and  interest  in  Axia's  subsidiaries,   which  included
shareholder   interest  in  several  "shell"  companies  in  which  Axia  had  a
controlling stake.



                                       F-6

<PAGE>



                        AXIA GROUP, INC. AND SUBSIDIARIES
         NOTES TO CONSOLIDATED UNAUDITED CONDENSED FINANCIAL STATEMENTS
                                  June 30, 2002

The operations from Nexia and its  subsidiaries for the period from February 15,
2002,  to June 30, 2002,  are included in the  statement  of  operations  of the
combined  entities.  For more information  regarding this transaction as well as
pro-forma financial  statements for the year ended December 31, 2001, please see
the  Company"s  form 8K/A filed with the SEC on February 27,  2002,  and amended
with the above-mentioned financial statements on May 1, 2002.

5.  NON-CASH TRANSACTIONS

During the six months ended June 30, 2002,  the Company  recorded the  following
non-cash investing and financing activities:

In  connection  with the  above-referenced  transaction,  the  Company  recorded
marketable securities of $215,336,  accounts payable of $(7,129), an increase in
minority  interest due to the change in ownership of subsidiaries of $(445,226),
and net cash received of $18,545.  As a result of the transaction,  Nexia became
an approximate  83.5% owned  subsidiary and all  previously  owned  subsidiaries
became subsidiaries of Nexia.

The Company acquired  $15,000 of property and equipment  through the issuance of
30,000 shares of common stock.

6.  ADDITIONAL FOOTNOTES INCLUDED BY REFERENCE

Except  as  indicated  in the Notes  above,  there  have been no other  material
changes in the  information  disclosed in the notes to the financial  statements
included in Axia's Annual Report on Form 10-KSB for the year ended  December 31,
2001. Therefore, those footnotes are included herein by reference.




                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]



















                                       F-7

<PAGE>



ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                  CONDITION AND RESULTS OF OPERATIONS

General
Axia is a holding  company  that  operates  in two  primary  areas of  business:
acquiring,  leasing and selling real estate; and, providing financial consulting
services. This business is transacted through a number of subsidiaries which are
owned  by the  Axia's  majority  owned  subsidiary  and  holding  company  Nexia
Holdings, Inc.

The following  discussion  examines  Axia's  financial  condition as a result of
operations  for the second  quarter and  year-to-date,  2002, and compares those
results with comparable periods from last year.

Real Estate Operations
Axia's objective, with respect to real estate operations, is to acquire, through
subsidiaries,  properties which management  believes to be undervalued and which
Axia is able to acquire with limited cash outlays. Axia will consider properties
within the continental  United States.  Axia attempts to acquire such properties
by assuming existing favorable  financing and paying the balance of the purchase
price with  nominal  cash  payments or through the  issuance of shares of common
stock.  Once  such  properties  are  acquired,  Axia  leases  them to  primarily
commercial  tenants.   Axia  also  makes  limited  investments  to  improve  the
properties with the objective of increasing occupancy and cash flows. Management
believes that, with limited  improvements and effective  management,  properties
can be sold at a profit within a relatively short period of time.

On January 4,  2002,  Golden  Opportunity  Development  Corporation,  ("GODC") a
former  subsidiary  of Axia  (transferred  to Nexia  in the  February  15,  2002
transaction) that has historically been engaged in the business of operating and
acquiring hospitality property,  sold its only asset, the General LaFayette Inn.
Prior to January 4, 2002, GODC owned the General Lafayette Inn, a 134 unit motel
and  restaurant,  and four  adjacent  office/retail  buildings,  located  at 427
Lafayette Street, Baton Rouge,  Louisiana (the "Motel").  The Motel was sold for
cash,  in the amount of  $2,332,000,  to Lafayette  Development  Holdings,  LLC.
("Lafayette"),  a Louisiana Limited Liability  Company.  After payment of taxes,
real estate  commissions,  and the mortgage on the  property,  GODC realized net
cash of $337,000.  There is no material relationship between Lafayette and Axia.
GODC, or any of their affiliates,  or any of their officers or directors, or any
associate of such officers or directors.

It should be noted that with the divestiture of the General  LaFayette Inn, Axia
believes  that a major source of negative cash flow and losses for Axia has been
eliminated.  Over the four years  Axia  owned the  property,  it  accounted  for
$1,258,803 in losses and approximately $800,000 in negative cash flows.

During the  quarter  ended June 30,  2002,  West  Jordan  Real  Estate  Holdings
(WJREH), an 88.3% owned subsidiary,  refinanced its Glendale shopping plaza with
Imperial  Capital Bank. The new loan, in the amount of  $1,072,500,  paid off an
existing mortgage with US Bank in the approximate amount of $631,000,  set aside
$110,000 for capital improvements,  repaid the Company $213,000 spent on capital
projects,  losses, and other expenditures,  and reserved $62,000+ in an earn out
provision.  The new  note is  based  on a 20 year  amortization,  with a 10 year
balloon payment, and carries a LIBOR + 4.5% (currently at 6.4%) APR.

In addition to the above refinancing,  Kearns Development  Corporation (Kearns),
an 86.9% owned subsidiary, was able to extend its primary mortgage with Brighton
Bank on July 11, 2002 for a period of 2 years.  The terms of the  extended  note
are essentially the same as the primary mortgage with the addition of

                                        4

<PAGE>



a $50,000 collateral  agreement of which the Company can use $30,000 to fund any
potential  cash  shortages.  The  note is now due on July 12,  2004,  has a 9.0%
interest rate with monthly principal and interest  payments of $5,631.80.  Since
the refinance occurred prior to the filing of this Form 10QSB, this note was has
been reflected as a long term liability.

Currently,  Axia has negative cash flows from real estate  operations of $16,422
for the 3 months ended June 30, 2002, compared to a negative cash flow from real
estate  operations  of $126,118  for the same period in 2001.  This  increase in
rental  revenues  was due to being  able to rent out  significant  space for the
Olympic games held in Salt Lake City in February.

Axia recorded  rental  revenues of $197,445 for the quarter ended June 30, 2002,
as compared to $186,201  for the same  quarter,  2001.  This  increase in rental
revenues was due to a slight increase in occupancy rates.

Axia will continue efforts to improve  profitability and cash flow by working to
increase  occupancy  and rental income from those  properties  which have a high
vacancy rate as well as focusing on properties  with the highest per square foot
rental rates.  Axia also intends to continue to purchase  real estate  primarily
for appreciation purposes. Accordingly, Axia hopes to not only minimize any real
estate  cash  flow  deficit,  but  also  generate  sufficient  cash to  record a
substantial profit upon property disposition.

Consulting Operations

Axia, through its subsidiary Hudson Consulting Group, Inc. (Hudson),  provides a
variety of financial consulting services to a wide range of clients. The primary
service performed by Axia involves assisting clients in structuring  mergers and
acquisitions.  This  includes  locating  entities  suitable to be merged with or
acquired by Axia's clients,  as well as providing  general advice related to the
structuring  of  mergers  or   acquisitions.   Axia  also  assists   clients  in
restructuring their capital formation, advises with respect to general corporate
problem solving and provides  shareholder  relations services designed to expose
its clients to the investment community.

Axia's consulting  subsidiary generates revenues through consulting fees payable
in the client's equity securities, cash, other assets or some combination of the
three.  The primary form of  compensation  received is the equity  securities of
clients.  When payment is made in the form of equity, the number of shares to be
paid is usually  dependent upon the price of the client's  common stock (if such
price is available)  and the extent of consulting  services to be provided.  The
typical  value used to determine  the number of shares to be paid is one-half or
less of the  stock's  bid price,  which  accounts  for the fact that most of the
equity  received as payment by Axia is  restricted  as to resale.  Axia  accepts
equity  with the  expectation  that its  services  will  assist  in the  stock's
appreciation,  thus allowing Axia to be compensated  and to make a return on the
payments for its services.

Axia  generates  cash flow,  in part, by  liquidating  non-cash  assets  (equity
securities) received as fees for consulting  services.  As most fees are paid in
the form of equity,  the revenues  and cash flows  realized by Axia are somewhat
tied to the price of its  clients'  securities  and Axia's  ability to sell such
securities.  A decline  in the market  price of a client's  stock can affect the
total  asset  value of Axia's  balance  sheet and can  result in Axia  incurring
substantial losses on its income statement. Axia generally books securities that
it accepts as payment at a 50% to 95%  discount of the current  market  value at
the time Axia accepts the  securities  due to  illiquidity of the securities and
because of restrictions on resale.

Axia's portfolio  consists  primarily of restricted and  unrestricted  shares of
common stock in micro to small cap publicly  traded  companies.  This  portfolio
currently consists of shares of common stock in over 50 different companies

                                        5

<PAGE>



whose operations range from that of high-tech Internet operations to oil and gas
companies.  Axia  believes  that the  diversity  of its  current  holdings,  all
investments  in  companies  are less than 10% of their  issued  and  outstanding
shares,  is such that the overall  volatility of its portfolio is  significantly
less  than in  prior  years  of  operation.  Nonetheless,  Axia's  portfolio  is
considered extremely volatile.

Revenues from Axia's financial  consulting  operations decreased for the quarter
ended June 30,  2002,  as compared to the same  quarter in 2001.  Axia  recorded
$31,540 in revenues  for the quarter  ended June 30,  2002,  from its  financial
consulting  operations as compared to $330,981 for the same period of 2001. This
decrease was due to a slow down in consulting activities, due in part to adverse
conditions in the market- place.

During the six months ended June 30, 2002, Axia sold investment securities owned
by Axia and its  subsidiaries.  The bulk of the securities  sold were securities
that  Axia and its  majority  owned  subsidiaries  acquired  in past  years  for
services rendered to clients by Axia's consulting  subsidiaries.  During the six
months  ended  June  30,  2002,  Axia  and its  subsidiaries  sold  $167,015  in
investment  securities.   Axia's  basis  in  the  securities  was  approximately
$260,057.  Axia  continued to liquidate  securities it felt would not rebound to
prevent future losses and to provide needed working capital.

Company Operations as a Whole

Revenues

Gross revenues for the three month periods ended June 30, 2002 were $228,985, as
compared to $517,182  for the same period in 2001.  The  decrease in revenues is
due to an approximate $300,000 decrease in consulting revenues.  The decrease is
due in  general  to a  major  slow  down in  consulting  due to  adverse  market
conditions.

Gross revenues for the six month periods ended June 30, 2002 were $2,958,568, as
compared to $919,963  for the same period in 2001.  The  increase in revenues is
due to a  $2,332,000  increase  in sale of  property,  an  approximate  $400,000
decrease in consulting revenues,  and an approximate $100,000 increase in rental
revenues.

Profits

Axia recorded an operating  loss of $311,003 for the three months ended June 30,
2002, compared to an operating loss of $179,246 for the comparable period in the
year 2001.  Axia recorded a net loss of $349,488 for the three months ended June
30, 2002,  compared to a net loss of $322,474 for the comparable period in 2001.
Axia's  increase in net loss for the three month period ended June 30, 2002,  as
compared  to the same  period in 2001,  was due to an  increase  in general  and
administrative costs.

Axia's  operating  loss  increased to $771,480 for the six months ended June 30,
2002,  from an operating loss of $299,554 for the comparable  period in the year
2001.  Axia  recorded a net loss of $804,028  for the six months  ended June 30,
2002,  compared to a net loss of  $753,988  for the  comparable  period in 2001.
Axia's  increase in  operating  losses for the six month  period  ended June 30,
2002,  as  compared to the same  period in 2001,  was due to reduced  consulting
revenue as a result of adverse market  conditions and an increase in general and
administrative expenses.

                                        6

<PAGE>


Axia is uncertain as to whether it will operate at a profit through fiscal 2002.
Since Axia's  activities  are closely  tied to the  securities  markets,  future
profitability or its revenue growth tends to follow changes in the market place.
There can be no guarantee that  profitability or revenue growth can be sustained
in the future.

Expenses

General and  administrative  expenses  for the three months ended June 30, 2002,
were  $309,594  compared  to $180,890  for the same period in 2001.  General and
administrative  expenses for the six months ended June 30, 2002,  were  $538,994
compared to $281,780 for the same period in 2001. The reason for the increase is
higher  expenses  from  consulting  fees and costs  related to  negotiating  and
completing structural changes in the corporation.

Depreciation and  amortization  expenses for the six months ended June 30, 2002,
and June 30, 2001, were $89,045 and $93,768,  respectively. The decrease was due
to a disposition of assets at the beginning of 2002 as well as some assets being
fully depreciated and not yet replaced.

Capital Resources and Liquidity

On June 30, 2002,  Axia had current  assets of $880,290 and  $7,542,767 in total
assets  compared to $1,671,366 of current  assets and $9,770,017 in total assets
at the year ended December 31, 2001. Axia had net working capital of $147,234 on
June 30, 2002,  compared to net working capital of $81,585 on December 31, 2001.
The  decrease  in  total  assets  is  attributable  to the  sale of the  General
LaFayette Motel. The major contributing  factor to the change in working capital
is the  refinance of debt to longer term as well as the receipt of cash from the
refinancing of properties.

Axia  believes  that it will be able  to  refinance  approximately  $368,000  in
current  liabilities  by the last  quarter of the fiscal year 2002.  This should
improve  the working  capital  position by  year-end.  However,  there can be no
guarantee that this will be completed.

Total stockholders'  equity in Axia was $2,179,111 as of June 30, 2002, compared
to $3,022,954 as of December 31, 2001.  This decrease is attributable to changes
in the values of  securities,  as well as increases in minority  interest in the
subsidiaries  caused  by the  recent  acquisition  of Nexia  and the  concurrent
transfer of assets, liabilities, and subsidiaries to Nexia.

Net Cash flow used in operating activities was $564,385 for the six months ended
June 30, 2002,  compared to cash flow used in operating  activities  of $345,331
for the six months  ended June 30,  2001.  Changes in cash flows from  operating
activities for the six months ended June 30, 2002, are primarily attributable to
change in securities values and reduction in real property held for sale.

Cash flow provided by investing activities was $363,405 for the six months ended
June 30, 2002,  compared to cash flow used in investing  activities  of $246,630
for the same period in 2001.  The  increase is largely due to a reduction in the
purchase of investment  securities coupled with a reduction in the proceeds from
the sale of investment securities,  and an increase in proceeds from the sale of
properties.

                                        7

<PAGE>




Cash flow provided by financing activities was $374,109 for the six months ended
June 30,  2002,  compared to cash flows  provided  by  financing  activities  of
$597,932 for the six months ended June 30, 2001. The decrease was largely due to
a lack of  financing  through  sale of common  stock as well as the  purchase of
treasury  stock,  payments  on long  term  debt,  and an  increase  in long term
financing.

Due to Axia's  debt  service on real  estate  holdings,  willingness  to acquire
properties with negative cash flow shortages,  and acceptance of non-cash assets
for consulting  services,  Axia may experience  occasional  cash flow shortages.
Currently,  the  Company is  experiencing  one of these cash flow  issues and is
investigating means to remedy the situation.

Impact of Inflation

Axia believes that inflation has had a negligible  effect on operations over the
past three years. Axia believes that it can offset inflationary increases in the
cost of  materials  and  labor  by  increasing  sales  and  improving  operating
efficiencies.

Known Trends, Events, or Uncertainties

General Real Estate Investment Risks
Axia's  investments are subject to varying degrees of risk generally incident to
the  ownership  of real  property.  Real  estate  values and income  from Axia's
current  properties  may be  adversely  affected by changes in national or local
economic conditions and neighborhood characteristics,  changes in interest rates
and in the availability, cost and terms of mortgage funds, the impact of present
or future environmental  legislation and compliance with environmental laws, the
ongoing need for capital improvements,  changes in governmental rules and fiscal
policies,  civil unrest,  acts of God,  including  earthquakes and other natural
disasters which may result in uninsured losses,  acts of war, adverse changes in
zoning laws and other  factors  which are beyond the  control of Axia.  To cover
these shortages we may need to sell securities from time to time at a loss.

Value and Illiquidity of Real Estate
Real estate investments are relatively illiquid. The ability of Axia to vary its
ownership  of real estate  property in response to changes in economic and other
conditions  is  limited.  If Axia  must  sell  an  investment,  there  can be no
assurance  that Axia will be able to dispose of it in the time period it desires
or that the sales  price of any  investment  will  recoup  the  amount of Axia's
investment.

Property Taxes
Axia's real property is subject to real property taxes.  The real property taxes
on this  property  may  increase or decrease as property tax rates change and as
the property is assessed or reassessed by taxing authorities.  If property taxes
increase, Axia's operations could be adversely affected.

Forward Looking Statements
The information  herein contains certain 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,  which are intended to be
covered by the safe harbors created thereby. Investors are cautioned that

                                        8

<PAGE>



all forward looking statements involve risks and uncertainty, including, without
limitation,  the ability of Axia to continue its expansion strategy,  changes in
the real estate markets,  labor and employee benefits, as well as general market
conditions,   competition,   and  pricing.   Although  Axia  believes  that  the
assumptions  underlying  the forward  looking  statements  contained  herein are
reasonable, any of the assumptions could be inaccurate, and therefore, there can
be no assurance that the forward looking  statements  included in the Form 10QSB
will prove to be accurate. In view of the significant  uncertainties inherent in
the  forward  looking   statements   included  herein,  the  inclusion  of  such
information  should not be  regarded  as a  representation  by Axia or any other
person that the objectives and plans of Axia will be achieved

                                     PART II

ITEM 1.           LEGAL PROCEEDINGS

During the second quarter of 2002, with the exception of information provided
below no material developments occurred regarding Axia's legal proceedings. For
more information please see Axia's Form 10-KSB for the year ended December 31,
2001

Hudson  Consulting Group,  Inc. v. Technical  Ventures,  Inc.. Suit was filed by
Hudson  Consulting  Group,  Inc. (a  subsidiary  of Axia),  on October 10, 2001,
against Technical  Ventures,  Inc., in the Third Judicial District Court of Salt
Lake County,  State of Utah, and assigned civil cause No. 010908909.  Hudson has
filed  suit  seeking  recovery  of fees  owed  to it  arising  from an  Advisory
Agreement  entered into in July of 1999. The suit alleges that 575,000 shares of
Technical  Ventures,  Inc.,  common  stock has not been  delivered  to Hudson as
required  by the  agreement.  The  trial  court  has  entered  a  default  after
authorized  service on Technical  Ventures,  Inc., by certified  mail.  Hudson's
request to enter a default  judgment  was heard by the Court on March 17,  2002,
and  judgement  in the sum of $172,500 was granted.  The  defendant  has made an
appearance  and filed a motion to set aside the  court's  default  judgement.  A
hearing before the Court has not yet been scheduled.

ITEM 2.           RECENT SALES OF UNREGISTERED SECURITIES

On June 12,  2002,  the board of  directors  authorized  the issuance of 430,000
shares  of  restricted   common  stock  to  John  Fry  Jr.  in  return  for  his
extinguishing debt of $30,000. The Company issued the shares pursuant to section
4(2) of the  Securities  Act of 1933 in an isolated  private  transaction by the
Company which did not involve a public offering.  The Company made this transfer
based  on the  following  factors:  (1) The  issuance  was an  isolated  private
transaction by the Company which did not involve a public  offering,  being made
to a single  individual  for  services;  (2) there was only one  offeree who was
issued stock for  extinguishing  debt;  (3) the offeree has not resold the stock
but has  continued  to hold it  since  the  date of  issue;  (4)  there  were no
subsequent or  contemporaneous  public offerings of the stock; (5) the stock was
not broken down into smaller  denominations;  and (6) the  negotiations  for the
sale of the stock took place directly between the offeree and the Company.

On June 12,  2002,  the board also  authorized  the  issuance of 300,000  shares
(100,000 each) of restricted common stock to Adreinne Bernstein, Gerald Einhorn,
and Ed  Haidenthaller  for services  rendered as  directors  and officers of the
corporation.  The shares, valued at approximately  $60,000, were issued pursuant
to section 4(2) of the Securities Act of 1933 in an isolated private transaction
by the Company  which did not involve a public  offering.  The Company made this
transfer based on the following factors:

                                        9

<PAGE>



(1) The issuance was an isolated  private  transaction  by the Company which did
not involve a public offering, being made to individuals for services; (2) there
were only three offerees who were issued stock for rendering  services;  (3) the
offerees have not resold the stock but have  continued to hold it since the date
of issue;  (4) there were no subsequent or  contemporaneous  public offerings of
the stock; (5) the stock was not broken down into smaller denominations; and (6)
the  negotiations  for the sale of the stock took  place  directly  between  the
offerees and the Company.

On June 22, 2002,  the board  authorized  the  issuance of  1,365,070  shares of
restricted  common stock to Wichita  Development in exchange for  forgiveness of
debts owed by the Company and one of its  subsidiaries  to Wichita in the amount
of  $68,852.  As  Wichita  Development  is a  subsidiary  of the  Company,  this
transaction  may be considered a related party  transaction.  The Company issued
the shares pursuant to section 4(2) of the Securities Act of 1933 in an isolated
private transaction by the Company which did not involve a public offering.  The
Company made this transfer based on the following factors:  (1) The issuance was
an isolated  private  transaction  by the Company which did not involve a public
offering;  (2)  there  was  only  one  offeree  who was  issued  stock  for debt
resolution;  (3) the offeree has not resold the stock but has  continued to hold
it since the date of issue;  (4) there  were no  subsequent  or  contemporaneous
public  offerings  of the stock;  (5) the stock was not broken down into smaller
denominations;  and (6) the  negotiations  for the sale of the stock  took place
directly between the offeree and the Company.

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

         None

ITEM 5.           OTHER INFORMATION

         None

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits Exhibits required to be attached by Item 601 of Regulation S-B
         are listed in the Index to Exhibits on page 12 of this Form 10-QSB, and
         are incorporated herein by this reference.

(b)      Reports on Form 8-K. The Company filed one report on Form 8-K during
         the quarter for which this report is filed.

                  On May 1, 2002, the Company filed a form 8K/A which included
                  pro-forma financial statements as required by regulations in
                  conjunction with the asset transfer and stock purchase of
                  Nexia Holdings, Inc.



                 [THIS SPACE HAS BEEN LEFT BLANK INTENTIONALLY]





                                       10

<PAGE>



                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, there unto duly
authorized, this 27th day of August, 2002.


AXIA GROUP, INC.

  /s/ Richard D. Surber
-----------------------
Richard D. Surber                                           August 27, 2002
President, Chief Executive Officer and Director




 /s/ Ed Haidenthaller                                       August 27, 2002
---------------------
Ed Haidenthaller
Chief Financial Officer


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

          In connection  with the  Quarterly  Report of Axia Group,  Inc.  (the"
          Company") on Form 10-QSB for the period  ending June 30, 2002 as filed
          with  the  Securities  and  Exchange  Commission  on the  date  hereof
          (the"Report"),  I,  Richard  Surber,  Chief  Executive  Officer of the
          Company,  and I, Ed Haidenthaller,  Chief Financial Officer,  certify,
          pursuant  to 18 U.S.C.  S 1350,  as adopted  pursuant  to S 906 of the
          Sarbanes-Oxley Act of 2002, that:

               (1) The Report complies with the requirements of section 13(a) or
               15(d) of the Securities Exchange Act of 1934; and

               (2) The financial information contained in the Report fairly
               presents, in all material respects, the financial condition and
               result of operations of the Company.

           /s/  Richard Surber
         ---------------------
         Richard Surber
         Chief Executive Officer
         August 27, 2002

          /s/ Ed Haidenthaller
         ---------------------
         Ed Haidenthaller
         Chief Financial Officer
         August 27, 2002

                                       11

<PAGE>


                                INDEX TO EXHIBITS

EXHIBIT           PAGE              DESCRIPTION
NO.               NO.

3(i)               *       Articles of Incorporation of the Company (note that
                           these were amended by the Articles of Merger
                           constituting Exhibit 2 to this Form 10-KSB)
                           (incorporated herein by reference from Exhibit No.
                           3(i) to the Company's Form 10-KSB for the year ended
                           December 31, 1993).

3(ii)              *       Bylaws of the Company, as amended (incorporated
                           herein by reference from Exhibit 3(ii) of the
                           Company's Form 10 KSB for the year ended December 31,
                           1995).

3(iii)             *       Certificate of Determination of the Rights and
                           Preferences of Preferred Stock by Axia for 5,000,000
                           shares of preferred stock out of the 20,000,000
                           authorized (incorporated herein by reference from a
                           Form 8-K filed on August 24, 2001).

10(i)(o)           *       Stock Purchase Agreement dated February 15, 2002 with
                           Nexia Group, Inc. for acquisition of 82% of the
                           common stock of Nexia in exchange for various assets
                           and holdings in subsidiary corporations.
                           (Incorporated by reference from Exhibit 1 of Form
                           8K/A filed with the SEC on February 27, 2002 and
                           amended on May 1, 2002)


*        Previously filed as indicated and incorporated herein by reference from
         the referenced filings previously made by the Company.




                                       12

<PAGE>



</TEXT>
</DOCUMENT>
</SUBMISSION>
