SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, DC  20549

                         FORM 10-QSB

   QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE  SECURITIES ACT OF 1934

For the quarterly period ended September 30, 1998

Commission file number 1-10751

                   OBJECTSOFT CORPORATION
   (Exact Name of Small Business Issuer as Specified in Its Charter)

         DELAWARE                          22-3091075
(State of incorporation)            (IRS Employer ID number)

CONTINENTAL PLAZA III, 433 HACKENSACK AVENUE
                 HACKENSACK, NJ  07601
(Address of Principal Executive Offices)

                        (201)343-9100
(Issuer's Telephone Number Including Area Code)

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 ___ .

           (Applicable only to Corporate Issuers)

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common equity, as of the last practicable date.

Class                                    November  13, 1998

Common Stock, $.0001 par value                4,564,898


Transitional Small Business Disclosure Format (check one):
Yes ___   No   X

<PAGE>


           OBJECTSOFT CORPORATION



                    INDEX

                                                                         Page #

Part I. Financial Information

 Item 1.Financial statements

        Condensed Balance Sheets-                                        1
           September 30, 1998 and December 31, 1997

        Condensed Statements of Operations
           Three Months and the Nine Months Ended
           September 30, 1998 and 1997                                   2

        Condensed Statements of Cash Flows
           for the Nine Months Ended
           September 30, 1998 and 1997                                   3


        Notes to Condensed Financial Statements                          4

 Item 2.Management's Discussion and Analysis
        or Plan of Operation                                             6

Part II Other Information
    Item 2.  Change in Securities and Use of Proceeds                   13

   Item 4.    Submission of Matters to a Vote of
                 Security Holders                                       13

   Item 5.    Other information                                         14

    Item 6.Exhibits and reports on Form 8-K                             14

Signature                                                               15

Exhibit index                                                           16

 Exhibit 27  Article 5 Financial Data Schedule                          17


<PAGE>

PART I  Financial information
<TABLE>
OBJECTSOFT CORPORATION
CONDENSED BALANCE SHEETS -- SEPTEMBER 30, 1998 (Unaudited) AND DECEMBER 31, 1997
<CAPTION>
                                                 September        December
                                                  30, 1998        31, 1997
                                                ------------    ------------
<S>                                             <C>             <C>
        ASSETS
Current assets:
   Cash and cash equivalents                        $66,657        $209,455
   Marketable securities                            100,000         915,938
   Accounts receivable                              191,269         364,859
   Prepaid expenses and other
        current assets                              366,345         235,150
   Notes  receivable-
        officer/ shareholder                        440,000         440,000
   Note receivable - other                          151,333          25,000
                                                ------------    ------------
   Total current assets                           1,315,604       2,190,402
Equipment, at cost, net of
   accumulated depreciation                         436,608         384,071
Capitalized software                                 30,821          78,231
Other assets                                         22,174          70,847
                                                ------------    ------------
T O T A L                                         1,805,207      $2,723,551
                                                ============    ============

        LIABILITIES
Current liabilities
   Current portion of long-term debt                $10,265          $8,686
   Current portion of obligations
        under capital lease                          10,057          27,348
   Accounts payable                                 415,910         296,658
   Accrued expenses                                 211,019          84,560
   Other current liabilities                          8,018           2,163
                                                ------------    ------------
Total current liabilities                           655,269         419,415
                                                ------------    ------------

Long-term debt                                       17,205           5,413
Obligations under capital lease                      20,557          25,475
                                                ------------    ------------
Total Liabilities                                   693,031         450,303
                                                ------------    ------------
        STOCKHOLDERS' EQUITY
Preferred stock, $100 liquidating value,
   issued and outstanding 9,360 shares              936,000
Common stock, $.001 par value; authorized
   20,000,000 shares; issued and outstanding
   4,082,676 shares at December 31, 1997,
   and 4,564,898 at September 30, 1998                  456             408
Additional paid-in capital                        7,108,821       6,942,862
Accumulated deficit                              (6,933,101)     (4,670,022)
                                                ------------    ------------
   Total stockholders' equity                     1,112,176       2,273,248
                                                ------------    ------------
T O T A L                                        $1,805,207      $2,723,551
                                                ============    ============
                               -1-
</TABLE>



<PAGE>
<TABLE>
OBJECTSOFT CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND THE NINE MONTHS ENDED SEPTEMBER  30, 1998 AND SEPTEMBER 30, 1997
UNAUDITED
<CAPTION>

                                                        Three months ended                Nine Months Ended
                                                September 30    September 30    September 30   September 30
                                                    1998           1997 *          1998           1997 *
                                                ------------    ------------    -----------    ------------
<S>                                             <C>             <C>             <C>            <C>
Sales and services                            $      29,710   $     149,263   $    133,412   $     439,204
                                                ------------    ------------    -----------    ------------

Expenses:
   Cost of sales and services                       156,273         204,295        517,984         628,953
   Research and development                         135,304         175,167        435,345         462,775
   General and administrative                       503,282         396,206      1,407,875       1,281,989
                                                ------------    ------------    -----------    ------------

        Total expenses                              794,859         775,668      2,361,204       2,373,717
                                                ------------    ------------    -----------    ------------

        Loss from operations                       (765,149)       (626,405)    (2,227,792)     (1,934,513)
                                                ------------    ------------    -----------    ------------
Other income(expense):
   Realized and unrealized gain(loss) on
      marketable securities                           1,000                         (5,935)
   Interest and dividend income                      12,184          53,282         59,390         137,954
   Interest expense                                  (2,607)         (3,428)        (8,742)        (10,396)
   Provision for loss on loan receivable                            (50,000)                      (200,000)
                                                ------------    ------------    -----------    ------------
        Total other income (expense)                 10,577            (146)        44,713         (72,442)
                                                ------------    ------------    -----------    ------------

NET (LOSS)                                    $    (754,572)  $    (626,551)  $ (2,183,079)  $  (2,006,955)
                                                ============    ============    ===========    ============


BASIC AND DILUTED NET (LOSS) PER SH           $       (0.17)  $       (0.15)  $      (0.50)  $       (0.49)
                                                ============    ============    ===========    ============

WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING                                4,564,898       4,082,219      4,329,969       4,061,643
                                                ============    ============    ===========    ============

* Reclassified to conform to current year's presentation

</TABLE>                                        -2-




<PAGE>
<TABLE>
OBJECTSOFT CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 - (UNAUDITED)
<CAPTION>
                                                NINE MONTHS ENDED SEPTEMBER 30,
                                                       1998         1997
                                                ------------    ------------
<S>                                             <C>             <C>
Cash flows from operating activities:
Net (loss)                                    $  (2,183,079)  $  (2,006,955)
Adjustments to reconcile net loss to net cash (used in) operating activities:
   Depreciation and amortization                    273,887         260,435
   Provision for loss on loan receivable                            200,000
   Stock options issued for services rendered                         4,000
   Changes in operating assets and liabilities:
   (Increase) decrease in accounts receivable       173,590        (217,939)
   (Increase) decrease in other current assets     (131,195)         21,691
   Decrease in note receivable- other                25,000
   Decrease in other assets                          48,673          44,687
   Increase in accounts payable                     119,252         122,253
   Increase in accrued expenses and
        other liabilities                           132,314          25,159
                                                ------------    ------------
Net cash used in operating activities            (1,541,558)     (1,546,669)
                                                ------------    ------------
Cash flow from investing activities:
Capital expenditures                               (250,565)        (94,381)
Capitalized software and courseware                 (28,449)        (47,157)
Sale (purchase) of marketable securities            815,938      (1,589,601)
Loan receivable Interactivisions,Inc.                              (250,000)
Increase in notes receivable officer shareholder                   (440,000)
                                                ------------    ------------
Net cash  provided by (used in) investing activi    536,924      (2,421,139)
                                                ------------    ------------
Cash flow from financing activities
Proceeds from issuance of stock in
   private placement                                870,674
Proceeds from exercise of warrants
   and issuance of 60,000 shares                                     60,000
Principal payments on obligations
   under capital leases                             (39,712)        (29,944)
Proceeds from long-term debt                         30,874
                                                ------------    ------------
Net cash provided by financing activities           861,836          30,056
                                                ------------    ------------
NET INCREASE (DECREASE) IN CASH                    (142,798)     (3,937,752)
Cash, beginning of period                           209,455       4,039,358
                                                ------------    ------------
Cash, end of period                                  66,657         101,606
                                                ============    ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest expense paid                                 8,742          10,396
                                                ============    ============
                                   -3-
</TABLE>
<PAGE>



OBJECTSOFT CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1998

NOTE A -- BASIS OF PRESENTATION

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information,  the instructions to Form 10-QSB and item 310 (b) of Regulation SB.
Accordingly,  they do not include all the information and footnotes  required by
generally accepted accounting principles for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
accruals)  considered  necessary for fair presentation  have been included.  For
further  information,  refer to the Financial  Statements and footnotes  thereto
included in the Company's  Form 10-KSB (for the year ended December 31, 1997) as
filed with the Securities and Exchange Commission.

NOTE B -- LOSS PER SHARE

Basic and diluted net loss per share was computed based on the weighted  average
number of shares of common stock outstanding during the period.

NOTE C -- FINANCING

On May 13, 1998 (the "Subscription  Date"), the Company entered into the Private
Equity Line of Credit  Agreement,  which was further  amended,  ( the "Financing
Agreement"),  with several  investors  (the  "Investors")  which  provided for a
commitment to fund up to $7,100,000 to the Company.  As of the Subscription Date
the  Investors  purchased  444,444  shares of the  Company's  Common  Stock (the
"Initial Shares") for $900,000 and received Warrants to purchase an aggregate of
18,000 shares of Common Stock. In addition,  the Company issued to the Placement
Agent  37,778  shares of Common  Stock and Warrant A to  purchase an  additional
9,000 shares.  The Financing  Agreement  provided for "reset rights" pursuant to
which,  in case the  market  price of the  Company's  Common  Stock fell below a
certain  level,  on  certain   repricing  dates,  the  Investors  would  receive
additional shares of Common Stock.

                                           -4-

<PAGE>

The Financing  Agreement  also  provided for the Investors to purchase  Series C
Convertible  Preferred  Stock (the  "Preferred  Shares") for  $1,200,000.  As of
September 29, 1998, the Investors  purchased 9,000 Preferred Shares for $900,000
(the  "Proceeds") and the Placement Agent received 360 Preferred  Shares.  In an
amendment  to the  Financing  Agreement,  the  aformentioned  reset  rights were
eliminated  and, the Investors and the Placement  Agent received an aggregate of
$664,000 out of the Proceeds, in lieu thereof.

On October 29, 1998, the Company issued an additional 1,000 Preferred Shares for
$100,000, and expects to issue an additional 2,000 Preferred Shares for $200,000
by December 31, 1998,  which would  complete  the sale of the  Preferred  Shares
pursuant to the
Financing Agreement.

Each Preferred  Share may be converted  into Common Shares at a conversion  rate
determined by dividing  $100,  the purchase  price per Preferred  Share,  by the
conversion  price,  which is the lesser of (a) .85 times the average Closing Bid
Price (as defined in the Certificate of Designation of the Preferred  Shares) of
the  Common  Stock  for the five  trading  days  ending  on the day prior to the
conversion of the Preferred Shares, or (b) $2.5313.

 In  addition,  pursuant to a "Put  Option",  the Company may from time to time,
 subject to the fulfillment of various conditions,
cause the  Investors  to purchase  additional  Common Stock at 85% of the Market
Price, as defined in the Financing  Agreement,  which could potentially  produce
proceeds of up to $5,000,000.  As of November 10, 1998, the Company did not meet
all of the  conditions  for exercise of the Put Option and it is uncertain  when
the conditions will be fulfilled.



                                      -5-


<PAGE>

OBJECTSOFT CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION

PART II

Special Note Regarding Forward-Looking Statements

A number of statements  contained in this report are forward-looking  statements
within the meaning of the Private Securities  Litigation Reform Act of 1995 that
involve risks and uncertainties
 that could cause actual results to differ  materially  from those  expressed or
implied in the applicable statements.  These risks and uncertainties include but
are  not  limited  to:   historical  and  potential  future  operating   losses;
uncertainty of additional  financing;  limited  operating  history;  accumulated
deficit;  recent  establishment  of new  business  divisions;  recent  change of
operating focus; dependence on new untested product; risks related to consulting
and training  services;  uncertainty of product  development;  vulnerability  to
technological  factors;  year 2000 problem; the uncertainty of market acceptance
of the Company's  product;  competition;  possible  difficulty in complying with
government contract requirements; dependence on certain third parties and on the
Internet;  limited customer base; risk of potential manufacturing  difficulties;
risk of requirements to comply with government regulations;  potential liability
for information and content disseminated  throughout the network;  dependence on
key personnel and proprietary technology; risk of system failure, security risks
and liability  risks;  the Company's  vulnerability to rapid industry change and
technological obsolescence; the limited nature of its product life; the unproven
status of the Company's  products in widespread  commercial  use,  including the
risks that the  Company's  current and future  products may contain  errors that
would be  difficult  to detect and  correct;  uncertainties  with respect to the
Company's business strategy; NASDAQ maintenance requirements; possible delisting
of securities from NASDAQ, penny stock regulations; general economic conditions,
and other risks described  elsewhere herein and in the Company's Form 10-KSB for
the  fiscal  year ended  December  31,  1997,  in the  Company's  Post-Effective
Amendment  No. 2 to the  Registration  Statement  on Form  SB-2  filed  with the
Securities  and Exchange  Commission  on August 12, 1998,  and in the  Company's
Registration  Statement  on  Form  S-3  which  was  declared  effective  by  the
Securities and Exchange Commission on September 29, 1998.

                                      -6-

<PAGE>

Results of Operations
Three Months and Nine Months Ended September 30, 1998
Compared With Three Months and Nine Months
Ended September 30, 1997

The results of operations  for the nine months and three months ended  September
30, 1998 are not necessarily  indicative of the results that may be expected for
any other interim period or for the fiscal year ending December 31, 1998.

Net sales and services  income for the three months ended September 30, 1998, as
compared to the three months ended September 30, 1997,  decreased by $119,553 or
80% to $29,710 from $149,263.  Net sales and services income for the nine months
ended  September  30, 1998,  as compared to the nine months ended  September 30,
1997, decreased by $305,792 or 70% to $149,263 from $439,204.

The Company's  decreased  sales and services  income resulted from a decrease in
revenues from  development  and training due to the redirection of the Company's
resources to transactional  fee-based products and services. In addition,  there
was a decrease in rental income due to the  completion of the original  contract
with the City of New York, and an extension of the contract with the City of New
York which  resulted in a reduction in the rental of five kiosks from $30,090 to
$9,700 per month, through September 30,
 1999,  which will be used to recover  the  incremented  costs  associated  with
providing  services for the extended period. The above decreases were offset, in
part,  by an increase  in revenues  due to the sale of  equipment  and  revenues
derived from advertising on the Company's kiosks.

Cost of sales and  services for the three  months  ended  September  30, 1998 as
compared to the three months ended  September 30, 1997,  decreased by $48,022 or
24% to $156,273  from  $204,295.  Cost of sales and services for the nine months
ended  September  30, 1998 as compared to the nine months  ended  September  30,
1997, decreased by $110,969 or 18% to $517,984 from $628,953. The decreases were
due to the  redirection of the Company's  resources to  transactional  fee-based
products,  which were offset,  in part,  by an increase in costs  related to the
sale of equipment and normal increases in expenses.


                                     -7-

<PAGE>

Cost of sales and services exceeded sales and services income due to fixed costs
incurred in the sale and services of initial units  installed in San  Francisco,
fixed  costs  associated  with the sale of a small  number of units,  and set up
costs incurred in generating  initial  advertising  revenue.  Management expects
that as the number of installed kiosks will increase, the incremental costs as a
percentage of sales will decline.  The ratio of costs to sales will therefore be
more favorable.

Research and development  expenses for the three months ended September 30, 1998
as compared to the three months ended  September 30, 1997,  decreased by $39,863
or 23% to $135,304 from $175,167. Research and development expenses for the nine
months ended September 30, 1998 as compared to the nine months
 ended September 30, 1997, decreased by $27,430 or 6% to $435,345 from $462,775.
This was due to a decrease in personnel devoted to research and development.

General and  administrative  expenses for the three months ended  September  30,
1998 as compared to the three months  ended  September  30,  1997,  increased by
$107,076 or 27% to $503,282 from $396,206. This was due principally to increases
in personnel costs, consulting and professional fees. General and administrative
expenses  for the nine months ended  September  30, 1998 as compared to the nine
months ended September 30, 1997, increased by $125,886 or 10% to $1,407,875 from
$ 1,281,989.  This was due principally to increases in personnel expenses in the
first quarter of 1998.

Other income for the three months  ended  September  30, 1998 as compared to the
three months  ended  September  30,  1997,  increased by $10,723 to $10,577 from
($146) for the three months ended September 30, 1997.  Other income for the nine
months ended  September 30, 1998 as compared to the nine months ended  September
30, 1997, increased by $117,155 to $44,713 from ($72,442). Investment income, in
1998, was lower than in 1997 due to the  utilization of cash and  investments to
fund operations. Additionally, during 1997, other income was reduced as a result
of the $200,000 provision for loss on a loan receivable.

                                               -8-

<PAGE>

The net loss for the three  months ended  September  30, 1998 as compared to the
three months ended September 30, 1997,  increased by $128,021 or 20% to $754,572
from  $626,551.  The net loss for the nine months  ended  September  30, 1998 as
compared to the nine months ended  September 30, 1997,  increased by $176,124 or
9% to $2,183,079  from  $2,006,955 for the nine months ended September 30, 1997.
This was due to lower  revenues  due to the  renegotiation  of the New York City
contract partly offset by a provision for loan receivable in 1997.

Liquidity and Capital Resources

The Company provides IPAT and  Internet-based  services.  Beginning in mid-1994,
the  Company  changed  its  focus  from  consulting  and  training  services  to
transactional,  fee-based and  advertising-supported  products and services. The
Company's  SmartStreet(TM)  IPATs were  introduced in July 1996. The Company has
not recognized any  significant  income to date from the  SmartStreet  (TM) IPAT
rentals.  Although  the  Company  anticipates  that it will  begin to  recognize
greater revenues from the SmartStreet (TM) IPATs during 1998 and 1999, it cannot
predict the actual timing or amount of such revenues.  For the nine months ended
September  30,  1998,  the  Company  incurred  a net  loss  of  $2,183,079.  The
accumulated  deficit increased to $6,933,101,  as the Company continues to incur
operating  losses as expenses  exceed  revenue.  The  Company  expects to report
losses for the year ended  December 31, 1998. To date, the Company has installed
seven IPATs in the City of New York and thirteen  IPATs in other  locations  and
realized  increased  revenues from  advertising on the kiosks.  The Company will
continue to incur substantial losses unless and until it significantly increases
the  number of IPATs  placed in the City of New York and  other  locations,  and
realizes increased revenues from advertising. The Company has working capital of
$660,335 as of September  30, 1998 as compared to  $1,770,987 as of December 31,
1997, or a decrease of  $1,110,652.  Capitalized  expenditures  and  capitalized
software amounted to $ 279,014.

                                            -9-


<PAGE>

The  Company's  management  believes  that the  combination  of cash on hand and
operating cash flow,  together with proceeds from the sale of equity securities,
will provide  sufficient  liquidity to meet the Company's cash flow requirements
at least until December 31, 1998.  Continuing  operations thereafter will depend
on cash flow  operations  and the  ability  to raise  additional  funds  through
equity, debt or other financing.  There can be no assurance , however, that such
funds will be available.

The Company is actively seeking to expand its presence to New York City and also
provide IPATs to other  municipalities,  states and  government  agencies and to
organizations in the private sector. The Company is also working on a version of
its SmartSign
 (TM) IPATs that can be sold to retail  stores,  and which the Company  believes
has the  potential  to be sold to certain  national  chains.  The Company  began
deriving revenues from advertising in May 1998 from contracts signed March 1998,
and the Company is  endeavoring  to increase the revenue base. In addition,  the
Company  will  seek to derive  transaction  fees in  connection  with the use of
kiosks by the public to obtain documents or certain other services, although, so
far,  transaction  revenues have been minimal.  The amount of future transaction
and advertising  revenues, if any, will depend on user and advertiser acceptance
of the IPATs.

On May 13, 1998 (the "Subscription  Date"), the Company entered into the Private
Equity Line of Credit  Agreement,  which was further  amended,  ( the "Financing
Agreement")  with  several  investors  (the  "Investors")  which  provided for a
commitment to fund up to $7,100,000 to the Company.  As of the Subscription Date
the  Investors  purchased  444,444  shares of the  Company's  Common  Stock (the
"Initial Shares") for $900,000 and received Warrants to purchase an aggregate of
18,000 shares of Common Stock. In addition,  the Company issued to the Placement
Agent  37,778  shares of Common  Stock and Warrant A to  purchase an  additional
9,000 shares.  The Financing  Agreement  provided for "reset rights" pursuant to
which,  in case the  market  price of the  Company's  Common  Stock fell below a
certain  level,  on  certain   repricing  dates,  the  Investors  would  receive
additional shares of Common Stock.


                                          -10-

<PAGE>

The Financing  Agreement  also  provided for the Investors to purchase  Series C
Convertible  Preferred  Stock (the  "Preferred  Shares") for  $1,200,000.  As of
September  29, 1998,  the  Investors  purchased  9,000 of  Preferred  Shares for
$900,000  (the  "Proceeds")  and the  Placement  Agent  received  360  shares of
Preferred Shares. In an amendment to the Financing Agreement,  the aformentioned
reset rights were eliminated and, the Investors and the Placement Agent received
an aggregate of $664,000 out of the Proceeds, in lieu thereof.

On October 29, 1998, the Company issued an additional 1,000 Preferred Shares for
$100,000, and expects to issue an additional 2,000 Preferred Shares for $200,000
by December 31, 1998,  which would  complete  the sale of the  Preferred  Shares
pursuant to the
Financing Agreement.

Each Preferred  Share may be converted  into Common Shares at a conversion  rate
determined by dividing  $100,  the purchase  price per Preferred  Share,  by the
conversion  price,  which is the lesser of (a) .85 times the average Closing Bid
Price (as defined in the Certificate of Designation of the Preferred  Shares) of
the  Common  Stock  for the five  trading  days  ending  on the day prior to the
conversion of the Preferred Shares, or (b) $2.5313.

 In  addition,  pursuant to a "Put  Option",  the Company may from time to time,
 subject to the fulfillment of various conditions,
cause the  Investors  to purchase  additional  Common Stock at 85% of the Market
Price, as defined in the Financing  Agreement,  which could potentially  produce
proceeds of up to $5,000,000.  As of November 10, 1998, the Company did not meet
all of the  conditions  for exercise of the Put Option and it is uncertain  when
the conditions will be fulfilled.


                                               -11-

<PAGE>

The Company anticipates that its working capital  requirements and its operating
expenses will  significantly  increase should the Company expand  production and
sales of IPATs.  The  timing of  increases  of  expenses,  and the amount of the
working capital consumed by operations,  marketing and roll-out  expenses,  will
impact the magnitude and timing of the Company's cash requirements.  To meet any
additional working capital needs, the
 Company  intends  to use  funds  from  operations  and to  complete  additional
financing.  Although the Company's  management  believes that additional funding
arrangements are available,  the execution of any such  arrangements will depend
on timing,  market  conditions  and available  terms.  However,  there can be no
assurance  that the  Company can or will obtain  sufficient  funds from  closing
additional financing on terms acceptable to the Company.

The rate of inflation was  insignificant  during the quarter ended September 30,
1998. The Company continually reviews its cost in relation to the pricing of its
products and services.

Year 2000 Issues

         Many currently  installed  computer  systems and software  products are
coded to accept only two digit entries in the date code field.  Beginning in the
year 2000,  these date code  fields  will need to accept  four digit  entries to
distinguish the twenty-first century dates from the twentieth century dates. The
Company  uses  software  and related  technologies  that will be affected by the
"Year 2000  Issue".  The Company  began the process of  identifying  the changes
required to their  computer  programs  and  hardware  during  1996.  The Company
believes that all of its major programs and hardware are Year 2000 compliant. To
date,  the Company  has not  incurred  any  significant  amount  relating to the
assessment,  identification  and remediation of the Company's major programs and
hardware with respect to the Year 2000 Issue.  The Company believes that it will
not incur any significant  costs between now and January 1, 2000 to resolve Year
2000 issues.  The Company has initiated  formal  communications  with all of its
significant suppliers and customers to determine the extent to which the Company
is vulnerable to those third parties'  failure to remediate  their own Year 2000
Issue. However, there can be no assurance that other companies' computer systems
and  applications  on  which  the  Company's  operations  rely  will  be  timely
converted, or that any such failure to convert by another company would not have
a material adverse effect on the Company's systems and operations.  Furthermore,
there can be no assurance that the software that the Company uses which has been
designed to be Year 2000 compliant contains all necessary date code changes.

                                      -12-

<PAGE>

                                     PART II
                                OTHER INFORMATION

Item  2.   Change in Securities and Use of Proceeds

       Reference is made to Item 2 of Form 10QSB for the quarter  ended June 30,
1998. All proceeds from the company's initial public offering in November, 1996,
has been used as set forth in above-mentioned Form 10QSB.

Item 4.    Submission of Matters to a Vote of Security Holders.

        On July 9, 1998, at the Company's  annual meeting of  stockholders,  the
stockholders of the Company approved the following matters:

        First,  the  election of Messrs.  George J. Febish and Daniel E. Ryan as
Class II  directors  of the  Company  to  serve  until  the  Annual  Meeting  of
stockholders  scheduled  to be held in the year 2000 and until their  successors
are elected and qualified.  There were 4,268,528  votes cast for the election of
each of George J. Febish and Daniel E, Ryan and 23,400 votes were withheld.

        Second,  the approval of amendments  to the Company's  1996 Stock Option
Plan (the "1996 Stock  Option  Plan") to increase the number of shares which may
be issued  thereunder  from  250,000 to  750,000  shares  and to  eliminate  the
Non-Employee  Director  formula  option grants and certain  provisions  relating
thereto  currently set forth in the 1996 Stock Option Plan. There were 2,209,638
votes  cast for the  matter,  64,500  votes  cast  against  the  matter,  22,600
abstentions and 1,995,190 broker non-votes.

        Third, the approval of the issuance of the Company's securities pursuant
to a Private  Equity  Line of Credit  Agreement  among the  Company,  Settondown
Capital  International Ltd. and the investors  referred to therein,  dated as of
May 13, 1998. There were 2,202,438 votes cast for the matter,  40,500 votes cast
against the matter, 53,800 abstentions and 1,995,190 broker non-votes.

        Fourth,  the  ratification and approval of the appointment of Richard A.
Eisner & Company,  LLP as the Company's  independent  accountants for the fiscal
year ending December 31, 1998. There were
 4,240,928  votes cast for the matter,  9,500 votes cast  against the matter and
41,500 abstentions.

                                            -13-

<PAGE>

Item 5.  Other Information.

On October 7, 1998, the Company announced the introduction of FastTake, an
interactive kiosk for searching for and displaying plot summaries, identifying
information about videos and viewing of video trailers.  In addition to its
powerful database, FastTake has the ability to offer reviews, provide plot
summaries and hold up to 500 movie trailers. FastTake is designed as a retail
selling tool which provides consumers with the information required to make
purchasing and rental decisions as well as transactions. For retailers,
FastTake creates an affordable way to move inventory without an increase in
workforce.

FastTake rents for a retail list price of $399 per month, and is expected to
ship in volume in the first quarter of 1999. On November 16th, the Company
announced that it is adding a new Internet-supported electronic commerce
feature, which will allow in-store ordering of up to 160,000 titles for direct
delivery to the customer or for pick-up at the store. The Company plans to add
e-commerce capabilities early in the second quarter of 1999.

Installation and field service will be provided by IBM Corporation.

The Company believes that FastTake represents an important additional
direction for the Company by adding a private sector dimension, as compared to
the public sector that comprised the bulk of the Company's sales to date.

Item 6.           Exhibits and Reports on Form 8-K

                  (a)      Exhibits -
                            Exhibit 27- Financial Data Schedule

                  (b)      Reports on Form 8-K

                           The  Company  filed no reports on Form 8-K during the
                           quarter ended September 30, 1998.


                                      -14-


<PAGE>

SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
 registrant has duly caused this report to be signed
on its  behalf by the undersigned thereunto duly authorized.


                           OBJECTSOFT CORPORATION




                           BY       /s/ David E. Y. Sarna
                           David E. Y. Sarna, Co-Chief
                           Executive Officer and Secretary


November 16, 1998


                                      -15-

<PAGE>



                             OBJECTSOFT CORPORATION

                                  Exhibit Index

Exhibit Number                              Page #

27       Financial Data Schedule            17







                                      -16-


<PAGE>