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 June 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                                                August 13, 1998

Common Stock, $.0001 par value                         4,564,898
Redeemable Class A Warrants                            1,366,050

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
           June 30, 1998 and December 31, 1997

        Condensed Statements of Operations
           Three Months and the Six Months Ended
           June 30, 1998 and 1997                           2

        Condensed Statements of Cash Flows
           for the Six Months Ended
           June 30, 1998 and 1997                           3


        Notes to Condensed Financial Statements             4

 Item 2. Management's Discussion and Analysis
         or Plan of Operation                               5

Part II Other Information

 Item 2.  Changes in Securities and Use of Proceeds        10

 Item 6. Exhibits and reports on Form 8-K                  10

Signature                                                  11

Exhibit Index                                              12

 Exhibit 27  Article 5 Financial Data Schedule             13



<PAGE>



PART I  Financial information
<TABLE>
OBJECTSOFT CORPORATION
CONDENSED  BALANCE  SHEETS -- JUNE 30, 1998 (Unaudited)
AND  DECEMBER 31, 1997
<CAPTION>
                                             June          December
                                           30, 1998        31, 1997
                                         ------------    ------------
<S>                                      <C>             <C>
        ASSETS
Current assets:
   Cash and cash equivalents                $434,210        $209,455
   Marketable securities                      99,000         915,938
   Accounts receivable                       249,032         364,859
   Prepaid expenses and other
        current assets                       228,689         235,150
   Notes  receivable-
        officer/ shareholder                 440,000         440,000
   Note receivable - other                                    25,000
                                         ------------    ------------
   Total current assets                    1,450,931       2,190,402
Equipment, at cost, net of
   accumulated depreciation                  478,258         384,071
Capitalized software                          59,413          78,231
Other assets                                  18,747          70,847
                                         ------------    ------------
T O T A L                                  2,007,349      $2,723,551
                                         ============    ============
        LIABILITIES
Current liabilities
   Current portion of long-term
        debt                                  15,806          $8,686
   Current portion of obligations
        under capital lease                    6,788          27,348
   Accounts payable                          135,873         296,658
   Accrued expenses                          126,436          84,560
   Other current liabilities                   5,039           2,163
                                         ------------    ------------
Total current liabilities                    289,942         419,415

Long-term debt                                20,489           5,413
Obligations under capital lease               22,270          25,475
                                         ------------    ------------
Total Liabilities                            332,701         450,303
                                         ------------    ------------
        STOCKHOLDERS' EQUITY
Common stock, $.0001 par value; authorized
   20,000,000  shares;  issued and 
   outstanding 4,082,676 shares
   at December 31, 1997,  and 4,564,898
   shares at June 30, 1998                       456             408
Additional paid-in capital                 7,772,721       6,942,862
Accumulated deficit                       (6,098,529)     (4,670,022)
                                         ------------    ------------
   Total stockholders' equity              1,674,648       2,273,248
                                         ------------    ------------
T O T A L                                 $2,007,349      $2,723,551
                                         ============    ============

</TABLE>
                                      -1-

<PAGE>

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

                                           Three Months Ended           Six Months Ended
                                             June 30       June 30        June 30        June 30
                                              1998          1997 *          1998         1997 *
                                           -----------   ------------   ------------   -----------
<S>                                        <C>           <C>            <C>            <C>
Sales and services income                $     59,411  $     152,142  $     103,702  $    289,941
                                           -----------   ------------   ------------   -----------

Expenses:
   Cost of sales and services income          178,355        205,196        361,711       424,658
   Research and development                   152,701        188,993        300,041       287,608
   General and administrative                 435,781        461,030        904,593       885,783
                                           -----------   ------------   ------------   -----------

        Total expenses                        766,837        855,219      1,566,345     1,598,049
                                           -----------   ------------   ------------   -----------

        Loss from operations                 (707,426)      (703,077)    (1,462,643)   (1,308,108)
                                           -----------   ------------   ------------   -----------
Other income(expense):
   Realized and unrealized gain(loss) on
      marketable securities                    (5,089)                       (6,935)
   Interest and dividend income                12,835         48,546         47,206        84,672
   Interest expense                            (3,248)        (3,248)        (6,135)       (6,968)
   Provision for loss on loan receivable            0       (150,000)                    (150,000)
                                           -----------   ------------   ------------   -----------
        Total other income (expense)            4,498       (104,702)        34,136       (72,296)
                                           -----------   ------------   ------------   -----------

NET (LOSS)                               $   (702,928) $    (807,779) $  (1,428,507) $ (1,380,404)
                                           ===========   ============   ============   ===========


BASIC AND DILUTED NET (LOSS) PER SHARE   $      (0.16) $       (0.20) $       (0.34) $      (0.34)
                                           ===========   ============   ============   ===========

WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING                          4,337,035      4,065,632      4,210,558     4,050,952
                                           ===========   ============   ============   ===========

* Reclassified to conform to current year's presentation
</TABLE>
                                      -2-
<PAGE>

<TABLE>
OBJECTSOFT CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997 - (UNAUDITED)
<CAPTION>
                                                       SIX MONTHS ENDED JUNE 30,
                                                           1998       1997
                                                      -----------   ------------
<S>                                                   <C>           <C>
Cash flows from operating activities:
Net (loss)                                            (1,428,507)    (1,380,404)
Adjustments to reconcile net loss to net
       cash (used in) operating activities:
   Depreciation and amortization                         180,677        159,665
   Provision for loss on loan receivable                                150,000
   Stock options issued for services rendered                             4,000
   Changes in operating assets and liabilities:
   (Increase)in accounts receivable                      115,827       (195,869)
   Decrease in other current assets                        6,461         36,389
   Decrease in note receivable- other                     25,000
   (Increase)decrease in other assets                     52,100         29,789
   Increase in accounts payable                         (160,785)        73,919
   (Decrease) in accrued expenses and
        other liabilities                                 44,752        (11,505)
                                                      -----------   ------------
Net cash used in operating activities                 (1,164,475)    (1,134,016)
                                                      -----------   ------------
Cash flow from investing activities:
Capital expenditures                                    (224,292)       (83,890)
Capitalized software and courseware                      (31,754)       (27,162)
Investment in marketable securities                      816,938     (2,123,982)
Loan receivable Interactivisions,Inc.                                  (250,000)
Increase in notes receivable officer shareholder                       (440,000)
                                                      -----------   ------------
Net cash (used in) investing activities                  560,892     (2,925,034)
                                                      -----------   ------------
Cash flow from financing activities
Proceeds from issuance of stock in
   private placement                                     829,907
Proceeds from exercise of warrants
   and issuance of 59,000 shares                                         59,000
Principal payments on obligations
   under capital leases                                  (23,765)
Proceeds from long-term debt                              22,196
                                                      -----------   ------------
Net cash provided by financing activities                828,338         59,000
                                                      -----------   ------------
NET INCREASE (DECREASE) IN CASH                          224,755     (4,000,050)
Cash, beginning of period                                209,455      4,039,358
                                                      -----------   ------------
Cash, end of period                                      434,210        $39,308
                                                      ===========   ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest expense paid                                      6,135         $3,248
                                                      ===========   ============
</TABLE>
                                      -3-
<PAGE>


OBJECTSOFT CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
JUNE 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.


                                      -4-

<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 and 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.

Results of Operations
Three Months and Six Months Ended June 30, 1998 Compared With Three
Months and Six Months Ended June 30, 1997

The results of  operations  for the six months and three  months  ended June 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.

                                      -5-

<PAGE>

Net sales and  services  income for the three  months  ended June 30,  1998,  as
compared to the three months ended June 30, 1997, decreased by $92,731 or 61% to
$59,411 from  $152,142.  Net sales and services  income for the six months ended
June 30, 1998,  as compared to the six months ended June 30, 1997,  decreased by
$186,239 or 64% to $103,702 from $289,941.

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  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  June 30,  1999,  which will be used to recover the  incremented
costs  associated  with providing  services for the extended  period.  The above
decreases  were offset 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 June 30, 1998
as compared to the three months ended June 30, 1997,  decreased by $26,841 or
13% to $178,355  from $205,196. Cost of services for the six months ended 
June 30, 1998 as compared to the six months ended June 30, 1997, decreased by
$62,947 or 15% to $361,711 from $424,658.  The decreases were due to the 
redirection of the Company's  resources to transactional  fee-based products, 
which were offset by an increase in costs related to the sale of equipment and
normal increases in expenses.

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 June 30, 1998 as
compared to the three months ended June 30, 1997, decreased by $36,292 or 19% to
$152,701 for the three  months  ended June 30, 1998 from  $188,993 for the three
months ended June 30, 1997.  This was due to a decrease in personnel  devoted to
research and development in the second quarter of 1998.

Research  and  development  expenses  for the six months  ended June 30, 1998 as
compared to the six months  ended June 30,  1997,  increased by $12,433 or 4% to
$300,041 for the six months ended June 30, 1998 from $287,608 for the six months
ended  June 30,  1997.  This was due to an  increase  in  personnel  devoted  to
research and  development  in the first quarter of 1998, in connection  with the
Company's expansion into San Francisco.

                                      -6-

<PAGE>

General and administrative  expenses for the three months ended June 30, 1998 as
compared to the three months ended June 30, 1997,  decreased by $25,249 or 5% to
$435,781 for the three  months  ended June 30, 1998 from  $461,030 for the three
months ended June 30, 1997.  This was due  principally to increases in personnel
costs offset by  decreases  in  professional  fees.  General and  administrative
expenses  for the six months  ended June 30,  1998 as compared to the six months
ended June 30,  1997,  increased by $18,810 or 2% to $904,593 for the six months
ended June 30, 1998 from  $885,783 for the six months ended June 30, 1997.  This
was due  principally to increases in personnel  expenses in the first quarter of
1998.

Other  income for the three  months ended June 30, 1998 as compared to the three
months  ended June 30,  1997,  increased  by  $109,200 or 104% to $4,498 for the
three  months ended June 30, 1998,  from  ($104,702)  for the three months ended
June 30,  1997.  Other income for the six months ended June 30, 1998 as compared
to the six months ended June 30, 1997,  increased by $106,432 or 147% to $34,136
for the six months ended June 30, 1998,  from ($72,296) for the six months ended
June 30, 1997. 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 $150,000 provision for loss
on a loan receivable.


The net loss for the three  months  ended June 30, 1998 as compared to the three
months  ended June 30,  1997,  decreased  by $104,851 or 13% to $702,928 for the
three months  ended June 30, 1998 from  $807,779 for the three months ended June
30, 1997. This was due to lower revenues resulting from the renegotiation of the
New York City  contract  offset by a provision  for loss on loan  receivable  in
1997. The net loss for the six months ended June 30, 1998 as compared to the six
months ended June 30, 1997, increased by $48,103 or 3% to $1,428,507 for the six
months  ended June 30, 1998 from  $1,380,404  for the six months  ended June 30,
1997. This was due to lower  revenues due to the  renegotiation  of the New York
City contract 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, it cannot predict
the actual timing or amount of such revenues.


                                      -7-


<PAGE>

For the six  months  ended June 30,  1998,  the  Company  incurred a net loss of
$1,428,507. The accumulated  deficit  increased  to  $6,098,529  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 $1,160,989 as of June 30, 1998 as  compared  to 
$1,770,987  as of  December  31,  1997,  or a decrease of $609,998. 
Capitalized   expenditures  and  capitalized  software  amounted  to $256,046.

On May 13,  1998  (the  "Subscription  Date"),  the  Company  entered  into  the
Financing  Agreement with several investors (the "Investors") which provides for
a commitment to fund up to $7,100,000 to the Company.  On the Subscription  Date
the  Investors  purchased  444,444  shares of the  Company's  Common  Stock (the
"Initial  Shares")  and  received  Warrants to purchase an  aggregate  of 18,000
shares of Common Stock for $900,000. In connection with the Financing Agreement,
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 also
provides, subject to the fulfillment of various conditions, for the Investors to
purchase 6% Series C Convertible Preferred Stock for $1,200,000.  The shares are
to be issued in two parts within 120 days after the  registration of the Initial
Shares.  In  addition,  the  Company  may  from  time to  time,  subject  to the
fulfillment of various  conditions,  offer 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.

The  Company's  management  believes  that the  combination  of cash on hand and
operating cash flow will provide sufficient liquidity to meet the Company's cash
flow requirements at least until June 30, 1999.

                                      -8-

<PAGE>

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.

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 June 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 problem." 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.  The Company  believes that it will not incur any
significant  costs between now and January 1, 2000 to resolve Year 2000 issues.
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.

                                      -9-


<PAGE>




                                     PART II
                                OTHER INFORMATION

Item 2.           Changes in Securities and Use of Proceeds

         The  Company  filed a Form SR (the "Form SR") with the  Securities  and
Exchange Commission,  dated February 20, 1997, reporting the sales of securities
and use of proceeds  therefrom in connection  with the Company's  Initial Public
Offering in November 1996 (the "Public  Offering").  The  effective  date of the
registration statement filed in connection with the Public Offering was November
12, 1996, Commission file number 33-10519.

         The following information updates the information contained in Form SR.
From  February  28,  1997 (the period of the Form SB)  through  June 30,  1998,
$3,000,100 of the net offering proceeds to the Company has been used for further
expansion of SmartStreet (TM) and related  operations and for general  corporate
purposes;  additionally,  $250,000  was  loaned  to  InteractiVisions,  Inc.  in
connection with a potential acquisition,  which acquisition was later abandoned,
and the loan was written off.

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 June 30, 1998.


                                      -10-



<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
  

August 14, 1998


                                      -11-






<PAGE>




                             OBJECTSOFT CORPORATION

                                  Exhibit Index

Exhibit Number                              Page #

27       Financial Data Schedule            13







                                      -12-

<PAGE>