U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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 September 30, 1999.

   [   ]     Transition report under Section 13 or 15(d) of the Exchange Act

               For the transition period from ________ to ________.

                         Commission file number 0-13803


                            GATEWAY INDUSTRIES, INC.
       (Exact name of Small Business Issuer as Specified in Its Charter)


         DELAWARE                                               33-0637631
(State or Other Jurisdiction of                               (IRS Employer
 Incorporation or Organization)                             Identification No.)


                              150 East 52nd Street
                               New York, NY 10022
                    (Address of Principal Executive Offices)

                                  877-431-2942
                (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 [ ]

Shares of Issuer's Common Stock Outstanding at September 30, 1999: 3,592,024

Transitional small business disclosure format:   Yes [ ]    No   [X]


<PAGE>
                            GATEWAY INDUSTRIES, INC.

                                     INDEX

                                                                   Page Number
Part I - Financial Information

Item 1. Condensed Financial Statements (Unaudited):

        Condensed  Balance Sheet
        September 30, 1999                                              3

        Condensed Statements
        of  Operations - Three Months and Nine Months Ended
        September 30, 1999 and 1998                                     4

        Condensed Statements
        of Cash Flows - Nine Months Ended
        September 30, 1999 and 1998                                     5

        Notes to Condensed Financial Statements                         6

Item 2. Management's Discussion and Analysis
        or Plan of Operations                                           7


Part II - Other Information

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

        Signatures                                                      9

<PAGE>
                            GATEWAY INDUSTRIES, INC.


                            CONDENSED BALANCE SHEET
                               September 30, 1999
                                  (Unaudited)




                                ASSETS

Current assets:
    Cash and cash equivalents ...................................   $ 5,560,000
            Prepaid expenses and other current assets ...........        37,000
                                                                    -----------
            Total current assets ................................     5,597,000

Other assets:
    Security deposit ............................................        60,000
                                                                    -----------

Total assets ....................................................   $ 5,657,000
                                                                    ===========



                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Accounts payable and accrued expenses .......................   $    44,000
                                                                    -----------
            Total current liabilities ...........................   $    44,000

Commitments

Shareholders' equity:
    Preferred stock, $.10 par value, 1,000,000 shares authorized,
            no shares issued or outstanding .....................          --
    Common stock, $.001 par value, 10,000,000 shares authorized,
            3,592,024 shares issued (including treasury shares) .         4,000
    Capital in excess of par value ..............................     9,555,000
    Accumulated deficit .........................................    (3,900,000)
    Treasury stock, 11,513 shares ...............................       (46,000)
                                                                    -----------

            Total shareholders' equity ..........................     5,613,000
                                                                    -----------

Total liabilities & shareholders' equity ........................   $ 5,657,000
                                                                    ===========


                             See accompanying notes.
<PAGE>

                            GATEWAY INDUSTRIES, INC.

                       CONDENSED STATEMENTS OF OPERATIONS
                                  (Unaudited)
<TABLE>
<CAPTION>
                                        For the Three Months       For the Nine Months
                                         Ended September 30,        Ended September 30,
                                           1999         1998         1999        1998
                                           ----         ----         ----        ----
<S>                                      <C>          <C>          <C>          <C>
Revenues .............................   $      --    $      --    $      --    $      --

Costs and expenses:

     General and administrative ......     108,000       75,000     (309,000)     233,000
                                         ---------    ---------    ---------    ---------
     Operating loss ..................    (108,000)     (75,000)    (309,000)    (233,000)

     Other income:

          Interest income ............      58,000       66,000      169,000      201,000
          Other income ...............          --           --       15,000       32,000
                                         ---------    ---------    ---------    ---------
     Total other income ..............      58,000       66,000      184,000      233,000
                                         ---------    ---------    ---------    ---------
Net loss .............................   $ (50,000)   $  (9,000)   $(125,000)   $       0
                                         =========    =========    =========    =========

Net loss per share - basic and diluted   $    (.01)   $      --    $    (.03)   $      --
                                         =========    =========    =========    =========
</TABLE>


                             See accompanying notes.

<PAGE>
                            GATEWAY INDUSTRIES, INC.

                       CONDENSED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                           For the Nine Months
                                                                            Ended September 30,
                                                                            1999          1998
                                                                            ----          ----
<S>                                                                    <C>            <C>
Cash flows from operating activities:
        Net income .................................................   $  (125,000)   $         0

        Adjustments to reconcile net income to
                net cash provided by/(used in) operating activities:

        Changes in assets and liabilities:

                Prepaid expenses and other assets ..................        11,000       (205,000)
                Note receivable ....................................       566,000             --
                Accounts payable ...................................       (32,000)       (60,000)
                Accrued expenses and other liabilities .............            --        (18,000)
                                                                       -----------    -----------
        Net cash provided by/(used in) operating activities ........       420,000       (283,000)

Cash flows from investing activities:

                Purchase of equity investments .....................            --        (93,000)

        Net cash used by investing activities ......................            --        (93,000)
                                                                       -----------    -----------

        Net increase/(decrease) in cash ............................       420,000       (376,000)
        Cash and cash equivalents at beginning of period ...........     5,140,000      5,434,000
                                                                       -----------    -----------
        Cash and cash equivalents at end of period .................   $ 5,560,000    $ 5,058,000
                                                                       ===========    ===========


</TABLE>
                            See accompanying notes.
<PAGE>
                            GATEWAY INDUSTRIES, INC.

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                               September 30, 1999
                                  (Unaudited)

1.      General

     The  accompanying   unaudited  condensed  financial  statements  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the  instruction to Form 10-QSB and Item 310 of
Regulation  S-B.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.  In the opinion of management,  the accompanying unaudited
interim financial statements contain all adjustments  (consisting only of normal
recurring accruals) necessary to make such financial  statements not misleading.
Results for the three months and nine months ended  September 30, 1999,  are not
necessarily  indicative of the results that may be expected either for any other
quarter in the year  ending  December  31,  1999 or for the entire  year  ending
December 31, 1999. For further information,  refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual Report on Form
10-KSB for the year ended December 31, 1998.

2.      Operations

     The Company  currently  has no operating  business.  Management is pursuing
various strategic alternatives,  which include the possible use of the Company's
net assets to acquire, merge, consolidate or otherwise combine with an operating
business  or  businesses;   however,   there  is  no  assurance  that  any  such
alternatives will occur.

3.      Lease Commitments

     The Company  entered into a three-year  operating lease for office space in
New York, NY which began April 1, 1998.  The Company has sublet a portion of its
office space to affiliated  companies.  Future minimum lease payments under this
lease are as follows:



                                     Deduct           Net
                                    Sublease        Rental
                  Commitments       Rentals       Commitments
                  -----------       -------       -----------

    1999            97,000           65,000         32,000
    2000            97,000           65,000         32,000
    2001            24,000           16,000          8,000

                  $218,000         $146,000        $72,000




4.      Net Income Per Share

     Net income per share was  calculated  using the weighted  average number of
common shares  outstanding.  The effect of all common stock  equivalents  is not
included in the per share  computation for the quarters ended September 30, 1999
and 1998, as such items are anti-dilutive in these quarters;  accordingly, basic
and diluted income per share are the same for the quarters  ended  September 30,
1999 and 1998.
<PAGE>
5.      Comprehensive Income

     For the three and nine months  ended  September  30,  1998,  the  Company's
comprehensive  income/(loss)  was  $(41,000)  and  $5,000,   respectively.   The
comprehensive  income  differs  from the net income in the first nine  months of
1998 due to the inclusion of the Company's  unrealized gain on equity securities
in its comprehensive  income.  For the three and nine months ended September 30,
1999,  there was no unrealized gain or loss and consequently net incomewas equal
to comprehensive income.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS


     The Company currently has no operating business.  The Board of Directors is
pursuing various  strategic  alternatives  which include the possible use of the
Company's net assets to acquire, merge, consolidate or otherwise combine with an
operating business or businesses.

REVENUES AND EXPENSES

     The Company had no revenues for the nine months ended  September  30, 1999.
Expenses  for the nine months  ended  September  30, 1999  aggregated  $309,000,
consisting of general and  administrative  expense.  General and  administrative
expenses for the nine-month period ended September 30, 1998 totaled $233,000.

INTEREST INCOME, NET

     During the first nine months of 1999,  the Company  recognized  $169,000 of
net interest income compared with $201,000 in the comparable period of 1998.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's cash and cash equivalents totaled $5,560,000 at September 30,
1999 and $5,140,000 at December 31, 1998. Collection of the note receivable owed
by Only Multimedia Network, Inc. ("OMNI") during the first quarter accounted for
the  increase in cash.  Other  assets  consist of the  security  deposit for the
office space lease. At September 30, 1999, the Company's working capital balance
was $5,553,000.

     While the  Company  seeks an  acquisition  or other  business  combination,
management  believes its cash  position is  sufficient  to cover  administrative
expenses and current obligations for the foreseeable future.

<PAGE>
PART II.  OTHER INFORMATION

ITEM 6.   Exhibits and Reports on Form 8-K

         (a)     Exhibits

                 (27) Financial Data Schedule
                      (filed as part of the electronic filing only)

         (b)     Reports on Form 8-K

                 No reports on Form 8-K have been filed by the registrant for
                 the nine months ended September 30, 1999.


<PAGE>
                                   SIGNATURES





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.


                                GATEWAY INDUSTRIES, INC.





                                /s/ Jack Howard
                                Jack Howard, Acting President






                                Date:  November 12, 1999