SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

                     ANNUAL REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                           WORLDCAST INTERACTIVE, INC.
                 ---------------------------------------------
                 (Name of Small Business Issuer in its Charter)

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<S>                                                   <C>                               <C>
           FLORIDA                                        000-28743                        65-0639498
   ----------------------------                       ----------------                     ----------
   (State or Other Jurisdiction                       (Commission File                   (IRS Employer
          of Incorporation)                                Number)                    Identification No.)
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           20283 State Road 7, Suite 300, Boca Raton, Florida    33498
           -------------------------------------------------------------
           (Address of Principal Executive Offices)           (Zip Code)

                                 (561) 864-2316
                         ------------------------------
                           (Issuer's Telephone Number)

                    Securities registered under Section 12(b)
                                   of the Act:

    Title of Each Class Registered     Name of Each Exchange on Which Registered
    ----------------------------------------------------------------------------
                                      None

              Securities registered under Section 12(g) of the Act:

                          Common Stock, $.001 Par Value
                       -----------------------------------
                                (Title of Class)

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 / / No /X/

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. /X/

State issuer's revenues (net loss) for its most recent fiscal year. $(3,447,141)

State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of a specified date within the past 60
days. N/A

Based on the closing price of the Class A Common Stock quoted on the OTC
Bulletin Board as reported on December 31, 1999 ($.25), the aggregate market
value of the 2,848,695 shares of the Common Stock held by the persons other than
officers, directors and persons known to the Registrant to be the beneficial
owner (as that term is defined under the rules of the Securities and Exchange
Commission) of more than five percent of the Common Stock on that date was
approximately $712,173.75. Currently our securities are not trading on any
market.

                   (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: December 31, 1999: 9,481,195 Shares
of Common Stock.

                       DOCUMENTS INCORPORATED BY REFERENCE

- None -

Transitional Small Business Disclosure Format (Check One)

Yes   X        No
    -----         -----

<PAGE>



                                Table of Contents

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                                                                                                          Page
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PART I

Item 1.       Description of Business............................................................            1

Item 2.       Description of Property............................................................            8

Item 3.       Legal Proceedings..................................................................            8

Item 4        Submission of Matters to a Vote of Security Holders................................            8

PART II

Item 5.       Market for Common Equity and
              Related Stockholder Matters........................................................            9

Item 6.       Management Discussion and Analysis of Financial
              Condition and Results of Operations ...............................................           11

Item 7.       Financial Statements...............................................................           14

Item 8.       Changes in and Disagreements With Accountants
              on Accounting and Financial Disclosure.............................................           14

PART III

Item 9.       Directors, Executive Officers, Promoters and
              Control Persons; Compliance With Section 16(a)
              of the Exchange Act................................................................           14

Item 10.      Executive Compensation.............................................................           15

Item 11.      Security Ownership of Certain Beneficial
              Owners and Management..............................................................           16

Item 12.      Certain Relationships and Related Transactions.....................................           17

Item 13.      Exhibits, Lists and Reports on Form 8-K............................................           17
</TABLE>


                                      -ii-

<PAGE>



                                     PART 1

ITEM 1.           Description of Business

         WorldCast Interactive, Inc. provides satellite television, interactive
content and other information services. In this report, we refer to WorldCast
Interactive, Inc. as "WorldCast," "we" or "us." We provide our services to the
multiple-housing unit market, which includes apartment communities, condominium
communities, college dormitories, hospitals, hotels, mobile home parks and
private residential subdivisions. Our services include the installation of our
signal distribution systems to deliver television and information services
(including DIRECTV(TM) television services and high-speed Internet access) to
subscribers. In November 1999, we amended our articles of incorporation to
change our name from FutureTrak International, Inc. to our present name.

         Historically, our business focused upon provision of entertainment and
information services, including weather and stock reports, to customers on
yachts in the United States. This line of business has been detrimentally
affected by problems associated with the quality of the receiver and antenna
equipment supplied to us. We are currently evaluating our strategy with regard
to this line of business.

         Our strategy is to deliver quality entertainment and information
through various technologies, including satellite and terrestrial means of
communication, to emerging niche markets. We expect to continue our focus on the
multiple housing unit market while pursuing opportunities in other markets. From
time to time we engage in merger, acquisition and related discussions with
entities that provide technologies or services complementary to ours. Although
we are presently engaged in these discussions, we are not a party to any signed
agreement.

         We were organized as a Florida corporation in January 1996. In January
1999, we formed our wholly-owned subsidiary, FutureTrak, Inc., to provide, on a
subscription basis, entertainment, information and communication services to
residents of multiple housing units. We operate our marine business through STI
Group, Inc., another wholly-owned subsidiary, formed in January 1999. We intend
to conduct research and development activities through our third wholly-owned
subsidiary, Maxwell Technologies.

The Multiple Housing Unit Market Business

         Under an agreement with Golden Sky Systems, Inc., WorldCast is
authorized to market and provide the programming services of DIRECTV to multiple
housing units for which it has obtained the right to install its signal
distribution system. WorldCast, as a DIRECTV system Operator, receives a
one-time $100.00 activation fee with a free IRD and a monthly residual of 19% of
subscribers' programming from DIRECTV. IRD, which stands for Integrated
Receiving Device, is the set-top-box that is generally installed on the tope of
the television which allows the user to receive cable or satellite television
channels. In addition, WorldCast charges a $10.00 monthly access fee to all
tenant subscribers. DIRECTV is a leading provider of multi-channel direct
broadcast satellite television services. Golden Sky is one of four master system
operators DIRECTV has retained to sell its services to multiple housing units.
The initial term of this agreement expires in July 2004.

         DIRECTV currently offers in excess of 220 channels of video and audio
programming, including:

         o        video and audio services available for purchase in tiers for a
                  monthly subscription fee;

         o        premium services available a la carte or in tiers for a
                  monthly subscription fee;

         o        sports programming (major professional league sports package,
                  including the exclusive NFL Sunday Ticket, regional sports
                  networks and seasonal college sports packages) available for a
                  yearly, seasonal or monthly subscription fee; and


                                       1
<PAGE>

         o        movies from major Hollywood studios and special events
                  available for purchase on a pay-per-view basis.

         WorldCast proposes to deliver off-air or local television programing,
broadcast programming to multiple housing unit subscribers either free-of-charge
or for a nominal fee through DIRECTV.

         WorldCast is also an authorized reseller of financial and weather
information services provided by Data Transmission Network Corporation, and
proposes to provide an array of other programming and services to residents of
multiple housing units across the United States. WorldCast believes that
multiple housing units provide a highly concentrated base of consumers to whom
communications companies can provide cost-effective access due to the large
volume of consumers in a compact area.

         Industry analysts have reported that there are almost 20 million
multiple housing units in the United States. WorldCast has identified the
following regions of the United States as potential markets, based on population
growth trends, expressed interest by multiple housing unit owners and other
factors:

         o        the central region, including Missouri, Kansas and Colorado;

         o        the southeast region, including Georgia and Florida;

         o        the southwest region, including Texas, New Mexico and Arizona;
                  and

         o        the west region, including California, Washington.

         We intend to focus future marketing efforts on direct-marketing to the
largest property management companies in the United States, including real
estate investment trusts. We intend to enter into exclusive agreements with the
owners of multiple housing units in the target regions listed above. Because
these property owners or managers often own or manage several multiple housing
unit properties, we believe that success at one multiple housing unit property
may result in subscriber growth from other multiple housing units under common
control.

         We selectively target multiple housing unit properties to provide
television and high-speed Internet services using a model that evaluates:

         o        the location of the multiple housing unit;

         o        multiple housing unit property values;

         o        average annual income per resident;

         o        the median age of residents of the multiple housing unit; and

         o        the average monthly rent.

         Our model is designed to identify desirable properties and to exclude
substandard properties from the target market because of increased risk of
equipment loss (i.e., damage to or theft of set top boxes, cabling, or other
equipment comprising our signal distribution system) and the likelihood of
reduced return-on-investment.

                                       2

<PAGE>

The Marine Business and Market

         Commencing in 1996, we concentrated our business activities on the
provision of satellite television and other communications services to the
marine market based on the belief that this market had growth potential given
the size of the boating market in the United States.

         We have been significantly hampered in our ability to service the
marine market as a result of defects in the Space Scanner Receiver and Antenna
we sell to customers. Because of these defects, we suspended marketing efforts
to the marine market in April 1999. We intend not to resume marketing efforts
regarding the Space Scanner Receiver and Antenna until we have reached
satisfactory resolution of disputes with galaxis GmbH and its affiliates, the
supplier of the Space Scanner Receiver and Antenna equipment, concerning the
equipment and the parties' respective obligations.







                                       3
<PAGE>

PRODUCTS AND SERVICES

Signal Distribution Systems

         In connection with its multiple housing unit operations, WorldCast
proposes to implement video distribution designs and system architectures, which
will vary based upon the unique layout and service requirements of each multiple
housing unit community. At this time, WorldCast has not installed any units. The
type of equipment to be used and the method of signal distribution will be based
upon many factors, including:

         o        the number of set-top boxes required per unit;

         o        the number of units in a building;

         o        the length and condition of the drop wires;

         o        the location of an external power supply;

         o        the location of a suitable dish mounting surface;

         o        the location and exposure of the building; and

         o        the demographics of the community.

         Generally, each signal distribution system will be comprised of:

         o        a satellite dish and other antenna capable of receiving direct
                  broadcast satellite programming and off-air television
                  broadcast signals; and

         o        wiring from the dish and antenna to each unit in the multiple
                  housing unit, through which video programming and other
                  information services can be delivered to subscribers. This
                  wiring is potentially suitable for the provision of
                  high-speed, interactive, Internet access.

         WorldCast offers a variety of higher speed Internet access technologies
dependent upon factors such as subscriber sign-up rates and the physical
location of subscribers within a property. As our subscriber rates for the
property increase, the property can support wireless platforms including Lucent
Technologies WaveLAN and local area technologies utilizing network wiring and
protocols such as Ethernet and Asynchronous Transfer Mode.

         Preliminary estimates by WorldCast of the average cost of constructing
each signal distribution system are between $400 and $750 per unit. This
estimated cost could increase if a more sophisticated signal distribution
system is needed in order to connect multiple housing unit subscribers with
networks maintained outside the multiple housing unit by Internet service
providers.

                                       4
<PAGE>


Marine Receiver Antenna Equipment

         WorldCast intends to offer marine customers a comprehensive satellite
communications solution, including the components, antenna and software needed
to receive and process audio and video programming.

         WorldCast is re-evaluating whether to continue to base its marine
activities on the Space Scanner Receiver and Antenna equipment. Unless it
receives satisfactory assurances that defects in this equipment will be
rectified shortly, WorldCast may enter into marketing and distribution
arrangements with the suppliers of other suitable antenna equipment.

         In 1998, WorldCast entered into an agreement with Data Transmission
Network pursuant to which it has the right to offer DTN's real-time stock and
other financial information, together with comprehensive weather services, to
marine subscribers.

Revenues

         WorldCast anticipates earning revenues in two ways. The first is
through ongoing revenue sharing and commission incentives received from DIRECTV
and other suppliers of content or services to WorldCast. The second is through
fees received from subscribers for the right to receive entertainment and
information services through use of signal distribution systems installed by
WorldCast in multiple housing units and antenna equipment installed on boats.

         WorldCast may agree to share some of the revenues it earns from the
multiple housing unit market with the owners of multiple housing units in which
it installs and maintains signal distribution systems.

Key Agreements

         WorldCast has entered to the following key agreements in connection
with its marine business and its proposed multiple housing unit operations.

Multiple Housing Unit System Operator Agreement Between Golden Sky and WorldCast

         In an agreement dated July 9, 1999, Golden Sky, a master system
operator to the multiple housing unit market for DIRECTV programming, granted to
WorldCast the right to market and sell DIRECTV programming in multiple housing
unit properties for which WorldCast has obtained a valid right of entry under
this agreement. WorldCast has the right to construct and operate, at its cost, a
signal distribution system in the owner's multiple housing unit. The technical
specifications of each signal distribution system must comply with DIRECTV's
specifications.

         For each multiple housing unit subscriber who purchases programming
under this agreement, WorldCast will receive a percentage of net receipts
received by DIRECTV and a prepaid commission. In addition, DIRECTV will
subsidize IRD used by multiple housing unit subscribers, subject to DIRECTV's
approval of the type of IRD provided. WorldCast cannot sell any DBS services
other than DIRECTV services to multiple housing unit residents. The term of this
agreement is five years, to be automatically renewed for five years unless
either party elects to terminate. WorldCast has not yet commenced its
performance under the agreement pending its receipt of necessary financial
resources.


                                       5
<PAGE>

Master Distribution Agreement Among WorldCast and Galaxis

         In June 1997, galaxis and WorldCast entered into a master distribution
agreement whereby galaxis granted WorldCast the exclusive right to sell, market
and distribute Space Scanner Receiver and Antennas to the marine market in North
America, the Bahamas and the Caribbean. The term of the agreement was for a
initial period of one year, to be renewed automatically, subject to termination
by either party upon at least 60 days' notice before the expiration date. In
addition, WorldCast has the right to terminate the agreement at any time by
three months' written notice to galaxis. Galaxis must make, Receiver and
Antennas available to WorldCast for a price equal to the lowest price charged to
any other customer. All customers to whom WorldCast sells the Space Scanner
Receiver and Antennas are given a free replacement warranty from WorldCast,
backed by galaxis for 12 months. In addition, the agreement provides that
galaxis shall indemnify WorldCast against any product liability actions
involving products manufactured by or on behalf of galaxis.

         WorldCast and galaxis are currently in negotiations concerning how to
resolve difficulties with the quality and supply of Space Scanner Receiver and
Antenna equipment. It is possible that these discussions will result in the
termination of the master distribution agreement and/or litigation.

Sales Representative Agreement Between WorldCast and Gulfstream

         In an agreement dated February 8, 1999, WorldCast appointed Gulfstream
its exclusive sales agent for all products sold by WorldCast to the marine
industry, including Space Scanner Receiver and Antenna equipment. The term of
the agreement expires one year from the date of its execution, renewable by
agreement for additional terms of one year each. Under this agreement,
Gulfstream is entitled to a commission of 10% of the net sales price of all
WorldCast products sold to marine industry customers in North America. WorldCast
is obligated to indemnify Gulfstream against claims or loss it incurs in
connection with the manufacture, sale or operation of WorldCast products.

         Because of difficulties with the supply and quality of Space Scanner
Receiver and Antenna technology, Gulfstream ceased to perform activities with
respect to the sale of WorldCast products in April 1999. There can be no
assurance that these difficulties will be resolved or that WorldCast will resume
selling products to the marine market at all.

Asset Purchase

         On January 5, 1999, WorldCast and Satellite Technology, Inc., entered
into an asset purchase agreement whereby WorldCast purchased certain assets used
in connection with distribution of the Space Scanner Receiver and Antenna. The
purchase price paid by WorldCast consisted of (i) 200,000 shares of common stock
and (ii) a $160,347 promissory note, described below.

Terminated Merger with Celerity Systems, Inc.

         On December 7, 1999, WorldCast, Celerity Systems, Inc. and FutureTrak
Merger Corp. terminated a merger agreement dated August 10, 1999. The merger was
terminated primarily because efforts to obtain necessary funding for the planned
activities of the parties had not proven successful.

Loans

         On March 1, 1999, First Capital Services restructured a loan previously
made to WorldCast for $395,000 in the form of an unsecured negotiable promissory
note. The note's effective date is January 1, 1998, bears an interest rate of
1.00% per month simple interest, and is payable in monthly installments of
$10,401.86, which payments commenced February 1, 1999 and continue until January
1, 2003, at which time all unpaid principal and all accrued and unpaid interest
becomes due.


                                       6
<PAGE>

         On January 5, 1999, WorldCast issued a $160,347 promissory note to
Satellite Technology, Inc. as a part of the purchase price of an asset purchase
of that company by WorldCast of the same date. The note bears an interest rate
of the prime rate plus two percent per annum and is payable in equal monthly
installments of $20,046.75, and is due January 5, 2000.

COMPETITION

The Multiple Housing Unit Business

         WorldCast competes in the multiple housing unit market with a broad
range of communications and entertainment service providers, including cable
operators, other satellite service providers, wireless cable operators,
telephone companies, television networks and home video product companies. Many
of WorldCast's competitors will have greater financial and marketing resources
than WorldCast. WorldCast believes that quality and variety of programming,
signal quality and service and cost will be the key points of competition. No
units have been installed by WorldCast at this date.

         WorldCast believes it will obtain a competitive advantage over other
entertainment and information service providers seeking to service the multiple
housing unit market if it succeeds in entering into exclusive agreements with
the owners of a significant number of multiple housing units in the various
regions in which it is focusing its marketing efforts. Except as otherwise
required by law, these agreements will result in WorldCast's becoming the sole
provider of entertainment and information services to residents of those
multiple housing units.

Cable Television Providers

         Many cable television providers are in the process of upgrading their
systems, and other cable operators have announced their intentions to make
significant upgrades. Many proposed upgrades, such as conversion to digital
format, fiber optic cabling, advanced compression technology and other
technological improvements, when fully completed, will permit cable companies to
deliver a better quality signal and to increase channel capacity, which will
increase programming alternatives.

         WorldCast believes that these upgrades will increase the level of
competition posed by cable systems that desire to continue servicing the
multiple housing unit market, but will require substantial investments of
capital and time. In the meantime, WorldCast believes it will be able to provide
a competitive entertainment and information service allowing choice of
programming and other services, and competitive signal quality.

Other Digital Broadcast Services

         In the satellite TV business EchoStar is a competitor of DIRECTV in the
United States. EchoStar has developed its own network of multiple housing unit
distributors for its product. WorldCast expects to compete with distributors of
both DIRECTV and EchoStar for the right to supply satellite television and other
services exclusively to multiple housing unit subscribers. WorldCast believes
that DIRECTV's brand name and its significantly larger distribution networks
will assist WorldCast in competing with EchoStar distributors.

         Larger satellite dish manufacturers, known as C-band/TV providers,
serve subscribers who live in markets not served by cable television. C-band
equipment, including the six-to eight-foot dish necessary to receive the low
power signal, currently costs approximately $2,000 and is distributed by local
satellite dealers. WorldCast believes that direct broadcast services have
significant advantages over lower power C-band service in equipment cost, dish
size and range of programming packages.


                                       7
<PAGE>

The Marine Business

         The market for satellite tracking systems and antennas is dominated by
companies including Datron, KVH, and SeaTel. If WorldCast continues to service
the marine satellite markets it will attempt to obtain a competitive advantage
by utilizing currently available technology which it believes more fully
addresses customers demands than addressed by its competitors.

Employees

         WorldCast currently has 5 full-time employees.

Insurance

         WorldCast carries general liability insurance and director's and
officer's other insurance it believes necessary for its business operations.

Trademarks

         WorldCast owns the registered trademark "FutureTrak". It has registered
the domain name "FutureTrak.com" and "1WorldCast.com."

Item 2.           Description of Property

Properties

         Until February 15, 2000, WorldCast leased 2,300 square feet of office
space at 3835 Park Central Boulevard North in Pompano Beach, Florida. In
February, WorldCast leased an executive suite located at 20283 State Road 7,
Suite 300, Boca Raton, Florida 33498.

Item 3.           Legal Proceedings

         WorldCast and certain of its officers are named defendants in an action
brought by Charter Memories, Inc. on May 4, 1999 in the United States District
Court, Central District of California, for damages totaling approximately
$96,000, for alleged misrepresentation concerning the qualities and
characteristics of Space Scanner Receiver and Antenna equipment purchased by
Charter Memories. WorldCast is presently conducting discussions regarding
settlement of this case.

         The Company has sold certain products in 1998 and 1999 which are
covered by the Company's one year warranty policy. As a result of certain
technical problems with the product, customers have submitted claims of
approximately $447,000. This liability has been fully accrued in the
accompanying financial statements although the Company continues to pursue
counter-claims against the product designer.

         WorldCast and galaxis have engaged in settlement discussions and
management believes that a resolution fo this matter on reasonable terms is
likely.

Item 4.           Submission of Matters to a Vote of Securityholders

         None.

                                       8
<PAGE>



                                     PART II

Item 5.           Market Price of and Dividends on the Registrant's Common
                  Equity and Other Shareholder Matters.

         There are outstanding warrants to purchase 100,000 shares of our common
stock at a purchase price of $0.50 per share, exercisable between December 15,
1999 and December 15, 2001.

         Currently, our securities are not traded in any market. We were
delisted from the Over-the-Counter Bulletin Board in December 1999. There were
approximately 450 holders of our common stock as of March 31, 2000. Our
quarterly range use of high and low bid prices on our common stock is as
follows:

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                                          1998                            1999                         2000
                                    High         Low               High           Low            High         Low
-------------------------------------------------------------------------------------------------------------------
<S>                                <C>           <C>               <C>           <C>            <C>          <C>
         1st Quarter                12.00         4.50              1.52          1.00           .75          .25

         2nd Quarter                 8.5          4.00              1.75          1.25

         3rd Quarter                 4.95         3.89              1.63          0.29

         4th Quarter                 2.10         1.43              0.69          0.22
</TABLE>

         WorldCast's common stock began trading publicly in the fourth quarter
of 1997. All information in this chart has been restated to give effect
retroactively to WorldCast's reverse stock split at the rate of 1:4 in April.
Under its certificate of incorporation, WorldCast is authorized to issue up to
100,000,000 shares of common stock, par value $.001 per share, of which
9,421,207 shares were outstanding as of December 31, 1999. WorldCast is also
authorized to issue up to 5,000,000 shares of preferred stock, par value $.001
per share, none of which shares were issued and outstanding as of December 31,
1999. There are also 100,000 warrants to purchase shares of common stock
exercisable at $.50 per share outstanding as of December 31, 1999.

         As of December 31, 1999, there were approximately 6,532,001 shares
eligible for resale under Rule 144 of the Securities Act.

Recent Sales of Unregistered Securities

         In September 1997, WorldCast consummated the sale of 1,000,000 shares
of common stock to 88 individuals for a purchase price of $1.00 per share,
receiving approximately net proceeds of $850,000. This offering was made without
registration under the Securities Act to accredited or otherwise qualified
investors pursuant to the exemption from registration afforded by Section 4(2)
and Rule 504 of Regulation D promulgated under the Securities Act. The cost
associated with the transaction of approximately $100,000 were commissions. The
dates of sale were during August and September.

         In October 1997, WorldCast issued 63,750 shares of common stock to the
following individuals or entities in exchange for consulting services rendered
to it: Bernard Little (7,500 shares); Global Consulting Group, Inc. (50,000
shares); Andover Consulting , Inc. (5,000 shares); and Barbara Sullivan (1,250
shares). Services rendered were valued at $1.00 per share. Inasmuch as each of
these individuals or entities had access to information about WorldCast and were
either accredited or otherwise sophisticated investors, these issuances
qualified for exemption from registration under the exemption set forth in
Section 4(2) of the Securities Act.


                                       9
<PAGE>

         In January 1999, WorldCast consummated the sale of 3,542,101 shares of
its common stock for an average purchase price of $.25 per share, receiving
approximate net proceeds of $876,000. Sales were made to 20 investors. This
offering was made without registration under the Securities Act to accredited or
otherwise qualified investors pursuant to the exemption from registration
afforded by Section 3(b) and Rule 504 of Regulation D promulgated under the
Securities Act.

         On February 2, 1999, WorldCast issued 50,000 shares of common stock to
Satellite Technologies as consideration for the purchase of Satellite's assets.
This company had access to relevant information concerning WorldCast; therefore,
this transaction was exempt from registration pursuant to the exemption set
forth in Section 4(2) of the Securities Act. The transaction was valued at $4.80
per share.

         On February 23, 1999, WorldCast issued 19,420 shares of common stock to
Shreyas Gandhi, an employee, in consideration of services rendered by Mr.
Gandhi. Inasmuch as Mr. Gandhi, as an employee, had a pre-existing relationship
with WorldCast and access to relevant information concerning WorldCast; this
transaction was exempt from registration pursuant to the exemption set forth in
Section 4(2) fo the Securities Act. The issuance was valued at $2.88 per share.

         On March 17, 1999, WorldCast issued the following shares of common
stock to the following executive officers pursuant to their respective
employment contracts: 1,641,750 shares to Steven Remondini; 937,500 shares to
Ahmad Moradi; 2,135,000 shares to William Tessaro; and 937,500 shares to Robert
Kelner. Inasmuch as each of these individuals are accredited investors within
the meaning of Rule 501 of Regulation D promulgated under the Securities Act,
these transactions were exempt from registration under Section 4(2) fo the
Securities Act. Shares issued in this transaction were valued at $.32 per share.

         On March 19, 1999, WorldCast issued 6,250 shares to John Muczko, a
consultant, in consideration of consulting services rendered. Inasmuch as Mr.
Muczko had a pre-existing relationship with WorldCast and access to relevant
information concerning WorldCast; this transaction was exempt from registration
pursuant to the exemption set forth in Section 4(2) of the Securities Act. The
issuance was valued at $4.00 per share.

         On March 30, 1999, WorldCast issued 10,000 shares of common stock to
each of Steven Chu and Jerry Alexander in consideration of financial consulting
services rendered. Inasmuch as each of Mr. Alexander and Mr. Chu had a
pre-existing relationship with WorldCast and access to relevant information
concerning WorldCast; this transaction was exempt from registration pursuant to
the exemption set forth in Section 4(2) of the Securities Act. The issuance was
valued at $3.52 per share.

         On November 22, 1999, WorldCast issued 60,000 shares of common stock to
Ryan Capital Management Corp. in consideration of $15,000. Inasmuch as Ryan
Capital management Corp. is an accredited investor within the meaning of Rule
501 of Regulation D promulgated under the Securities Act, and had access to
relevant information concerning WorldCast; this transaction was exempt from
registration pursuant to the exemption set forth in Section 4(2) of the
Securities Act. The issuance was valued at $.25 per share.

         In March 1999, Dr. Moradi acquired restricted shares valued at
$300,000, Mr. Kelner acquired restricted shares valued at $300,000, Mr.
Remondini acquired restricted shares valued at $525,360. In April 1999, Mr.
Tessaro acquired restricted shares valued at $683,200. In each case, the
purchase price for the shares acquired was paid with the proceeds of a loan to
the purchasers from WorldCast, bearing interest at the prime rate of New York,
adjusted quarterly, plus two (2%) percent per annum. This interest accrues from
March 22, 1999 until September 1, 2001. Commencing September 1, 2001, accrued
and current interest payable under the promissory note relating to each loan
will be paid by each executive officer on a monthly basis through August 20,
2003. Payments of all unpaid accrued interest and principal are due August 30,
2003. If a borrower defaults on the loan, WorldCast may accept cancellation of
the borrower's employment agreement as satisfaction of the loan. In addition, if
an employment agreement between


                                       10
<PAGE>

WorldCast and any of the borrowers is terminated by notice by WorldCast, by
reason of breach by WorldCast or if WorldCast ceases to conduct business, the
loan from WorldCast may, at the borrower's option, be forgiven.

         We have never paid cash dividends on our common stock. We presently
intend to retain future earnings, if any, to finance the expansion of business
and do not anticipate that any cash dividends will be paid in the foreseeable
future. The future dividend policy will depend on our earnings, capital
requirements, expansion plans, financial condition and other relevant factors.

Item 6.           Management's Discussion and Analysis of Financial Condition
                  and Results of Operations

Amounts presented herein have generally been rounded in the nearest thousand
dollars and the related dollar and percentage fluctuations are calculated on
such rounding.

         This Management's Discussion and Analysis of Financial Condition and
Results of Operations contains certain statements which are forwarded-looking
and the accuracy of which are based upon certain uncertainties in the Company's
future operations and results. For a discussion of important factors that could
cause the actual results to differ materially from those contained in such
forward-looking statements, see "Forward-Looking Statements" below.

General

         The company derives its revenue primarily from sales, installation and
service of its galaxis-developed satellite positioner technology known as the
Space Scanner. In 1999, the Company attempted to add additional sources of
revenue through sales, installation and services using certain equipment and
content such as DIRECTV, real time stock quotes and real time weather
information provided by Digital Transmission Network (DTN) to residential
apartments, gated properties, condominiums, and newly developed housing
projects, all included in the Multi Housing Unit (MHU) market. In 1999, the
Company's primary source of income has been through the sale of its Space
Scanner equipment. As described below the Company experienced significant
performance problems with its Space Scanner product and capital formation
problems for its new line of business resulting in net losses which amounted to
$447,000, the closing of its new line of business and severe reduction in the
operations of the Company's Space Scanner business.

         During the second and third quarters of 1999, the Company received
significant customer complaints regarding Space Scanners malfunctions.
Consequentially, the Company had to stop accepting new orders and to re-allocate
resources to managing these customer complaints, replacing Space Scanners,
arranging for the return of product, and handling refund requests. Certain
customer complaints resulted in lawsuits that in aggregate total approximately
$125,000. The Company and galaxis have since signed a non-binding memorandum of
understanding, which should ultimately result in a mutually acceptable
settlement agreement. At this stage, however, the product viability remains
uncertain, there is no assurance that galaxis and the Company would conclude a
favorable settlement agreement.

                  Additionally, the Company could not complete the started multi
housing unit installations due to the lack of required capital. In the third
quarter investors' interest in funding the Company's MHU efforts diminished when
a significant industry member, SkyView, filed for bankruptcy. Thus on September
13,1999; the Company rescinded its offer to acquire Golden Sky Systems, a
DIRECTV, Master System Operator and shortly thereafter, the Company suspended
operations of FutureTrak, Inc; the MHU business segment.

         Lack of Revenue



                                       11
<PAGE>

         From the second quarter of 1999, with the suspension of any significant
sales the Company found itself with limited financial resources and limited
near-term revenue enhancement opportunities. While revenues decreased, the
Company incurred increasing costs for Space Scanner support; claims and
maintenance thus further impacting the Company's financial position.

         Results of Operations

Comparison of the Year Ended December 31, 1999 to the Year Ended December
31,1998

         Sales. Total sales for 1999 were approximately $132,000 as compared
         with 1998 total sales, which were approximately $442,000. In January,
         in order to improve sales the Company hired the President of Satellite
         Technologies, Inc. and acquired certain assets of his company. The
         Company engaged Gulfstream Marine Products, a marine electronics
         specialty sales force to promote the Space Scanner to the National
         Marine Manufacturers Association (NMMA) and their 1,600-dealer network.
         These sales and marketing initiatives resulted in the Company receiving
         orders, which could have equaled or exceeded 1998 sales. However, the
         Company was not able to receive sufficient quantities of working Space
         Scanners, which met the agreed-to quality levels from galaxis GmbH.
         Galaxis was in the process of modifying the product to remedy its
         malfunctions when it instructed its licensed manufacturer,
         Lockheed-Martin, to cease production, thus effectively stranding the
         Company with customers' orders it could not fulfill. The Company's
         entry into the Multi Housing Unit market was curtailed in the third
         quarter when SkyView, the largest of the four Master System Operators
         for DIRECTV filed Chapter Eleven; thus, significantly diminishing
         investors' interest in funding a similar business model in the same
         industry segment.

         In fiscal 2000, the Company expects overall sales growth from providing
         convergence integration solutions to small to medium sized businesses
         in the South Florida market. To accomplish this, the Company intends to
         become a Cisco Channel Partner and to refocus its sales efforts in
         providing communication and data network solutions using Cisco and
         other appropriate technology. Where appropriate, the Company will be
         designing, installing and maintaining local area networks (LAN),
         voice/telephony switches, active and passive data network components
         and software to provide integrated, multi-service communications over a
         business's existing data network system.

         Cost of Goods Sold. Cost of goods sold increased approximately $204,858
         from $463,000 in fiscal year 1998 to $667,858 in fiscal year 1999. The
         significant changes in the dollar amount of the cost of goods sold are
         related to the ceasing of Space Scanner deliveries and sales, resulting
         in the write down of related inventory. These write downs totaled
         approximately $145,275 plus the $240,000 value for the assets acquired
         from Satellites Technologies Inc.

         Selling, General and Administrative Expenses. Selling, general and
         administrative expenses in 1999 increased approximately $1,400,000, or
         77.8% to $3.2 million from $1.8 million in 1998. Executive compensation
         per the employment contracts were accrued in 1999 as in 1998. The total
         accrual in 1999 was approximately $814,000 as compared to $261,000 in
         1998. The Executives agreed to convert all accrued payroll to equity in
         2000 to reduce the Company's liabilities. During the third quarter, the
         Company closed the Multi Housing Unit operations of FutureTrak, Inc. a
         wholly owned subsidiary, and terminated relevant employees. In response
         to uncertainties in the Space Scanner business segment, the Company,
         during the fourth quarter, terminated STI Group's relevant employees
         and prepared to relocate to more cost effective facilities for the
         remaining executives. As a result of the Company's continued downsizing
         efforts, the Company's selling, general and administrative costs are
         expected to decrease in 2000.


                                       12
<PAGE>

Liquidity and Capital Resources

         Net cash used in operating activities for the year ended 1999 amounted
         to ($1,501,554) which primarily resulted from the Company's net loss
         from operations of $3,894,141 (adjusted for non-cash charges (credits)
         totaling $1,248,748). Net cash provided by financing activities for the
         same period was $1,522,666 which primarily resulted from the receipt of
         net proceeds during the first quarter of 1999 from the Company's 504D
         and bridge financing executed during the third quarter of 1998.

         The Company, during the fourth quarter, entered into an equity line
         investment agreement with Eurofund Derivative Limited (Investor), Under
         the agreement, the Company can receive up to an aggregate amount of
         $4,000,000 if the investor exercises the full amount of a Class A
         warrant issued to the Investor by the Company. The Class A warrant,
         which expires on November 4, 2001, entitles the investor to purchase
         from the Company at the exercise price a certain number of shares based
         upon an amount set by the Company from time to time over the life of
         the warrant. The Company can receive up to $500,000 each 90-day period
         over the life of the equity line investment agreement.

         The Company's auditors have expressed doubt about the Company's ability
         to continue as a going concern. The Company believes that the financing
         provided by the equity line investment agreement, together with the net
         cash to be provided by operations, if any, and other possible sources
         of future financings, should be sufficient to meet its presently
         anticipated cash needs for at least the next 12 months. However, there
         can be no assurances that the Company will achieve profitability in the
         next 12 months or that Eurofund will be able to exercise warrants;
         therefore the Company may need to raise additional capital in the
         future.

Forward Looking Statements

         The foregoing Management's Discussion and Analysis of Financial
Condition and Results of Operation contains various "forward-looking statements"
within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act, which represent the Company's expectations or beliefs concerning
future events, including without limitation the following: changes in the
Company's sales, costs, expenses and other financial information; changes or
adjustments in the Company's downsizing plan, including without limitation the
reduction of the Company's workforce and the potential growth opportunities
through sale, installation and service of other third party products; the
Company's ability to secure additional line of credits and other sources of
financing, as well as other sources, if necessary for the Company to do so; and
the sufficiency of the Company's cash provided by some of its stockholders to
move ahead the Company toward realization of revenue provided by operation,
investing and financing activities for the Company's future liquidity and
capital resource needs.

         The Company cautions that these statements are further qualified by
important factors that could cause actual to differ materially from those
contained in the forward-looking statements, including without limitation the
following; general economic conditions; specific economic conditions relating to
convergence technologies, the demand for Company's products and services; the
size and timing of the future sales and new contracts; specific features
requests by customers; production delays or manufacturing inefficiencies;
management decisions to commence or discontinue service or product lines; the
Company's ability to introduce or sell new products on a cost-effective and
timely basis; the amount of timing of research and development expenditures when
and where applicable; the maintenance of present and the availability of future
strategic alliances and joint marketing or service agreements; the introduction
of new products and product enhancements by the Company or its competitors; the
budgeting cycle of customers; the adaptation of technologies by the customers;
changes in the proportion of the revenue attributable to new and existing
products and services and maintenance and support services; changes in the level
of operating expenses; and the present and future level of competition in the
industry. As a result of these and other important


                                       13
<PAGE>

factors, the results actually achieved may differ materially from expected
results included in these statements.

Item 7.           Financial Statements

         The financial statements required by this report are included,
commencing on page F-1.

Item 8.           Changes in and Disagreements with Accountants

         In January 1999, the Board of Directors appointed Grant Thornton as the
accounts of WorldCast replacing Clancy & Co., PLLC. The Board recommended the
change in order to engage an accounting firm with a national presence. There
were no disagreements with Clancy & Co. required to be reported under Item 304
of Regulation S-B of the Securities Act of 1933.

Item 9.           Management

                  Our executive officers and directors are as follows:

                  Name                      Position
                  ----                      --------
                  Ahmad Moradi              Chief Executive Officer and Director
                  Steven Remondini          President and Chairman of the Board
                  Robert S. Kelner          Chief Operating Officer and Director
                  William E. Tessaro        Chief Technical Officer and Director

         Ahmad Moradi, 44 years old, has been chief executive officer and a
director since August 1998. Since 1992, he also served as President of g4, Inc.,
an information systems and business strategy consulting firm. Dr. Moradi
presently serves as a director and a consultant to technology-based public
company, including Netgate Inc., Maxwell-Rand Holdings, Inc. and Summus
Technology Ltd. From 1994 to 1996, he provided consulting services to numerous
public companies, including CompuMed, Westmark Mortgage Group Holding, Churchill
Technologies, Inc. and Cyber-care Inc. (formerly known as Heart Labs of America,
Inc.). Dr. Moradi obtained a B.S. and M.A. in the fields of Mathematics,
Engineering and International Business from Florida Atlantic University. He
received a Ph.D. in Management Information Systems (MIS) from LaSalle
University. Dr. Moradi devotes approximately 70% of his professional efforts on
WorldCast matters.

         Steven Remondini, 44 years old, served as president and chairman of the
board from May 1996 to January 1, 2000. In October 1995, Mr. Remondini
co-founded and was associated with the Satellite Source, a satellite information
technology services provider. From May 1995 to October 1995, Mr. Remondini
served as an independent consultant, providing consulting services on several
national communication networking projects. From May 1995 to August 1993, Mr.
Remondini served as director of Technical Services for Citrix Systems, a
software company. Mr. Remondini holds a B.S. in Computer Science and
Telecommunications, with a minor in Business Administration, from Gonzaga
University.

         Robert Kelner, 45 years old, has served as Chief Operating Officer and
a director since August 1998. He also serves as interim President since January
1, 2000 and interim Chief Financial Officer. From October 1997 to August 1998,
Mr. Kelner served as vice president of Strategic Alliances for Summus
Technologies, a government contractor specializing in static image and video
wavelet compression technologies. From 1995 to 1997, Mr. Kelner worked in the
marketing and sales department at Vincam, a professional employer organization,
and in the project management department at the World Trade Center. From 1979 to
1995, Mr. Kelner served as President of GKI, an importer and marketer of
consumer products to retail outlets. Mr. Kelner received a B.S. in Business
Administration, with a major in Accounting, from the University of Florida.


                                       14
<PAGE>

         William Tessaro, 37 years old, has served as chief technical officer
and a director of FutureTrak since April 1998. From August 1993 to April 1998,
he served as a senior engineer and project and area manager for Citrix Systems,
Inc., a systems software company. From September 1985 to August 1993, he served
as an Advanced Engineering Systems Engineer and development manager for
Electronic Data Systems, a General Motors subsidiary specializing in consulting,
systems development and integration. From May 1984 to September 1985 he served
as an engineer for General Electric Co. In 1984, he received a dual B.S. in
Mechanical Engineering and Engineering and Public Policy from Carnegie Mellon
University.

Indemnification of Directors and Officers

         The Florida Business Corporation Act permits the indemnification of
directors, employees, officers and agents of Florida corporations. Article X of
WorldCast's certificate of incorporation provides as follows:

         We may indemnify any director, officer, agent, employee or agent of the
Company to the fullest extent permitted by Florida law.

         In addition, Article (IV) of WorldCast's by-laws provides as follows:

                  Any person, his heirs, or personal representative, made or
                  threatened to be made a party to any threatened, pending, or
                  completed action or proceeding, whether civil, criminal,
                  administrative, or investigative, because he, his testator, or
                  intestate is or was a director, officer, employee, or agent of
                  this corporation or serves or served any other corporation or
                  other enterprise in any capacity at the request of this
                  corporation, shall be indemnified by this corporation, and
                  this corporation may advance his related expenses to the full
                  extent permitted by law. In discharging his duty, any
                  director, officer, employee, or agent, when acting in good
                  faith, may rely upon information, opinions, reports or
                  statements, including financial statements and other financial
                  data, in each case prepared or presented by (1) one or more
                  officers or employees of the corporation whom the director,
                  officer, employee or agent reasonably believes to be reliable
                  and competent in the matters presented, (2) counsel, public
                  accountants or other persons as to matters that the director,
                  officer, employee or agent believes to be within that person's
                  professional or expert competence, or (3) in the case of a
                  director, a committee of the board of directors upon which he
                  does not serve, duly designated according to law, as to
                  matters within its designated authority, if the director
                  reasonably believes that the committee is competent. The
                  foregoing right of indemnification or reimbursement shall not
                  be exclusive of other rights to which the person, his heirs or
                  personal representatives may be entitled. The corporation may,
                  upon the affirmative vote of a majority of its board of
                  directors, purchase insurance for the purpose of indemnifying
                  these persons. The insurance may be for the benefit of all
                  directors, officers or employees.

Item 10.  Executive Compensation

         The following table show, for the past three fiscal years, the total
cash and other compensation paid by WorldCast to its Chief Executive Officer and
each other executive officer whose annual compensation exceeded $100,000. For
1998, each of our executive officers voluntarily accrued his salary until our
financial position permits payment to be made.

                           SUMMARY COMPENSATION TABLE

          Name and Principal Position                   Annual Compensation
          ---------------------------                   -------------------
                                                     Year               Salary
                                                     ----               ------
  Steven Remondini                                   1999              $ 47,210
  President                                          1998              $ 65,606

                                       15
<PAGE>

                                                     Year               Salary
                                                     ----               ------

  Dr. Ahmad Moradi                                   1997              $ 52,600
  Chief Executive Officer                            1999              $ 45,533
                                                     1998              $ 26,250
                                                     1997              $      0

  Robert Kelner                                      1999              $ 45,516
  Chief Operating Officer                            1998              $ 30,000
                                                     1997              $      0

  William Tessaro                                    1999              $ 46,516
  Chief Technical Officer                            1998              $ 43,465
                                                     1997              $      0



Employment Agreements

         WorldCast has entered into employment agreements with each of Mr.
Remondini, Dr. Moradi, Mr. Kelner and Mr. Tessaro, each of which expire
September 1, 2003. Under these employment agreements, each officer receives an
annual base salary of $250,000. In connection with his employment, each of Dr.
Moradi, and Messrs. Remondini, Kelner and Tessaro are entitled to receive an
annual incentive bonus equal to no less than 1.5% of the net profits of
WorldCast. None of Dr. Moradi and Messrs. Remondini, Kelner and Tessaro received
bonuses in 1998. Each employment agreement is terminable by WorldCast for cause
upon the occurrence of certain events, or upon physical or mental disability or
incapacity. In addition, WorldCast may terminate each employment agreement
without cause upon 30 days' written notice.

         Pursuant to their respective employment agreements, each of Dr. Moradi
and Messrs. Remondini, Kelner and Tessaro, in the event of a change of control
of WorldCast, are entitled to resign and receive a lump sum cash payment from
WorldCast in an amount equal to (i) the greater of (a) three year's salary or
(b) the base salary due employee for the remainder of the term and (ii) an
amount equal to or multiple of two times the largest total of bonuses previously
paid in any one year to the employee.

         On January 1, 2000, Mr Remondini was terminated without cause by the
Company.

Item 11. Security Ownership of Certain Beneficial Owners and Management

         The following table sets forth certain information regarding common
stock beneficially owned on March 31, 2000 for each person or group known to be
the beneficial owner of 5% or more of outstanding common stock, each of our
executive officers and directors and all executive officers and directors as a
group. A person is also deemed to be a beneficial owner of any securities of
which the person has the right to acquire beneficial ownership within 60 days.
At March 31, 2000, there were 9,481,195 shares of common stock outstanding. The
address for each of the persons below is c/o WorldCast Interactive, Inc., 20283
State Road 7, Suite 300, Boca Raton, Florida 33498.


                                       16
<PAGE>

           Name                                                Number of Shares
           ----                                                ----------------

           Ahmad Moradi                                             937,500

           Steven Remondini                                       1,689,252

           Robert S. Kelner                                         937,500

           William E. Tessaro                                     2,567,500

           All Officers and Directors as a Group                  6,632,500
           (4 persons)

Item 12. Certain Relationships And Related Transactions

         In 1996 and 1997, Steven Remondini loaned WorldCast amounts totaling
$77,358 and $76,443 at December 31, 1997 and December 31, 1996, respectively.
Each loan has a zero interest rate and no due date. The amounts were paid in
full in 1998.

         In March 1999, Dr. Moradi acquired restricted shares valued at
$300,000, Mr. Kelner acquired restricted shares valued at $300,000, Mr.
Remondini acquired restricted shares valued at $525,360. In April 1999, Mr.
Tessaro acquired restricted shares valued at $683,200. In each case, the
purchase price for the shares, which were valued at $.32 per share, was paid
with the proceeds of a loan to the purchasers from WorldCast, bearing interest
at the prime rate of New York, adjusted quarterly, plus two (2%) percent per
annum. This interest accrues from March 22, 1999 until September 1, 2001.
Commencing September 1, 2001, accrued and current interest payable under the
promissory note relating to each loan will be paid on a monthly basis through
August 20, 2003. Payments of all unpaid accrued interest and principal are due
August 30, 2003. If a borrower defaults on the loan, WorldCast may accept
cancellation of the borrower's employment agreement as satisfaction of the loan.
In addition, if an employment agreement between WorldCast and any of the
borrowers is terminated by notice by WorldCast, by reason of breach by WorldCast
or if WorldCast ceases to conduct business, the loan from WorldCast may, at the
borrower's option, be forgiven.

         At December 31, 1999, the balance owed, inclusive of accrued interest,
by Messrs. Moradi, Remondini, Kelner and Tessaro equals $1,939,269.

         In connection with a Termination Agreement effective as of January 1,
2000, Mr. Remondini has agreed to sell all except 500,000 shares of common stock
owned by him to satisfy his loan obligation to the company provided further,
however, that he may retain 20% of the proceeds for personal tax obligations.

         During 1998, Mr. Tessaro loaned WorldCast an aggregate of $171,204,
evidenced by a promissory note from WorldCast in Mr. Tessaro's favor. The note
bears interest at the Prime Rate of New York, adjusted quarterly, plus two (2%)
percent per annum. The loan is payable interest only and balloons on August 1,
2000. Mr. Tessaro has verbally agreed to convert the outstanding amount of the
loan into shares of WorldCast common stock. As of this date, however, the
agreement has not been finalized.

13.               Exhibits

<TABLE>
<CAPTION>

EXHIBIT           DESCRIPTION OF DOCUMENT
-------           -----------------------
<S>               <C>
 2.1             Agreement and Plan of Merger among Celerity Systems, Inc., FutureTrak Merger Corp. and
                 WorldCast Interactive, Inc.
 3.1(a)          Articles of Incorporation of FutureVision, Incorporated dated January 24, 1996.
</TABLE>


                                       17
<PAGE>
<TABLE>
<S>               <C>
 3.1(b)          By-laws of FutureVision
 3.1(c)          Articles of Amendment of WorldCast Interactive, Inc. filed August 1, 1997.
 3.1(d)          Articles of Amendment of WorldCast Interactive, Inc. filed August 14, 1997.
 3.1(e)          Articles of Amendment of WorldCast Interactive, Inc. effective May 13, 1999.
 3.1(f)          Articles of Amendment of WorldCast Interactive, Inc. dated May 5, 1999.
 3.1(g)          Articles of Amendment of WorldCast Interactive, Inc. dated May 13, 1999.
 3.1(h)          Articles of Amendment of WorldCast Interactive, Inc. dated October 19, 1999.
 3.1(i)          Articles of Amendment of WorldCast Interactive, Inc. dated November 10, 1999.
 4.1             Warrant Agreement between WorldCast Interactive, Inc. and M Holdings, Inc.
10.1             Employment Agreement between WorldCast Interactive, Inc. and Ahmad Moradi
10.2             Employment Agreement between WorldCast Interactive, Inc. and Steven Remondini
10.3             Employment Agreement between WorldCast Interactive, Inc. and Robert Kelner
10.4             Employment Agreement between WorldCast Interactive, Inc. and William Tessaro
10.5             Lease Agreement between Copans Road Associates and Futurevision Incorporated
10.6             $395,000 Negotiable Promissory Note dated March 1, 1999 payable by FutureTrak International,
                 Inc. to the order of First Capital Services, Inc.
10.7             $160,347 Promissory Note dated January 5, 1999 payable by FutureTrak International, Inc. to the
                 order of Satellite Technology, Inc.
10.8             Promissory Note payable to William E. Tessaro by WorldCast Interactive, Inc.
10.9             Promissory Note payable to WorldCast Interactive, Inc. by Robert S. Kelner
10.10            Promissory Note payable to WorldCast Interactive, Inc. by Ahmad Moradi
10.11            Promissory Note payable to WorldCast Interactive, Inc. by William Tessaro
10.12            Promissory Note payable to WorldCast Interactive, Inc. by Steve Remondini
10.13            System Operator Agreement between Golden Sky and WorldCast Interactive, Inc.
10.14            Sales Representative Agreement by and between WorldCast Interactive, Inc. and Gulfstream Marine
                 Products, Inc.
10.15            Agreement for Purchase and Sale of Assets by and among WorldCast Interactive, Inc. and
                 Satellite Technology, Inc. dated as of January 5, 1999.
10.16            WorldCast Interactive, Inc. 1998 Stock Option Plan
23.              Subsidiaries
27.              Financial Data Schedule *
</TABLE>

*   All exhibits, except the Financial Data Schedule, have been previously filed

         We have not filed any reports on Form 8-K during the last period
covered by this report.






                                       18
<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 hereunto duly authorized.

Dated: April 17, 2000

                                              WORLDCAST INTERACTIVE, INC.

                                              By:     /s/ AHMAD MORADI
                                                 ---------------------
                                                       Ahmad Moradi,
                                                       Chief Executive Officer




                                       19


<PAGE>

                       FINANCIAL STATEMENTS AND
                    REPORT OF INDEPENDENT CERTIFIED
                          PUBLIC ACCOUNTANTS

                      WORLDCAST INTERACTIVE, INC.

                      December 31, 1999 and 1998




<PAGE>

                                 C O N T E N T S

<TABLE>
<CAPTION>


                                                                                                            Page
                                                                                                            ----
<S>                                                                                                        <C>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS                                                            F-1

FINANCIAL STATEMENTS

     BALANCE SHEETS                                                                                           F-2

     STATEMENTS OF OPERATIONS                                                                                 F-3

     STATEMENT OF SHAREHOLDERS' DEFICIT                                                                       F-4

     STATEMENTS OF CASH FLOWS                                                                               F-5 - 6

     NOTES TO FINANCIAL STATEMENTS                                                                         F-7 - 16
</TABLE>




<PAGE>

                              REPORT OF INDEPENDENT
                          CERTIFIED PUBLIC ACCOUNTANTS

Board of Directors
WorldCast Interactive, Inc.

We have audited the accompanying balance sheet of WorldCast Interactive, Inc.
and Subsidiaries (the "Company"), as of December 31, 1999 and 1998, and the
related statements of operations, shareholders' deficit and cash flows for the
years then ended. The financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audit in accordance with generally accepted auditing standards.
These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of WorldCast Interactive, Inc. and
subsidiaries as of December 31, 1999 and 1998 and the results of its operations
and its cash flows for the years then ended, in conformity with generally
accepted accounting principles.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As shown in the financial statements,
the Company incurred a net loss of $3,894,141 for the year ended December 31,
1999, and as of this date, the company's liabilities exceed its assets by
$4,074,104. These factors raise substantial doubt about the Company' ability to
continue as a going concern. Managements' plans in regard to these matters are
also described in Note B. The financial statements do not include any
adjustments that might result from the outcome from this uncertainty.

Weston, Florida
April 7, 2000

                                       F-1
<PAGE>





                           WorldCast Interactive, Inc.

                                 BALANCE SHEETS

                                  December 31,

                                     ASSETS

<TABLE>
<CAPTION>

                                                                                   1999                1998
                                                                             ----------------    ---------------
<S>                                                                          <C>                 <C>
Current assets
     Cash                                                                    $          1,017    $        25,574
     Trade accounts receivable, net of allowance for
       doubtful accounts of $-0- and $19,162 in
       1999 and 1998, respectively                                                      2,255             26,827
     Inventory                                                                             -              61,466
     Prepaid expenses and other current assets                                             -               6,423
                                                                             ----------------    ---------------
                  Total current assets                                                  3,272            179,042

     Property and equipment, net                                                       51,931             77,163
     Other assets                                                                          -               2,492
     Notes receivable                                                                      -                 645
                                                                             ----------------    ---------------

                  Total assets                                               $         55,203    $       209,590
                                                                             ================    ===============

                      LIABILITIES AND SHAREHOLDERS' DEFICIT

Current liabilities
     Accounts payable                                                        $        665,877    $       295,865
     Accrued payroll                                                                1,190,503            261,132
     Accrued payroll taxes                                                            138,057                 -
     Warranty liability                                                               447,000                 -
     Due to officers                                                                  221,586            140,100
     Notes payable, current portion                                                   523,324            105,424
     Accrued expenses                                                                 204,613             23,293
     Note payable STI                                                                 150,347                 -
     Bridge financing                                                                 588,000                 -
                                                                             ----------------    ---------------
                  Total current liabilities                                         4,129,307            825,814

Notes payable, net of current portion                                                      -             457,576

Commitments                                                                                -                   -

Shareholders' deficit
     Preferred stock, $.001 par value, 5,000,000 shares
      authorized none issued                                                               -                  -
     Common stock, $.001 par value, 100,000,000 shares
       authorized, 9,481,195 and 3,039,200 shares issued
       and outstanding in 1999 and 1998, respectively                                  37,925             12,157
     Additional paid in capital                                                     4,603,214          1,926,585
     Notes receivable - officers                                                   (1,808,560)                -
     Accumulated deficit                                                           (6,906,683)        (3,012,542)
                                                                             ----------------    ---------------
                  Total shareholders' deficit                                      (4,074,104)        (1,073,800)
                                                                             ----------------    ---------------

                  Total liabilities and shareholders' deficit                $         55,203    $       209,590
                                                                             ================    ===============
</TABLE>

The accompanying notes are an integral part of these statements.



                                       F-2

<PAGE>



                           WorldCast Interactive, Inc.

                            STATEMENTS OF OPERATIONS

                        For the Years Ended December 31,

<TABLE>
<CAPTION>

                                                                                    1999              1998
                                                                             ----------------    ---------------

<S>                                                                          <C>                 <C>
Sales                                                                        $        132,503    $       442,349
Cost of goods sold                                                                    667,858            463,416
                                                                             ----------------    ---------------

                  Gross margin                                                       (535,355)           (21,067)

Selling, general and administrative expenses                                        3,173,650          1,795,588
                                                                             ----------------    ---------------

                  Operating loss                                                   (3,709,005)        (1,816,655)

Other income (expense)
     Other income                                                                         520              1,227
     Interest expense                                                                (185,656)           (88,934)
                                                                             ----------------    ---------------

                  Total other expense                                                (185,136)           (87,707)
                                                                             ----------------    ---------------

                  Net loss                                                   $     (3,894,141)   $    (1,904,362)
                                                                             ================    ===============

Net loss per share of common stock:
     Basic                                                                   $           (.49)   $          (.68)
                                                                             ================    ================

Weighted average shares outstanding:
     Basic                                                                          7,919,836          2,809,600
                                                                             ================    ===============
</TABLE>


The accompanying notes are an integral part of these statements.



                                       F-3
<PAGE>






                           WorldCast Interactive, Inc.

                       STATEMENT OF SHAREHOLDERS' DEFICIT

                 For the Years Ended December 31, 1999 and 1998

<TABLE>
<CAPTION>


                                 Common Stock          Additional         Notes
                      -----------------------------      Paid-in        Receivable    Accumulated
                           Shares          Amount        Capital       Shareholders     Deficit         Total
                      --------------  -------------  -------------  ---------------- -------------- ------------
<S>                   <C>             <C>            <C>            <C>              <C>            <C>
Balance,
  January 1,
  1998                  2,757,500     $    11,030    $   978,970     $          -     $(1,108,180)   $  (118,180)

Net loss
  for 1998                     -               -              -                 -      (1,904,362)    (1,904,362)

Issuance of
  common
  stock                   204,641             819        393,072                -              -         393,891

Conversion
  of debentures            77,059             308        124,692                -              -         125,000

Forgiveness
  of debt by a
  related party                -               -         429,851                -              -         429,851
                      -----------     -----------    -----------     -------------    -----------    -----------

Balance,
  December 31,
  1998                  3,039,200          12,157      1,926,585                -      (3,012,542)    (1,073,800)

Net loss for
  1999                         -               -              -                 -      (3,894,141)    (3,894,141)

Notes receivable
  officers                     -               -              -         (1,808,560)            -      (1,808,560)

Issuance of
  common
  stock                 6,396,322          25,585      2,525,484                -              -       2,551,069

Stock issued
  for services             45,670             183        151,145                -              -         151,328
                      -----------     -----------    -----------     -------------    -----------    -----------

Balance,
  December 31,
  1999                  9,481,195     $    37,925    $ 4,603,214     $  (1,808,560)   $(6,906,683)   $(4,074,104)
                      ===========     ===========    ===========     =============    ===========    ===========
</TABLE>

The accompanying notes are an integral part of these statements.




                                       F-4
<PAGE>





                           WorldCast Interactive, Inc.

                            STATEMENTS OF CASH FLOWS

                        For the Years Ended December 31,

<TABLE>
<CAPTION>

                                                                                   1999                1998
                                                                             ----------------    ---------------
<S>                                                                          <C>                 <C>
Cash flows from operating activities
     Net loss                                                                $     (3,894,141)   $    (1,904,362)
     Adjustments to reconcile net loss to net cash
       used in operating activities:
         Write down of property and equipment                                          45,013             25,850
         Depreciation expense                                                          25,888             37,440
         Common stock issued for services                                             151,328            139,650
     Decrease in operating assets
         Accounts/notes receivable                                                     34,217            113,829
         Inventory                                                                     61,466            168,178
         Prepaid expenses and other current assets                                      6,423             11,977
         Other assets                                                                   2,492                 -
     Increase in operating liabilities
         Accounts payable                                                             370,012            234,719
         Accrued payroll and expenses                                               1,248,748            305,492
         Warranty liability                                                           447,000                 -
                                                                             ----------------    ---------------
                  Total adjustments                                                 2,392,587          1,011,285
                                                                             ----------------    ---------------

                  Net cash used in operating activities                            (1,501,554)          (893,077)

Cash flows from investing activities
     Purchases of property and equipment                                              (45,669)           (24,237)
                                                                             ----------------    ---------------
                  Net cash used in investing activities                               (45,669)           (24,237)
                                                                             ----------------    ---------------

Cash flows from financing activities
     Proceeds from notes payable                                                      160,347            335,159
     Proceeds from officer loans                                                       81,486            140,000
     Proceeds from sale of debentures                                                      -             125,000
     Proceeds from sale of Common Stock                                               742,509            254,240
     Proceeds from bridge financing                                                   588,000                 -
     Payments on note payable                                                         (49,676)           (93,577)
                                                                             ----------------    ---------------
                  Net cash provided by financing activities                         1,522,666            760,922
                                                                             ----------------    ---------------

Net decrease in cash                                                                  (24,558)          (156,392)

Cash, beginning of year                                                                25,574            181,966
                                                                             ----------------    ---------------

Cash, end of year                                                            $          1,016    $        25,574
                                                                             =================   ===============
</TABLE>
                                                                     (continued)



                                       F-5
<PAGE>


                           WorldCast Interactive, Inc.

                      STATEMENTS OF CASH FLOWS - CONTINUED

                        For the Years Ended December 31,

<TABLE>
<CAPTION>

                                                                                   1999                1998
                                                                             ----------------    ---------------
<S>                                                                          <C>                 <C>
Supplemental disclosure of cash flow information
     Cash paid during the period for:
         Interest                                                            $        185,656    $        90,802
                                                                             ================    ===============

Supplemental disclosure of non-cash transactions
     Common stock issued for services                                        $        151,328    $       139,650
                                                                             ================    ===============
     Conversion of debentures                                                $             -     $       125,000
                                                                             ================    ===============
</TABLE>














The accompanying notes are an integral part of these statements.



                                       F-6
<PAGE>



                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization on Nature of Business
     ----------------------------------

     On November 9, 1999, Futuretrak International, Inc. changed its name to
     WorldCast Interactive, Inc. WorldCast Interactive, Inc. and Subsidiaries
     (the "Company") is in the business of providing mobile satellite antennas
     to the yachting industry, allowing the yachts to receive satellite
     transmissions while at sea. Beginning in fiscal 1999, the Company changed
     their business approach to providing wiring infrastructure to multi housing
     communities, which enables the tenants to obtain Direct TV and high speed
     internet access. The Company was incorporated on January 24, 1996, under
     the name Future Vision. On June 16, 1997, the Company amended its articles
     of incorporation and changed its name to Futuretrak International, Inc. On
     May 5, 1997, 90% or 2,250,000 shares of the outstanding stock was purchased
     from the existing shareholders by World Vision Entertainment, Inc. On July
     15, 1998, Palm Bay Capital, Inc. purchased 1,750,000 shares from World
     Vision Entertainment, See further detail of this transaction at Note F.

     Principles of Consolidation
     ---------------------------

     The financial statements for the year ended December 31, 1999 represents
     the consolidated results of the Company and its wholly-owned subsidiaries -
     Futuretrak, Inc., Maxwell Technologies, Inc. and STI Group, Inc.
     Futuretrak, Inc. and Maxwell Technologies, Inc. were incorporated during
     1999 and have no operations. STI Group, Inc. was incorporated as a result
     of the purchase of certain assets in January 1999 from Satellite
     Technology, Inc. (see Note N) and has no operations. All intercompany
     balances have been eliminated in consolidation. The financial statements as
     of December 31, 1998 and for the year then ended only included the
     operations of the Company without any subsidiaries.

     Estimates
     ---------

     In preparing financial statements in accordance with generally accepted
     accounting principles, management makes estimates and assumptions that
     affect the reported amounts and disclosures of assets and liabilities at
     the date of the financial statements, as well as the reported amounts of
     revenues and expenses during the reporting period. Actual results could
     differ from those estimates.

                                                                     (continued)


                                       F-7
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998


NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

     Inventory
     ---------

     Inventory, consisting of Raw materials and Finished Goods, is stated at the
     lower of cost (Average Cost basis) or market.

     Depreciation
     ------------

     Property and equipment are stated at cost, net of accumulated depreciation.
     Depreciation for financial reporting purposes is computed by using the
     straight-line method over the estimated useful life of the related assets,
     which are as follows:

                                                                    Years
                                                                    -----

                       Computer equipment                           3 - 5
                       Office equipment                                 5
                       Furniture and fixtures                           7

     For income tax purposes, accelerated methods of depreciation are generally
     used. Deferred income taxes are provided for the difference between
     depreciation expense for tax and financial reporting purposes.

     Income Taxes
     ------------

     The Company accounts for income taxes under the provision of Statement of
     Financial Accounting Standards No. 109, "Accounting for Income Taxes,"
     which requires the Company to recognize deferred tax assets and liabilities
     for the future tax consequences attributable to differences between the
     financial statement carrying amounts of existing assets and liabilities and
     their respective tax bases.

     Reclassifications
     -----------------

     Certain reclassifications have been made to the 1998 amounts to conform to
     the 1999 presentation.

     Loss Per Share
     --------------

     Basic net loss per share equals net loss divided by the weighted average
     shares outstanding during the year. Dilutive EPS has not been presented
     because common stock equivalents would be anti-dilutive in 1999 and 1998.

                                                                     (continued)



                                      F-8
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

     Reverse Stock Split
     -------------------

     The Board of Directors declared a one-for-four common stock reverse split
     for shareholders of record on April 16, 1999. All common stock related data
     for all periods presented have been restated to reflect the reverse stock
     split.

NOTE B - GOING CONCERN

     The accompanying financial statements have been prepared in conformity with
     generally accepted accounting principles, which contemplate continuation of
     the Company as a going concern. However, the Company has sustained
     substantial losses from operations since inception which has resulted in a
     deterioration in the Company's financial position. In addition, the Company
     is delinquent in paying its fourth quarter 1998 and all of 1999 Federal
     payroll taxes which amounts to $138,057 (including $42,901 of penalties and
     interest).

     The recoverability of a major portion of the recorded asset amounts shown
     in the accompanying balance sheet is dependent upon commencement of
     successful operations of the Company, which in turn is dependent upon the
     Company's ability to finance its future operations. The financial
     statements do not include any adjustments relating to the recoverability
     and classification of recorded assets and liability amounts which might
     result from the above uncertainties.

     The Company has and will continue to take a number of steps to reduce its
     operating losses. The Company reduced operating expenses by terminating all
     staff during the fourth quarter of 1999 and relocated to smaller facilities
     in January 2000. As referenced in Note P, the Company entered into an
     equity investment agreement with Eurofund Derivatives Limited.

     Management believes that a result of the action stated above, the Company
     can continue in existence for the next twelve months; however, there is no
     assurance that such action will be consummated or will eliminate the
     Company's need for additional capital.

NOTE C - INVENTORIES

     Inventories consist of raw material and amounted to $-0- and $61,466 at
     December 31, 1999 and 1998, respectively. There were no finished goods
     inventory at December 31, 1999 and 1998.



                                       F-9
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998


NOTE D - PROPERTY AND EQUIPMENT

     Property and equipment at December 31, 1999 and 1998 consist of the
     following:

<TABLE>
<CAPTION>

                                                                            1999             1998
                                                                       -------------    -------------

<S>                                                                    <C>              <C>
                  Office and computer equipment                        $      42,622    $      44,022
                  Furniture and fixtures                                       1,521            3,207
                  Show displays and equipment                                 86,064           83,997
                  Leasehold improvements                                          -             2,415
                                                                       -------------    -------------
                                                                             130,207          133,641
                  Less:  Accumulated depreciation                            (78,276)         (56,478)
                                                                       -------------    -------------

                                                                       $      51,931    $      77,163
                                                                       =============    =============
</TABLE>

NOTE E - INCOME TAXES

     At December 31, 1999, the Company did not record any tax provision
     (benefit). The tax provision (benefit) is different from that which would
     be obtained by applying the statutory federal income tax rate to income
     (loss) primarily because of the valuation allowance recorded against
     deferred tax assets.

     Significant components of the Company's deferred tax assets (liabilities)at
     December 31, 1999, are as follows:

<TABLE>
<CAPTION>

                                                                            1999             1998
                                                                       -------------    -------------

<S>                                                                    <C>              <C>
                  Net operating loss carryforward                      $   1,500,000    $   1,000,000
                  Accrued expenses                                           480,000               -
                                                                       -------------    -------------

                  Net deferred tax asset                                   1,980,000        1,000,000

                  Less valuation allowance                                (1,980,000)      (1,000,000)
                                                                       -------------    -------------

                                                                       $          -     $          -
                                                                       =============    =============
</TABLE>

                                                                     (continued)


                                      F-10
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998

NOTE E - INCOME TAXES - Continued

     Based on the Company's prior earnings and the amount of income that could
     be utilized in carryback years, and the uncertainty of future taxable
     income, it is more likely than not that these deferred tax assets will not
     be realized. Therefore, a 100% valuation allowance has been established to
     reduce deferred tax assets.

     The federal and state net operating loss carryforward amounted to
     approximately $5,300,000, and $3,000,000 in 1999 and 1998 respectively. The
     net operating losses will expire in 2011-2019.

NOTE F - RELATED PARTY TRANSACTIONS

     During 1998, World Vision Entertainment (WVE) sold 1,750,000 of the
     2,250,000 shares of The Company that they owned to Palm Bay Capital, Inc.,
     which was funded by means of loans from two officers and a shareholder.
     Subsequent to the purchase, 1,500,000 of the shares were distributed to the
     officers and shareholder. Palm Bay Capital currently owns 250,000 shares.

     As a result of the sale of shares from WVE to Palm Bay Capital, WVE forgave
     a note in the amount of $429,851 from Futuretrak. Since WVE was a major
     shareholder, this forgiveness of debt was recorded as additional paid in
     capital.

     The Company owes $163,000 and $360,324, to two financial institutions which
     are both owned by a shareholder of the Company.

NOTE G - NOTES PAYABLE

     The following is a summary of Notes Payable at December 31, 1999 and 1998:

<TABLE>
<CAPTION>

                                                                                  1999          1998
                                                                              ------------  ------------
<S>                                                                           <C>            <C>
         Unsecured note payable, to a financial institution dated
         September 11, 1996 with monthly payments of $10,402
         including interest at the rate of 12% per annum. Matures
         January 2003. The Company has not made the required
         payments and is currently in default of this loan.                   $    360,324   $   395,000
</TABLE>

                                                                     (continued)


                                      F-11
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998


NOTE G - NOTES PAYABLE - Continued

<TABLE>
<CAPTION>

                                                                                  1999          1998
                                                                              ------------  ------------
<S>                                                                           <C>           <C>
         Unsecured note payable, to a financial institution, dated
         June 12, 1998 with monthly payments of $4,292 including
         interest at a rate of 12%. Matures January 2003. The Company
         has not made the required payments and is currently in
         default of this loan.                                                 $   163,000  $   163,000

         Noninterest  bearing,  unsecured  note  payable  to  a  former
         shareholder, due upon demand.                                                   -        5,000
                                                                              ------------- -------------
                                                                                   523,324      563,000
         Less:  current portion                                                          -      105,424
                                                                              ------------- -------------

                                                                               $   523,324  $   457,576
                                                                              ============= =============
</TABLE>

NOTE H - ACCRUED PAYROLL TAXES

     The Company has not paid Federal payroll taxes on a timely basis. Total
     payroll tax liability at December 31, 1999 amounted to $138,057 which
     includes $42,901 in estimated penalties and interest.

NOTE I - DUE TO OFFICERS

     Due to officers consist of loans to the Company by certain officers of the
     Company. The notes are non-interest bearing and is due upon demand. The
     Company intends to pay the note in full in 2000.

NOTE J - BRIDGE FINANCING

     On July 2, 1999, the Company and Celerity Systems, Inc. consummated a joint
     financing management with a private investor of which the proceeds to the
     Company were $450,000. The total loan amount of $1,000,000 and interest
     amounting to $200,000 were to have been converted into shares of the merged
     company on October 25, 1999; however, the merger has not occurred and the
     parties are considering renegotiating the terms of this obligation. The
     loan is collaterallized by $2,000,000 of the Company and Celerity shares in
     the rates of 90% of the Company's shares and 10% of Celerity shares. The
     loan plus accrued interest was due December 15, 1999. The Company is
     currently negotiating with the private investor to extend the term of the
     loan. At December 31, 1999, the Company's liability to the private investor
     was $500,000.

                                                                     (continued)


                                      F-12
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998

NOTE J - BRIDGE FINANCING - Continued

     On June 1, 1999, the Company obtained a $50,000 Bridge loan from Ryan
     Capital Management Corp. with $60,000 (including $10,000 of accrued
     interest) due September 30, 1999. On November 27, 1999, the term of the
     loan was extended for another 121 days. As of April 7, 2000, the Company
     has not paid the loan due to cash flow difficulties.

     On June 18, 1999, the Company obtained a $65,000 bridge loan from an
     investor. The balance at December 31, 1999 amounted to $28,000 and is due
     when funds become available.

NOTE K - COMMITMENTS AND CONTINGENCIES

     Leases
     ------

     The Company occupied 2,300 square feet of office and warehouse space in
     Pompano Beach, Florida under a noncancelable lease which expired in
     January, 2000. Rent expense for the years ended December 31, 1999 and 1998
     was $28,310 and $28,384, respectively.

     Effective January 1, 1999, the company entered into a license agreement
     with Corporate Executive Suites West, Inc. to use an occupy an office suite
     for $450 per month through December 31, 2000.

     On February 12, 1997, the Company entered into an operating lease for
     certain equipment with American Business Credit Corp., which expires
     January 12, 2001. The lease expense for the years ended December 31, 1999
     and 1998 was $3,564 and $3,564 respectively.

     The Company's future minimum operating lease commitments are as follows:

                                                                     Amount
                                                                ----------------
                                      2000                      $          3,564
                                      2001                                   111
                                                                ----------------

                                      Total                     $          3,675
                                                                ================






                                                                     (continued)


                                      F-13
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998

NOTE K - COMMITMENTS AND CONTINGENCIES - Continued

     Employment Agreements
     ---------------------

     The Company has entered into employment agreements with four of its
     executive officers for an initial period of five years, and year to year
     thereafter unless either party gives 180 days written notice not to renew
     the agreement. The agreements provide that if the employee is terminated
     after change in control of the Company, the employee is to receive the
     larger of (1) three years base salary, or (2) the base salary due to
     employee for the remaining term of the agreement, or (3) an amount equal to
     two times the largest total of the bonuses previously paid in any one year
     by the Company to the employee.

     Product Warranty Claims
     -----------------------

         The Company has sold certain products in 1998 and 1999 which are
         covered by the Company's one year warranty policy. As a result of
         certain technical problems with the product, customers have made
         various claims and the Company has accrued approximately $447,000 for
         the cost of these claims and additional claims expected to be incurred.
         The Company continues to pursue counter claims against the product
         designer.

     Legal Proceedings
     -----------------

         WorldCast and certain of its officers are named defendants in an action
         brought by Charter Memories, Inc. on May 4, 1999 in the United States
         District Court, Central District of California, for damages totaling
         approximately $96,000, for alleged misrepresentation concerning the
         qualities and characteristics of certain equipment purchased by Charter
         Memories. WorldCast is presently conducting discussions regarding
         settlement of this case.

NOTE L - STOCKHOLDERS EQUITY

     During 1998, debentures in the amount of $125,000 were converted into
     308,235 shares of common stock.

     On January 11, 1999, the Company amended its Articles of Incorporation to
     increase the authorized shares from 50,000,000 to 100,000,000 shares.





                                      F-14
<PAGE>


                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998

NOTE M - STOCK SUBSCRIPTIONS

     On March 15, 1999, the Company issued 5,651,750 shares of common stock to
     four officers in exchange for promissory notes of $1,808,560. The notes are
     collateralized by officers employment agreements and bear interest at prime
     plus 2%. Commencing September 1, 2001, accrued interest will be paid on a
     monthly basis through August 30, 2003. All unpaid accrued interest and
     principal is due August 30, 2003. If the officers default on the loan, the
     Company may cancel the officer's employment agreement as satisfaction for
     the loan. The promissory notes of $1,808,560 is included as a component of
     paid-in capital in the statement of shareholders' deficit in the
     accompanying financial statements.

     Effective January 1, 2000, the Company terminated the employment of one of
     the officers. As a result, the promissory note from this officer of
     $525,360 is no longer collateralized. In addition, the Company under the
     terms of the employment agreement, was liable for the balance of the
     employment agreement. In April, 2000, the Company entered into an
     agreement with the officer to settle the foregoing matter. Under the
     agreement the Company agrees to receive from the officer 80% of the
     proceeds from the future sale (but no later than December 31, 2000) of
     1,189,259 shares of the Company's stock held by the officer. To the extent
     the proceeds received is insufficient to recover the remaining portion of
     the note, the Company will forgive the remaining debt. Due to the
     volatility of the Company's stock there is no guarantee that the whole
     amount of the note will be recovered. In exchange, the officer will
     relinquish his rights under the employment agreement.

NOTE N - ACQUISITION OF ASSETS

     In January, 1999, the Company entered into an agreement to purchase the
     assets of Satellite Technology, Inc. (STI), a former distributor/dealer for
     the Company. STI is a distributor of satellite space scanners and antenna
     control units. The agreement included the issuance of 200,000 shares of
     common stock and promissory note in the amount of $160,347 for the assets
     of STI. The note bears interest at a rate of prime plus 2%, with monthly
     principal payments of $20,049 beginning no later than May 5, 1999 (unless
     additional funding becomes available sooner to the maker after the
     contemplated offering pursuant to Rule 504 of Regulation D under the
     Securities Act of 1933, in which case the first payment shall be due within
     15 days of the date such funds become available). The note shall mature,
     and any remaining principle and accrued but unpaid interest shall be due
     and payable on January 5, 2000. At December 31, 1999, the Company has not
     made the required monthly principle payments under the terms of the loan
     and therefore is currently in default on this loan. In addition, the
     contemplated offering pursuant to Rule 504 of Regulation D did not
     materialize.


                                      F-15
<PAGE>

                           WorldCast Interactive, Inc.

                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1999 and 1998

NOTE O - WARRANTS

     In connection with the Bridge Financing between the Company, Celebrity
     Systems and a private investor (see Note J), the Company issued warrants to
     the underwriters of the transaction. The Company issued two warrants each
     giving the holder the right to 100,000 shares of the Company's common stock
     at an exercise price of $1.50 per share.

NOTE P - FUNDING AGREEMENT

     On November 2, 1999, the Company entered into an equity investment line
     agreement with Eurofund Derivatives Limited (investor). Under the
     agreement, the Company can receive up to an aggregate amount of $4,000,000
     if the investor exercises the full amount of a Class A warrants issued to
     the investor by the Company. The Class A warrants, which expire on November
     4, 2001, entitles the investor to purchase from the Company at the exercise
     price a certain number of shares based upon an exercise price set by the
     Company from time to time over the life of the warrants. The agreement
     gives the Company the ability to "put" the warrants to the investor thus
     requiring exercise of a portion of the warrants on a quarterly basis. In
     April 2000, the Company exercised a part to require the investor to
     purchase $500,000 of stock; however no funds have yet been received from
     the investor.

NOTE Q - SUBSEQUENT EVENT

         On March 13, 2000, the Board of Directors authorized the conversion of
         specific indebtedness of the Company to equity. Through April 7, 2000
         the Company had converted $3,230,489 of debt into 12,265,665 shares of
         common stock.





                                      F-16