ANNUAL REPORT FOR SMALL BUSINESS ISSUERS SUBJECT
                     TO THE 1934 ACT REPORTING REQUIREMENTS

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

            For the quarterly period ended       June 30, 2000
                                           -------------------------

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ______________________to________________________

Commission file number____________________________________________________


                         Streamedia Communications, Inc.
               --------------------------------------------------
              (Exact name of small business issuer in its charter)


                Delaware                                    22-3622272
                --------                                    ----------
      (State or other jurisdiction of                    (I.R.S. Employer
       incorporation or organization)                   Identification No.)



 244 West 54th Street New York, New York                       10019
 ---------------------------------------                       -----
 (Address of principal executive offices)                    (Zip Code)


Issuer's telephone number    (212) 445-1700
                             --------------

Securities registered under Section 12(b) of the Act:       None

     Title of each class                   Name of each exchange
                                           on which registered

------------------------------        ---------------------------------

------------------------------        ---------------------------------

      Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
twelve months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the
past 90 days.

Yes_X__.  No____.

<PAGE>

      APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
      PROCEEDINGS DURING THE PRECEDING FIVE YEARS

      Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13, or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes____   No ____

      APPLICABLE ONLY TO CORPORATE ISSUERS

      State the number of shares outstanding of each of the issuer's class of
common equity, as of the last practicable date: As of August 14, 2000, the
Company had 4,730,044 shares of Common Stock issued and outstanding.

      Transitional Small Business Disclosure Format (check one): ____  ____


<PAGE>
ITEM I.  FINANCIAL INFORMATION

<TABLE>

                         Streamedia Communications, Inc.
                          (A Development Stage Company)

                                 BALANCE SHEETS
                                   (unaudited)
<CAPTION>
                                                                                        JUNE 30,              December 31,
                                    ASSETS                                                2000                  1999 (a)
                                                                                       ------------           ------------
CURRENT ASSETS
<S>                                                                                    <C>                    <C>
    Cash and cash equivalents                                                          $  1,776,392           $  6,693,061
    Accounts receivable                                                                     106,020
    Licenses, net of accumulated amortization of $264,000 and $79,000
      at June 30, 2000 and December  31, 1999, respectively                                 184,403                392,363
    Prepaid expenses                                                                         87,878                142,207
                                                                                       ------------           ------------
         Total current assets                                                             2,154,693              7,227,631

PROPERTY AND EQUIPMENT
    Computer equipment and software                                                       1,537,793                751,297
    Software development costs                                                              507,800                150,513
    Leasehold improvements                                                                  327,480                127,352
    Furniture and fixtures                                                                   21,977                 19,841
                                                                                       ------------           ------------
                                                                                          2,395,050              1,049,003

    Less accumulated depreciation and amortization                                         (442,457)              (167,494)
                                                                                       ------------           ------------
                                                                                          1,952,593                881,509

OTHER ASSETS                                                                                 32,850                  7,000
                                                                                       ------------           ------------
                                                                                       $  4,140,136           $  8,116,140
                                                                                       ============           ============
         LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Current maturities of capital lease obligations                                    $     31,740           $     31,740
    Accounts payable and accrued expenses                                                   402,726                429,265
    Accrued license fees                                                                                           436,941
    Accrued software costs                                                                                         304,519
    Accrued payroll                                                                                                137,747
    Accrued offering costs                                                                                          64,500
    Accrued professional fees                                                               130,737                 43,623
    Accrued consulting fees                                                                 187,274                132,144
                                                                                       ------------           ------------
         Total current liabilities                                                          752,477              1,580,479

CAPITALIZED LEASE OBLIGATIONS, less current maturities                                       13,106                 24,234

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
    Preferred stock, $.001 par value; authorized - 100,000
      shares; none issued and outstanding
    Common stock, $.001 par value; authorized - 20,000,000 shares; issued and
      outstanding - 4,730,044 and 4,624,844 shares at
      June 30, 2000 and December 31, 1999, respectively                                       4,730                  4,625
    Additional paid-in capital                                                           11,337,040             10,720,846
    Deficit accumulated during development stage                                         (7,967,217)            (4,214,044)
                                                                                       ------------           ------------
         Total stockholders' equity                                                       3,374,553              6,511,427
                                                                                       ------------           ------------
                                                                                       $  4,140,136           $  8,116,140
                                                                                       ============           ============
</TABLE>


(a)  Retroactively restated to combine the financial position of Streamedia
     Communications, Inc. ("Streamedia") with that of Eons Ahead, Inc., which
     was acquired by Streamedia in March 2000 and accounted for as a pooling of
     interests.

        The accompanying notes are an integral part of these statements.

                                       1

<PAGE>
<TABLE>

                         Streamedia Communications, Inc.
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS
                                   (unaudited)
<CAPTION>

                                                                                                                      Cumulative
                                                                                                                          from
                                                                                                                       January 13,
                                                     Six months                       Three months ended              1998 (date of
                                                   ended June 30,                          June 30,                   inception) to
                                           ------------------------------        ------------------------------         June 30,
                                               2000              1999 (a)           2000              1999 (a)          2000 (a)
                                           -----------        -----------        -----------        -----------        -----------
<S>                                        <C>                <C>                <C>                <C>                <C>
Revenues                                   $   130,830        $    52,109        $   123,486        $    31,268        $   361,255
                                           -----------        -----------        -----------        -----------        -----------

Operating expenses
    Payroll and related expenses             1,861,114            440,469          1,093,651            284,245          3,256,586
    Product development                         23,024                                                                     542,501
    General and administrative               2,106,982            177,533          1,212,541             89,695          4,028,288
                                           -----------        -----------        -----------        -----------        -----------

       Total operating expenses              3,991,120            618,002          2,306,192            373,940          7,827,375
                                           -----------        -----------        -----------        -----------        -----------

       Operating loss                       (3,860,290)          (565,893)        (2,182,706)          (342,672)        (7,466,120)
                                           -----------        -----------        -----------        -----------        -----------

Other income (expense)
    Interest expense                            (9,020)            (4,359)            (2,444)            (4,359)          (621,854)
    Interest income                            116,137              1,995             44,324              1,995            120,757
                                           -----------        -----------        -----------        -----------        -----------

       Total other income (expense)            107,117             (2,364)            41,880             (2,364)          (501,097)
                                           -----------        -----------        -----------        -----------        -----------

       NET LOSS                            $(3,753,173)       $  (568,257)       $(2,140,826)       $  (345,036)       $(7,967,217)
                                           ===========        ===========        ===========        ===========        ===========


Basic and diluted loss per common
    share                                  $      (.80)       $      (.17)       $      (.45)       $      (.11)       $     (2.50)
                                           ===========        ===========        ===========        ===========        ===========

Weighted average shares outstanding,
    basic and diluted                        4,699,347          3,247,717          4,730,044          3,282,678          3,189,761
                                           ===========        ===========        ===========        ===========        ===========

</TABLE>

(a)  Retroactively restated to combine the results of operations of Streamedia
     with those of Eons Ahead, Inc., which was acquired by Streamedia in March
     2000 and accounted for as a pooling of interests.

The accompanying notes are an integral part of these statements.

                                       2

<PAGE>
<TABLE>
                         Streamedia Communications, Inc.
                          (A Development Stage Company)

                        STATEMENT OF STOCKHOLDERS' EQUITY
                                   (unaudited)
<CAPTION>


                                                                                                           Deficit
                                                                                                         accumulated
                                               Preferred stock             Common stock    Additional      during
                                           ---------------------   ---------------------     paid-in     development
                                             Shares      Amount     Shares      Amount       capital        stage         Total
                                           ---------   ---------   ---------   ---------   -----------   -----------   -----------
<S>                                        <C>         <C>         <C>         <C>         <C>           <C>           <C>
Balance at January 1, 2000 (a)                  --     $    --     4,624,844   $   4,625   $10,720,846   $(4,214,044)  $ 6,511,427

Issuance of common stock for services                                  7,700           8        39,105                      39,113

Issuance of common stock pursuant to
    the exercise of stock options                                     37,500          37        74,963                      75,000

Issuance of common stock in connection
   with the overallotment option of the
   initial public offering, net of
   underwriting discounts of $40,800                                  40,000          40       299,160                     299,200

Compensatory stock option expense                                                              126,100                     126,100

Issuance of common stock for business
   acquisition                                                        20,000          20        76,866                      76,886

Net loss for the period                                                                                   (3,753,173)   (3,753,173)
                                           ---------   ---------   ---------   ---------   -----------   -----------   -----------
Balance at June 30, 2000                               $           4,730,044   $   4,730   $11,337,040   $(7,967,217)  $ 3,374,553
                                           =========   =========   =========   =========   -----------   ===========   ===========

</TABLE>

(a)  Retroactively restated to combine the financial position of Streamedia with
     that of Eons Ahead, Inc., which was acquired by Streamedia in March 2000
     and accounted for as a pooling of interests.


The accompanying notes are an integral part of this statement.

                                       3

<PAGE>
<TABLE>
                         Streamedia Communications, Inc.
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
<CAPTION>
                                                                                                                      Cumulative
                                                                                                                         from
                                                                                                                      January 13,
                                                                                       Six months                    1998 (date of
                                                                                        June 30,                     inception) to
                                                                            --------------------------------            June 30,
                                                                                2000               1999(a)              2000 (a)
                                                                            -----------          -----------          -----------
Cash flows from operating activities
<S>                                                                         <C>                  <C>                   <C>
    Net loss                                                                $(3,753,173)         $  (568,257)          $(7,967,217)
    Adjustments to reconcile net loss to net cash used in operating
       activities
         Common stock issued for services                                        39,113               12,000              231,113
         Stock option granted for services                                                            20,250              834,650
         Compensatory stock option expense                                      126,100              206,250              332,350
         Amortization of debt discount                                                                                    272,250
         Amortization and write-off of deferred financing costs                                                           231,500
         Depreciation and amortization                                          459,423                1,757              706,687
         Changes in operating assets and liabilities
             Accounts receivable                                               (106,020)                                  (69,266)
             Prepaid expenses and other current assets                           77,829                                  (536,511)
             Other assets                                                       (25,850)              (4,668)             (32,850)
             Accounts payable and accrued expenses                              (26,539)               6,583              402,726
             Accrued license fees                                              (436,941)
             Accrued software costs                                            (304,519)
             Accrued payroll                                                   (137,747)              23,954
             Accrued offering costs                                             (64,500)
             Accrued professional fees                                           87,114               (8,635)             130,737
             Accrued consulting fees                                             55,130              (38,500)             187,274
                                                                            -----------          -----------          -----------
           Net cash used in operating activities                             (4,010,580)            (349,266)          (5,313,311)
                                                                            -----------          -----------          -----------
Cash flows from investing activities
    Purchase of property and equipment                                       (1,269,161)             (18,805)          (2,262,191)
                                                                            -----------          -----------          -----------
           Net cash used in investing activities                             (1,269,161)             (18,805)          (2,262,191)
                                                                            -----------          -----------          -----------
Cash flows from financing activities
    Issuance of common stock, net of associated costs                           299,200              523,980              828,809
    Issuance of common stock in Offering, net of associated costs                                                       8,446,777
    Proceeds from the exercise of stock options                                  75,000                                    75,000
    Proceeds of notes payable and common stock warrants, net of
       associated costs                                                                                                 1,583,500
    Repayments of notes payable                                                                                        (1,815,000)
    Deferred offering costs                                                                         (187,432)              50,000
    Conversion of stockholder loan into Capital                                                       31,320              193,936
    Principal payments on capital lease obligations                             (11,128)                                  (11,128)
                                                                            -----------          -----------          -----------
           Net cash provided by financing activities                            363,072              367,868            9,351,894
                                                                            -----------          -----------          -----------
           Net (decrease) increase in cash                                   (4,916,669)                (203)           1,776,392

Cash at beginning of period                                                   6,693,061                9,691                 --
                                                                            -----------          -----------          -----------
Cash at end of period                                                       $ 1,776,392          $     9,488          $ 1,776,392
                                                                            ===========          ===========          ===========
</TABLE>

(a)  Retroactively restated to combine the financial position of Streamedia with
     that of Eons Ahead, Inc., which was acquired by Streamedia in March 2000
     and accounted for as a pooling of interests.

The accompanying notes are an integral part of these statements.



                                       4
<PAGE>


                         Streamedia Communications, Inc.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

                                  June 30, 2000
                                   (unaudited)


NOTE A - BASIS OF PRESENTATION

     The interim unaudited financial statements include the accounts of
     Streamedia Communications, Inc. ("Streamedia" or the "Company") and the
     accounts of companies acquired in business combinations accounted for under
     (1) the purchase method from their respective acquisition date and (2) the
     pooling of interests method, giving retroactive effect for all periods
     presented. See Note C for the effects of the pooling on previously reported
     revenues, net loss and loss per share resulting from the business
     combination with Eons Ahead, Inc., which was acquired by the Company during
     March 2000 and accounted for as a pooling of interests.

     The balance sheet as of June 30, 2000 and the related statements of
     operations for the six- and three-month periods ended June 30, 2000 and
     1999 and cumulative from January 13, 1998 (date of inception) to June 30,
     2000, stockholders' equity for the six-month period ended June 30, 2000 and
     cash flows for the six-month periods ended June 30, 2000 and 1999 have been
     prepared by the Company without audit. In the opinion of management, all
     adjustments (which include only normal, recurring accrual adjustments)
     necessary to present fairly the financial position as of June 30, 2000 and
     for all periods presented have been made.

     Certain information and footnote disclosures, normally included in
     financial statements prepared in accordance with generally accepted
     accounting principles have been condensed or omitted. These financial
     statements should be read in conjunction with the financial statements and
     notes thereto included in the Annual Report on Form 10-KSB for the year
     ended December 31, 1999. Results of operations for the period ended June
     30, 2000 are not necessarily indicative of the operating results expected
     for the full year.


NOTE B - NATURE OF OPERATIONS

     Streamedia was incorporated in the State of Delaware and is positioning
     itself as a vertically integrated New Media content generator, enabler and
     aggregator. The Company's two divisions are Streamedia Networks and
     Business Services. In December 1999, the Company completed its initial
     public offering (the "Offering"). The net proceeds from the Offering were
     approximately $8,447,000.



                                       5
<PAGE>

                         Streamedia Communications, Inc
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                  June 30, 2000
                                   (unaudited)


NOTE B (CONTINUED)

     The Company is in the development stage. Streamedia Networks consist of a
     suite of topical broadcast networks to deliver or "stream" live and
     on-demand audio and video programming. The Streamedia Networks sites intend
     to offer programming in Streamedia Communications, Inc. areas such as, but
     not limited to, business, sports, women's issues, parenting, travel,
     education, religion, politics, health, teen and children's interests,
     shopping, real estate, music, technology, personal fitness, movies,
     entertainment and lifestyles. The Company has chosen "Crime Broadcast,"
     "Sports Style," "Motion Arts" and "Women on the Edge" as its initial
     network launches. The Streamedia Networks will include StreamWire which
     will consist of a series of focused, subject-oriented, edited news and
     information products, such as wires devoted to NASDAQ or Amex-listed
     companies.

     Streamedia Business Services division will market Internet and intranet
     broadcasting services to a wide spectrum of enterprises, such as, but not
     limited to, businesses, associations, electronic publishers and "off-line"
     media generators, who are attempting to obtain an Internet broadcast
     presence.

     The division will attempt to deliver multimedia and text through a variety
     of push, poll and proprietary electronic mail mechanisms. The Company's
     operations are subject to certain risks and uncertainties, including actual
     and potential competition by entities with greater financial resources,
     experience and market presence, risks associated with the development of
     the Internet markets, risks associated with consolidation in the industry,
     the need to manage growth and expansions, certain technology and regulatory
     risks and dependence upon sole and limited suppliers.

     The accompanying financial statements have been prepared on the basis that
     the Company will continue as a going concern which assumes the realization
     of assets and settlement of liabilities in the normal course of business.
     Since its inception, the Company has been engaged in organizational and
     pre-operating activities. Further, the Company has generated nominal
     revenues and incurred losses. Continuation of the Company's existence is
     dependent upon its ability to obtain additional capital, secure and execute
     strategic alliances to develop news and information content and sustain
     profitable operations. The uncertainty related to these conditions raises
     substantial doubt about the Company's ability to continue as a going
     concern. The accompanying financial statements do not include any
     adjustments that might result from the outcome of this uncertainty.




                                       6
<PAGE>



                         Streamedia Communications, Inc
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                  June 30, 2000
                                   (unaudited)



NOTE C - BUSINESS COMBINATIONS

     During March 2000, the Company completed the acquisition of Eons Ahead,
     Inc. ("Eons") through a stock-for-stock merger. Under the terms of the
     acquisition, accounted for as a pooling of interests, the Company exchanged
     129,354 shares of Company common stock for all of Eons common stock. Eons
     is a technology-based company, incorporated on January 13, 1998, which
     designs, markets and develops strategies for other entities.

     The reconciliation below details the effects of the pooling on previously
     reported revenues, net loss and loss per share of the separate companies
     for the period from April 29, 1998 (date of inception) to December 31,
     1998, year ended December 31 1999 and cumulative from January 13, 1998
     (date of inception) to December 31, 1999.

<TABLE>
<CAPTION>
                                                                   Cumulative
                         Period from                                 from
                        April 29, 1998                            January 13,
                           (date of                              1998 (date of
                        inception) to         Year ended         inception) to
                         December 31,        December 31,         December 31,
                             1998                1999                1999
                         -----------         -----------          -----------
Revenues
<S>                      <C>                 <C>                  <C>
   Streamedia            $      --           $      --            $     --
   Eons                       18,286             212,140              230,426
                         -----------         -----------          -----------

   Combined              $    18,286         $   212,140          $   230,426
                         ===========         ===========          ===========

Net loss
   Streamedia            $  (296,760)         (3,784,911)         $(4,081,671)
   Eons                     (131,460)               (913)            (132,373)
                         -----------         -----------          -----------

   Combined              $  (428,220)        $(3,785,824)         $ 4,214,044
                         ===========         ===========          ===========

Loss per share
   Streamedia            $      (.14)        $     (1.12)         $     (1.47)
   Eons                         (.06)               --                   (.05)
                         -----------         -----------          -----------

   Combined              $      (.20)        $     (1.12)         $     (1.52)
                         ===========         ===========          ===========

</TABLE>


                                       7
<PAGE>



                         Streamedia Communications, Inc
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                  June 30, 2000
                                   (unaudited)



NOTE C (CONTINUED)

     On March 31, 2000, the Company purchased certain web site domains and
     production assets from Kudzu NewMedia and Bijou Cafe.com (collectively,
     "Bijou") for 20,000 shares of the Company's stock, valued on the effective
     date of agreement at approximately $76,000, representing the fair market
     value of the assets acquired. The acquisition was accounted for as a
     purchase, and accordingly, the statements of operations include the results
     of operations of Bijou since acquistion. The operations of Bijou are not
     significant to the Company's operations.


NOTE D - LOSS PER SHARE

     Basic and diluted net loss per share are presented in conformity with
     Statement of Financial Accounting Standards No. 128 ("SFAS No. 128"),
     "Earnings Per Share," and SEC Staff Accounting Bulletin No. 98 ("SAB 98").
     Under SFAS No. 128 and SAB 98, basic net loss per share is computed by
     dividing net income (loss) by the weighted-average number of common shares
     outstanding for the period. It also requires a reconciliation of the
     numerator and denominator of the basic net loss per share to the numerator
     and denominator of the diluted net loss per share. As of June 30, 2000, the
     calculation of diluted net loss per share excludes an aggregate of
     3,152,908 shares of common stock issuable upon exercise of warrants and
     employee stock options, as the effect of such shares would be antidilutive
     for all periods presented.


NOTE E - STOCKHOLDERS' EQUITY

     Initial Public Offering

     On December 27, 1999, the Company completed its Offering, which consisted
     of 1,200,000 units, each unit consisting of one share of common stock and
     one redeemable warrant, at an offering price of $8.50 per unit. Each
     redeemable warrant entitles the holder to purchase one share of common
     stock at $12.75 per share, at any time from issuance until December 21,
     2004. Such warrants are redeemable by the Company, with the prior written
     consent of the underwriter, at a redemption price of $.05 commencing May
     17, 2000 provided that the closing price of the common stock is at least
     $12.75 per share for 10 (ten) consecutive trading days. In addition, there
     was an overallotment option for 180,000 units, of which 40,000 units were
     exercised by the underwriter in January 2000, for net aggregate proceeds of
     $299,200.



                                       8
<PAGE>



                         Streamedia Communications, Inc
                          (A Development Stage Company)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                  June 30, 2000
                                   (unaudited)



NOTE E (CONTINUED)

     In August 1999, the Company's Board of Directors granted stock options
     pursuant to the Company's 1999 Incentive and Nonstatutory Option Plan (the
     "1999 Plan") to an employee to purchase 110,000 shares of common stock at
     an exercise price of $2.00 per share (a price below the estimated fair
     market value of the Company's common stock of $7.50 on the date of
     issuance). Of the 110,000 options, 75% vest ratably over three years from
     the date of grant for which compensation expense of $453,750 is
     recognizable over such period. The remaining 25% of such options vest upon
     achieving certain performance-based criteria, which are expected to occur
     during the year ending December 31, 2000. Compensation expense for these
     options will be recognized based on the intrinsic value of such options at
     the time the performance-based criteria are achieved. Compensation expense
     relating to these options of approximately $126,100 was recognized for the
     six months ending June 30, 2000.

     In May 2000, the shareholders of the Company approved a 500,000 share
     increase in the maximum number of common shares reserved for issuance under
     the 1999 Plan.

     For the six months ended June 30, 2000, the Company's Board of Directors
     granted stock options under the 1999 plan to certain employees to purchase
     an aggregate of 107,408 shares of common stock at exercise prices
     representing the fair market value of the underlying common stock at the
     time of the respective grants.


                                       9
<PAGE>

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

The following discussion should be read in conjunction with our Financial
Statements and Notes thereto which appear elsewhere in this document. The
results shown herein are not necessarily indicative of the results to be
expected in any future periods. This discussion contains forward-looking
statements based on current expectations, which involve risks and uncertainties.
Actual results and the timing of events could differ materially from the
forward-looking statements as a result of a number of factors. Readers, however,
should carefully review factors set forth in other reports or documents that we
file from time to time with the Securities and Exchange Commission.

OVERVIEW

We were organized in the State of Delaware in 1998. From the date of our
inception through the present, we have considered ourselves a development stage
company. Our primary activities to date have consisted of the following:

Securing financing to begin the operating phase

We completed our Initial Public Offering on December 27, 1999. Prior to this
date we completed only limited build-out and development of our technological
infrastructure and recruited only a select few technical and managerial
employees. Subsequent to the completion of the offering we began an extensive
effort to develop a state-of-the-art infrastructure for video and audio
streaming and to recruit and hire technical personnel to design, implement, and
maintain these systems. The initial phase of this build-out was substantially
completed in the second quarter of 2000.

Building of streaming infrastructure and the web sites

The streaming infrastructure consists of various local and wide area networks
capable of streaming and storing large amounts of audio and video files. We have
implemented networked environments for development, staging, and actual
broadcast to the public over the Internet. The system combines a sophisticated
network architecture to develop and deliver our content as well as a system to
store files to be streamed.


                                       10
<PAGE>

Recruiting technical and broadcast production talent

The area of streaming video and audio over the Internet is new and complex.
There is an extremely limited pool of talent available with expertise in this
field. We have spent a great deal of time recruiting and interviewing talent for
these positions. We have had success in attracting and retaining individuals
with the necessary talents and experience. We have approximately 36 employees
the majority of which are Network Producers, Video Editing Technicians, Digital
Asset Technicians, Web Designers, Web Developers, Programmers, and LAN and
Database Administrators.

Developing and refining our business model

We have devoted time to refining our business model prior to commencing actual
operations. Our business model has been built around multiple lines of product
and services with multiple revenue sources. We originally contemplated four
business lines, which have since been consolidated into two main revenue
divisions built around the types of clients that each division services. The
Streamedia Networks target the Internet users and our Business Services division
is aimed at corporate clients.

Establishing a network of industry partners

The Internet industry has been built around establishing partnering
arrangements with competitors and collaborators alike.  In furtherance of our
plan and objectives, we have established partnering arrangements with Real
Networks, Inc., Real Media, Inc., Virage, Inc., Vignette, Inc., Screaming
Media, Inc., Accrue Software, Inc., COMTEX Scientific Corp., Intraware, Inc.,
and Video Corporation of America, Inc.

Planning and developing of the Streamedia Networks

The Streamedia Networks are the showcase of our abilities in webcasting,
streaming audio and video, and web site design and development. We have
evaluated, acquired, and installed hardware and software associated with the
development of the Networks including ad servers, syndication servers, database
servers, multimedia delivery, Internet broadcasting, online content syndication,
media asset management, online advertising and customer management.

During the quarter ended June 30, 2000, we officially launched the Streamedia
Networks, which are our showcase for web design and broadcast programming. Each
Network is devoted to a specific category of programming, such as women's
issues or sports. Visitors to the Streamedia Networks are able to view live and
on-demand video and audio programming in an environment similar to that of cable
broadcasts, offering a wide scope of programming choices, interactive elements,
convenient access to retail opportunities, and numerous sources of news and
information in topics of interest. Much like cable and network television, we
produce, aggregate and distribute content in various categories. Currently, we
offer programming news and information on five Networks: Crimebroadcast, Motion
Arts, Women on the Edge, Sports Style and the Bijou Cafe.


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<PAGE>

Planning and developing our Business Services

Our business services are designed to provide technology and consulting
expertise and services to traditional media companies, traditional businesses
with media assets, and online businesses and web sites. Our Streamedia Digital
Solutions includes encoding services, digital security, video indexing,
broadcasting production, and web design. In developing our business services
area, we have acquired and installed hardware and software that allows us to
perform these services for other companies.

During the quarter ended June 30, 2000, we also launched our Internet
professional services business and began producing revenues. The Internet
professional services business provide consulting and design services relating
to the construction of websites or Internet applications on the World Wide Web.
The launch of our professional services was subsequent to the launch of the
Streamedia Networks in May and was only operational for a portion of the
quarter.

RESULTS OF OPERATIONS

On March 31, 2000, we acquired Eons Ahead, Inc., a New York web design firm. The
financial statements presented with this discussion reflect this transaction as
a "pooling of interests" of Eons Ahead with our interests as the surviving
company. The discussion that follows, and all future discussions, will
exclusively address the financial statements of the "pooled" Company and
retroactively combine the financial positions of Streamedia with Eons Ahead,
Inc.

REVENUES. Revenues increased by $78,721 or 151% to $130,830 for the six months
ended June 30, 2000, as compared to $52,109 for the comparable period of 1999.
For the three months ended June 30, 2000, revenues increased by $92,218 or 295%
to $123,486, as compared to $31,268 for the comparable period in 1999. Revenues
for the three and six month periods ended June 30, 2000, were primarily
generated from our performance of Internet professional services, launched in
May 2000.

The revenues for the three and six month periods ended June 30, 1999, are due to
acquisition of Eons Ahead, Inc., in March 2000, which was accounted for as a
pooling of interests.

OPERATING EXPENSES. Total operating expenses increased by $3,373,118 or 546% to
$3,991,120 for the six months ended June 30, 2000, as compared to $618,002 for
the comparable period of 1999. For the three months ended June 30, 2000, total
operating expenses increased by $1,932,252 or 517% to $2,306,192, as compared to
$373,940, for the comparable period in 1999. The increases in operating expenses
for the three and six month periods ended June 30, 2000, were due to recruiting,
hiring, and training of additional technical and administrative employees,
product development costs, implementing of systems including our video storage
systems, Internet service provider costs, and other general and administrative
expenses.


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<PAGE>

LIQUIDITY AND CAPITAL RESOURCES. We incurred net losses every quarter since our
inception. For the six months ended June 30, 2000, we incurred a net loss of
$3,753,173, an increase of 560% as compared to a net loss of $568,257, for the
six months ended June 30, 1999.

We have financed our operations primarily through sales of equity securities and
the private placement of debt instruments. For the six months ended June 30,
2000, we have raised $299,200 from the sale of common stock pursuant to the
exercise of the underwriters' overallotment option in connection to our initial
public offering. From January 13, 1998, the date of our inception, to June 30,
2000, we have raised a total of approximately $12.8 million from the sale of
common stock and the placement of debt (before underwriting discounts and
offering costs). We completed our initial public offering on December 27, 1999,
and repaid $1,878,125 in debt and interest. On June 30, 2000, our principal
source of liquidity is $1,776,392 of cash and cash equivalents.

During this fiscal year, we plan to implement several business strategies. These
include substantially adding to our library of broadcast content and to develop
our Internet professional services offerings. We intend to focus our efforts on
the expansion of our professional services since we believe that it represents
our best short-term path to profitability. The Network or Content portion of the
business will be built out more gradually, as our resources will be expended on
the areas representing the potential for greatest return.

To accomplish these objectives, we need to:

o  Make substantial investments in capital equipment, such as web servers,
   storage devices, and other specialized computer and communications equipment,
   and

o  Hire or otherwise contract with highly specialized personnel to develop,
   configure, administer, and operate Web sites, broadcast equipment and
   infrastructure for our company and our corporate clients.

While we are building and subsequently launching Network and Channel sites, we
will be purchasing, or otherwise producing or acquiring, audio and video
content. Such content needs to be prepared for delivery via a process known as
encoding. The encoding process is required to prepare the content for streaming,
or broadcasting, over the Internet. In addition to encoding out own material for
broadcast, we will also provide encoding services to outside parties for fees
based on the number of minutes encoded.

We plan to acquire additional content. Current industry conditions render it
difficult to secure "exclusive" rights to numerous classes of content suitable
for broadcasting over the Internet. To the extent to which we cannot capture
exclusive broadcast rights, we will be in competition with other web sites
attempting to attract audiences by offering some of the same programming.

We anticipate that any rise in our industry stature, such as by launching a
series of successful sites, selling business to business services, and supplying
third party sites with programming, will assist us to further market business to
business professional services, and thereby proportionately increase our
revenue. We expect expenditures to rise in proportion to each phase of our build
out. While we anticipate increased revenues concurrent with the build out,
delays in product development or the institution of marketing programs could
result in the risk of prolonged absence of revenues, profits, or working
capital.


                                       13
<PAGE>

For the six months ended June 30, 2000, we expended approximately $1,269,000 for
property and equipment assets. This represents a substantial portion of our
technical capital infrastructure. We estimate we will spend an additional
$600,000 completing our infrastructure. We expect to complete this build-out in
the third and fourth quarters of fiscal 2000, at which time we anticipate that
the monthly rate of capital expenditures will significantly decrease.

Nevertheless, we believe that to accomplish our business objectives we will have
to continue to expand our operations. However, our limited operating history
makes predictions of our future results of operations difficult to access. We
have incurred net losses in each fiscal period since our inception and, as of
June 30, 2000, we had an accumulated deficit of $7,967,217. To date, although we
are beginning to generate revenues, we may never achieve profitable operations.
Our history of net losses raises doubt about our ability to continue operations.
Based upon our projected costs for the year 2000 and our past operating losses,
we will need to obtain sufficient additional financing or other working capital
to fund our operations.

If we do not obtain additional financing or working capital, we believe that
limiting our planned expansion and by reducing sales, marketing, and advertising
budgets, our cash and cash equivalents will be sufficient to meet our working
capital and capital expenditure requirements through at least the end of 2000.
Thereafter, if cash generated by operations is insufficient to satisfy our
liquidity requirements, we may need to sell additional equity or debt securities
to continue as a going concern.

                                     PART II

                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

We were not a party to any material legal proceedings as of June 30, 2000.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

RECENT SALES OF UNREGISTERED SECURITIES

There were no sales of unregistered securities in the quarter ended June 30,
2000.

USE OF PROCEEDS

As a result of our initial public offering we received $8,446,777 in net total
proceeds. As of June 30, 2000, we have used $211,379 for leasehold improvements,
building and facilities; $1,878,125 repayment of indebtedness; $1,876,906 for
hardware, video equipment, software, and associated licenses; $2,324,273 for
burdened payroll; and $787,085 for technical and financial consultants.


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<PAGE>

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

Not applicable.

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

On May 17, 2000, we held our annual meeting of our shareholders. During our
annual meeting our shareholders approved the election of Gayle Essary, James
Rupp, Nicholas Malino, Robert Schroeder, David Simmonetti, Robert Shuey, III,
and Robert Wussler to serve as directors entitle the next annual meeting.

In addition, the shareholders approved a 500,000 share increase in the maximum
number of shares of Common Stock reserved for issuance under the Company's 1999
Incentive and Nonstatutory Stock Option Plan. The shareholders also ratified
Grant Thornton LLP as independent certified public accountants for the Company
for the year ending December 31, 2000.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibit.

      Exhibit 27 Financial Data Schedule.

(b)   Reports of Form 8-K

      There were no reports on Form 8-K filed by the Company during the quarter
ended June 30, 2000.



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<PAGE>




                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                          Streamedia Communications, Inc.
Date: August 14, 2000                     By: /s/ James Rupp
                                              -----------------------------
                                               James Rupp
                                               Chief Executive Officer

                                          By: /s/ Nicholas Malino
                                              -----------------------------
                                               Nicholas Malino
                                               Chief Financial Officer


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