SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[ X ]          Quarterly Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934
              for the Quarterly Period Ended September 30, 1997
                                       OR
[   ]         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 0-19407

                         LASER-PACIFIC MEDIA CORPORATION
             (Exact name of registrant as specified in its charter)

                  Delaware                           95-3824617
        (State or other jurisdiction of           (I.R.S. Employer
        incorporation or organization)           Identification No.)

                              809 N. Cahuenga Blvd.
                           Hollywood, California 90038
                                 (213) 462-6266
(Address, including zip code and telephone number, including area code of
 principal executive offices)

Indicate by check mark whether the registrant (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 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes X No

The number of shares  outstanding of each of the registrant's  classes of common
stock, as of November 1, 1997 was 7,128,172  shares of Common Stock,  $.0001 par
value.



<PAGE>
                         LASER-PACIFIC MEDIA CORPORATION
                                AND SUBSIDIARIES

                                Table of Contents

                                                                          Page

Part I - Financial Information

Item 1. Condensed Consolidated Financial Statements. . . . . . . . . . . .  1

        Condensed Consolidated Balance Sheets. . . . . . . . . . . . . . .  1
        Condensed Consolidated Statements of Operations. . . . . . . . . .  2
        Condensed Consolidated Statements of Cash Flows. . . . . . . . . .  3
        Notes to Condensed Consolidated Financial Statements . . . . . . .  4

Item 2. Management's Discussion and Analysis of Financial Condition
 and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . .  5

Part II - Other Information

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7



<PAGE>



                         LASER-PACIFIC MEDIA CORPORATION
                                AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets

                                       (Audited)         (Unaudited)
                                      December 31,       September 30,
                                         1996                1997
                                      -----------         ----------

Assets
Current assets . . . . . . . . .       $5,278,786         $5,754,667
Net property and equipment . . .       17,233,085         16,668,908
Other assets . . . . . . . . . .          650,580            640,728

                                      ============       ============
                                      $23,162,451         $23,064,303
                                      ============       ============

Liabilities and Stockholders' Equity
Current liabilities. . . . . . .       $7,777,226          $8,956,363
Notes payable to bank and long-term
debt, less current installments.        7,958,554           8,390,850
Minority interest in
consolidated  subsidiary . . . .        1,325,893           1,323,485

Stockholders' equity: Common stock,
$.0001 par value. Authorized
25,000,000 shares;  issued  and
outstanding 7,128,172 shares at
December 31, 1996 and 7,128,172 shares
at September 30, 1997, respectively .         713                 713
Additional  paid-in  capital . .       19,753,690          19,772,440
Accumulated  deficit . . . . . .      (13,653,625)        (15,379,548)
                                     -------------       -------------
   Net stockholders' equity. . .        6,100,778           4,393,605
                                     -------------       -------------
                                      $23,162,451         $23,064,303
                                     =============       =============






     See accompanying notes to condensed consolidated financial statements.




<PAGE>


                         LASER-PACIFIC MEDIA CORPORATION
                                AND SUBSIDIARIES
           Condensed Consolidated Statements of Operations (Unaudited)


                            Three Months Ended         Nine Months Ended
                               September 30,             September 30,
                            ------------------         -----------------
                            ------------------         -----------------
                             1996        1997          1996         1997

Revenues . . . . . . . . .$7,275,799  $6,885,113   $19,738,519  $19,335,729
Operating costs. . . . . . 5,910,922   5,444,128    17,676,955   16,566,800
                          ----------  ----------   -----------  -----------
   Gross profit. . . . . . 1,364,877   1,440,985     2,061,564    2,768,929
Selling, general and
administrative and other
expenses . . . . . . . . .   947,253   1,125,037     3,350,666    3,349,729
                          ----------  ----------   -----------  -----------
     Income (loss) from
      operations . . . . .   417,624     315,948    (1,289,102)    (580,800)
Interest expense . . . . .   393,872     438,412     1,148,093    1,170,078
Other Income (expense) . .   (72,512)        ---        22,997       24,955
                          ----------  ----------   -----------  ------------
     Net loss. . . . . . .  ($48,760)  ($122,464)  $(2,414,198) $(1,725,923)
                          ==========  ==========   ===========  ============

Net loss per common and
common Equivalent shares .  $(.01)      $(.02)        $(.34)       $(.24)
                          ----------  ----------   -----------  ------------

Weighted average common
and common Equivalent
shares outstanding . . . . 7,068,172   7,128,172     7,068,172     7,128,172
                          ==========  ==========   ===========  ============








     See accompanying notes to condensed consolidated financial statements.



<PAGE>



                         LASER-PACIFIC MEDIA CORPORATION
                                AND SUBSIDIARIES
           Condensed Consolidated Statements of Cash Flows (Unaudited)


                                             Nine Months Ended
                                                September 30,
                                    ---------------- --- -----------------
                                    ----------------     -----------------
                                          1996                  1997
Cash flows from operating activities
  Net loss . . . . . . . . . . . .    ($2,414,198)          ($1,725,923)
  Adjustments to reconcile net loss
  to net cash provided by operating
  activities:
   Depreciation and amortization .      3,790,769             3,180,473
   Write-off of obsolete property
   and equipment . . . . . . . . .        226,681                   ---
   Provision for doubtful
   accounts receivable . . . . . .        208,319               193,415
   Other . . . . . . . . . . . . .        (93,699)               (2,409)
   Change in assets and liabilities:
     (Increase) decrease in:
      Accounts receivable. . . . .      2,925,584              (142,725)
      Inventory. . . . . . . . . .         54,778                41,624
      Prepaid expenses and other
      current assets . . . . . . .         14,869              (119,952)
      Other assets . . . . . . . .       (198,295)                9,853
   Increase (decrease) in:
      Accounts payable and
      accrued expenses . . . . . .     (2,366,293)             (161,551)
                                      ------------           -----------
Net cash provided by operating
activities . . . . . . . . . . . .      2,148,515             1,272,805
                                      ------------           -----------


Cash flows from investing activities:
  Purchases of property and
  equipment. . . . . . . . . . . .     (3,801,516)           (2,628,542)
  Net proceeds from disposal of
  property and equipment . . . . .            ---                30,995
                                      ------------           -----------
Net cash used by investing
activities . . . . . . . . . . . .     (3,801,516)           (2,597,547)
                                      ------------           -----------

Cash flows from financing activities :
  Proceeds borrowed under notes
  payable to bank and long-term
  debt . . . . . . . . . . . . . .      3,834,171             5,018,600
  Repayment of notes payable to
  bank and long-term debt. . . . .     (3,382,643)           (3,245,616)
  Proceeds from issuance of
  common stock . . . . . . . . . .        426,789                   ---
                                      ------------           -----------
Net cash from financing activities        878,317             1,772,984
                                      ------------           -----------

   Net increase (decrease) in cash       (774,684)              448,242
Cash at beginning of period. . . .        812,989               283,082
                                      ------------           -----------
Cash at end of period. . . . . . .    $    38,305             $ 731,324
                                      ============           ===========

Supplementary disclosure of cash flow information:
 Cash paid during the period for
 interest. . . . . . . . . . . . .     $1,148,098            $1,170,078
                                      ============           ===========

     See accompanying notes to condensed consolidated financial statements.



<PAGE>


                         LASER-PACIFIC MEDIA CORPORATION

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)



(1) Basis of Presentation
     In  the  opinion  of  management,   the  accompanying  unaudited  condensed
consolidated financial statements contain all adjustments  (consisting of normal
recurring  items)  necessary  to  present  fairly  the  financial   position  of
Laser-Pacific  Media  Corporation  ("the  Company") and its  subsidiaries  as of
September 30, 1997 and December 31, 1996, the consolidated results of operations
for the three and nine month periods ended  September 30, 1996 and 1997, and the
consolidated statements of cash flows for the nine month periods ended September
30,  1996 and  1997.  The  Company's  business  is  subject  to the  prime  time
television  industry's typical  seasonality.  Historically,  revenues and income
from  operations  have been highest during the first and fourth  quarters,  when
production  of television  programs and demand for the Company's  services is at
its  highest.  The net  income  or loss of any  interim  quarter  is  seasonally
disproportionate  to  revenues  because  selling,   general  and  administrative
expenses and certain operating  expenses remain  relatively  constant during the
year.  Therefore,  interim  results are not indicative of results to be expected
for the entire fiscal year.

     The company has a controlling  financial  interest  (77%) in Pacific Video,
Canada  Ltd.  ("PVC")  and in  accordance  with  generally  accepted  accounting
principles  has  consolidated  the  accounts  of  PVC  into  these  consolidated
financial  statements.  The amount of minority  interest at  September  30, 1997
represents  the 23%  ownership of PVC's  outstanding  capital  stock held by the
minority stockholders of PVC.

     In accordance with the directives of the Securities and Exchange Commission
under Rule 10-01 of  Regulation  S-X, the  accompanying  consolidated  financial
statements  and  footnotes  have  been  condensed  and  do not  contain  certain
information  included in the Company's annual consolidated  financial statements
and notes thereto.

(2) Loss per Share

     Net loss per  common  and  common  equivalent  shares  are  based  upon the
weighted average number of common and common equivalent shares outstanding.  The
outstanding stock options, warrants and convertible notes have not been included
in  the  calculations  as  their  effect  would  not be  material  or  would  be
anti-dilutive.

(3) Income Taxes
     The  Company did not  provide  for income  taxes for the nine month  period
ending September 30, 1997 due to the operating loss incurred.


<PAGE>
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
Results of Operations

     Revenues  for the  nine  months  ended  September  30,  1997  decreased  to
$19,336,000  from  $19,739,000  for the same  year-ago  period,  a  decrease  of
$403,000  or 2.0%.  The  decrease  in  revenues  is  comprised  of a decrease of
$359,000 in Production  Services,  and a decrease of $53,000 in Film  Production
Services and an increase of $9,000 in Post Production Services. The Revenues for
the nine months  ended  September  30,  1997 at the  Company's  U.S.  facilities
decreased $614,000 versus the year-ago period, while revenues from International
Operations increased $211,000 versus the year-ago period.

     Revenues for the quarter ended  September 30, 1997  decreased to $6,885,000
from  $7,276,000 for the same year-ago  period,  a decrease of $391,000 or 5.4%.
This  decrease in revenues is comprised of a decrease of $216,000 in  Production
Services,  a decrease of $171,000 in Film Production  Services and a decrease of
$4,000 in Post Production Services. The Revenues for the quarter ended September
30, 1997 at the Company's U.S. facilities decreased $521,000 versus the year-ago
period,  while revenues from International  Operations increased $130,000 versus
the year-ago period.

     For the nine months ended  September 30, 1997 the Company  recorded a gross
profit of $2,769,000  compared with $2,062,000 for the same year ago period,  an
increase of $707,000 or 34.3%.  Operating  costs for nine months ended September
30, 1997 were $16,567,000 versus $17,677,000 for the year-ago period, a decrease
of $1,110,000 or 6.3%. Operating costs, as a percentage of revenues for the nine
months  ended  September  30, 1997 were 85.7%  compared  with 89.6% for the same
year-ago  period.  The decrease in operating costs is primarily  attributable to
reduced  depreciation  expense  of  $611,000,  lower  direct  material  costs of
$233,000 and lower labor cost of $119,000.

     For the quarter  ended  September  30,  1997 the  Company  recorded a gross
profit of $1,441,000  compared to a gross profit of $1,365,000 for the same year
ago period,  an increase of $76,000 or 5.6%.  Operating  costs for quarter ended
September 30, 1997 were $5,444,000  versus $5,911,000 for the year-ago period, a
decrease of $467,000 or 7.9%.  Operating  costs, as a percentage of revenues for
the quarter ended September 30, 1997 were 79.1% compared with 81.2% for the same
year-ago  period.  The decrease in operating costs is primarily  attributable to
reduced depreciation expense of $123,000, lower direct material costs of $85,000
and lower labor cost of $99,000.

     Selling,  general and administrative (S, G & A), and other expenses for the
nine months ended  September 30, 1997 were  $3,350,000 as compared to $3,351,000
during the same year-ago period, a decrease of $1,000 or 0.0%. Selling,  general
and  administrative  (S G & A), and other  expenses  for the three  months ended
September  30, 1997 were  $1,125,000  as  compared  to $947,000  during the same
year-ago period, an increase of $178,000 or 18.8%.

     Interest  expense  for  the  nine  months  ended  September  30,  1997  was
$1,170,000  compared to $1,148,000 for the same year-ago period,  an increase of
$22,000 or 1.9%.  Interest expense for the three months ended September 30, 1997
was $438,000  compared to $394,000 for the same year-ago period,  an increase of
$44,000 or 11.2%.  The increase in interest expense  primarily  resulted from an
increase in debt.

     Depreciation  expense  for the nine  months  ended  September  30, 1997 was
$3,180,000  compared to $3,791,000 for the same year-ago  period,  a decrease of
$611,000 or 16.1%. Depreciation expense for the three months ended September 30,
1997 was  $1,078,000  compared to  $1,201,000  for the same year-ago  period,  a
reduction of $123,000 or 10.2%. The  depreciation  expense for both the nine and
three  months  ended  September  30, 1997 was lower than for the same periods in
1996.  The  depreciation  expense  reductions  were the  result  of the  company
acquiring  less  equipment  than the  amount  of  equipment  that  became  fully
depreciated  during the nine and three months  ended  September  30, 1997.  Also
contributing  to the  difference  in  depreciation  expense was the  accelerated
depreciation taken in 1996 on obsolete Spectra Edit systems.

Liquidity and Capital Resources

     The Company and its  subsidiaries are operating under a loan agreement with
The CIT Group/Credit Finance with a maturity date of August 3, 2000. The maximum
credit under the agreement is $9 million.  The amended loan  agreement  provides
for  borrowings  up to $5.4  million  under  the term  loan  (limited  to 85% of
eligible  equipment  appraisal  value) and $3.6 million under the revolving loan
(limited to 85% of eligible accounts receivable). At September 30, 1997 $484,000
was available under the revolving loan agreement. The outstanding balance of the
term loan was  $3,791,000  at September  30,  1997.  The term loan is payable in
monthly  installments  of $106,000 plus interest at prime plus 2% through August
3, 2000.  Principal  payments are not required in June,  July or August.  Future
principal payments may be increased to compensate for a significant reduction in
the appraised value of the assets, which secure the loan. The revolving loan had
an outstanding balance of $2,250,000 at September 30, 1997. It bears interest at
prime plus 2%, which is payable  monthly.  The loan contains  automatic  renewal
provisions for successive terms of two years after maturity unless terminated as
of August 3, 2000 or as of the end of any renewal period by either party upon at
least 60 day written notice.

     During May,  1997 CIT  Group/Credit  Finance  agreed to provide the Company
with an additional Loan  Accommodation of $600,000 subject to the same terms and
conditions of the loan  agreement.  The Loan  Accommodation  was to be repaid in
installments of $32,000 per week commencing August 4, 1997 and continuing weekly
until repaid.  The Loan  Accommodation  was paid in full as of October 30, 1997.
The initial  advance under the Loan  Accommodation  was $125,000.  The remaining
$475,000  was  advanced in  increments  as the Company  received  cash under the
short-term notes explained below. At September 30, 1997 the outstanding  balance
was $376,000.

     To fund a cash  shortfall  in the second and third  quarters  of 1997,  the
Company issued $1,000,000 of short-term  Installment (Fixed Rate) Line of Credit
Notes, Series 1997 to 35 Lake Avenue, a California limited partnership. James R.
Parks, the Company's,  Chief Executive Officer,  is a partner in 35 Lake Avenue.
The  principal  balance  of each Note  bears  interest  at the rate of  fourteen
percent (14%) per annum.  The accrued  interest on the outstanding  principal is
payable on September 30, 1997, December 31, 1997, January 30, 1998, February 28,
1998 and March 30,  1998.  The  outstanding  principal  balance is to be paid in
three equal  installments  on January 30, 1998,  February 28, 1998 and March 31,
1998. The Company  granted 35 Lake Avenue  warrants to purchase one (1) share of
the Company's  common stock at the exercise  price of $1.00 per share,  for each
$4.00 of original principal amount of debt loaned. 250,000 warrants were issued.
The  warrants  will  expire  two  years  from the date of grant.  The  Company's
obligations  under the Notes are secured by a pledge of 2,424,488  shares of the
Common Stock of Pacific  Video Canada Ltd. and a third deed of trust against the
building where the Company provides film processing and sound services.

     The Company has an  outstanding  real estate loan with the Bank of America.
The loan is secured by the building where the Company  provides film  processing
and sound services.  The loan agreement matures December 31, 1998 with an option
to extend the maturity an additional year upon payment to the Bank of America of
a $25,000 loan extension fee prior to December 31, 1998. The outstanding balance
as of September 30, 1997 was $1,347,000.

     The Company's principal source of funds is cash generated by operations. As
of  September  30,  1997,  the  Company  had a  working  capital  deficiency  of
approximately   $3,102,000   and  an   accumulated   deficit  of   approximately
$15,400,000.  On an annual  basis the Company  anticipates  that  existing  cash
balances and availability under existing loan agreements and cash generated from
operations  will  not be  sufficient  to  service  existing  debt.  The  Company
experienced  a cash  shortfall  in the second  and third  quarters  of 1997.  As
explained above the cash shortfall was financed by a Loan  Accomodation from CIT
and  the  issuance  of  short-term  Notes.  The  Company  also  anticipates  the
possibility  of a cash shortfall in the first quarter of 1998 which is discussed
in detail below. These factors,  among others,  indicate that the Company may be
unable to continue as a going concern.  The financial  statements do not include
any adjustments  that may be necessary  should the Company be unable to continue
as a going concern.  The Company's  continuation as a going concern is dependent
upon its ability to obtain financing,  generate sufficient cash flow to meet its
obligations on a timely basis and ultimately to attain profitable operations.

     During the first  quarter  of 1998 the  Company  is  required  to repay the
remaining $900,000 of short-term notes issued during July 1997. Cash generated
from operations may not be sufficient to pay this obligation. $100,000 of the 
notes was repaid on October 30, 1997. The Company is currently negotiating with
35 Lake Avenue to extend the required principal payments until the fourth
quarter of 1998. Additionally, the company will attempt to secure other sources
of financing. Management is of the opinion that the company will reach an
agreement with the lender to postpone principal payments or secure additional
financing. There is no assurance that these uncertainties will be resolved.

     Forward looking statements and comments in this document relating to, among
other  things the  prospects  for the  Company to achieve  growth in sales,  the
ability to reduce overhead and ability to achieve positive operating results are
necessarily  subject to risks and  uncertainties.  These risks and uncertainties
are  significant in scope and nature,  including  risks related to  competition,
continuation of sales levels and in particular the risks related to the cost and
availability of capital. 
<PAGE>

                                   Signatures


                                         LASER-PACIFIC MEDIA CORPORATION
                                                  (Registrant)



          Dated:  November 14, 1997             /s/James R. Parks
                                                 James R. Parks
                                             Chairman of the Board
                                            and Chief Executive Officer





          Dated:  November 14, 1997            /s/Robert McClain
                                                 Robert McClain
                                                 Secretary and
                                             Chief Financial Officer
                                   (Principal Financial and Accounting Officer)