UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                   FORM 10-QSB

[X]  Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

For the quarterly period ended JUNE 30, 2002

[ ]  Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of
     1934

     For the transition period from              to
                                    -------------   ---------------

     Commission File Number 0-26535

                            VIAVID BROADCASTING, INC.
                            -------------------------
        (Exact name of Small Business Issuer as specified in its charter)


Nevada                                                       98-020-6168
-------------------------------                              -----------
(State or other jurisdiction of                              (IRS Employer
incorporation )                                              Identification No.)

Ste 340-145 Chadwick Crt, N. Vancouver,
British Columbia                                             V7M 3K1
--------------------------------------------------           -------
         (Address of principal executive offices)            (Zip Code)

Issuer's telephone number, including area code               604-988-7667
                                                             ------------

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

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

                                           Outstanding as of
              Class                        August 13, 2002
              --------------------         -----------------

              Common Stock                 12,023,000 shares

                                       1

<PAGE>



                         PART 1 B FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

GENERAL

The Company's unaudited financial statements for the three months ending June
30, 2002 are included with this Form 10-QSB. The unaudited financial statements
for the three months ending June 30, 2002 include:

         (a)  Consolidated Balance Sheet as of June 30, 2002 ("unaudited") and
              March 31, 2002 ("audited");

         (b)  Consolidated Statement of Operations - Cumulative from
              Incorporation to June 30, 2002, three months ended June 30, 2002
              and three months ended June 30, 2001;

         (c)  Consolidated Statement of Stockholders' Equity for the period
              ending June 30, 2002;

         (d)  Consolidated Statements of Cash Flows - Cumulative from
              Incorporation to June 30, 2002, three months ended June 30, 2002
              and three months ended June 30, 2001;

         (e)  Notes to Consolidated Financial Statements.

The unaudited financial statements have been prepared in accordance with the
instructions to Form 10-QSB and, therefore, do not include all information and
footnotes necessary for a complete presentation of the financial position,
results of operations, cash flows, and stockholders' equity in conformity with
generally accepted accounting principles. In the opinion of management, all
adjustments considered necessary for a fair presentation of the results of
operations and financial position have been included and all such adjustments
are of a normal recurring nature. Operating results for the three months ended
June 30, 2002 are not necessarily indicative of the results that can be expected
for the year ending March 31, 2003.


                                       2

<PAGE>














                            VIAVID BROADCASTING, INC.
                          (A DEVELOPMENT STAGE COMPANY)


                        CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

                                  JUNE 30, 2002






                                       3

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
(Unaudited)



<TABLE>
<CAPTION>

======================================================================================================================

                                                                                         June 30,           March 31,
                                                                                           2002               2002
                                                                                        -----------        -----------
<S>                                                                                     <C>                <C>
----------------------------------------------------------------------------------------------------------------------

ASSETS

CURRENT
    Cash                                                                                $    11,448        $    10,616
    Accounts receivable                                                                      60,797             86,076
                                                                                        -----------        -----------

    Total current assets                                                                     72,245             96,692

CAPITAL ASSETS (Note 5)                                                                     123,730            129,578
                                                                                        -----------        -----------

                                        TOTAL ASSETS                                    $   195,975        $   226,270
======================================================================================================================



LIABILITIES AND STOCKHOLDERS' DEFICIENCY

CURRENT
    Accounts payable and accrued liabilities                                            $   124,051        $    88,909
    Due to related parties (Note 6)                                                          38,074              5,858
                                                                                        -----------        -----------

    Total current liabilities                                                               162,125             94,767
                                                                                        -----------        -----------

CONVERTIBLE PROMISSORY NOTES  (NOTE 7)                                                      150,000            150,000
                                                                                        -----------        -----------

TOTAL LIABILITIES                                                                           312,125            244,767
                                                                                        -----------        -----------

STOCKHOLDERS' DEFICIENCY
    Capital stock (Note 8)
       Authorized
              25,000,000 common shares with a par value of $0.001 per share
       Issued and outstanding
              12,023,000  common shares (March 31, 2002 - 12,023,000 common shares)          12,023             12,023
    Additional paid-in capital                                                            2,866,886          2,829,351
    Deficit accumulated during the development stage                                     (2,995,059)        (2,859,871)
                                                                                        -----------        -----------
    Total stockholders' deficiency                                                         (116,150)           (18,497)
                                                                                        -----------        -----------

                       TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY                   $   195,975        $   226,270
======================================================================================================================

</TABLE>



NATURE OF OPERATIONS (NOTE 1)
SUBSEQUENT EVENTS (NOTE 12)

The accompanying notes are an integral part of these consolidated financial
statements.

                                       4


<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

<TABLE>
<CAPTION>



=======================================================================================
                                        Period From
                                      Incorporation
                                                 on
                                        January 20,      Three months      Three months
                                            1999 to             Ended             Ended
                                           June 30,          June 30,          June 30,
                                               2002              2002              2001
---------------------------------------------------------------------------------------
<S>                                     <C>               <C>               <C>


REVENUE
    Broadcast and web income            $   470,888       $   107,744       $    37,372
                                        -----------       -----------       -----------


EXPENSES
    Amortization                            144,199             8,488            11,006
    Bad debts                                 6,663             2,986                --
    Conference calls                        391,938            60,296            49,258
    Consulting                            1,025,918            57,918           113,297
    Foreign exchange                         16,976             3,322               430
    Interest expense                         37,500                --                --
    Office and miscellaneous                315,523            27,086            29,718
    Professional fees                       276,410            15,089             9,946
    Rent                                    149,999            10,275            11,094
    Salaries and benefits                   361,733            18,573            30,860
    Stock based compensation                676,877            37,535            33,711
    Travel and promotion                     73,428             1,388            17,322
                                        -----------       -----------       -----------

                                          3,477,164           242,956           306,642
                                        -----------       -----------       -----------

Loss before other items                  (3,006,276)         (135,212)         (269,270)

OTHER ITEMS
    Loss on sale of assets                   (2,118)               --                --
    Interest income                          13,335                24               692
                                        -----------       -----------       -----------

                                             11,217                24               692
                                        -----------       -----------       -----------

Loss for the period                     $(2,995,059)      $  (135,188)      $  (268,578)
=======================================================================================

Basic and diluted loss per share                          $     (0.01)      $     (0.03)
=======================================================================================

Weighted average shares outstanding                        12,023,000         8,898,054
=======================================================================================


</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       5

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)

<TABLE>
<CAPTION>



=======================================================================================================================
                                                                                                 Deficit
                                           Common Stock                               Sub-   Accumulated
                                      -----------------------    Additional     scriptions    During the
                                         Number                     Paid-in       Received   Development
                                      of Shares        Amount       Capital     in Advance         Stage          Total
-----------------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>           <C>            <C>           <C>            <C>

Shares issued on acquisition
    (Note 1)                          5,100,000   $     5,100   $        --    $        --   $        --    $     5,100
Shares issued for cash                  500,000           500         4,500             --            --          5,000
Shares issued for cash                  100,000           100        49,900             --            --         50,000
Shares issued for cash                  184,000           184       183,816             --            --        184,000
Loss for the period                          --            --            --             --       (71,668)       (71,668)
                                      ---------   -----------   -----------    -----------   -----------    -----------

BALANCE AT MARCH 31, 1999             5,884,000         5,884       238,216             --       (71,668)       172,432

Shares issued for cash                  768,000           768       782,232             --            --        783,000
Stock-based compensation for
    options issued to consultants
    and non-employees                        --            --       337,629             --            --        337,629
Loss for the year                            --            --            --             --    (1,005,146)    (1,005,146)
                                      ---------   -----------   -----------    -----------   -----------    -----------

BALANCE AT MARCH 31, 2000             6,652,000         6,652     1,358,077             --    (1,076,814)       287,915

Shares issued for exercise of
    stock options                       180,000           180       179,820             --            --        180,000
Shares issued for consulting fees        75,000            75        37,425             --            --         37,500
Shares issued pursuant to a
    private placement                   740,000           740       369,260             --            --        370,000
Shares issued for finders fee
    on private placement                  4,000             4         1,996             --            --          2,000
Finders fee on private placement             --            --       (31,000)            --            --        (31,000)
Shares issued for consulting fees       312,000           312        77,688             --            --         78,000
Shares issued for exercise of
    stock options                       150,000           150        29,850             --            --         30,000
Stock-based compensation for
    options issued to consultants            --            --       119,958             --            --        119,958
Subscriptions received in advance            --            --            --        106,000            --        106,000
Loss for the year                            --            --            --             --    (1,018,361)    (1,018,361)
                                      ---------   -----------   -----------    -----------   -----------    -----------

BALANCE AT MARCH 31, 2001             8,113,000   $     8,113   $ 2,143,074    $   106,000   $(2,095,175)   $   162,012
=======================================================================================================================

</TABLE>


                                  - Continued -


              The accompanying notes are an integral part of these
                       consolidated financial statements.



                                       6

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)

<TABLE>
<CAPTION>


==========================================================================================================================
                                                                                                    Deficit
                                           Common Stock                               Sub-      Accumulated
                                      ------------------------     Additional     scriptions     During the
                                         Number                       Paid-in       Received    Development
                                      of Shares         Amount        Capital     in Advance          Stage       Total
--------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>             <C>            <C>           <C>             <C>

Cont'd...



BALANCE AT MARCH 31, 2001             8,113,000    $     8,113    $ 2,143,074    $   106,000    $(2,095,175)   $   162,012

    Subscriptions received in
       advance                               --             --             --       (106,000)            --       (106,000)
    Shares issued for cash            1,290,000          1,290        256,710             --             --        258,000
    Finders fee on private
       placement                             --             --        (15,825)            --             --        (15,825)
    Shares issued for consulting
       fees                             200,000            200          9,800             --             --         10,000
    Shares issued for consulting
       fees                             350,000            350         34,650             --             --         35,000
    Shares issued for cash              500,000            500         24,500             --             --         25,000
    Shares issued for exercise of
       warrants                         550,000            550        109,450             --             --        110,000
    Shares issued for exercise of
       warrants                         500,000            500         24,500             --             --         25,000
    Shares issued for exercise of
       stock options                    170,000            170         33,830             --             --         34,000
    Shares issued for consulting
       fees                             100,000            100          4,900             --             --          5,000
    Shares issued for consulting
       fees                             250,000            250         12,250             --             --         12,500
    Shares issued for cash              250,000            250         12,250             --             --         12,500
    Finders fee                              --             --        (15,243)            --             --        (15,243)
    Stock-based compensation for
       options issued to
       consultants                           --             --        181,755             --             --        181,755
    Issuance of convertible
       promissory notes                      --             --         37,500             --             --         37,500
    Shares returned to treasury        (250,000)          (250)       (24,750)            --             --        (25,000)
    Loss for the year                        --             --             --             --       (764,696)      (764,696)
                                      ---------    -----------    -----------    -----------    -----------    -----------

BALANCE AT MARCH 31, 2002            12,023,000         12,023      2,829,351             --     (2,859,871)       (18,497)

Loss for the period                                                                                (135,188)      (135,188)
Stock-based Compensation                     --             --         37,535             --             --         37,535
                                      ---------    -----------    -----------    -----------    -----------    -----------

BALANCE AT JUNE 30, 2002             12,023,000    $    12,023    $ 2,866,886    $        --    $(2,995,059)   $  (116,150)
==========================================================================================================================

</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements.

                                       7

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

<TABLE>
<CAPTION>

====================================================================================================================
                                                                        Period From
                                                                      Incorporation
                                                                                 On
                                                                        January 20,     Three months    Three months
                                                                            1999 to            Ended           Ended
                                                                           June 30,         June 30,        June 30,
                                                                               2002             2002            2001
--------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>              <C>             <C>

CASH FLOWS FROM OPERATING ACTIVITIES
    Loss for the period                                                 $(2,995,059)     $  (135,188)    $  (268,578)
    Items not affecting cash
       Amortization                                                         144,199            8,488          11,006
       Stock based compensation                                             676,877           37,535          33,711
       Consulting fees                                                      153,000               --          45,000
       Intrinsic value of beneficial conversion feature
       of convertible promissory notes                                       37,500               --
       Loss on sale of assets                                                 2,118               --

    Changes in non-cash working capital items
       (Increase) decrease in accounts receivable                           (60,797)          25,279          (4,685)
       Decrease in prepaid expenses                                              --               --           4,158
       Increase(decrease) in accounts payable and accrued liabilities       124,051           35,142         (15,361)
                                                                        -----------      -----------     -----------

    Net cash used in operating activities                                (1,918,111)         (28,744)       (194,749)
                                                                        -----------      -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES
    Acquisition of capital assets                                          (274,307)          (2,640)        (12,905)
    Acquisition of subsidiary                                                  (335)              --              --
                                                                        -----------      -----------     -----------

    Net cash used in investing activities                                  (274,642)          (2,640)        (12,905)
                                                                        -----------      -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from shares issued                                           2,006,432               --         283,000
    Proceeds from sale of assets                                              9,695               --              --
    Subscriptions received in advance                                            --               --        (106,000)
    Loans from related parties                                              188,074           32,216             523
                                                                        -----------      -----------     -----------

    Net cash provided by financing activities                             2,204,201           32,216         177,523
                                                                        -----------      -----------     -----------

CHANGE IN CASH FOR THE PERIOD                                                11,448              832         (30,131)


CASH, BEGINNING OF PERIOD                                                        --           10,616          51,918
                                                                        -----------      -----------     -----------

CASH, END OF PERIOD                                                     $    11,448      $    11,448     $    21,787
====================================================================================================================

</TABLE>

SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS (Note 11)


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                       8

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002


================================================================================


1.       NATURE OF OPERATIONS

         ViaVid Broadcasting Inc., a Nevada corporation, was incorporated on
         January 20, 1999. On January 27, 1999, the Company completed the
         acquisition of ViaVid Broadcasting Corp. ("VBC"), a related Canadian
         company operating in Vancouver, British Columbia, Canada. VBC was
         incorporated under the laws of British Columbia on July 26, 1994.

         The Company's primary business is to provide webcasting,
         teleconferencing and transcription services to corporate clients
         throughout North America. In accordance with Statement of Financial
         Accounting Standards ("SFAS") No. 7 "Accounting and Reporting by
         Development Stage Enterprises", the Company is deemed to be in the
         development stage.


2.       BASIS OF PRESENTATION

         The accompanying consolidated financial statements have been prepared
         by the Company without audit. In the opinion of management, all
         adjustments (which include only normal recurring adjustments) necessary
         to present fairly the financial position, results of operations,
         changes in stockholders' equity and cash flows at June 30, 2002 and for
         the three month period then ended have been made. These financial
         statements should be read in conjunction with the audited consolidated
         financial statements of the Company for the year ended March 31, 2002.
         The results of operations for the three month period ended June 30,
         2002 are not necessarily indicative of the results to be expected for
         the year ending March 31, 2003.

3.       GOING CONCERN

         As at June 30, 2002, the Company has an accumulated deficit of
         $2,995,059. The Company's ability to continue as a going concern is
         dependent on continued financial support in the form of loans from its
         shareholders and other related parties, the ability of the Company to
         raise equity financing, and the attainment of profitable operations.
         Management is of the opinion that sufficient working capital will be
         obtained from external financing and further share issuances to meet
         the Company's liabilities as they become due.

         These consolidated financial statements have been prepared on a going
         concern basis, which assumes the realization of assets and liquidation
         of liabilities in the normal course of business. They do not include
         any adjustments to the recoverability and classification of recorded
         asset amounts and liabilities that might be necessary should the
         Company be unable to continue as a going concern.

4.       SIGNIFICANT ACCOUNTING POLICIES

         ESTIMATES

         In preparing these consolidated financial statements in conformity with
         United States generally accepted accounting principles, management was
         required to make estimates and assumptions that affect the reported
         amounts of assets and liabilities and disclosure of contingent assets
         and liabilities as of the date of the balance sheet and revenues and
         expenses for the year. Actual results in future periods could be
         different from these estimates made in the current year.

         PRINCIPLES OF CONSOLIDATION

         These consolidated financial statements include the accounts of the
         Company and its wholly-owned subsidiary, VBC. All significant
         inter-company balances and transactions have been eliminated.


                                       9

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002

================================================================================


4.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)


         CASH

         The Company considers all highly liquid investments with a maturity of
         three months or less when purchased to be cash equivalents.


         CAPITAL ASSETS

         Capital assets are recorded at cost and are amortized over their useful
         lives using the declining balance method at the following rates:


             Computer equipment                        30%
             Office furniture                          20%
             Telephone and video equipment             20%


         ACCOUNTING FOR IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED
         ASSETS TO BE DISPOSED OF

         Long-lived assets to be held and used by the Company are reviewed to
         determine whether any events or changes in circumstances indicate that
         the carrying amount of the asset may not be recoverable. For long-lived
         assets to be held and used, the Company bases its evaluation on such
         impairment indicators as the nature of the assets, the future economic
         benefit of the assets, any historical or future profitability
         measurements, as well as other external market conditions or factors
         that may be present. In the event that facts and circumstances indicate
         that the carrying amount of an asset may not be recoverable and an
         estimate of future undiscounted cash flows is less than the carrying
         amount of the asset, an impairment loss is recognized. As at June 30,
         2002 and March 31, 2002, the Company's analysis indicated that there
         was no impairment of its long-lived assets.


         FINANCIAL INSTRUMENTS

         The Company's financial instruments consist of cash, accounts
         receivable, accounts payable and accrued liabilities, due to related
         parties and convertible promissory notes. Unless otherwise noted, it is
         management's opinion that the Company is not exposed to significant
         interest, currency or credit risks arising from these financial
         instruments. The fair value of these financial instruments approximate
         their carrying values, unless otherwise noted.


         REVENUE RECOGNITION

         Revenue is recognized once the audio conference, filming or editing of
         a project has been completed and invoices and collection of the amounts
         is reasonably assured.


                                       10

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002

================================================================================

4.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)

         FOREIGN CURRENCY TRANSLATION

         The Company accounts for foreign currency transactions and translation
         of foreign currency financial statements under SFAS No. 52, "Foreign
         Currency Translation". The Company records its operations in the
         Canadian subsidiary, VBC, using the US dollar. Accordingly, carrying
         values of monetary assets and liabilities are adjusted at each balance
         sheet date to reflect the exchange rate at that date. Non-monetary
         assets and liabilities are translated at the exchange rate on the
         original transaction date. Gains and losses from restatement of foreign
         currency monetary and non-monetary assets and liabilities are included
         in income. Revenues and expenses are translated at the rates of
         exchange prevailing on the dates such items are recognized in earnings.

         SEGMENTED INFORMATION

         In June 1997, the Financial Accounting Standards Board ("FASB") issued
         SFAS No. 131, "Disclosures About Segments of an Enterprise and Related
         Information." SFAS No. 131 establishes standards for the manner in
         which public companies report information about operating segments in
         annual and interim financial statements. The statement is effective for
         fiscal years beginning after December 15, 1997. The Company does not
         have any reporting requirements as defined by SFAS No. 131.

         LOSS PER SHARE

         In February 1997, the FASB issued SFAS 128, "Earnings Per Share". Under
         SFAS 128, basic and diluted earnings per share are to be presented.
         Basic earnings per share is computed by dividing income available to
         common shareholders by the weighted average number of common shares
         outstanding in the year. Diluted earnings per share takes into
         consideration common shares outstanding (computed under basic earnings
         per share) and potentially dilutive common shares. The weighted average
         number of shares outstanding at June 30, 2002, (12,023,000), and 2001,
         (8,898,054), do not include the 1,112,000 (2001 - 2,162,000) warrants
         outstanding, and outstanding stock options of 892,000 (2001 - 822,000)
         as their effect would be anti-dilutive.

         INCOME TAXES

         Income taxes are provided in accordance with SFAS 109, "Accounting for
         Income Taxes". A deferred tax asset or liability is recorded for all
         temporary differences between financial and tax reporting and net
         operating loss carryforwards. Deferred tax expenses (benefit) results
         from the net change during the year of deferred tax assets and
         liabilities.

         Deferred tax assets are reduced by a valuation allowance when, in the
         opinion of management, it is more likely than not that some portion or
         all of the deferred tax assets will not be realized. Deferred tax
         assets and liabilities are adjusted for the effects of changes in tax
         laws and rates on the date of enactment.


                                       11

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002


================================================================================

4.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)

         STOCK-BASED COMPENSATION

         SFAS 123, "Accounting for Stock-Based Compensation", encourages, but
         does not require, companies to record compensation cost for stock-based
         employee compensation plans at fair value. The Company has chosen to
         account for stock-based compensation using Accounting Principles Board
         Opinion No. 25, "Accounting for Stock Issued to Employees" and has
         adopted the disclosure only provisions of SFAS 123. Accordingly,
         compensation cost for stock options is measured as the excess, if any,
         of the quoted market price of the Company's stock at the date of the
         grant over the amount an employee is required to pay for the stock.

         The Company accounts for stock-based compensation issued to
         non-employees and consultants in accordance with the provisions of SFAS
         123 and the Emerging Issues Task Force consensus in Issue No. 96-18
         ("EITF 96-18"), "Accounting for Equity Instruments that are Issued to
         Other Than Employees for Acquiring or in Conjunction with Selling,
         Goods or Services".

         NEW ACCOUNTING PRONOUNCEMENTS

         In June 2001, the FASB approved the issuance of SFAS No. 142, "Goodwill
         and Other Intangible Assets". SFAS 142 requires that goodwill no longer
         be amortized to earnings, but instead be reviewed for impairment. The
         statement is effective for fiscal years beginning after December 15,
         2001, and is required to be applied at the beginning of an entity's
         fiscal year and to be applied to all goodwill and other intangible
         assets recognized in its financial statements at that date. Impairment
         losses for goodwill and indefinite-lived intangible assets that arise
         due to the initial application of this statement (resulting from a
         transitional impairment test) are to be reported as resulting from a
         change in accounting principle. Under an exception to the date at which
         this statement becomes effective, goodwill and intangible assets
         acquired after June 30, 2001, will be subject immediately to the
         non-amortization and amortization provisions of this statement.

         In July 2001, FASB issued SFAS No. 143 "Accounting for Asset Retirement
         Obligations" that records the fair value of the liability for closure
         and removal costs associated with the legal obligations upon retirement
         or removal of any tangible long-lived assets. The initial recognition
         of the liability will be capitalized as part of the asset cost and
         depreciated over its estimated useful life. SFAS 143 is required to be
         adopted effective January 1, 2003.

         In October 2001, FASB issued Statements of Financial Accounting
         Standards No. 144, "Accounting for the Impairment on Disposal of
         Long-lived Assets" ("SFAS 144"), which supersedes Statements of
         Financial Accounting Standards No. 121, "Accounting for the Impairment
         of Long-lived Assets and for Long-lived Assets to be Disposed of". SFAS
         144 requires that long-lived assets that are to be disposed of by sale
         be measured at the lower of book value or fair value less cost to sell.
         Additionally, SFAS 144 expands the scope of discontinued operations to
         include all components of an entity with operations that (1) can be
         distinguished from the rest of the entity and (2) will be eliminated
         from the ongoing operations of the entity in a disposal transaction.
         SFAS 144 is effective for financial statements issued for fiscal years
         beginning after December 15, 2001, and, generally, its provisions are
         to be applied prospectively.

         In April 2002, FASB issued Statements of Financial Accounting No. 145,
         "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB
         Statement No. 13, and Technical Corrections" ("SFAS 145"). SFAS 145
         eliminates the requirement that gains and losses from the
         extinguishment of debt be aggregated and, if material, classified as an
         extraordinary item, net of the related income tax effect and eliminates
         an inconsistency between the accounting for sale-leaseback transactions
         and certain lease modifications that have economic effects that are
         similar to sale-leaseback transactions. Generally SFAS 145 is effective
         for transactions occurring after May 15, 2002.




                                       12

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002


================================================================================

4.       SIGNIFICANT ACCOUNTING POLICIES (cont'd...)

         The adoption of these new pronouncements is not expected to have a
         material effect on the Company's financial position or results of
         operations.


5.       CAPITAL ASSETS



      =========================================================================
                                                        Accumulated    Net Book
                                                 Cost  Amortization       Value
      -------------------------------------------------------------------------


      JUNE 30, 2002
          Computer equipment                 $173,106      $ 96,130    $ 76,976
          Office furniture                     17,011         6,574      10,437
          Telephone and video equipment        67,932        31,615      36,317
                                             --------      --------    --------

                                             $258,049      $134,319    $123,730
                                             ==================================

      MARCH 31, 2002
          Computer equipment                 $170,465      $ 90,249    $ 80,216
          Office furniture                     17,011         6,027      10,984
          Telephone and video equipment        67,932        29,554      38,378
                                             --------      --------    --------

                                             $255,408      $125,830    $129,578
      =========================================================================

6.       RELATED PARTY TRANSACTIONS


         During the period, the Company entered into the following transactions
         with related parties:


         Paid or accrued consulting fees as follows:

         a)  $57,919 (2001 - $43,794) to three directors of the Company.


         These transactions were in the normal course of operations and were
         measured at the exchange amount, which is the amount of consideration
         established and agreed to by the related parties unless otherwise
         noted.

         Amounts due to related parties are unsecured and are non-interest
         bearing, therefore, the fair value of the amounts owed to the related
         parties are not determinable.


                                       13

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002


<TABLE>
<CAPTION>


===================================================================================================================

7.  CONVERTIBLE PROMISSORY NOTES
    ===============================================================================================================
                                                                                            June 30,      March 31,
                                                                                                2002           2002
    <S>                                                                                   <C>            <C>
    ---------------------------------------------------------------------------------------------------------------

    On  March 11, 2002, the Company issued three convertible promissory notes to
    related parties at $50,000 each bearing interest at 3% per annum, payable at
    maturity on December 31, 2004. The promissory notes are convertible at any
    time at the option of the holder into common shares of the Company at the
    lesser of $0.50 per share and 80% of the fair market value of the common
    shares, but not less than $0.05 per share. The intrinsic value of the
    beneficial conversion feature of $37,500 was charged to interest
    expense in the previous year.                                                         $  150,000     $  150,000

    Current portion                                                                               --             --
                                                                                          ----------     ----------

    Long term                                                                             $  150,000     $  150,000
    ===============================================================================================================

</TABLE>

8.  CAPITAL STOCK

    Warrants

<TABLE>
<CAPTION>


    ===============================================================================================================

                                                                                                             2002
    ---------------------------------------------------------------------------------------------------------------

    <S>                                                                                                  <C>
    Balance, beginning of the period                                                                      1,112,000
       Issued during the period                                                                                  --
       Exercised during the period                                                                               --
                                                                                                         ----------

    Balance, end of the period                                                                            1,112,000
    ===============================================================================================================
</TABLE>



    As at June 30, 2002, there were 1,112,000 warrants outstanding that are
    exercisable into 372,000 common shares at $0.50 per share until
    September 30, 2003, and 740,000 warrants outstanding that are
    exercisable into 740,000 common shares at $0.20 per share until
    February 28, 2004.

9.  INCOME TAXES

    The Company's total deferred tax asset is as follows:

<TABLE>
<CAPTION>


    ===============================================================================================================
                                                                                            June 30,      March 31,
                                                                                                2002           2002
    <S>                                                                                   <C>            <C>
    ---------------------------------------------------------------------------------------------------------------



    Tax benefit of net operating loss carry forward                                       $  892,396     $  855,500
    Valuation allowance                                                                     (892,396)      (855,500)
                                                                                          ----------     ----------

                                                                                          $       --     $       --
    ===============================================================================================================

</TABLE>


                                       14

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002


================================================================================

9.       INCOME TAXES (cont'd...)

         The Company has an operating loss carryforward of approximately
         $436,000 which expires in the year 2022. The Company's subsidiary,
         ViaVid Broadcasting Corp., has Canadian operating losses carryforward
         of approximately $1,746,000 which expire from 2004 to 2009. The Company
         has provided a full valuation allowance on the deferred tax asset due
         to the uncertainty regarding realizability.

10.      STOCK-BASED COMPENSATION EXPENSE

         Following is a summary of the stock option activity:

<TABLE>
<CAPTION>

      ============================================================================================
                                                    2002                            2001
                                          ------------------------       -------------------------
                                                          Weighted                        Weighted
                                                           Average                         Average
                                             Number       Exercise          Number        Exercise
                                          of Shares          Price       of Shares           Price
      --------------------------------------------------------------------------------------------
      <S>                                 <C>              <C>             <C>            <C>

      Outstanding, beginning of period    1,117,000        $  0.30         667,000        $   0.55
          Granted                                --                        155,000            0.20
          Forfeited                        (225,000)          0.12              --              --
          Exercised                              --                             --              --
                                          ---------                        -------

      Outstanding, end of period            892,000        $  0.34         822,000        $   0.48
      ============================================================================================

</TABLE>


         The weighted average fair value of options granted to employees,
         non-employees and consultants during the three month period ended June
         30, 2002 was approximately $NIL (2001 - $0.16) per share.

         Following is a summary of the status of options outstanding at June 30,
         2002:

<TABLE>
<CAPTION>

      =============================================================================================================
                                            Outstanding Options                        Exercisable Options
                              -----------------------------------------------     ---------------------------------
                                                Weighted
                                                 Average          Weighted                              Weighted
                                               Remaining           Average                               Average
                                             Contractual          Exercise                              Exercise
      Exercise Price          Number                Life             Price           Number                Price
      -------------------------------------------------------------------------------------------------------------
       <S>                   <C>                 <C>              <C>               <C>                 <C>

       $  1.00                20,000                0.4           $   1.00           20,000             $   1.00
          0.30                80,000                0.55              0.30           80,000                 0.30
          1.00                12,000                0.55              1.00           12,000                 1.00
          3.50                25,000                0.67              3.50           25,000                 3.50
          0.30                50,000                0.78              0.30           50,000                 0.30
          0.37                20,000                0.97              0.37           20,000                 0.37
          1.00                10,000                1.26              1.00           10,000                 1.00
          0.40                25,000                1.53              0.40           25,000                 0.40
          0.30                15,000                1.59              0.30           15,000                 0.30
          0.30                45,000                1.72              0.30           45,000                 0.30
          0.30                10,000                1.75              0.30           10,000                 0.30
          0.20               150,000                1.77              0.20          150,000                 0.20
          0.30                15,000                2.00              0.30           15,000                 0.30
          0.20                15,000                2.30              0.20           15,000                 0.20
          0.30               100,000                2.35              0.30          100,000                 0.30
          0.10               300,000                2.63              0.10          300,000                 0.10
      =============================================================================================================

</TABLE>


                                       15

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002


================================================================================

10.      STOCK-BASED COMPENSATION EXPENSE (cont'd...)



         COMPENSATION

         Had compensation cost for employees been recognized on the basis of
         fair value pursuant to Statement of Financial Accounting Standards No.
         123, net loss and loss per share would have been adjusted as follows:

    =======================================================================
                                               Three Month      Three Month
                                              Period Ended     Period Ended
                                             June 30, 2002    June 30, 2001
    -----------------------------------------------------------------------

    NET LOSS
        As reported                            $  (135,188)     $  (268,578)
                                               ============================

        Pro forma                              $  (135,188)     $  (269,973)
                                               ============================

    BASIC AND DILUTED LOSS PER SHARE
        As reported                            $     (0.01)     $     (0.03)
                                               ============================

        Pro forma                              $     (0.01)     $     (0.03)
    =======================================================================

         The fair value of each option granted is estimated using the Black
         Scholes Option Pricing Model. The assumptions used in calculating fair
         value were as follows:
    ============================================================================

                                     Three Month Period       Three Month Period
                                    Ended June 30, 2002      Ended June 30, 2001
    ============================================================================

    Risk-free interest rate                          --         4.300% - 4.327%
    Expected life of the options                     --                 2 years
    Expected volatility                              --         180.41%-191.78%
    Expected dividend yield                          --                      --
    ============================================================================

         There were no stock options granted to third party consultants during
         the three month period ended June 30, 2002 and accordingly, the stock
         based compensation recognized using the Black Scholes Option pricing
         model was $NIL. The amount expensed during the three month period ended
         June 30, 2002 was $37,535, and the total unamortized balance is
         $49,336. This amount was recorded as consulting fees in the
         Consolidated Statements of Operations.

                                       16

<PAGE>


VIAVID BROADCASTING INC.
(A Development Stage Company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002





11.      SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

         =====================================================================
                                              Three Month      Three Month
                                              Period Ended     Period Ended
                                              June 30, 2002    June 30, 2001
         ---------------------------------------------------------------------



         Cash paid for income taxes               $ --             $ --
         =====================================================================


         Cash paid for interest                   $ --             $ --
         =====================================================================

         There were no non-cash, investing and financing transactions during the
         three month period ended June 30, 2002.

         The following non-cash investing and financing transactions occurred
         during the three month period ended June 30, 2001:

         (a)  The Company issued 550,000 shares of common stock at an agreed
              value of $45,000 for consulting services.

12.      SUBSEQUENT EVENTS

         Subsequent to June 30, 2002, the Company intends to offer up to
         1,000,000 Units of its securities at a price of $0.10 per Unit in a
         private offering of its securities. Each Unit consists of one common
         share of the Company and one three year share purchase warrant to
         purchase an additional common share of the Company at a price of $0.15
         per share in the first year and $0.25 per share in years two and three.
         The Company has received a subscription to $2,000 of these securities
         subsequent to June 30, 2002.



                                       17

<PAGE>


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

GENERAL

Overview

         Our primary business is to provide Webcasting, teleconferencing and
transcription services to corporate clients throughout North America. These
services utilize systems that integrate traditional telephony technology with
powerful streaming media technology and Web-based tools. From a simple
conference call to a dynamic online presentation, our clients are able to choose
the solution that best meets their unique communication needs. A key component
of our business model, resulting from the ready availability of in-house
expertise, infrastructure, and equipment, is the ability to offer our clients a
cost-effective, yet scaleable, means of communications that can be customized to
meet individual customer needs. We currently provide our services primarily as a
means whereby our clients can communicate up-to-date corporate information, such
as current financial information, to a mass audience, including market
professionals, institutions, analysts, shareholders, and other key stakeholders.
In addition, we also market our services and solutions to resellers of
conferencing and communications services as well as a variety of associations
and other entities seeking to broadly disseminate current information through a
Webcast or teleconference.


RESULTS OF OPERATIONS

REVENUES. Our revenues were $107,744 for the three month period ending June 30,
2002, compared to revenues of $37,372 for the period June 30, 2001. Our revenues
for the year ended March 31, 2002 were $275,280. Our revenues were achieved
primarily from webcasting, teleconferencing and transcriptions services. The
increase in our revenues is due to the increase in our client base and providing
a greater volume of services. We believe that largely because of the adoption by
the US Securities and Exchange Commission of Regulation FD in October 2000,
public reporting companies are more frequently webcasting and conducting
conference calls for earnings updates, shareholder updates, product
announcements, investor and broker presentations and annual meetings.

In the quarter ended June 30, 2002, we conducted 580 earnings events and other
services for our clients.

We are also continuing our efforts at pursuing day-to-day teleconferencing and
webcasting business beyond the financial industry.

Our revenues have not been significant in comparison to our operating expenses
as we are currently in the start-up phase of our operations. We are attempting
to increase our future revenues by completing our plan of operations, as
discussed below.

OPERATING EXPENSES. Our operating expenses were $242,956 for the three month
period ending June 30, 2002, compared to operating expenses of $306,642 for the
three months ending June 30, 2001. The decrease in operating expenses during
this period was due to a reduced number of staff required to provide our
services, as well as less travel required.

                                       18

<PAGE>


NET LOSS. Our net loss was $135,188, or $0.01 per share, for the three months
ending June 30, 2002. Our net loss was $268,578, or $0.03 per share, for the
three months ended June 30, 2001. Our net loss reflects the fact that we have
not earned significant revenues to date.

LIQUIDITY AND CAPITAL RESOURCES

         Our operations to date have been financed principally through sales of
our equity securities.

         We had cash of $11,448 as of June 30, 2002 compared to cash of $10,616
as of March 31, 2002.

         We plan on meeting our operating expenses during the year by focusing
on generating revenues through the sales of corporate conference call services
and the sales of webcasting products, I.R. Web Page services, transcription
services and services related to broadcasts of conference calls, corporate
presentations, annual general meetings and other related meetings, as well as
from additional capital intended to be provided by the proposed sale of equity
securities. There can be no assurance that any additional capital can be raised
or, if equity securities are sold, the terms of any such transaction.

         Subsequent to June 30, 2002, the Company intends to offer up to
1,000,000 Units of its securities at a price of $0.10 per Unit in a private
offering of its securities. Each Unit consists of one common share of the
Company and one three year share purchase warrant to purchase an additional
common share of the Company at a price of $0.15 per share in the first year and
$0.25 per share in years two and three. The Company has received a subscription
to $2,000 of these securities subsequent to June 30, 2002. There can be no
assurance that all or any material portion of the securities offered will be
sold

         Subject to the availability of sufficient funds, we currently intend to
pursue the following Plan of Operations during the nine months ended March 31,
2003:

            o     Continue to develop a customer base of companies to use our
                  services for teleconferencing and Webcasting of corporate
                  information, as well as customers requiring I.R. Pages and
                  transcription services.

            o     Market our teleconferencing services to public companies
                  required to release earnings and analyst conference calls,
                  corporate media announcements and other information.

            o     Purchase additional equipment to expand our teleconferencing
                  service and Webcasting capabilities.

         Subject to the availability of funds, we anticipate that we will spend
an aggregate of up to approximately $250,000 intended to be raised from external
sources over the nine-month period ending March 31, 2003 in pursuing our Plan of
Operations for the purposes described above. Substantially all these funds will
need to be obtained from additional equity financings to be completed in the
future. In the event we are unable to obtain these funds from these sources, our
ability to pursue our business plan will be adversely affected.

         Our actual expenditures and business plan may differ from this stated
Plan of Operations.

                                       19

<PAGE>


         Although we have no present plans or proposals pending, strategic
alliances relating to teleconferencing or Webcasting may cause our Board of
Directors to modify our plans. In addition, we may modify our Plan of Operations
based on the available amounts of financing in the event that we cannot obtain
the required equity financings to pursue our Plan of Operations. We do not have
any arrangement in place for any debt or equity financing which would enable us
to meet our Plan of Operations.

         We are currently receiving revenues from our teleconferencing,
Webcasting, I.R. Pages and transcription services. We anticipate an increase in
revenue from these sources if we are successful in increasing our customer base.

         Notwithstanding the above Plan of Operations, we anticipate we will
experience continuing operating losses in the foreseeable future. We base this
expectation in part on the following:

         o    Increased usage of our services will lead to increased operating
              expenses and require additional capital expenditures on new
              computer equipment, software and technology.

         o    Our operating expenses will continue to increase as we expand the
              technical capabilities of our software and services.

         o    Our operating expenses will increase as we market our services to
              potential customers and complete teleconferencing and Webcasting
              services for our customers.


CAUTIONARY  STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE  SECURITIES  LITIGATION REFORM ACT OF 1996

          With the exception of historical matters, the matters discussed in
this Report are "forward-looking statements" as defined under the Securities Act
of 1933, as amended, and the Securities Exchange Act of 1934, as amended, that
involve risks and uncertainties. Forward-looking statements made herein include,
but are not limited to, the statements in this Report regarding our plans and
objectives for our future operations, including plans or objectives relating to
our intentions to provide webcasting and teleconferencing services, streaming
media technology and Web-based tools to create, develop and offer financial news
and information, and other content through the Internet and other dissemination
services and products or services, our plans and objectives regarding revenues
and expenses in future periods, our needs for capital expenditures, research and
development, our ability to maintain our competitive position, our plans and
objectives and needs to raise additional capital, the terms on which such
capital can be raised, the period over which any capital available currently to
us or raised in the future will be sufficient to meet our current or future
levels of operating and other expenses, and our plans regarding the uses of that
capital, as well as any other prospective financial information concerning us.
Forward-looking statements made in this Report include the assumptions made by
management as to the future growth and business direction of the publication of
corporate financial information over the Internet, e-commerce through the
facilities of the Internet and the role of video and audio production and
Internet news broadcasting. They also include our beliefs as to our ability to
compete successfully and maintain our technological position relative to other
providers of streaming media and Web-based communication services. They also
include our beliefs as to the willingness of public reporting issuers of
securities to use our services for Webcasting and teleconferencing and to
broadcast corporate news and information on the Internet and for us to derive
revenues from providing this service. We cannot assure you that our assumptions
in this regard or our views as to


                                       20

<PAGE>


the commercial viability of our business plans discussed herein will prove to be
accurate. Likewise, we cannot assure you that we will be successful in growing
our user and customer base as we plan, attracting companies to use our
Internet-based communication services for the dissemination of their news
information, realizing material amounts of Webcasting or other revenues,
achieving any commercial advantage relative to other financial news
dissemination media companies or raising the additional capital required to
support our operations or the terms and conditions on which such capital can be
raised. Our ability to realize revenues and raise additional capital from the
business plans discussed herein cannot be assured. If our assumptions are
incorrect or our webcasting or other growth plans or plans to realize revenues
or raise additional capital fail to materialize, we may be unsuccessful in
developing as a viable business enterprise. Under such circumstance your entire
investment will be in jeopardy and may be lost. Our business plan has evolved
over time, and we expect that our plans will evolve further in the future. Our
inability to meet our goals and objectives or the consequences to us from
adverse developments in general economic or capital market conditions and our
inability to raise additional capital could have a material adverse effect on
us. We caution you that various risk factors accompany those forward looking
statements and are described, among other places, under the caption "Risk
Factors" herein, beginning on page 21. They are also described in our Annual
Reports on Form 10KSB, Quarterly Reports on Form 10-QSB, and our Current Reports
on Form 8-K. These risk factors could cause our operating results, financial
condition and ability to fulfill our plans to differ materially from those
expressed in any forward-looking statements made in this Report and could
adversely affect our financial condition and our ability to pursue our business
strategy and plans.

                                  RISK FACTORS

         An investment in shares of our Common Stock involves a high degree of
risk. You should consider the following factors, in addition to the other
information contained in this Report, in evaluating our business and proposed
activities before you purchase any shares of our common stock. You should also
see the "Cautionary Statement for Purposes of the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1996" regarding risks and
uncertainties relating to us and to forward looking statements in this Report.


                        RISKS APPLICABLE TO OUR BUSINESS

WE HAVE AN EXTREMELY LIMITED OPERATING HISTORY AND ALSO HAVE A HISTORY OF
NET LOSSES

         We have had an extremely limited operating history. Our business was
established in January 1999 and we began operations on the Internet in February
1999. Our total revenues since inception through June 30, 2002 are $470,888. Our
total losses since inception through June 30, 2002 are $2,995,059. An investor
must consider the risks, expenses and difficulties frequently encountered by
companies such as ours, in the early stages of their development. Our business
plan has evolved over time and therefore, we experience additional risks
resulting from the changes we make in our business plan. As changes in the
industry further develop, we may need to make further changes to our business
plan. We cannot assure you that we will be successful in addressing the risks we
confront. We cannot assure you that our revenue will grow sufficiently to assure
our future success. We must increase our revenues in order to continue our
operations. New companies, such as ours, experience expenses, difficulties and
unforeseen problems that create a higher risk of business failure. If we are not
successful in overcoming these expenses and difficulties, our business may fail.


                                       21

<PAGE>


FUTURE CAPITAL NEEDS; UNCERTAINTY OF ADDITIONAL FINANCING

         The report of our independent auditors on their audit of our financial
statements as of March 31, 2002 contains an explanatory paragraph that describes
an uncertainty as to our ability to continue as a going concern due to our
recurring losses and our necessity to attain future profitable operations and/or
obtains additional financing. At June 30, 2002 we had current assets of $72,245
and current liabilities of $162,125. In order to meet our Plan of Operations, we
will need to raise additional capital. Our budget for the year ending March 31,
2003 calls for us to raise an additional $250,000 in capital during the year
ending March 31, 2003. There can be no assurance that any additional financing
will be available to us on favorable terms, or at all. If adequate funds are not
available or not available on acceptable terms, we may not be able to fund our
business plans as we desire, or, develop or enhance services or respond to
competitive pressures. Any such inability could have a material adverse effect
on our business, results of operations and financial condition. Additional funds
raised through the issuance of equity or convertible debt securities, will
result in reducing the percentage ownership of our stockholders and, our
stockholders may experience additional dilution. Such securities may have
rights, preferences or privileges senior to those of the rights of our Common
Stock.

         As a result of our limited operating history, we have limited
meaningful historical financial data upon which our planned operating expenses
can be based. Accordingly, our anticipated expense levels in the future are
based in part on our expectations as to future revenue. Once established, these
expense levels will become, to a large extent, fixed. Revenues and operating
results generally will depend on the volume of, timing of and ability to
complete transactions, which are difficult to forecast.

         In addition, there can be no assurance that we will be able to
accurately predict our revenue, particularly in light of the unproven and
evolving manner in which we derive our revenue, the intense competition for the
marketing of our services, revenue-sharing opportunities, our limited operating
history and the uncertainty as to the broad acceptance of the Web as a
communications medium. We may be unable to adjust our spending in a timely
manner to compensate for disappointing results of our marketing efforts and
efforts to develop revenue, any unexpected revenue shortfall or other
unanticipated changes in the Internet industry. Our failure to accurately make
such predictions or adjustments in our spending would have a material adverse
effect on our business, results of operations and financial condition.

POSSIBLE INABILITY TO IMPLEMENT OUR BUSINESS STRATEGY

Our business strategy includes increasing our revenues from the teleconferencing
and Webcasting industry. To achieve our business objective, we believe we must:

         o    Sell our services to a wide range of business customers, using
              both direct and indirect sales channels to drive revenue growth.

         o    Create a positive online experience for our customers and their
              target audience, thereby encouraging participants to virally
              promote our services within the corporate and online community.

         o    Promote our services as day-to-day business communication tools
              used for teleconference meetings, real-time corporate
              demonstrations, and interactive training sessions, among other
              corporate communications needs.

         o    Continue to develop proprietary software and hardware enhancements
              that integrate traditional telephony solutions with the most
              current Internet technologies and thereby maintain our competitive
              position.

                                       22

<PAGE>


         o    Expand our telephony, Internet, and supporting hardware
              infrastructure in anticipation of the development of future
              services and enhancements and expand our storage capacity in
              anticipation of increased customer demand.

         o    Explore possible strategic relationship opportunities that will
              expand our position within the Webcasting and teleconferencing
              industry that will enhance our service offerings, technology,
              infrastructure, and distribution channels.


In order to accomplish the forgoing objectives, we will require substantial
amounts of additional capital that is not currently available to us. Management
estimates that it will require $250,000 of additional capital to be applied to
meeting these objectives through March 31, 2003.

If we are not successful in implementing all components of our business strategy
successfully, our operating results and financial condition may be harmed and
our business may fail.

POSSIBLE INABILITY TO GENERATE REVENUES AND PROFITABLE OPERATIONS

         We have earned minimal revenues to date and we are presently not
profitable. Our business and marketing strategy contemplates that we will earn
revenues from providing Webcasting, teleconferencing and transcription services
to corporate clients throughout North America. If we are not able to generate
material revenues from these activities or if the revenues generated do not
exceed the operating costs of our business, then our business will not be
profitable and our business may fail.


ANTICIPATED LOSSES IN FUTURE PERIODS

         During the three month period ended June 30, 2002, we incurred a loss
of $135,188 on revenues of $107,744. We expect that our operating expenses will
increase as we implement our business and marketing strategy due to the
following factors:

         o    We expect that increased usage of our services will lead to
              increased operating expenses and require additional capital
              expenditures on new computer equipment, software and technology.

         o    We expect our operating expenses will continue to increase as we
              expand the technical capabilities of our products and services to
              meet competition.

         o    We expect our operating expenses will increase as we solicit
              potential customers.

         If our operating expenses increase as anticipated, we will realize
additional losses for the foreseeable future.

DEPENDENCE ON WEBCASTING AND TELECONFERENCING REVENUE

We currently expect that webcasting, teleconferencing, transcription and I.R.
Pages will continue to be the principal source of our revenue in the foreseeable
future. Our ability to generate webcasting, teleconferencing, I.R. Page and
transcription revenue will depend on several factors, including:

                                       23

<PAGE>


         o    the pricing of webcasting, teleconferencing, I.R. Page and
              transcription services by others,

         o    our ability to develop and retain a skilled sales force.

         As a result of the evolving nature of Webcasting and the use of the
Internet as a communication medium and our limited operating history, we cannot
accurately forecast our revenue. Current and future expense levels are based
principally on anticipated future revenues and, as we increase the scope of our
activities, these expenses, to a large extent, will increase and become fixed.
Accordingly, we may be unable to adjust spending to compensate for shortfalls in
our anticipated revenues. If our revenues do not materialize as anticipated,
this could have an immediate material adverse effect on our business, financial
condition and results of operations, which could lead to an investor's loss of
his investment in our company.

         Our quarterly operating results may fluctuate significantly because of
a variety of factors, many of which are outside our control, including:

         o    overall usage levels of our services,

         o    the amount and timing of our capital expenditures,

         o    costs relating to the expansion of our operations,

         o    price competition or pricing changes in Webcasting,
              teleconferencing, I.R. Pages and transcription, and

         o    costs relating to technical difficulties or system downtime.

         Quarterly comparisons of our results of operations are not expected to
be a reliable indication of our future performance.

COMPETITION IN THE WEBCASTING SERVICES MARKET IS INTENSE AND WE MAY BE UNABLE TO
COMPETE SUCCESSFULLY.

         The market for Webcasting services is relatively new, rapidly evolving
and intensely competitive. Competition in the marketing of these services will
continue to intensify and may force us to reduce our prices, or cause us to
experience reduced sales and margins, loss of customers and reduced acceptance
of our services.

         Substantially all of our current and potential competitors have larger
and more established customer bases, longer operating histories, greater name
recognition, broader service offerings, more employees and significantly greater
financial, technical, marketing, public relations and distribution resources
than we do. As a result, these competitors may be able to spread costs across
diversified lines of business, and therefore, adopt aggressive strategies, such
as pricing structures and marketing campaigns, that reduce our ability to
compete effectively. Telecommunication providers, for example, enjoy lower
per-minute long distance costs as a result of their ownership of the underlying
telecommunication network. We expect that many more companies will enter this
market and invest significant resources to develop webcasting services. These
current and future competitors may also offer or develop products or services
that perform better than ours.

         In addition, the Internet industry has recently experienced substantial
consolidation and a proliferation of strategic transactions. We expect this
consolidation and strategic partnering to continue. Acquisitions or strategic
partnerships involving our current and potential competitors could harm us in a
number of ways. For example:

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         o    competitors could acquire or partner with companies with which we
              have distribution relationships and discontinue our relationship,
              resulting in the loss of distribution opportunities for our
              services;

         o    a competitor could be acquired by or enter into a strategic
              relationship with a party that has greater resources and
              experience than we do, thereby increasing the ability of the
              competitor to compete with our services; or

         o    a competitor could acquire or partner with one of our key
              suppliers.

IF WE FAIL TO OFFER COMPETITIVE PRICING, WE MAY NOT BE ABLE TO ATTRACT AND
RETAIN CUSTOMERS.

         Because the Webcasting market is relatively new and still evolving, the
prices for these services are subject to rapid and frequent changes. In many
cases, businesses provide their services at significantly reduced rates, for
free or on a trial basis in order to win customers. Due to competitive factors
and the rapidly changing marketplace, we may be required to significantly reduce
our pricing structure, which would negatively affect our revenues, margins and
our ability to achieve or sustain profitability.

MANAGEMENT OF GROWTH AND RELATIONSHIPS; BRIEF TENURE OF MANAGEMENT; DEPENDENCE
ON KEY PERSONNEL

         In developing our business plan, we expect to be required to establish
and manage multiple relationships with various strategic providers of services,
technology licensors, marketers and other third parties. To date, only a limited
number of such relationships have been established. The requirements to enter
into these relationships will be exacerbated in the event of our material growth
or in the number of third party relationships, and there can be no assurance
that our systems, procedures or controls will be adequate to enable us to
establish and enter into these relationships, to support any substantial growth
in our operations or that our management will be able to implement or manage any
growth effectively.

         To effectively manage growth, we must establish, implement and improve
operational, financial and management information systems and expand, train and
manage our employee base. Our development is and will continue to be
substantially dependent on the abilities and performance of our executive
officers and other key employees. The loss of the services of any of our
executive officers or other key employees could have a material adverse effect
on our prospects, business development, and results of operations and financial
condition. Competition for senior management, experienced sales and marketing
personnel, qualified Web engineers and other employees is and is expected to
continue to be intense. There can be no assurance that we will be successful in
attracting and retaining such personnel. There can be no assurance that we may
not experience difficulty from time to time in hiring and retaining the
personnel necessary to support the growth of our business. Our failure to
successfully manage our personnel requirements would have a material adverse
effect on our business, results of operations and financial condition.

         Our performance is substantially dependent on the continued services
and performance of our senior management and other key personnel, including
Brian Kathler, President and a Director, Paul Watkins, Secretary/Treasurer and a
Director, Robert Gamon, a Director and James King, a Director. We do not have
long-term employment agreements with any of our key personnel and maintain no
"key person" life insurance policies. Our future success also depends on our
ability to

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<PAGE>


identify, attract, retain and motivate highly skilled, technical, managerial,
sales, marketing and customer service personnel. Competition for such persons is
intense. We cannot assure you that we will be able to attract or retain such
personnel. The failure to do so could have a material adverse effect on our
business, financial condition and results of operations.


OUR WEBCASTING SERVICES MAY BECOME SUBJECT TO TRADITIONAL TELECOMMUNICATIONS
CARRIER REGULATION BY FEDERAL AND STATE AUTHORITIES, WHICH WOULD INCREASE THE
COST OF PROVIDING OUR SERVICES AND MAY SUBJECT US TO PENALTIES.

         We believe our Webcasting service is not subject to regulation by the
U.S. Federal Communications Commission or any other state or provincial public
service commission. The FCC and state or provincial public service commissions,
however, may require us to submit to traditional telecommunications carrier
regulations for our Webcasting service under the Communications Act of 1934, as
amended, and various state laws or regulations as a provider of
telecommunications services. If the FCC or any state public service commission
seeks to enforce any of these laws or regulations against us, we could be
prohibited from providing the voice aspect of our Webcasting service until we
have obtained various U.S. federal and state licenses and filed tariffs. We
believe we would be able to obtain those licenses, although in some states,
doing so could significantly delay our ability to provide services. We also
would be required to comply with other aspects of federal and state laws and
regulations. Subjecting our Web-conferencing service to these laws and
regulations would increase our operating costs, could require restructuring of
those services to charge separately for the voice and Internet components, and
would involve on-going reporting and other compliance obligations. We also might
be subject to fines or forfeitures and civil or criminal penalties for
non-compliance.

OUR BUSINESS WILL SUFFER IF OUR SYSTEMS FAIL OR BECOME UNAVAILABLE.

         A reduction in the performance, reliability or availability of our
systems will harm our ability to distribute our services to our users, as well
as our reputation. These disruptions may be due to service or network outages,
periodic system upgrades, and internal system failure. To the present, we have
not experienced any material service disruptions. Because our revenue depends
largely on the numbers of calls and users and the amount of minutes consumed by
users, our business will suffer if we experience frequent or extended system
interruptions.

         We maintain our primary data facility and hosting servers at our
headquarters in Vancouver, British Columbia, Canada. Our operations depend on
our ability to protect these facilities and our systems against damage or
interruption from fire, power loss, water, telecommunications failure,
vandalism, sabotage and similar unexpected events. In addition, a sudden and
significant increase in traffic on our systems or infrastructure could strain
the capacity of the software, hardware and systems that we use. This could lead
to slower response times or system failures. The occurrence of any of the
foregoing risks could cause service interruptions and, as a result, materially
harm our reputation, negatively affect our revenue, and our ability to achieve
or sustain profitability.


IF OUR SECURITY SYSTEM IS BREACHED, OUR BUSINESS AND REPUTATION COULD SUFFER.

         We must securely receive and transmit confidential information over
public networks and maintain that information on internal systems. Our failure
to prevent security breaches could

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<PAGE>


damage our reputation and expose us to risk of loss or liability. Our internal
systems are accessible to certain of our employees and we may be unable to
prevent the misappropriation of this information. Our servers are vulnerable to
computer viruses, physical or electronic break-ins and similar disruptions,
which could lead to interruptions, delays or loss of data. We may be required to
expend significant capital and other resources to ensure adequate encryption and
additional technologies to protect against security breaches or to alleviate
problems caused by any breach. If we fail to provide adequate security measures
to protect the confidential information of our customers, our customers may
refrain from using our services, potential customers may not want to use our
services, and as a result, our operating results would be harmed.

DEPENDENCE ON LICENSED TECHNOLOGY

         We rely on certain technology licensed from third parties for use in
operating and managing our Internet site and providing related services to
users. We cannot assure you that such technology licenses will be available at
all, that they will be available on reasonable commercial terms or that they
will operate as intended.

DEPENDENCE ON GROWTH IN INTERNET USE

         Our future revenue will depend largely on the widespread acceptance and
use of the Internet as a communication source. Rapid growth in Internet use is a
recent trend and market acceptance of the Internet as a communication medium is
highly uncertain. The Internet may not be accepted as a viable communications
medium for distribution of information for a number of reasons, including:

         o    inadequate development of the network infrastructure,

         o    inadequate development of enabling technologies, and

         o    concerns about privacy and security among users.

RAPID TECHNOLOGICAL CHANGE

         The market for Internet services is characterized by rapid
technological developments, frequent new product introductions and evolving
industry standards. We will be required to continually improve the performance,
features and reliability of our infrastructure and products and services,
particularly in response to competition and changing customer demands. We cannot
assure you that we will be successful in responding rapidly, cost-effectively or
adequately to such developments.

NEW SERVICE RISKS

         Our future success will depend in part on our ability to expand our
Internet communications abilities to include new services. Costs related to
developing new services are expensed as they are incurred while revenue related
to these new services typically builds over time and, accordingly, our
profitability from year to year may be adversely affected by the number and
timing of new service launches. In addition, we cannot assure you that any new
areas or services will be developed in a timely or cost-effective manner or that
they will be successful.

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<PAGE>


RISKS ASSOCIATED WITH BRAND DEVELOPMENT

         We believe brand identity is important to attracting and expanding our
client base. We believe the significance of brand and name recognition will
intensify as the number of competing companies increases. We cannot assure you
that we will be able to develop our brand identity so as to gain any significant
market recognition.

GOVERNMENT REGULATION AND LEGAL UNCERTAINTIES

         We are not currently subject to direct regulation by any U.S. or
Canadian government agency, other than regulations applicable to businesses
generally. There are currently few laws or regulations directly applicable to
access to or commerce on the Internet. However, due to the increasing popularity
and use of the Internet, a number of legislative and regulatory proposals are
under consideration by U.S. and Canadian federal, state, provincial, local and
foreign governmental organizations. It is possible that a number of laws or
regulations may be adopted with respect to the Internet relating to such issues
as user privacy, user screening to prevent inappropriate uses of the Internet
by, for example, minors or convicted criminals, taxation, infringement, pricing,
content regulation, quality of products and services and intellectual property
ownership and infringement. The adoption of any such laws or regulations may
decrease the growth in the use of the Internet, which could, in turn, decrease
the demand for our services, increase our cost of doing business, or otherwise
have a material adverse effect on our business, results of operations and
financial condition.

         Moreover, the applicability to the Internet of existing laws governing
issues such as property ownership, copyright, trademark, trade secret,
obscenity, libel and personal privacy is uncertain and developing. Any new
legislation or regulation, or application or interpretation of existing laws,
could have a material adverse effect on our business, results of operations and
financial condition. There can be no assurance that any legislation will not be
enacted in the future that could expose us to substantial liability. Legislation
could also dampen the growth in the use of the Web generally and decrease the
acceptance of the Web as a communications and commercial medium. The result
could, thereby, have a material adverse effect on our business, results of
operations and financial condition.

         A number of legislative proposals have been made at the U.S. and
Canadian federal, state, provincial and local level that would impose additional
taxes on the sale of goods and services over the Internet and certain
jurisdictions have taken measures to tax Internet-related activities. The U.S.
Congress enacted the Internet Tax Freedom Act on October 21, 1998 which imposes
a national moratorium in the United States on state and local taxes on Internet
access services, on-line services, and multiple or discriminatory taxes on
electric commerce effective October 1, 1998 and ending three years after its
enactment. In November, 2001, the moratorium was extended through November 1,
2003. Various proposals are under discussion regarding possible taxes subsequent
to the expiration of the moratorium. There can be no assurance that, once such
moratorium is lifted, some type of U.S. federal and/or state taxes will not be
imposed upon Internet commerce, and there can be no assurance that such
legislation or other attempts at regulating commerce over the Internet will not
substantially impair the growth of our services on the Internet and as a result,
our opportunity to derive financial benefit from these activities may be
adversely affected.

         Due to the global nature of the Web, it is possible that, although our
transmissions over the Internet originate primarily in British Columbia, Canada,
the governments of various states in the United States and foreign countries
might attempt to regulate our transmissions or prosecute us for violations of
their laws. There can be no assurance that violations of local laws will not be
alleged or charged by state or foreign governments, that we might not
unintentionally violate such laws or that such laws will not be modified, or new
laws enacted, in the future. Any of the foregoing

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<PAGE>


developments could have a material adverse effect on our business, results of
operations and financial condition.

         In addition, as our services are available over the Internet in
multiple foreign countries, provinces, states and other jurisdictions, such
jurisdictions may claim that we are required to qualify to do business as a
foreign corporation in each of those jurisdictions. We are qualified to do
business only in British Columbia, and our failure to qualify as a foreign
corporation in a jurisdiction where we are required to do so could subject us to
taxes and penalties and could result in our inability to enforce contracts in
such jurisdictions. Any such new legislation or regulation, the application of
laws and regulations from jurisdictions whose laws do not currently apply to our
business, or the application of existing laws and regulations to the Internet
and other online services could have a material adverse effect on our business,
results of operations and financial condition.

LIABILITY FOR INFORMATION RETRIEVED FROM THE WEB; ABSENCE OF LIABILITY INSURANCE

         Because financial and other information is broadcast to the securities
marketplace and elsewhere using our services, there is a potential that claims
will be made against us as a participant in the process of distributing this
information to investors. We may also be exposed to claims for alleged
defamation, negligence, copyright or trademark infringement, personal injury or
other theories based on the nature, content, publication and distribution of
these materials. Claims may be asserted against us for errors or omissions in
the financial and other information disseminated by use of our services by the
companies that are our customers.

         In addition, the increased attention focused upon liability issues as a
result of these lawsuits and legislative proposals could impact the overall
growth of Internet use and our services. We could also be exposed to liability
with respect to the offering of third party content that may be accessible
through our services.

         It is also possible that if any financial information content provided
through our services contains errors, third parties could make claims against us
for losses incurred in reliance on such information. Even to the extent that
such claims do not result in liability to us, we could incur significant costs
in investigating and defending against such claims. The imposition on us of
potential liability for information carried on or disseminated through our
systems could require us to implement measures to reduce our exposure to such
liability, which may require the expenditure of substantial resources and limit
the attractiveness of our services.

         Currently, we do not carry general liability insurance intended to
protect us from any liability arising out of the foregoing. In any event,
however, insurance may not cover all potential claims to which we are exposed or
may not be adequate to indemnify us for all liability that may be imposed. Any
imposition of liability that is not covered by insurance or is in excess of our
insurance coverage would have a material adverse effect on our business, results
of operations and financial condition. In addition, the increased attention
focused upon liability issues as a result of these lawsuits and legislative
proposals could impact the overall growth of Internet use.

RELIANCE ON INTELLECTUAL PROPERTY RIGHTS

         To establish and protect our trademark, service mark and other
proprietary rights in our products and services, we rely on a combination of:

         o    copyright, unfair competition, trademark, service mark and trade
              secret laws, and

         o    confidentiality agreements with our licensees and other third
              parties and confidentiality agreements and policies covering our
              employees.

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<PAGE>


         We cannot assure you that these measures will be adequate, that we will
be able to secure registrations for all of our marks in the U.S. or
internationally or that third parties will not infringe upon or misappropriate
our proprietary rights. Any infringement or misappropriation, or litigation
relating to intellectual property rights, may have a material adverse effect on
our business, financial condition and results of operations.

         On May 22, 2001, the U.S. Patent and Trademark Office registered the
mark "ViaVid" in the United States. We have also applied to the Canada Patent
and Trademark Office for registration of "ViaVid" in Canada. A trademark has
been issued in Canada for "ViaVid". We are not aware of any other companies
currently using the name "ViaVid" in the United States. We have conducted
searches of trademark databases in the United States and have not found any
registration of the name "ViaVid" as a trademark. There is no assurance that the
trademark for the "ViaVid" name in the United States will stand up to objections
by others who may have made prior use of the name. Also, there can be no
assurance that we will obtain any significant commercial advantage from this
trademark or that we will have the financial resources to protect our rights in
the name through legal proceedings or otherwise. It is also possible that our
competitors or others will adopt product or service names similar to "ViaVid" or
other similar service marks or trademarks, thereby impeding our ability to build
brand identity and possibly leading to customer confusion. Our inability to
protect the name "ViaVid" adequately could have a material adverse effect on our
business, results of operations and financial condition.

         Legal standards relating to the validity, enforceability and scope of
protection of certain proprietary rights in Internet-related business are
uncertain and evolving. In particular, new registration and ownership priority
procedures may be adopted which may make it more difficult for us to retain or
obtain desirable domain names.

CONTROL BY PRINCIPAL STOCKHOLDERS AND POTENTIAL CONFLICTS OF INTEREST

         Our officers and Directors own approximately 35.3% of our outstanding
shares of Common Stock. As a result, such persons could elect all the members of
our Board. Such persons could also control those actions requiring the approval
of the holders of a majority of our voting stock, including amendments to our
Articles of Incorporation and any business combinations. Such persons
concentration of ownership could prevent a change in control of our company that
might otherwise be beneficial to stockholders.

RISKS APPLICABLE TO THE MARKET FOR OUR COMMON STOCK


         NO ACTIVE PRIOR PUBLIC MARKET FOR COMMON STOCK; POSSIBLE VOLATILITY OF
         STOCK PRICE

         Prior to January 4, 2000, there was no active public market for our
Common Stock. Since then, our Common Stock has been quoted on the OTC Bulletin
Board. There can be no assurance that an active trading market for our Common
Stock will be sustained or that the market price of our Common Stock will not
decline based upon market or other conditions. The market price may bear no
relationship to our revenues, earnings, assets or potential and may not be
indicative of our future business performance. The trading price of our Common
Stock has been

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<PAGE>


and can be expected to be subject to wide fluctuations in response to variations
in our quarterly results of operations, the gain or loss of significant
strategic relationships, unanticipated delays in our development, changes in
estimates by analysts, announcements of technological innovations or new
solutions by us or our competitors, general conditions in the technology and
Internet sectors and in Internet-related industries, other matters discussed
elsewhere in this report and other events or factors, many of which are beyond
our control.

         In addition, the stock market in general and the technology and
Internet sectors in particular have experienced extreme price and volume
fluctuations which have affected the market price for many companies in
industries similar or related to us and which have been unrelated to the
operating performance of these companies. These market fluctuations, as well as
general economic, political and market conditions, may have a material adverse
effect on the market price of our Common Stock.

         In the past, following periods of volatility in the market price of a
company's securities, securities class action litigation has often been
instituted against such companies. Such litigation, if instituted, and
irrespective of the outcome of such litigation, could result in substantial
costs and a diversion of management's attention and resources and have a
material adverse effect on our business, results of operations and financial
condition.




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                           PART II - OTHER INFORMATION



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

         (a)      Exhibits

                  Exhibit Number                Description

                       99.1          Chief Executive Officer's Certification
                       99.2          Chief Financial Officer's Certification




         (b)      Reports on Form 8-K

                  The Registrant did not file any current reports on Form 8-K
                  during the quarter ended June 30, 2002.








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                                   SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

Date:    August 14, 2002                   By: /s/ Brian Kathler
                                               ------------------------------
                                               President
                                               (Principal Executive Officer and
                                               Principal Accounting Officer)






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