United States
                       Securities and Exchange Commission
                            Washington, D. C. 20549


                                  FORM 10-QSB

                                   (Mark One)


     [X]  Quarterly  Report  Under  Section  13 or  15(d ) of  the  Securities
 Exchange  Act of 1934 For the Period  Ended  December 31, 1996 or
     [ ] Transition Report Under Section 13 or 15(d ) of the Securities Exchange
 Act of 1934 For the Transition Period Ended From     to

Commission file number     0-25332

                           GOLF TRAINING SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

        Delaware                                               58-1963120
  (State or other jurisdiction of                          (I.R.S. Employer
  incorporation or organization)                          Identification No.)

        3400 Corporate Way, Suite G
                Duluth, Georgia                                  30136
  (Address of principal executive offices)                    (Zip Code)

                                 (770) 623-6400
              (Registrant's telephone number, including area code)

                                 Not applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.  Yes X   No

               Applicable Only to Issuers Involved in Bankruptcy
                  Proceedings During the Preceding Five Years

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by the court.  Yes      No


                      Applicable Only to Corporate Issuers

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

Common Stock, $.01 Par Value - 3,324,851 shares as of February 3, 1997.

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                          GOLF TRAINING SYSTEMS, INC.
                     Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>

                                         December 31,            June 30,
                                            1996                   1996
                                          ---------             ---------
                                         (Unaudited)               (Note)
        ASSETS
<S>                                      <C>                    <C>
Current Assets:
  Cash and cash equivalents ..............$ 405,499             $2,009,820
  Receivables, net .......................  257,246                164,304
  Inventories ............................  452,137                430,141
  Prepayments ............................   70,999                 62,807
                                          ---------              ---------                                                 
        Total Current Assets              1,185,881              2,667,072

Equipment and Improvements, net ..........  527,091                225,626

Other Assets:
  Intangible assets, net .................2,596,811              2,760,771
  Other ..................................  115,523                271,123
                                          ---------              ---------
                                         $4,425,306             $5,924,592
                                          =========              =========

        LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities:
  Accounts payable .......................$ 117,258              $ 300,316
  Accrued expenses .......................  105,483                112,682
                                          ---------              ---------
        Total Current Liabilities           222,741                412,998

Stockholders' Equity:
  Preferred stock, $.01 par value;
   3,000,000 shares authorized:
    Series A, $.01 par value; 600
    shares authorized, 284.5 and 398 
    shares issued, respectively ..........2,845,000              3,980,000
  Common stock, $.01 par value;
   10,00,000 shares authorized; 
    3,230,774 and 2,393,050 shares 
    issued, respectively .................   32,308                 23,931
  Additional paid-in capital .............9,901,682              8,775,059
  Accumulated deficit ...................(8,576,425)            (7,267,396)
                                         ----------             ---------- 
        Total Stockholders' Equity        4,202,565              5,511,594
                                         ----------             ----------
                                         $4,425,306             $5,924,592
                                          =========              =========

Note:  The  balance  sheet at June 30,  1996 has been  derived  from the audited
financial  statements at that date but does not include all the  information and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements.

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

<PAGE>

                          GOLF TRAINING SYSTEMS, INC.
                Condensed Consolidated Statements of Operations
                                  (Unaudited)


<CAPTION>
                                Three Months Ended            Six Months Ended
                                    December 31,                December 31,
                               ----------------------     ---------------------
                                  1996         1995         1996         1995
                               ---------     --------     ---------   ---------

<S>                            <C>          <C>          <C>          <C>    
Net sales .....................$ 771,253    $ 321,440    $1,057,443   $ 590,109
Cost of sales .................  478,574      220,780       700,838     433,843
                               ---------    ---------    ----------   ---------
Gross margin ..................  292,679      100,660       356,605     156,266
 
Operating expenses:
  Selling and marketing .......  343,685      276,603       662,991     587,409
  General and administrative ..  422,910      382,047       987,125     620,890
  Research and development ....   65,277           --        66,194          --
  Non-cash non-recurring items        --      612,000            --     612,000
                               ---------    ---------     ---------   ---------
                                 831,872    1,270,650     1,716,310   1,820,299
                               ---------    ---------     ---------   ---------
  Operating loss .............. (539,193)  (1,169,990)   (1,359,705) (1,622,313)

Other income(expense) .........   13,930       19,194        50,676      41,720
                               ---------    ---------     ---------   ---------

Net loss .................... $(525,263)  $(1,150,796)  $(1,309,029)$(1,622,313)
                               ========    ==========    ==========  ========== 
Net loss per share ..........   $(.17)       $(.32)        $(.41)      $(.73)
                                =====        =====         =====       ===== 
Weighted average 
common shares ............... 3,073,484     2,249,348     3,176,509   2,227,958
                              =========     =========     =========   =========


The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.
<PAGE>

                          GOLF TRAINING SYSTEMS, INC.
                Condensed Consolidated Statements of Cash Flows
                                  (Unaudited)

<CAPTION>
                                                  Six Months Ended December 31,
                                                 ------------------------------
                                                     1996               1995
                                                 ------------        ----------
<S>                                              <C>                 <C>    
Cash flows used in operating activities ........ $(1,281,268)        $(963,393)

Cash flows used in investing activities ........    (323,053)          (69,613)

Cash flows provided by financing activities ....          --           250,000
                                                 -----------         ----------
  Net increase (decrease) in cash and
   cash equivalents ............................ (1,604,321)          (783,006)

Cash and cash equivalents at beginning
   of period ...................................  2,009,820          1,658,178
                                                -----------          ---------

Cash and cash equivalents at end of period .... $   405,499          $ 875,172
                                                ===========          =========

The  accompanying  notes  are an  integral  part of the  condensed  consolidated
financial statements.
<PAGE>

                          GOLF TRAINING SYSTEMS, INC.
              Notes to Condensed Consolidated Financial Statements
                               December 31, 1996
                                  (Unaudited)

1.  BASIS  OF  PRESENTATION  The  accompanying   unaudited  condensed  financial
statements  of Golf Training  Systems,  Inc. (the Company) have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Regulation  S-B.
Accordingly,  they do not include all the information and footnotes  required by
generally accepted accounting principles for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
items)  considered  necessary  for  a  fair  presentation  have  been  included.
Operating  results for the three and six month periods  ended  December 31, 1996
are not necessarily  indicative of the results that may be expected for the year
ended June 30, 1997.  For further  information,  refer to the audited  financial
statements and notes thereto  included in the Company's Form 10-KSB for the year
ended June 30, 1996.


2. INVENTORIES  The components of inventory consist of the following:
<CAPTION>
                                      December 31,     June 30,
                                         1996            1996
                                       --------        --------
<S>                                    <C>             <C>  
                Raw materials          $143,418        $237,021
                Finished goods          308,719         193,120
                                       --------        --------
                                       $452,137        $430,141
                                       ========        ========


3. WARRANTS The Company  extended the expiration date of 197,374  warrants until
November 25, 1997 at an exercise  price of $3.00 per warrant.  Such warrants are
callable by the Company if the common  stock of the Company  trades at a minimum
of $3.75 for ten consecutive days, as defined.

<PAGE>

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

RESULTS OF OPERATIONS

Net sales (gross sales less returns and  allowances) for the three and six month
periods  ended  December  31, 1996  increased to $771,253  and  $1,057,443  from
$321,440 and $590,109,  respectively,  for the three and six month periods ended
December 31, 1995, an increase of approximately 140% and 79%, respectively.

The  increase  in  sales  is the  result  of the  additional  acceptance  of the
Company's  complete product lines introduced  during 1996, which incorporate the
Leadbetter Collection,  Rotella and Pelz lines. Further, the Company's increased
marketing  efforts and  strategy  into retail  distribution  as compared to only
minor retail and direct  response  distribution  has furthered the sales growth.
The Company  continues to introduce new products being developed by Dave Pelz in
the area of putting and the short game.

Gross margins  increased to 38% and 34% in the three and six month periods ended
December 31, 1996, respectively, as compared to approximately 33% and 26% in the
three and six month periods ended December 31, 1995, respectively. These changes
reflect the impact of the increased sales of other new higher margin products.

Selling and marketing expenses increased  approximately 24% and 13% in the three
and six month periods ended December 31, 1996, respectively,  as compared to the
three and six month periods ended December 31, 1995.  The increased  selling and
marketing  expenses reflect the growth in sales and increased  selling effort by
the Company,  particularly  into the retail  distribution  channel.  General and
administrative,  depreciation  and  amortization  and research  and  development
expenses increased approximately 28% and 70% for the three and six month periods
ended  December  31,  1996 over  comparable  amounts for the three and six month
periods ended December 31, 1995. The increase reflects the Company's increase in
operations,  specifically  those  associated  with  the  development  of  Sports
Training  Systems,  LLC (STS) which develops  certain  motion capture  licensing
rights for golf swing  analysis and training,  and the  Company's  newer product
lines from Pelz and Rotella.  As the Company moves from its product  development
stage into the distribution  stage,  management is currently intent on achieving
the proper  level of selling and  administrative  expenses to match its expected
level of operations.

The Company had a net loss of $525,263 ($.17 per share) and $1,309,029 ($.41 per
share)  for  the  three  and  six  month  periods   ended   December  31,  1996,
respectively,  compared  to a net  loss  of  $1,150,796  ($.32  per  share)  and
$1,622,313  ($.73 per share) for the three and six month periods ended  December
31, 1995,  respectively.  The net loss and net loss per share amounts  primarily
reflect the increased cost of operations from the additional  expenses from Pelz
and Rotella product lines as well as additional expenses of STS partially offset
by a  reduction  in the  noncash  charge  for  the  issuance  of  warrants  to a
consultant of the Company during the three month period ended December 31, 1995.


LIQUIDITY AND SOURCES OF CAPITAL

At December 31,  1996,  the Company had working  capital of $963,140,  including
$405,499 of cash and cash equivalents. The Company's strategy of growth into the
retail  market and  international  sales and the continued  introduction  of new
products will require  additional  funds to implement.  The Company is currently
seeking  additional  capital to meet these needs. The Company has no commitments
and no assurance additional funds will be available or if so, will be sufficient
to continue to implement such strategy.

The Company had a negative cash flow from  operations of $1,604,321  for the six
month period ended December 31, 1996 and a negative cash flow from operations of
$783,006  for the six month period ended  December 31, 1995.  The negative  cash
flow from operations reflects the increased expenses discussed above.

<PAGE>

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

There are no material pending legal  proceedings to which the Company is a party
or of which any of their property is subject.

Item 2. Changes in Securities.

        (a)     Not applicable.
        (b)     Not applicable.

Item 3. Defaults Upon Senior Securities.

        (a)     Not applicable.
        (b)     Not applicable.

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

The Company  held its annual  meeting of  stockholders  on November 25, 1996 and
December  23,  1996.  Proposal  1 was to  amend  the  Company's  Certificate  of
Incorporation  to divide the Board of directors into three classes of Directors.
1,165,063  votes were cast to  approve,  1,875,578  votes  were cast  against or
abstained from voting. The Proposal was defeated.  The following  directors were
elected at the meeting to serve a one year term expiring in 1997 (Proposal 2) at
the annual meeting of the  stockholders:  Wayne C. McDonald,  George P. Lee III,
Parker Smith,  Nicholas J.  Aquilino,  Richard E. White,  Daniel A. Gordon,  and
Thomas W. Tripp,  2,559,660 votes were cast to approve,  484,031 votes were cast
against or  abstained  from  voting.  Proposal 3 was to  increase  the number of
shares of common stock  authorized for issuance and to remove  certain  exercise
and vesting  requirements  for Director  Options under the Company's  1994 Stock
option Plan,  2,359,089 shares were cast to approve and 678,702 shares were cast
against or abstained from voting.

Item 5. Other Information.

        Not applicable.

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

        (a)     Exhibits.
                Exhibit 11  Statement Re: Computation of Earnings Per Share.

(b)     Reports on Forms 8-K.
        Report filed as of October 30, 1996 regarding certain matters pertaining 
        to the conversion rights of the preferred stock holders.

<PAGE>

SIGNATURES


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

                                            GOLF TRAINING SYSTEMS, INC.
                                            ---------------------------
                                                    (Registrant)



Date    February 12, 1997                       /s/ Wayne C. McDonald
      -------------------                    --------------------------
                                                 Wayne C. McDonald
                                        Chairman and Chief Executive Officer

<PAGE>

GOLF TRAINING SYSTEMS, INC.

EXHIBIT 11 - Statement Re: Computation of Earnings Per Share


<CAPTION>
                                  Three Months Ended        Six Months ended
                                      December 31,            December 31,
                                ----------------------   ----------------------
                                   1996         1995        1996         1995
                                ---------    ---------   ---------    ---------
<S>                             <C>          <C>         <C>          <C>    
Primary and fully diluted:
 Weighted average shares 
  outstanding during the period 3,073,484    2,330,799   3,176,509    2,209,409
 Effect of common stock 
  acquisition rights and 
  warrants granted subsequent
  to October 19, 1993computed
  in accordance with the
  treasury stock method as 
  required by the SEC (1).            --       18,549           --       18,549
                               ---------    ---------   ----------    ---------
Total weighted average 
 common shares                 3,073,484    2,249,348    3,176,509    2,227,958
                               =========    =========    =========    =========

Net loss                       $(525,263) $(1,150,796) $(1,309,029) $(1,622,313)

Net loss per share                $(.17)      $(.32)      $(.41)        $(.73)




(1) Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No.
83, Common and Preferred Stock issued and stock options and warrants  granted at
prices below the assumed initial public offering price of $6.00 per share during
the  twelve-month  period  immediately  preceding the initial filing date of the
Company's  Registration  Statement  for its initial  public  offering  have been
included as  outstanding  for all periods  presented  using the  treasury  stock
method.


</TABLE>