SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

For the quarterly period ended September 30, 1997
                               ------------------
 
[ ]    TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
       ACT OF 1934

For the transition period from_________________________to_______________________

Commission file number 0-25276
                       -------

                       ALGORHYTHM TECHNOLOGIES CORPORATION
--------------------------------------------------------------------------------
         Exact name of small business issuer as specified in its charter

Nevada                                      88-0320364
----------------------------                ------------------------------------
(State or other jurisdiction                (I.R.S. Employer Identification No.)
 of incorporation)                         

                  5310 NW 33rd Drive, Ft. Lauderdale, FL 33309
--------------------------------------------------------------------------------
              (Address of principal executive offices and Zip code)

                                 (954) 739-7005
--------------------------------------------------------------------------------
                 (Issuer'stelephone number, including area code)

                      4330 NW 207th Drive, Miami, FL 33055
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

      Check  whether  the issuer (1) filed all  reports  required to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

                               Yes [x]  No [ ] 

                APPLICBLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

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

                     APPLICABLE ONLY TO CORPORATE ISSUERS

      State the number of shares  outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:  November 7, 1997:  11,923,556
shares of common stock

      Transitional Small Business Disclosure Format (check one): Yes     No  x
                                                                     ---    --- 



<PAGE>



                                      INDEX


                                                                      Page
                                                                      ----

Part I

Condensed Balance Sheets                                                3
Statement of Operations                                                 4
Statement of Cash Flows                                                 5
Notes to Condensed Financial Statements                                 6
Management's Discussion and Analysis or Plan of Operations              7

Part II

Item 1.  Legal Proceedings                                              8
Item 2.  Changes in Securities                                          8
Item 3.  Defaults Upon Senior Securities                                8
Item 4.  Submission of Matters to a Vote of Security Holders            8
Item 5.  Other Information                                              8
Item 6.  Exhibits and Reports on Form 8-K                               8
Signatures                                                             10
















<PAGE>

Part 1. Financial Information

                       Algorythm Technologies Corporation
          (f/k/a Nitros Franchise Corporation and Digimedia USA, Inc.)

                            CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                   September 30,   December 31,
                                                                        1997           1996
                                                                    -----------    -----------
ASSETS                                                              (Unaudited)       (Note)
<S>                                                                 <C>            <C>        
CURRENT ASSETS
  Cash                                                              $     1,336    $    32,079
  Accounts receivable                                                      --           57,400
                                                                    -----------    -----------
          Total current assets                                            1,336         89,479

PROPERTY, PLANT AND EQUIPMENT                                              --          123,675
Less allowances for depreciation                                           --          (75,991)
                                                                    -----------    -----------
                                                                           --           47,684

OTHER ASSETS                                                            250,500         60,613
                                                                    -----------    -----------
                                                                    $   251,836    $   197,776
                                                                    ===========    ===========
LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT LIABILITIES
  Accounts payable                                                  $   252,250    $    26,675
  Accrued expenses                                                         --           52,276
                                                                    -----------    -----------
         Total current liabilities                                      252,250         78,951

LONG-TERM DEBT                                                           16,667         16,667

 STOCKHOLDERS' EQUITY
  Preferred Stock; 1,000,000 shares authorized; $1 par value;
    no shares issued or outstanding                                      37,683         37,683
  Common stock; 25,000,000 shares authorized; $.002 par value;
    967,397 shares issued and outstanding at December 31,1996 and
    9,603,556 shares issued and outstanding at September 30, 1997        19,207          1,935
  Additional paid in capital                                          1,485,052      1,456,324
  Accumulated  deficit                                               (1,559,023)    (1,393,784)
                                                                    -----------    -----------
                                                                        (17,081)       102,158
                                                                    -----------    -----------
                                                                    $   251,836    $   197,776
                                                                    ===========    ===========
</TABLE>


Note:  The balance  sheet at December 31, 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.

See notes to condensed consolidated financial statements.






                                       3


<PAGE>



                       Algorythm Technologies Corporation
          (f/k/a Nitros Franchise Corporation and Digimedia USA, Inc.)

                             STATEMENT OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          Three Months Ended         Nine Months Ended
                                                June 30                   June 30
                                      ------------------------   ------------------------
                                          1997          1996         1997         1996
                                      -----------    ---------   -----------    ---------
                                                       (Note)                    (Note)
<S>                                   <C>            <C>         <C>            <C>      
Revenues                              $      --      $    --     $      --      $  12,400  
Costs and expenses                                                                       
  General and administrative               45,044       57,018        73,493       95,142  
  Loss on abandonment of property            --           --          91,746         --  
                                      -----------    ---------   -----------    ---------
                                           45,044       57,018       165,239       95,142  
                                      -----------    ---------   -----------    ---------
Earnings (loss) before taxes              (45,044)     (57,018)     (185,239)     (82,742)   
                                                                                         
Income taxes                                 --           --            --           --  
                                      -----------    ---------   -----------    ---------
Net earnings (loss)                   $   (45,044)     (57,018)     (185,239)     (82,742)   
                                      ===========    =========   ===========    =========
                                                                                         
Net earnings (loss) per share         $    (0.005)   $    --     $    (0.036)   $    --  
                                      ===========    =========   ===========    =========
                                                                                         
Weighted average shares outstanding     9,270,223         --       4,583,467         --  
                                      ===========    =========   ===========    =========
                                                                                
</TABLE>















See notes to condensed consolidated financial statements.











                                       4



<PAGE>
                       Algorythm Technologies Corporation
          (f/k/a Nitros Franchise Corporation and Digimedia USA, Inc.)

                             STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
                                                    Three Months Ended         Six Months Ended   
                                                           June 30                June 30         
                                                   ----------------------   ----------------------
                                                     1997          1996       1997         1996
                                                   --------    ----------   --------    ----------
                                                                  (Note)                  (Note)  
<S>                                                <C>         <C>          <C>         <C>       
CASH FLOWS FROM OPERATIONS                         $(20,291)   $     --     $(76,743)   $     --  
                                                                                                  
CASH FLOWS FROM INVESTING ACTIVITIES:                                                             
  Purchases of property and equipment                  --            --         --            --  
                                                   --------    ----------   --------    ----------
       Net cash provided by investing activities       --            --         --            --  
                                                   --------    ----------   --------    ----------
                                                                                                  
CASH FLOWS FROM FINANCING ACTIVITIES:                                                             
  Receipt of proceeds from stock sales                 --            --       46,000          --  
                                                   --------    ----------   --------    ----------
       Net cash provided by financing activities       --            --       46,000          --  
                                                   --------    ----------   --------    ----------
                                                                                                  
     NET INCREASE (DECREASE) IN CASH               $ 18,051    $     --     $(30,743)   $     --  
                                                   ========    ==========   ========    ==========
                                                                                        





Note: The previous management of the Company failed to file a condensed Statement of Cash Flow on
      the Quarterly Report Form 10-Q for the  period  ended  September  30,  1996, therefore  the
      comparative  data for that  period is not  available.  It will be filed by amendment.

</TABLE>



See notes to condensed consolidated financial statements.

























                                       5

<PAGE>
                       Algorythm Technologies Corporation
          (f/k/a Nitros Franchise Corporation and Digimedia USA, Inc.)


Notes to Condensed Financial Statements
(Unaudited)

June 30, 1997


NOTE A - BASIS OF PRESENTATION

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information and with the  instructions to Form 10-Q and Article 10 of Regulation
S-X.  Accordingly,  they do not include  all of 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  accruals)  considered  necessary  for a fair  presentation  have been
included. Operating results for the nine months ended September 30, 1997 are not
necessarily  indicative  of the results  that may be expected for the year ended
December 31, 1997. For further information,  refer to the refer to the financial
statements  and footnotes  thereto  included in the Digimedia  USA, Inc.  annual
report on FORM 10-KSB for the period ended December 31, 1996.

NOTE B - ABANDONMENT OF PROPERTY

During  the  quarter  ended  June 30,  1997,  the  Company  has come  under  new
management.  Various options are under consideration  concerning a new direction
for the Company. In the meantime,  management has abandoned the former corporate
facilities, the remaining lease term was assumed by another party. Additionally,
the Company has written off intangible assets that were deemed to have no future
value.























                                        6



<PAGE>



ITEM 2.     MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

Results of Operations
---------------------

      During the three month period ended  September 30, 1997 the Company had no
revenues and had no revenues  during the three month period ended  September 30,
1996.  During the nine month period ended  September 30, 1997 the Company had no
revenues  against  revenues  of  $12,400  during  the nine  month  period  ended
September 30, 1996.  During the three month period ended  September 30, 1997 the
Company had general and  administrative  expenses of $45,044 as against  $57,018
during the three month period ended  September  30, 1996;  and in the nine month
period  ended  September  30, 1997 the  Company  had general and  administrative
expenses  of $73,493  as against  $95,142  during  the nine month  period  ended
September 30, 1996.

Liquidity and Capital Resources
-------------------------------

      The  Company's  cash on hand  decreased by $19,291  during the three month
period ended  September 30, 1997 and decreased by $29,743  during the nine month
period ended September 30, 1997. As shown on the financial  statements and notes
thereto,  the Company has written off intangible assets that were deemed to have
no future value.  The Company's  accounts  payable has increased  from $5,500 to
$252,250 in the three month period ended  September  30, 1997 and has  increased
from  $26,675 to $252,250 in the nine month  period  ended  September  30, 1997.
$237,500 of the increase in the accounts payable in the three month period ended
September 30, 1997 is attributable to the aquisition of the rights to the Nitros
Franchise theme restaurant concept.

      As a result of the merger with Nitros  Franchise  Corporation  in May 1997
and the  change  in  management  as a  result  of the  merger,  the  Company  is
considering  a  new  direction,  including  the  focusing  on  internet  related
businesses.  The Company upon the expiration of its current contract obligations
will discontinue its CD Rom training division.

      The  Company,  in order to implement  its new  business  plan and meet its
obligations  will seek to raise capital  and/or make  acquisitions.  There is no
assurance that the Company will be successful in obtaining  capital or in making
any acquisition.  Subsequent to the peroid ended September 30, 1997, the Company
acquired ADS Advertising  Corporation a/k/a The Smith Agency, a fully integrated
marketing and advertising firm.










                                      7


<PAGE>

PART II

ITEM 1.     LEGAL PROCEEDINGS

      None

ITEM 2.     CHANGES IN SECURITIES

      On July 18, 1997 the Company issued  1,000,000  shares of its Common Stock
to  Telephonetics  International,  Inc. in connection  with the  acquisition  of
Telephonetics' subsidiary,  Algorhythm Technologies, Inc. The shares were issued
pursuant to Sec. 4(2) of the Securities Act of 1933, as amended.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES

      Not Applicable

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

      None

ITEM 5.     OTHER INFORMATION

      On November 7, 1997, the  acquisition by the Registrant of ADS Advertising
Corporation  a/k//a  the  Smith  Agency  ("ADS")  was  completed.  ADS is in the
business of  electronic  advertising,  has been in business  since 1983 and is a
fully integrated marketing and advertising firm. The acquisition was effected by
the exchange of 6,500 shares of ADS for 2,300,000 shares of the Registrant which
were issued to Andrew Smith, the principal of ADS. The financial statements will
be  filed  within  60  days  of the  acquisition.  Upon  the  completion  of the
acquisition  the  following  changes in the  management of the  Registrant  were
effected:  Andrew Smith was appointed President (in place of David Bawarsky) and
a director; David Bawarsky was appointed Secretary, in addition to being CEO and
a director;  Alan Kvares  resigned as  Secretary  and a director;  Parker  Yates
resigned as a director;  Jason Sherman resigned as a director,  but continues as
Vice President and  Treasurer.  Mr. Kvares and Mr. Yates resigned to devote more
time to their firm Telephonetics International, Inc.

      On November  17, 1997 Dr.  Bohdan S. Moroz was  appointed  to the board of
directors.

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

      A.    Exhibit 2.2 - Acquisition Agreement Between Algorhythm  Technologies
Corporation and ADS Advertising Corporation, dated October 30, 1997.

            Exhibit  10.1  -  Employment   agreement   between  ADS  Advertising
Corporation and Andrew Smith, dated October 30, 1997.

            Exhibit 27 - Financial Data Schedule (Electronic filing only). 

      B. In its 10Q-SB for the period ended June 30, 1997 the Registrant  stated
that it had been advised by the previous management that two reports on Form 8-K
had been filed during the period ended June 30, 1997, but for some reason,  they
were not shown as filed by the SEC.  The reports were refiled in August 1997 and
concern the following:


                                        8

<PAGE>



      May 8, 1997:  reducing the authorized shares from 75,000,000 to 10,714,275
which effected a reverse split of 7 to 1.

      May 14,  1997:  the  merger  of  Nitros  Franchise  Corporation  with  the
Registrant;   the  change  of  name  of  the  Registrant  to  Nitros   Franchise
Corporation;  the  resignation of the officers and directors and the appointment
of David Bawarsky, Alan Kvares and Jason Sherman as directors and David Bawarsky
as President and CEO.

      During the period ended  September 30, 1997, the Registrant also filed the
following 8Ks:

      8K dated  August  1,  1997:  the  change in  control  by the  transfer  of
4,675,889  shares of common stock in the aggregate by David Bawarsky and Alan J.
Kvares to Telephonetics International,  Inc. ("Telephonetics");  the issuance of
1,000,000  shares  of  common  stock  by  the  Registrant  to  Telephonetics  in
connection of the  acquisition  by the Registrant of  Telephonetics'  subsidiary
Algorhythm   Technologies,   Inc.  Under  Other  Events  the  reporting  of  the
termination of the proposed merger between the Registrant's subsidiary, Quicklab
Multimedia Centers, Inc. (a Nevada Corporation) and Quicklab Multimedia Centers,
Inc. (a Florida corporation); the change of name of the Registrant to Algorhythm
Technologies Corporation.

      8K dated August 20, 1997,  reporting under Other Events the signing of the
letter  of  intent  for the  acquisiton  by the  Registrant  of ADS  Advertising
Corporation.




























                                      9


<PAGE>



                                  SIGNATURES

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



                                    ALGORHYTHM TECHNOLOGIES CORPORATION
                                    -----------------------------------
                                          Registrant


Date: November 19, 1997                   s/ANDREW SMITH
                                    ----------------------------------- 
                                    Andrew Smith, President



Date: November 19, 1997                   s/JASON SHERMAN
                                    ----------------------------------- 
                                    Jason Sherman, Treasurer

























                                      10