UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                  (Mark One)

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

                  For the quarterly period ended June 30, 2000

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACTS

         For the transition period from ______________ to ______________

                 Commission file number            000-21659

                       ENTERTAINMENT DIGITAL NETWORK, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

         Delaware                                        94-3173300
--------------------------------------------------------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

                One Union Street, San Francisco, California 94111
-------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (415) 274-8800
--------------------------------------------------------------------------------
                           (Issuer's telephone number)

 State the  number of shares  outstanding  of each of the  issuer's  classes  of
common equity as of the latest  practicable  date:  23,375,448  shares of Common
Stock at June 30, 2000

Transitional Small Business Disclosure Format (Check one): Yes     No  X
                                                              ---     ---


                                       1
<PAGE>

Part I. FINANCIAL INFORMATION

<TABLE>
                                                 Entertainment Digital Network, Inc.
                                                     CONSOLIDATED BALANCE SHEETS
                                             As of June 30, 2000 and September 30, 1999

<CAPTION>
                                          ASSETS                                                    06/30/00              09/30/99
                                                                                                  (Unaudited)             (Audited)
                                                                                                  -----------           -----------
<S>                                                                                               <C>                   <C>
CURRENT ASSETS
        Cash                                                                                      $   104,327           $   282,862
        Accounts receivable, net of allowance for doubtful accounts
         of $24,858 and $18,453 at June 30, 2000 and
         September 30, 1999, respectively                                                             958,281               713,452
        Accounts and interest receivable - related party                                                 --                  32,698
        Accounts receivable, escrow                                                                      --                  50,000
        Inventories, net                                                                              890,628               576,433
        Prepaid expenses                                                                               43,889                45,952
        Other current assets                                                                             --                   2,500
                                                                                                  -----------           -----------
         TOTAL CURRENT ASSETS                                                                     $ 1,997,125           $ 1,703,897
                                                                                                  -----------           -----------

Property and equipment, net                                                                           642,638               385,698
Other assets                                                                                            4,012                 5,254
                                                                                                  -----------           -----------
        TOTAL ASSETS                                                                              $ 2,643,775           $ 2,094,849
                                                                                                  ===========           ===========


                              LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
        Accounts payable                                                                          $   740,883           $   628,959
        Accounts payable - related party                                                               51,879                  --
        Accrued expenses                                                                              160,519               225,374
        Line of credit                                                                                100,000                  --
        Note payable and advances - related parties                                                 1,121,972               290,500
        Current portion of capital lease obligations                                                    5,476                11,580
                                                                                                  -----------           -----------
         TOTAL CURRENT LIABILITIES                                                                  2,180,729             1,156,413
                                                                                                  -----------           -----------
        Capital lease obligations                                                                        --                   4,045
                                                                                                  -----------           -----------
        TOTAL LIABILITIES                                                                           2,180,729             1,160,458
                                                                                                  -----------           -----------

STOCKHOLDERS' EQUITY
        Common Stock; par value $0.001 per share
         Authorized 50,000,000 shares; 23,375,448 and 23,186,398
          issued and outstanding at June 30, 2000 and
          September 30, 1999, respectively                                                             22,695                22,506
        Capital paid in excess of par value of Common Stock                                         7,520,586             7,501,391
        Secured note receivable - related party                                                          --                (283,746)
        Unearned compensation                                                                         (23,111)              (45,511)
        Accumulated deficit                                                                        (7,057,124)           (6,260,249)
                                                                                                  -----------           -----------
        TOTAL STOCKHOLDERS' EQUITY
                                                                                                      463,046               934,391
                                                                                                  -----------           -----------
        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                $ 2,643,775           $ 2,094,849
                                                                                                  ===========           ===========

<FN>
                                        The accompanying notes are an integral part of these
                                                 consolidated financial statements.
</FN>
</TABLE>

                                                                 2
<PAGE>


<TABLE>


                                                 Entertainment Digital Network, Inc.
                                                CONSOLIDATED STATEMENTS OF OPERATIONS
                                     For the Nine and Three Months ended June 30, 2000 and 1999

<CAPTION>

                                                                         Nine Months                         Three Months
                                                                       Ended June 30                        Ended June 30
                                                                         (Unaudited)                          (Unaudited)
                                                                 ------------------------------      -------------------------------
                                                                     2000              1999              2000              1999
                                                                 ------------      ------------      ------------      ------------
<S>                                                              <C>               <C>               <C>               <C>
Revenue:
    Usage & hosting  fees                                        $  1,211,526      $  1,128,458      $    401,154      $    373,219
    Equipment sales                                                 1,175,122           846,311           292,176           313,193
    Installation and monthly fees                                     553,024           481,731           178,241           169,737
    Webcasting                                                        737,518           129,760           363,954           104,075
    Rental fees                                                       103,089            65,722            44,393            30,157
    Web design and consulting                                            --             248,205              --                --
    Other                                                              11,763             7,490             5,730              --
                                                                 ------------      ------------      ------------      ------------
                                                                    3,792,042         2,907,677         1,285,648           990,381

Cost of sales                                                       2,966,702         2,022,979           910,621           679,837
                                                                 ------------      ------------      ------------      ------------

      Gross Profit                                                    825,340           884,698           375,027           310,544

Sales and marketing expenses                                          516,128           362,375           223,085           145,040
General and administrative expenses                                 1,085,633           917,599           388,532           304,041
                                                                 ------------      ------------      ------------      ------------
                                                                    1,601,761         1,279,974           611,617           449,081
    Loss from operations before other income
          (expenses) and provision for income taxes                  (776,421)         (395,276)         (236,590)         (138,537)
                                                                 ------------      ------------      ------------      ------------
Other income (expense):
    Interest income                                                    11,874            26,653               583             9,364
    Interest expense                                                  (29,928)          (16,349)          (10,947)           (6,491)
    Other expense                                                        --              (7,305)             --              (2,960)
    Gain on sale of subsidiary assets                                    --             663,530              --                --
                                                                 ------------      ------------      ------------      ------------
      Total other income (expense), net
                                                                      (18,054)          666,529           (10,364)              (87)
                                                                 ------------      ------------      ------------      ------------

      (Loss) income before provision for income taxes                (794,475)          271,253          (246,954)         (138,624)
      Income taxes                                                      2,400             7,434               (33)            3,434
                                                                 ------------      ------------      ------------      ------------
      Net (loss) income                                          $   (796,875)     $    263,819      $   (246,921)     $   (142,058)
                                                                 ------------      ------------      ------------      ------------


    Basic and diluted net (loss) income per share:               $      (0.03)     $       0.01      $      (0.01)     $      (0.01)

    Weighted-average number of shares outstanding                  23,219,138        18,124,577        23,262,615        20,200,059


<FN>
                                        The accompanying notes are an integral part of these
                                                 consolidated financial statements.
</FN>
</TABLE>

                                                                 3
<PAGE>

<TABLE>

                                                 Entertainment Digital Network, Inc.
                                                CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          for the Nine Months ended June 30, 2000 and 1999
<CAPTION>

                                                                                                      06/30/00            06/30/99
                                                                                                     (Unaudited)         (Unaudited)
                                                                                                     -----------        -----------
<S>                                                                                                  <C>                <C>
Cash flows from operating activities:
        Net (loss) income                                                                            $  (796,875)       $   263,819
        Adjustments to  reconcile  net (loss)  income to cash used in  operating
           activities:
            Depreciation and amortization                                                                126,457             96,179
            Increase in reserve for bad debt                                                               6,405             12,556
            Noncash compensation expenses                                                                 22,400               --
            Gain from sale of assets - IBS                                                                  --             (663,530)
            Increase in accounts receivable                                                             (251,234)          (226,321)
            Decrease in accounts receivable - related party                                               84,577             18,534
            Decrease (increase) in accounts receivable - escrow                                           50,000           (100,000)
            Increase in inventory                                                                       (314,195)          (369,072)
            Decrease (increase) in prepaid expenses
                and other assets                                                                           5,805            (67,398)
            Increase (decrease) in accounts payable
                and accrued expenses                                                                      47,069            (79,019)
            Decrease in deferred revenue                                                                    --              (34,666)
                                                                                                     -----------        -----------
            Net cash used in operating activities                                                     (1,019,591)        (1,148,918)
                                                                                                     -----------        -----------
Cash flows from investing activities:
        Purchase of property and equipment                                                              (383,397)          (150,428)
        Proceeds from sale of assets                                                                        --            1,000,000
                                                                                                     -----------        -----------
            Net cash (used) provided by investing activities                                            (383,397)           849,572
                                                                                                     -----------        -----------

Cash flows from financing activities:
        Proceeds from Line of Credit                                                                     100,000               --
        Proceeds from advances - related party                                                           871,972            550,000
        Principal payments on debt                                                                       (40,500)          (308,214)
        Repayment on settlement of claim in equity                                                          --              (50,000)
        Payments on capital leases                                                                       (10,149)           (11,889)
        Proceeds from exercise of stock options/warrants                                                  19,384            410,988
        Proceeds from Secured Note Receivable                                                            283,746               --
                                                                                                     -----------        -----------
            Net cash provided by financing activities
                                                                                                       1,224,453            590,885
                                                                                                     -----------        -----------
                Net (decrease) increase in cash                                                         (178,535)           291,539

Cash at beginning of period                                                                              282,862             88,470
                                                                                                     -----------        -----------

Cash at end of period                                                                                $   104,327        $   380,009
                                                                                                     ===========        ===========

<FN>
                                        The accompanying notes are an integral part of these
                                                 consolidated financial statements.
</FN>
</TABLE>

                                                                 4
<PAGE>



                       ENTERTAINMENT DIGITAL NETWORK, INC
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   Basis of Presentation

     The interim, condensed,  consolidated financial statements of Entertainment
     Digital Network, Inc. (the "Company") included herein have been prepared in
     conformity with generally accepted  accounting  principles.  The principles
     applied are  consistent  in all  material  respects  with those used in the
     Company's  Annual  Report on Form 10KSB for the  period  October 1, 1998 to
     September  30, 1999.  The interim  financial  statements  are unaudited but
     reflect all normal  adjustments  which are,  in the opinion of  management,
     necessary  to  provide  fair,   condensed,   consolidated  balance  sheets,
     statements of operations and cash flows for the interim periods  presented.
     The interim  financial  statements  should be read in conjunction  with the
     financial  statements in the Company's  Annual Report on Form 10KSB for the
     period October 1, 1998 to September 30, 1999.

2.   Consolidation

     The consolidated  financial  statements include the accounts of the Company
     and its wholly owned  subsidiary  Entertainment  Digital  Network,  Inc., a
     California  corporation ("EDN").  Material  inter-company  transactions and
     balances  have  been  eliminated.   Visual  Data  Corporation,  a  Delaware
     corporation based in Pompano Beach, Florida ("VDC"), owns 51% of the voting
     securities of the Company.

3.   Earnings per Share

     Basic (loss)  earnings per share are  computed  using the  weighted-average
     number of shares of Common Stock  outstanding  during the periods.  Diluted
     (loss) earnings per share are computed using the weighted-average number of
     common shares and common share equivalents outstanding during the period.

     Since fully diluted (loss) earnings per share were antidilutive in 2000 and
     1999, basic and diluted (loss) earnings per share are the same. At June 30,
     2000,  options and warrants for the purchase of 6,953,618  common shares at
     prices  ranging  from  $0.10 to  $1.25  per  share  were  antidilutive  and
     therefore not included in the  computation of diluted  (loss)  earnings per
     share.

4.   Secured Note Receivable - Related Party

     A note receivable with face value of $283,746, due from VDC was part of the
     payment  resulting from VDC's purchase of 8,563,417 shares of the Company's
     Common  stock.  This  resulted in a 51% ownership of the Company by VDC. At
     January 25, 2000, VDC paid the note and accrued interest in full.



                                        5
<PAGE>

5.   Sale of Subsidiary

     On December 11, 1998, the Company  completed the sale of substantially  all
     of the assets of the Company's  wholly-owned  subsidiary  Internet Business
     Solutions,   Inc.  ("IBS"),   a  California   corporation,   to  Enterprise
     Communications  Consulting,  Inc., a Washington corporation, a wholly-owned
     subsidiary of Attachmate Corporation of Bellevue,  Washington.  The sale of
     IBS  resulted  in a gain of  $663,530.  The final  payment of  $50,000  was
     received on January 6, 2000.

6.   Note Payable and Advances - Related Parties

     On May 17, 1999,  a promissory  note in the amount of $250,000 was executed
     between the Company and Eric Jacobs,  a member of the  Company's  and VDC's
     Board of Directors. These funds were used for purchasing inventory.

     On February 15, 2000, our parent VDC advanced  $200,000 for the purchase of
     inventory.  VDC advanced an  additional  $122,597 on March 31, 2000.  These
     funds were also used to purchase inventory. Additional advances, which were
     used to purchase Telestream product, were made on May 3, May 18 and June 14
     in the amount of $150,000, $155,625 and $243,750, respectively.

<TABLE>
     Note payable and advances-related parties consist of the following:
<CAPTION>

                                                               June 30,      Sep 30,
                                                                 2000         1999
                                                              ----------   ----------
<S>                                                           <C>          <C>
Note  payable to Eric  Jacobs,  a  director  of VDC and the
     Company, principal of $250,000 at 12% interest. The
     principal balance is due on demand. Accrued interest
    payable as of June 30, 2000 is $1,151                     $  250,000   $  250,000
Notes payable to officers at 6% interest, not
    collateralized.  Paid in full January 19, 2000                  --         40,500
Advances from parent company without interest, not
    collateralized                                               871,972         --
                                                              ----------   ----------
Total note payable and advances-related parties               $1,121,972   $  290,500
                                                              ==========   ==========
</TABLE>


7.   Line of Credit

     In 1999 we  obtained  a line of  credit  of  $250,000  with  Union  Bank of
     California.  The  line  of  credit  bears  interest  at  the  institution's
     published  reference rate plus 2 1/2% and is  collateralized by our assets.
     There is a balance  of  $100,000  owed on the line of credit as of June 30,
     2000. At June 30, 2000 we were out of compliance with loan covenants on our
     line of credit.


                                       6
<PAGE>

8.   Commitments under Master  Distribution Agreement

     We entered into a Master Distribution Agreement ("Agreement") on January 7,
     2000 with  Telestream,  Inc., a Delaware  Corporation  ("Telestream").  The
     Agreement sets forth terms and conditions for us to acquire video equipment
     from  Telestream  and  distribute  to  end-users.  The  Agreement  shall be
     effective for a fixed period of one year (the "Initial Term") commencing on
     March 19, 2000.

     The Agreement also sets forth  distribution  rights regarding  Telestream's
     ClipMail  Pro(TM),  its high quality video delivery system,  which can send
     video over data networks using  high-speed,  high-band  Internet  networks.
     Telestream  has  granted  us an  exclusive  license  to be the sole  master
     distributor of ClipMail Pro for the advertising and entertainment  segments
     of the market.

9.   Proposed Acquisition of Remaining Outstanding Shares

     In  March  2000,  VDC,  which  currently  owns  approximately  51%  of  our
     outstanding  shares,  signed a Letter of  Intent  with us  providing  for a
     proposed  tax-free  reorganization  whereby we would  become a wholly owned
     subsidiary  of VDC.  The proposed  terms  included the right to receive one
     share of VDC for every ten outstanding shares of our capital stock, and the
     conversion  of every ten of our  outstanding  options or warrants  into one
     option or warrant to purchase a share of VDC Common Stock.  The transaction
     is subject to the  execution of a definitive  agreement and approval of our
     shareholders.  On April 17, 2000, VDC announced  that they were  postponing
     the  previously  announced  intention to acquire the  remaining  49% of our
     outstanding  shares.  The decision to postpone the acquisition was made due
     to market  conditions at that date. On April 17, 2000 we were served with a
     complaint  filed  as  a  purported  class  action  lawsuit  initiated  by a
     shareholder (Zevin v. Entertainment Digital Network,  Inc., et al, and Case
     No. 311263 in the Superior Court of California  for San Francisco  County).
     The lawsuit seeks injunctive relief and monitary damages.  We believe there
     is no merit to the lawsuit.


                                       7
<PAGE>

ENTERTAINMENT DIGITAL NETWORK, INC

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

RESULTS OF OPERATIONS

For the three months  ended June 30, 2000,  our  revenues  were  $1,285,648,  an
increase of 30% compared to revenues of $990,381 in the  comparable  period last
year.  Revenues  for the nine  months  ended  June  30,  2000  increased  30% to
$3,792,042  compared to revenues of  $2,907,677  in the  comparable  period last
year.  Revenue for all  categories  experienced  an increase  except for a small
decrease in equipment  sales.  Webcasting  increased  250% over the prior year's
quarter.  We have  revenue  growth for all lines of  business,  with the largest
increases  coming from  webcasting and video  equipment sales which accounts for
28% and 23% respectively.

Gross Profit  decreased  to $375,027 or 29% of sales,  in the three months ended
June 30, 2000  compared to $310,544 or 31% of sales,  in the  equivalent  period
last year.  For the nine months  ended June 30, 2000 gross  profit  decreased to
$825,340  or 22% of  sales,  from  $884,698,  or 30% of sales in the  equivalent
period last year. The decrease in gross profit can be attributed to the increase
in sales of video equipment. Sales of video equipment have a lower profit margin
due to discounts given as incentive for early adopters of this new technology.

Operating expenses  (including Sales & Marketing,  and General & Administrative)
increased  to  $611,617  in the three  months  ended June 30,  2000  compared to
$449,081  in the  equivalent  period  last  year.  This  increase  is due to the
expansion of our business  and our hiring of  additional  personnel in sales and
administration.  For the nine  months  ended June 30,  2000  operating  expenses
increased to  $1,601,761  from  $1,279,974 in the  equivalent  period last year.
There were  significant  expenditures for the nine months ended June 30, 2000 in
the  expansion of our  marketing,  public  relations,  trade  shows,  travel and
salaries to support our growth.

Interest  income has  decreased  for the  current  quarter  ending June 30, 2000
compared to the equivalent  quarter in the prior year. This is due to lower cash
balances with Union Bank and VDC's payment of the note receivable.

For the three months ended June 30, 2000,  we incurred a net loss of $246,922 or
$(0.01) per share based on a weighted-average  of 23,262,615 shares outstanding.
This  compares  with a net loss of  $142,058,  or $(0.01)  per share  based on a
weighted-average  of  20,200,059  shares  outstanding  in the prior year for the
comparable  period.  We incurred a net loss for the nine  months  ended June 30,
2000 of $796,875, or $(0.03) per share based on a weighted-average of 23,219,138
shares outstanding,  compared with a net income of $263,819, or $0.01 per share,
based on a weighted-average of 18,124,577 shares in the prior period.


                                       8
<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

We continue to expand our core audio networking services, which has now expanded
to over 550 affiliates in the United States and Canada. The number of Grammy and
Oscar  recipients  that use the audio  network in the music and  motion  picture
industry has increased annually.

In the past fiscal year,  we entered into an agreement  with PR Newswire and VDC
to  provide  corporate  clients  with live audio and video  webcasting  over the
Internet.  We have successfully  produced and streamed over 1000 live events for
PR Newswire and its clients.  Additionally,  we have produced events for Yahoo!,
Broadcast.com,  E*TRADE, iBeam, SchoolCity.com, and Choiceradio.com.  Webcasting
accounts for 20% of our revenue for the nine months ended June 30, 2000.

In fiscal 1999, we announced our agreement  with  Telestream,  to distribute its
ClipMail  Pro(TM)  product.  Since its  launch at the  National  Association  of
Broadcasting  trade show in Las Vegas,  this appliance has been well accepted in
the advertising,  television and motion picture  production and  post-production
market. We expect that the video services we offer with this product will become
a significant part of the Company's revenue growth in the coming year.

Financial Condition, Liquidity, and Capital Resources

At June 30, 2000, we had an accumulated deficit of $7,057,124.  This compares to
a September 30, 1999  accumulated  deficit of  $6,260,249.  Our working  capital
decreased from $547,484 at September 30, 1999 to a negative $183,604 at June 30,
2000, due to our continued loss and infrastructure expansion.

We were out of  compliance  as of June 30, 2000 with a loan covenant on our line
of credit with Union Bank of California.  We expect to pay off the line shortly.
VDC has provided financial resources when needed,  providing us with advances to
purchase  inventory.  We have  received  a total of  $871,972  from  VDC.  These
resources have been used to pay for Telestream inventory.

On January 7, 2000,  we entered  into a Master  Distributorship  Agreement  with
Telestream,  Inc. The terms and  conditions  set forth  purchase  discounts  and
specified purchase levels.

Disclosure Pursuant to the Private Securities Litigation Reform Act of 1995

When used in this Management's  Discussion and Analysis, the words "anticipate,"
"estimate,"   "expect,"  and  similar   expressions  are  intended  to  identify
forward-looking  statements.  These  statements are subject to certain risks and
uncertainties,  including,  but not limited to, the following:  risks associated
with  fundraising  and the Company's  ability to secure  resources  necessary to
fully develop business products; risks associated with mergers and acquisitions,
the nature of any  transaction  consummated,  and the  ability  to  successfully
operate  a  merged  entity;   business  conditions  in  the  telecommunications,
entertainment,  advertising  and  Internet-related  industries,  and the general
economy;  competitive  factors such as rival  networking  technology,  competing
products,   and  competitive   pricing;   risks  associated  with   development,
introduction,  and acceptance of new products;  the Company's  ability to manage
its rapid growth and attract and retain key  employees;  and other risk factors.
Actual results may differ  materially from management  expectations as discussed
here.


                                       9
<PAGE>

PART II OTHER INFORMATION

Item 1.  Legal Proceedings

The  Company  was served with a  complaint  filed in a  purported  class  action
lawsuit  initiated by a shareholder  (Zevin v.  Entertainment  Digital  Network,
Inc.,  et al,  Case No.  311263  in the  Superior  Court of  California  for San
Francisco County).  The lawsuit seeks injunctive relief and monitary damages. We
believe there is no merit to the lawsuit.

Item 2.  Changes in Securities

None

Item 3.  Defaults Upon Senior Securities

None

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

None

Item 5.  Other Information

None

Item 6. Exhibits and Reports on Form 8-K

        (a) (27) Financial Data Schedule, filed electronically
        (b)      Reports on Form 8-K: None


                                       10
<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.

                                           Entertainment Digital Network, Inc.
                                           -----------------------------------
                                                      (Registrant)

Date    August 14, 2000              By:
        ---------------                    ---------------------------
                                            David Gustafson
                                            Chief Executive Officer,
                                            Principal Accounting Officer,
                                            Secretary


                                       11