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 DECEMBER 31, 1999
                                                               -----------------

[ ]  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:  23,201,398 shares of Common Stock at
December 31, 1999

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 December 31, 1999 and September 30, 1999

<CAPTION>
                                     ASSETS                                                        12/31/99              09/30/99
                                                                                                  (Unaudited)            (Audited)
                                                                                                  -----------           -----------
<S>                                                                                               <C>                   <C>
CURRENT ASSETS
        Cash                                                                                      $   150,839           $   282,862
        Accounts receivable, net of allowance for doubtful accounts
          of $15,108 and $18,453 at December 31, 1999 and
          September 30, 1999, respectively                                                            783,395               713,452
        Accounts and interest receivable - related party                                                9,661                32,698
        Accounts receivable, escrow                                                                    50,000                50,000
        Inventories, net                                                                              976,909               576,433
        Prepaid expenses                                                                               42,177                45,952
        Other current assets                                                                            3,238                 2,500
                                                                                                  -----------           -----------

          TOTAL CURRENT ASSETS                                                                    $ 2,016,219           $ 1,703,897
                                                                                                  -----------           -----------

Property and equipment, net                                                                           429,275               385,698
Other assets                                                                                            7,659                 5,254
                                                                                                  -----------           -----------

        TOTAL ASSETS                                                                              $ 2,453,153           $ 2,094,849
                                                                                                  ===========           ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
        Accounts payable                                                                          $ 1,191,498           $   628,959
        Accrued expenses                                                                              217,685               225,374
        Notes payable - related party                                                                 290,500               290,500
        Current portion of capital lease obligations                                                    8,475                11,580
                                                                                                  -----------           -----------

          TOTAL CURRENT LIABILITIES                                                                 1,708,158             1,156,413
                                                                                                  -----------           -----------

        Capital lease obligations                                                                       2,568                 4,045
                                                                                                  -----------           -----------

        TOTAL LIABILITIES                                                                           1,710,726             1,160,458
                                                                                                  -----------           -----------

STOCKHOLDERS' EQUITY
        Common Stock; par value $0.001 per share
          Authorized 50,000,000 shares; 23,201,398 and 23,186,398
           issued and outstanding at December 31, 1999 and
           September 30, 1999, respectively                                                            22,521                22,506
        Capital paid in excess of par value of Common Stock                                         7,502,876             7,501,391
        Secured note receivable                                                                      (250,000)             (283,746)
        Unearned compensation                                                                         (38,044)              (45,511)
        Accumulated deficit                                                                        (6,494,926)           (6,260,249)
                                                                                                  -----------           -----------

        TOTAL STOCKHOLDERS' EQUITY                                                                    742,427               934,391
                                                                                                  -----------           -----------

        TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                $ 2,453,153           $ 2,094,849
                                                                                                  ===========           ===========

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


<PAGE>


<TABLE>
                                                 Entertainment Digital Network, Inc.
                                                  CONSOLIDATED STATEMENTS OF INCOME
                                         For the Three Months ended December 31, 1999 & 1998

<CAPTION>
                                                                                                  1999                     1998
                                                                                               (Unaudited)             (Unaudited)
                                                                                               ------------            ------------
Revenue:
<S>                                                                                            <C>                     <C>
       Usage & hosting fees                                                                    $    426,818            $    413,395
       Equipment sales                                                                              347,187                 244,521
       Installation and monthly fees                                                                185,515                 155,371
       Webcasting                                                                                   171,842                    --
       Rental fees                                                                                   27,133                  18,090
       Web design and consulting                                                                       --                   191,661
       Other                                                                                          2,811                   4,520
                                                                                               ------------            ------------
                                                                                                  1,161,306               1,027,558

Cost of sales                                                                                       942,290                 704,882
                                                                                               ------------            ------------

           Gross Profit                                                                             219,016                 322,676

Sales and marketing expenses                                                                        115,237                 136,841
General and administrative expenses                                                                 336,906                 279,732
                                                                                               ------------            ------------
                                                                                                    452,143                 416,573
           Loss from operations before other income (expenses)
             and provision for income taxes                                                        (233,127)                (93,897)
                                                                                               ------------            ------------

Other income:
       Interest income                                                                                8,171                   5,644
       Interest expense                                                                              (9,721)                 (6,142)
       Gain on sale of subsidiary assets                                                               --                   663,530
                                                                                               ------------            ------------

           Total other income (expense), net                                                         (1,550)                663,032
                                                                                               ------------            ------------

           Income (loss) before provision for income taxes                                         (234,677)                569,135
           Income taxes                                                                                --                     4,000
                                                                                               ------------            ------------
           Net income (loss)                                                                       (234,677)                565,135
                                                                                               ------------            ------------

       Basic income (loss) per share:
           Net income (loss)                                                                          (0.01)                   0.03
       Diluted income (loss) per share:
           Net income (loss)                                                                          (0.01)                   0.02

       Weighted-average number of shares outstanding                                             23,188,898              16,761,836
       Effect of dilutive stock options and warrants                                                                     11,886,878
                                                                                               ------------            ------------
                                                                                                 23,188,898              28,648,714
                                                                                               ============            ============

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


<PAGE>


<TABLE>
                                                 Entertainment Digital Network, Inc.
                                                CONSOLIDATED STATEMENT OF CASH FLOWS
                                        for the Three Months ended December 31, 1999 and 1998

<CAPTION>
                                                                                                  12/31/99               12/31/98
                                                                                                 (Unaudited)            (Unaudited)
                                                                                                 -----------            -----------
<S>                                                                                                 <C>                 <C>
Cash flows from operating activities:
         Net (loss) income                                                                          (234,677)           $   565,135

         Adjustments to reconcile net loss to
            cash used in operating activities:

              Depreciation and amortization                                                           34,703                 53,195
              increase in reserve for bad debt                                                         3,750                   --
              Noncash compensation expenses                                                            7,467                   --
              Gain from sale of assets - IBS                                                            --                 (663,530)
              (Increase) decrease in accounts receivable                                             (50,656)                49,418
              Increase in inventory                                                                 (400,476)               (26,763)
              Decrease (increase) in prepaid expenses and other assets                                   632                (67,479)
              Increase (decrease) in accounts payable and accrued expenses                           554,850               (222,558)
                                                                                                 -----------            -----------

              Net cash (used) in operating activities                                                (84,407)              (312,582)
                                                                                                 -----------            -----------

Cash flows from investing activities:

         Purchase of property and equipment                                                          (78,280)                (4,220)
         Proceeds from sale of assets                                                                   --                1,000,000
                                                                                                 -----------            -----------

              Net cash (used) provided by investing activities                                       (78,280)               995,780
                                                                                                 -----------            -----------

Cash flows from financing activities:

         Principal payments on debt                                                                     --                 (158,214)
         Repayment on settlement of claim in equity                                                     --                  (50,000)
         Payments on capital leases                                                                   (4,582)                (3,981)
         Proceeds from exercise of stock options/warrants                                              1,500                   --
         Proceeds from Secured Note Receivable                                                        33,746
                                                                                                 -----------            -----------

              Net cash provided (used) by financing activities                                        30,664               (212,195)
                                                                                                 -----------            -----------


                  Net (decrease) increase in cash                                                   (132,023)               471,003

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

Cash at end of period                                                                            $   150,839            $   559,473
                                                                                                 ===========            ===========

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


<PAGE>


                          ENTERTAINMENT DIGITAL NETWORK
                   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 10-KSB 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
10-KQSB 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 earnings (loss) per share are computed using the  weighted-average  number
of shares of Common Stock outstanding  during the periods.  Diluted earnings per
share are computed using the weighted-average number of common shares and common
share equivalents  outstanding  during the period. The computation of net income
(loss) per share was as follows:

                                          Income (Loss)   Shares      Per Share
                                          (Numerator)  (Denominator)    Amount
                                          -----------  -------------  ----------
Three months ended December 31, 1999:
 Basic income (loss)per share              $ (234,677)   23,188,898   $  (0.01)
 Effect of dilutive stock
  Options and warrants                           --            --      --
                                           ----------    ----------   ----------
Diluted income (loss) per share            $ (234,677)   23,188,898   $  (0.01)
                                           ==========    ==========   ==========


                                          Income (Loss)   Shares      Per Share
                                          (Numerator)  (Denominator)    Amount
                                          -----------  -------------  ----------
Three months ended December 31, 1998:
 Basic income (loss)per share              $  565,135    16,761,836   $   0.03
 Effect of dilutive stock
  Options and warrants                           --      11,886,878    --
                                           ----------    ----------   ----------
Diluted income (loss) per share            $  565,135    28,648,714   $   0.02
                                           ==========    ==========   ==========

                                       2

<PAGE>


At December 31, 1999 options and warrants,  for the purchase of 7,127,668 shares
of  Common  Stock  at  prices  ranging  from  $0.10  to  $1.25  per  share  were
antidilutive  and therefore not included in the computation of diluted  earnings
per share.

4. Secured Note Receivable - Related Party

A note  receivable  with  face  value  of  $283,746  due from VDC is part of the
payment  resulting  from VDC's  purchase of  8,563,417  shares of the  Company's
Common Stock.  The acquired  Common Stock and a second mortgage secure the note.
Principal  payment of $56,749 plus interest is due annually  commencing  July 1,
1999 until July 1, 2003; the note bears a fixed interest rate of 7% per annum. A
principal  payment  of $33,746  and an  interest  payment  of  $25,467  had been
received as of December 31, 1999.

As of December 31, 1999, the Company  recognized  interest  revenue of $4,992 on
the VDC note  receivable.  At December 31, 1999 VDC owed the Company $27,403 for
the purchase of equipment and $4,992 of accrued interest on the note receivable.
Expenses  paid by VDC offset this  receivable.  VDC has paid  $19,262 for travel
expenses and $41,862 for directors' and officers' insurance premiums.

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   ("Buyer"),  a  wholly-owned   subsidiary  of
Attachmate  Corporation of Bellevue,  Washington.  The transaction was completed
for a total of  $1,000,000,  of which  $100,000  was  deposited  into an  escrow
account. The balance is to be released in full to the Company in increments upon
the termination of the statute of limitations governing certain potential claims
against IBS or the Buyer connected with the disposition of IBS's assets, or upon
the earlier agreement of the Buyer. Pursuant to the sales agreement, $50,000 was
to be disbursed in June 1999 and the remaining  balance of $50,000 to be paid in
December  1999.  The company  received  the first  payment of $50,000 on July 8,
1999.

6. Notes Payable - 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 are used for purchasing inventory.

Notes payable-related party consist of the following:

                                                              Dec 31,  Sep 30,
                                                              1999       1999
                                                           ---------   ---------
Note payable to Eric Jacobs, a director of VDC and EDN,
principal of $250,000 at 12% interest. The principal
balance is due on demand. Accrued interest payable as
of December 31, 1999 is $1,151.                            $ 250,000   $ 250,000

Notes payable to officers, at 6% interest,
uncollateralized. Accrued interest payable as of
December 31, 1999 is $2,430. Notes are due on demand.      $  40,500   $  40,500
                                                           ---------   ---------

Total notes payable-related party                          $ 290,500  $  290,500
                                                           =========  ==========

                                       3

<PAGE>


7. Subsequent Events

Agreement with Telestream, Inc.

On January 21, 2000,  we completed an Agreement  with  Telestream  to become the
Master  Distributor  of all of their  Clip(TM)Mail  Pro  products  in the United
States for the entertainment and advertising community.  We plan to add regional
sales  offices in  Detroit,  New York City and  Atlanta in addition to Rep sales
channels during the next quarter.

Receipt of Final Escrow Funds from the Sales of IBS

On January 6, 2000,  we received the final payment of $50,000 plus interest from
the sale of IBS.

Receipt of Equity Accounts Receivable from Visual Data Corporation

On January 25,  2000 we  received  $250,000  for the notes  receivable  due from
Visual  Data  Corporation  from the sale of 51% of the Company to VDC in June of
1998.

                                       4

<PAGE>


                       ENTERTAINMENT DIGITAL NETWORK, INC.
                            RESULTS OF OPERATIONS AND
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

RESULTS OF OPERATIONS

For the three months ended December 31, 1999, the Company's  revenues  increased
to $1,161,306,  compared to revenues of $1,027,558 in the comparable period last
year.  The Company has shown a significant  increase in equipment  sales revenue
compared to the equivalent period in the previous year. This revenue increase is
from the success of our new product  line of video  equipment.  During the three
months ended December 31, 1999,  video equipment sales  contributed  $185,000 to
total equipment  revenue.  This was partially offset by a decrease in the retail
prices of the new audio  equipment  that are now being offered to our customers.
The  increase  in  revenue  from  installation  and  monthly  fees is due to the
increase in the number of network affiliates and also the installation of higher
bandwidth  lines for the new  video  products.  The web  design  and  consulting
revenue  was  contributed  solely by our  former  subsidiary,  IBS.  Webcasting,
introduced in February  1999, has replaced 90% of the revenue loss from the sale
of IBS. Rental income has also substantially  increased over the previous period
primarily due to the rental of the new video products.

Gross Profit  decreased  to $219,016 or 19% of sales,  in the three months ended
December 31, 1999 compared to $322,676 or 31% of sales, in the equivalent period
last year.  The  decrease in gross  profit is due to the lower  gross  profit of
video  equipment  sales  compared to the higher  gross  profit of web design and
consulting.  We offered  discounts on the new video  products to  introduce  the
products into the  production  and  entertainment  industry.  For the comparable
period  last year,  our gross  profit was higher due to the web design  revenue,
which has a higher gross profit margin than that of video equipment sales.

Operating expenses  (including Sales & Marketing,  and General & Administrative)
increased to $452,143 in the three months ended  December 31, 1999 from $416,573
in the equivalent period last year. The General and Administrative expenses have
increased due to the costs  associated  with new product lines and the expansion
of infrastructure.  Sales and marketing expenses decreased  primarily due to the
reduction in the sales and marketing  expense of IBS, which was sold in December
1998.

Interest income increased from $5,644 in the prior equivalent  quarter to $8,171
in the quarter ending December 31, 1999.  Interest expense increased from $6,142
for the quarter  ended  December 31, 1998 to $9,721 for the  equivalent  current
year period. This increase is attributable to the interest charged on the larger
note payable balances. Other income for the three months ended December 31, 1998
included the gain on the sale IBS in the amount of $663,530.

For the three months ended December 31, 1999, the Company incurred a net loss of
$(234,677) or ($0.01) per share based on a weighted-average of 23,188,898 shares
outstanding.  This  compares  with a net profit of $565,135,  or $0.02 per share
based on a fully diluted  weighted-average  of 28,648,714 shares  outstanding in
the  comparable  period of the prior  year.  The net  profit  from the  previous
comparable period was primarily due to the sale of IBS.

In  December  1998,  we  completed  the sale of the  assets  of our  subsidiary,
Internet  Business  Solutions ("IBS") to Enterprise  Communications  Consulting,
Inc., a private company located in Bellevue,  Washington.  It became apparent to
the  management  and the  Board of  Directors  of EDN  that the web  development
services  of  IBS  were  being  provided  by our  parent  company,  Visual  Data
Corporation.  This sale  allowed EDN to focus all of its efforts on pursuing new
products and services in the video market as well as webcasting on the Internet.

                                       5

<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
Visual  Data  Corporation  to  provide  customers  with  live  audio  and  video
webcasting over the Internet.

In fiscal 1999, we announced an agreement with Telestream, the manufacturer of a
high quality video delivery system,  ClipMail(TM) Pro (which can send video over
data networks using  high-speed  wide-band,  Internet  networks).  We became the
first OEM  dealer  for this video  appliance.  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 this new product and service will become
a significant part of growth in the Company's revenue stream in the coming year.

Financial Condition, Liquidity, and Capital Resources

At December 31, 1999,  our  accumulated  deficit was  $6,494,926  compared to an
accumulated deficit of $6,260,249 for the prior quarter. Our accumulated deficit
increased  due to  decreased  profit  margins  and  an  increase  in  additional
personnel.  These new  employees  were added to support the two new products and
services  introduced  in January and April of this  calendar  year. We had a net
working capital of $308,061 compared to $547,484 for the quarter ended September
30, 1999.  This decrease is due to higher  inventory  balances for the new video
products.

We believe that we have  sufficient  working capital to fund our current plan of
operation.  In the event that the  introduction of our new video  networking and
webcasting  services  accelerate at a greater pace than  anticipated,  we have a
$250,000  Line of  Credit  available  with  Union  Bank of  California.  We have
additional  financial resources  available from our parent company,  Visual Data
Corporation.

Payment of Notes Payable to Company Officers

On  January  11,  2000 the  payment  of $40,500  plus  interest  was paid to two
officers of the Company for the demand  notes that have been  outstanding  since
June 1993.

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

                                       6

<PAGE>


other risk  factors.  Actual  results  may  differ  materially  from  management
expectations as discussed here.

PART II OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

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

                                       7

<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.


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


Date February 14, 2000                              By: /s/ Tom Kobayashi
     -----------------                              ----------------------------
                                                    Tom Kobayashi
                                                    Chief Executive Officer,
                                                    Principal Accounting Officer


Date February 14, 2000                              By: /s/David Gustafson
     -----------------                              ----------------------------
                                                    David Gustafson
                                                    Secretary

                                       8