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, 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: 23,956,980 shares of Common
Stock at February 15, 2000

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



<PAGE>



Part I. FINANCIAL INFORMATION
<TABLE>
                     Entertainment Digital Network, Inc.
                      CONSOLIDATED BALANCE SHEETS As of
                   December 31, 2000 and September 30, 2000
<CAPTION>


                                          ASSETS                                       12/31/00           09/30/00
                                                                                      (Unaudited)         (Audited)
                                                                                   ------------------ -----------------
<S>                                                                                      <C>               <C>
CURRENT ASSETS
        Cash                                                                             $    75,229       $   196,211
        Accounts receivable, net of allowance for doubtful accounts
         of $169,500 and $170,000 at December 31, 2000
         and September 30, 2000, respectively                                                806,681           955,226
        Accounts and interest receivable - related party                                     221,252            73,175
        Inventories, net                                                                     656,176           708,286
        Prepaid expenses                                                                      11,044            11,294
                                                                                   ------------------ -----------------

         TOTAL CURRENT ASSETS                                                            $ 1,770,382       $ 1,944,192
                                                                                   ------------------ -----------------

Property and equipment, net                                                                  575,624           624,321
Other assets                                                                                  12,441            21,062
                                                                                   ------------------ -----------------

        TOTAL ASSETS                                                                     $ 2,358,447       $ 2,589,575
                                                                                   ================== =================


                                             LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES
        Accounts payable                                                                 $   810,477       $   954,463
        Accounts payable - related party                                                   1,628,025         1,575,033
        Accrued expenses                                                                     145,106           260,746
        Deferred Revenue                                                                      33,835            27,200
        Note payable and advances - related parties                                          125,000           125,000
        Current portion of capital lease obligations                                           2,568             4,047
                                                                                   ------------------ -----------------

         TOTAL CURRENT LIABILITIES                                                         2,745,011         2,946,489
                                                                                   ------------------ -----------------

STOCKHOLDERS' DEFICIT
        Common Stock; par value $0.001 per share
         Authorized 50,000,000 shares; 23,956,980 and 23,956,980
          issued and outstanding at December 31, 2000
          and September 30, 2000, respectively
                                                                                              23,956            23,956
        Capital paid in excess of par value of Common Stock                                7,535,535         7,535,535
        Subscription Receivable                                                                   --            (1,367)
        Accumulated deficit                                                               (7,946,055)       (7,915,038)
                                                                                   ------------------ -----------------

        TOTAL STOCKHOLDERS' DEFICIT                                                         (386,564)         (356,914)
                                                                                   ------------------ -----------------

        TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                      $ 2,358,447       $ 2,589,575
                                                                                   ================== =================





<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 Three Months ended December 31, 2000 and 1999
<CAPTION>


                                                                        Three Months
                                                                     Ended December 31
                                                                         (Unaudited)
                                                            -------------------------------------
                                                                  2000               1999
                                                            ----------------- -------------------
<S>                                                                <C>                 <C>
Revenue:
    Usage & hosting fees                                           $ 438,195           $ 426,818
    Equipment sales                                                  141,693             347,187
    Installation and monthly fees                                    201,525             185,515
    Webcasting                                                       445,035             171,842
    Rental fees                                                       37,481              27,133
    Other                                                              2,377               2,811
                                                            ----------------- -------------------
                                                                   1,266,306           1,161,306

Cost of sales                                                        715,410             942,290
                                                            ----------------- -------------------

    Gross Profit                                                     550,896             216,016

Sales and marketing expenses                                         221,506             115,237
General and administrative expenses                                  352,417             336,906
                                                            ----------------- -------------------
                                                                     573,923             452,143
    Loss from operations before other (expense)
    income and provision for income taxes                            (23,027)           (233,127)
                                                            ----------------- -------------------

Other (expense) income:
    Interest income                                                      839               8,171
    Interest expense                                                  (4,119)             (9,721)
    Other expense                                                     (5,100)                 --
    Gain on sale of subsidiary assets                                    390                  --
                                                            ----------------- -------------------

      Total other (expense) income, net                               (7,990)             (1,550)
                                                            ----------------- -------------------


                                                            ----------------- -------------------
      Net Income (loss)                                            $ (31,017)         $ (234,677)
                                                            ----------------- -------------------


    Basic and diluted net (loss) income per share:                 $  ( 0.00)          $   (0.01)




<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 Three Months ended December 31, 2000 and 1999
<CAPTION>


                                                                                             12/31/00          12/31/99
                                                                                           (Unaudited)       (Unaudited)
                                                                                         ---------------   ---------------
<S>                                                                                           <C>              <C>
Cash flows from operating activities:
        Net Income (loss) income                                                              $ (31,017)       $ (234,677)

        Adjustments to reconcile net (loss) income to
        cash used in operating activities:

            Depreciation and amortization                                                        54,597            34,703
            Increase in reserve for bad debt                                                      5,351             3,750
            Noncash compensation expenses                                                            --             7,467
            Increase in accounts receivable                                                      (4,883)          (50,656)
            Decrease (Increase) in inventory                                                     52,108          (400,476)
            Decrease in prepaid expenses
                and other assets                                                                  8,870               632
            (Decrease) Increase in accounts payable
                and accrued expenses                                                           (222,126)          554,850
            Increase in deferred revenue                                                          6,635                --
                                                                                         ---------------   ---------------

            Net cash used in operating activities                                              (130,465)          (84,407)
                                                                                         ---------------   ---------------

Cash flows from investing activities:

        Purchase of property and equipment                                                       (5,900)          (78,280)
                                                                                         ---------------   ---------------

            Net cash used by investing activities                                                (5,900)          (78,280)
                                                                                         ---------------   ---------------

Cash flows from financing activities:

        Proceeds from exercise of Stock Options                                                   1,367                --
        Payments on capital leases                                                               (1,477)           (4,582)
        Proceeds from related party payable                                                      15,493             1,500
        Proceeds from Secured Note Receivable                                                        --            33,746
                                                                                         ---------------   ---------------

            Net cash provided by financing activities                                            15,383            30,664
                                                                                         ---------------   ---------------


                Net (decrease) increase in cash                                                (120,982)         (132,023)

Cash at beginning of period                                                                     196,211           282,862
                                                                                         ---------------   ---------------

Cash at end of period                                                                          $ 75,229          $150,839
                                                                                         ===============   ===============





<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, 1999 to September 30, 2000.  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, 1999 to
September 30, 2000. 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.   Loss Per Share
<TABLE>
         Basic loss per share is computed using the  weighted-average  number of
shares of common  stock  outstanding  during the periods.  Diluted  earnings per
share is computed using the weighted-average  number of common shares and common
share equivalents  outstanding  during the year. The computation of net loss per
share was a follows:
<CAPTION>
                                                                            (Loss)              Shares         Per Share
                                                                          (Numerator)         Denominator        Amount
                                                                         --------------------------------      ---------
<S>                                                                      <C>                  <C>              <C>
         Quarter ended December 31, 2000:
           Basic loss per share                                          $     (31,017)       23,956,980       $   (0.00)
           Effect of dilutive stock options and warrants                 $          --                --       $      --
                                                                         --------------     -------------      ---------
           Diluted loss per share                                        $     (31,017)       23,756,980       $   (0.00)
                                                                         ==============     ============       =========
         Quarter ended December 31, 1999:
           Basic loss per share                                          $    (234,677)       23,188,898       $   (0.01)
           Effect of dilutive stock options and warrants                            --                --              --
                                                                         -------------      ------------       ---------
           Diluted loss per share                                        $    (234,677)       23,188,898       $   (0.01)
                                                                         =============      ============       =========
</TABLE>
         At December 31, 2000 options and warrants for the purchase of 5,818,894
common  shares at  prices  ranging  from  $0.10 to $1.25  was  antidilutive  and
therefore not included in the computation of diluted earnings per share.


                                       5

<PAGE>

4.   Notes Payable and Other Debt

       Notes Payable

         Notes  payable-related  party: consists of one loan payable to Mr. Eric
         Jacobs with a maturity  date of December  31, 2001.  The current
         balance of the loan at December 31, 2000 and September 30, 2000,
         respectively, is $125,000.


ENTERTAINMENT DIGITAL NETWORK, INC

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

         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 renewed our 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 1500
         live  events for PR Newswire  and its  clients.  Additionally,  we have
         produced events for YahooBroadcast.com, E*TRADE, and iBeam,. Webcasting
         accounted  for  approximately  35% of our revenue for the three  months
         ended December 31, 2000.

         The Company also continued its'  agreement with  Telestream,  Inc., the
         manufacturer  of a high-quality  video delivery  system,  "ClipMailPro"
         (which can send video over data  networks  using  high-speed  broadband
         Internet  networks).  We became  the first OEM  dealer  for this  video
         appliance.  We continue to believe  that this  product and service will
         become a significant  part of the growth of the  Company's  revenues in
         the coming year. Our relationship with Telestream  remains strong after
         two years of very close work together, though we have both fallen short
         of the original expectations. The long sales cycle and hesitance on the
         part of media professionals to adopt the new technology has resulted in
         a build-up of excessive inventory.

RESULTS OF OPERATIONS

         For the three  months  ended  December  31,  2000,  our  revenues  were
         $1,266,306, an increase of 9% compared to revenues of $1,161,306 in the
         comparable  period last year.  Revenue  results for all categories were
         mixed  compared  to the  comparable  period for last  year.  Webcasting
         increased 160% over the prior year's quarter and continues to be one of
         the company's focuses for continued growth through  partnering with our
         parent  company,   Visual  Data  Corporation's  On-line  Broadcast  and
         Production Group. The Company will be concentrating its efforts on live
         audio and video event webcasts.  We have also had revenue growth in the
         past quarter from our network  affiliates'  usage fees of 2.6%,  rental
         fees of 38%, and new installations of 8.6%. However, the company's sale
         of network equipment resulted in a significant decrease of 59% in sales
         this quarter,  as we  experienced a temporary slow down in the sales of
         the video product line.  Management  continues to believe this business
         line will grow, aided by a strategic  alliance with Digital  Generation
         Systems,  Inc. creating a highly sophisticated  network service we call
         "OneDigitalPath"  that enables  production  companies to transport  and
         deliver their content through digital video network  connections to the
         ultimate broadcaster of the advertising spot.

                                    6
<PAGE>


         Gross Profit increased to $550,896 or 43% of sales, in the three months
         ended  December 31, 2000  compared to $216,016 or 19% of sales,  in the
         equivalent  period  last  year.  The  increase  in gross  profit can be
         attributed  to the increase in revenues of Webcasting  services,  which
         has a lower cost of sales than our other  services,  and also benefited
         over the past quarter from a one time  application  of credits to costs
         attributable  to rate decreases from one of our vendors.  The decreases
         in the rate  structure  that  generated  this  credit of  approximately
         $187,000 from previous periods,  is ongoing in our current costs. Sales
         of video  equipment  continues  to have a lower  profit  margin due, in
         part, to sales discounts we offered our customers as incentives for the
         early adoption of this new technology.

         Operating  expenses  (including  Sales  &  Marketing,   and  General  &
         Administrative)  increased  to  $573,923  in  the  three  months  ended
         December 31, 2000  compared to $452,143 in the  equivalent  period last
         year. We attribute  this  increase of  approximately  $106,000,  to the
         increased costs in sales and marketing needed to facilitate our growth.

         For the three months ended December 31, 2000, we incurred a net loss of
         $31,017 or $(0.00) per share based on a weighted-average  of 23,956,980
         shares  outstanding.  This  compares  with a net loss of  $234,677,  or
         $(0.01)  per share based on a  weighted-average  of  23,188,198  shares
         outstanding in the prior year for the comparable period.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION


FINANCIAL CONDITION, LIQUIDITY and CAPITAL RESOURCES

         At December 31, 2000, we had an accumulated deficit of $7,946,054. This
         compares to a September 30, 2000 accumulated deficit of $7,915,038. Our
         working  capital  decreased  from  $308,061 at September  30, 2000 to a
         negative  $386,563 at December 31, 2000,  due to our continued loss and
         infrastructure expansion.

         The  company  continues  to be a net  user of cash in  operations.  The
         current  quarter  saw a net  use of  cash  amounting  to  approximately
         $130,000.  The  company  expects to  continue  this trend over the next
         quarter with any cash shortfalls  being  supplemented by the 51% parent
         company Visual Data Corporation.

         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.

                                       7

<PAGE>


PART II OTHER INFORMATION

Item 1.  Legal Proceedings

None

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)      Reports on Form 8-K: None


                                       8

<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     February 16, 2001                   By:   ----------------------------
         -----------------
                                                   David Gustafson
                                                   Chief Executive Officer,
                                                   Principal Accounting Officer,
                                                   Secretary

                                       9