<PAGE>

             AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
================================================================================

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

                        --------------------------------

                                   FORM 10-QSB

                        --------------------------------
(Mark One)

[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934
         For the quarterly period ended June 30, 2001

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
         For the transition period from _______________ to _______________

                        Commission file number 000-27915

                              GENIUS PRODUCTS, INC.
                              ---------------------
           (Name of small business issuer as specified in its charter)

             NEVADA                                               33-0852923
(State or other jurisdiction of                                 (IRS Employer
 incorporation or organization)                              Identification No.)

                            11250 EL CAMINO REAL #100
                               SAN DIEGO, CA 92127
                    (Address of principal executive officers)

                                 (858) 793-8840
                           (Issuer's telephone number)

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                         if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

There were 4,646,183 shares outstanding of the registrant's Common Stock as of
June 30, 2001.

Transitional small business disclosure format (check one): Yes  [ ]  No  [X]

================================================================================





<PAGE>

                              GENIUS PRODUCTS, INC.

                                      INDEX

                                                                            PAGE

PART I           Financial Information                                        3

   Item 1  Financial Statements                                               3

           Condensed Consolidated Balance Sheet at June 30, 2001
                  (unaudited)                                                 3
           Condensed Consolidated Statements of Operations
                  For the Three Months Ended June 30, 2001
                  and June 30, 2000 (unaudited)                               4
           Condensed Consolidated Statements of Operations
                  For the Six Months Ended June 30, 2001
                  and June 30, 2000 (unaudited)                               5
           Condensed Consolidated Statements of Cash Flow
                  For the six Months Ended June 30, 2001
                  and June 30, 2000 (unaudited)                               6
           Notes to Condensed Consolidated Financial Statements (unaudited)   7

   Item 2  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                         7

PART II         Other Information

   Item 1  Legal Proceedings                                                  9

   Item 2  Changes in Securities and Use of Proceeds                          9

   Item 3  Defaults Upon Senior Securities                                    9

   Item 4  Submission of Matters to a Vote of Security Holders                9

   Item 5  Other Information                                                  9

   Item 6  Exhibits and Reports on Form 8-K                                   9

SIGNATURES                                                                   11

                                       2





<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

GENIUS PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
--------------------------------------------------------------------------------

                                                                   JUNE 30, 2001
                                                                   -------------
ASSETS

Current assets
     Cash and equivalents                                           $    40,785
     Accounts receivable, net of allowance for
            doubtful accounts and sales returns of $ 185,532             84,442
     Inventories                                                        174,842
                                                                    ------------
            Total current assets                                        300,069

     Property and equipment, net of accumulated depreciation
            of $69,480                                                   74,633
     Production masters, net of accumulated amortization of
            $263,759                                                    187,882
     Patents and trademarks, net of accumulated
            amortization of $11,523                                      33,727
     Deposits and other                                                  67,082
                                                                    ------------

                                                                    $   663,393
                                                                    ============

LIABILITIES AND STOCKHOLDERS' DEFICIT

     Current liabilities
        Loans from shareholders                                     $   171,667
        Convertible debentures                                           60,000
        Accounts payable                                                819,969
        Accrued payroll and related expenses                             79,278
        Accrued other expenses                                          327,543
                                                                    ------------

            Total current liabilities                                 1,458,457

     Redeemable common stock                                            480,161

     Commitments and contingencies                                            -

     Stockholders' deficit:
        Common stock, $.001 par value; 25,000,000 shares
        authorized: 4,646,183 shares outstanding                          4,646
        Additional paid-in capital                                    7,609,609
        Stock subscription receivable                                  (106,000)
        Accumulated deficit                                          (8,783,480)
                                                                    ------------
            Total stockholders' deficit                              (1,275,225)
                                                                    ------------

                                                                    $   663,393
                                                                    ============

          The notes are an integral part of these financial statements.

                                       3





<PAGE>

GENIUS PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED....
--------------------------------------------------------------------------------

                                                   JUNE 30, 2001   JUNE 30, 2000
                                                     ----------      ----------
Revenues
     Music                                           $  28,175       $ 313,254
     Licensing                                          10,182          37,500
     Jewelry, other                                     91,156         132,855
                                                     ----------      ----------

     Total revenues                                    129,513         483,609

COSTS AND EXPENSES
     Cost of sales
        Music                                           84,350         126,551
        Licensing                                            -          11,250
        Jewelry, other                                  76,935          86,619
     Sales and marketing                                90,983         184,904
     Product and web development                        85,469          92,270
     General and administrative                        360,946         423,641
                                                     ----------      ----------

     Total costs and expenses                          698,683         925,235
                                                     ----------      ----------

     Loss from operations                             (569,170)       (441,626)

Gain on disposal                                             -              70
Interest expense                                       (22,284)         (1,480)
                                                     ----------      ----------

     Loss before provision for income taxes           (591,454)       (443,036)

Provision for income taxes                                   -               -
                                                     ----------      ----------

     Net loss                                        $(591,454)      $(443,036)
                                                     ==========      ==========

Basic and diluted loss per common share:
     Net loss per share                              $   (0.13)      $   (0.15)
                                                     ==========      ==========

     Basic and diluted weighted average shares       4,577,065       2,947,504
                                                     ==========      ==========

          The notes are an integral part of these financial statements.

                                       4





<PAGE>

GENIUS PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE SIX MONTHS ENDED....
--------------------------------------------------------------------------------

                                                 JUNE 30, 2001     JUNE 30, 2000
                                                  ------------      ------------
Revenues
     Music                                        $   248,064       $   559,585
     Licensing                                         20,242            37,500
     Jewelry, other                                   149,589           250,205
                                                  ------------      ------------

     Total revenues                                   417,895           847,290

COSTS AND EXPENSES
     Cost of sales
        Music                                         176,914           207,211
        Licensing                                       2,250            11,250
        Jewelry, other                                125,989           184,462
     Sales and marketing                              278,624           404,363
     Product and web development                      220,394           252,891
     General and administrative                       745,047           930,887
                                                  ------------      ------------

     Total costs and expenses                       1,549,218         1,991,064
                                                  ------------      ------------

     Loss from operations                          (1,131,323)       (1,143,774)

Gain on disposal                                                             70
Interest expense                                      (77,954)           (5,471)
                                                  ------------      ------------

     Loss before provision for income taxes        (1,209,277)       (1,149,175)

Provision for income taxes                                800               800
                                                  ------------      ------------

     Net loss                                     $(1,210,077)      $(1,149,975)
                                                  ============      ============

Basic and diluted loss per common share:
     Net loss per share                           $     (0.27)      $     (0.39)
                                                  ============      ============

     Basic and diluted weighted average shares      4,491,824         2,983,768
                                                  ============      ============

          The notes are an integral part of these financial statements.

                                       5





<PAGE>
<TABLE>

GENIUS PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE SIX MONTHS ENDED....
----------------------------------------------------------------------------------------------
<CAPTION>

                                                               JUNE 30, 2001     JUNE 30, 2000
                                                                ------------      ------------
<S>                                                             <C>               <C>
Cash flows from operating activities
     Net loss                                                   $(1,210,077)      $(1,149,975)
     Adjustments to reconcile net loss to net cash used by
     operating activities:
        Depreciation and amortization                                91,177            41,499
        Common stock issued for services                            179,539            70,640
        Changes in assets and liabilities:
        (Increase) decrease in:
        Accounts receivable                                         249,827           383,780
        Inventories                                                 (55,973)          (11,248)
        Deposits and other                                           (6,153)           (5,271)
        Increase (decrease) in:
        Accounts payable                                            151,109          (150,557)
        Accrued payroll and other expenses                          225,815            84,555
                                                                ------------      ------------

     Net cash used by operating activities                         (374,736)         (736,577)
                                                                ------------      ------------

Cash flows from investing activities
     Patents and trademarks                                         (10,946)          (10,468)
     Development of production masters                              (26,850)                -
     Purchase of property and equipment                              (1,611)           (6,393)
                                                                ------------      ------------

     Net cash used in investing activities                          (39,407)          (16,861)
                                                                ------------      ------------

Cash flows from financing activities
     Payments on notes payable                                            -            (1,000)
     Borrowings on notes payable                                    125,000           810,100
     Proceeds from issuance of convertible debt                     260,000                 -
     Proceeds from issuance of common stock                          15,000                 -
     Exercise of stock options                                            -            27,000
                                                                ------------      ------------

     Net cash provided by financing activities                      400,000           836,100
                                                                ------------      ------------

Net increase (decrease) in cash and equivalents                     (14,143)           82,662

Cash at beginning of period                                          54,928            45,633
                                                                ------------      ------------

Cash at end of period                                           $    40,785       $   128,295
                                                                ============      ============

     Non-cash investing and financing activities:
        Payment of loans by issuance of common stock            $   435,526       $    52,400
                                                                ============      ============
</TABLE>

               The notes are an integral part of these financial statements.

                                            6





<PAGE>

                     GENIUS PRODUCTS, INC. AND SUBSIDIARIES

               NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE A : BASIS OF PRESENTATION

         The accompanying unaudited condensed consolidated financial statements
of Genius Products, Inc. have been prepared by the Company pursuant to the rules
and regulations of the Securities and Exchange Commission.

         The information furnished herein reflects all adjustments, consisting
of only normal recurring accruals and adjustments which are, in the opinion of
management, necessary to fairly state the operating results for the respective
periods. Certain information and footnote disclosures normally included in
annual financial statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to such rules and regulations.
The notes to the condensed financial statements should be read in conjunction
with the notes to the consolidated financial statements contained in the
Company's Form 10-KSB for the year ended December 31, 2000. Company management
believes that the disclosures are sufficient for interim financial reporting
purposes.

ITEM 2   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

         THE FOLLOWING DISCUSSION OF OUR FINANCIAL CONDITION AND RESULTS OF
OPERATIONS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND NOTE
A TO THE FINANCIAL STATEMENTS INCLUDED ABOVE. THIS DISCUSSION CONTAINS
FORWARD-LOOKING STATEMENTS THAT RELATE TO FUTURE EVENTS OR THE COMPANY'S FUTURE
FINANCIAL PERFORMANCE AND INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER FACTORS THAT MAY CAUSE THE COMPANY'S ACTUAL RESULTS, LEVELS OF ACTIVITY,
PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS,
LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THESE
FORWARD-LOOKING STATEMENTS.

         The three and six months ended June 30, 2001.

         Revenues consist primarily of music (Baby Genius) product sales to
wholesale customers and via the internet to retail customers, and charges to
customers for shipping and handling, net of product returns and discounts. For
the quarter ended June 30, 2001 the company recognized royalty revenue related
to licensing the Baby Genius trademark. In addition, revenues include sales of
jewelry products, net of returns.

         Total revenues decreased 73% ($354,096) to $129,513 for the three
months ended June 30, 2001 from $483,609 for the three months ended June 30,
2000. Total revenues decreased 51% ($429,395) to $417,895 for the six months
ended June 30, 2001 from $847,290 for the six months ended June 30, 2000.

         Music sales decreased by 91% ($285,079) to $28,175 for the three months
ended June 30, 2001 from $313,254 for the three months ended June 30, 2000.
Music sales decreased 56% ($311,521) to $248,064 for the six months ended June
30, 2001 from $559,585 for the six months ended June 30, 2000. The decrease was
largely due to the lack of funding which did not allow us to develop new
products. We also received an unusually large amount of returns as we changed
out old packaging for new artwork in accordance with our style guide. We have
now finished the redesign of our packaging and are in the process of developing
new titles and releasing our latest video, The Four Seasons. Jewelry and other
sales decreased 31% ($41,699) to $91,156 for the three months ended June 30,
2001 from $132,855 for the three months ended June 30, 2000. Jewelry and other
sales decreased 40% ($100,616) to $149,589 for the six months ended June 30,
2001 from $250,205 for the six months ended June 30, 2000. We have seen strong
jewelry ord ers for the third quarter and are expecting further orders for the
fourth quarter. For both periods, the reduction in sales was also the result of
reduced marketing efforts in the jewelry area.

                                       7





<PAGE>

         Cost of sales consist primarily of the costs of products sold to
customers and packaging and shipping costs and commissions relating to licensing
revenues. Cost of sales for music products was 299% of music sales ($84,350) and
71% of music sales ($176,914) for the three and six months ended June 30, 2001
compared to 40% ($126,551) and 37% ($207,211) for the same periods in 2000. The
significant loss associated with music sales was a result of the packaging
update and related costs. Cost of sales for jewelry products and other sales was
84% of related sales ($76,935) and 84% of related sales ($125,989) for the three
and six months ended June 30, 2001 respectively compared to 65% ($86,619) and
74% ($184,462) for the same periods in 2000.

         Sales and marketing expenses consist of costs for consultants,
marketing personnel and promotional activities. Sales and marketing expenses
decreased by 51% ($93,921) to $90,983 for the three months ended June 30, 2001
from $184,904 for the three months ended June 30 2000. Sales and marketing
expenses decreased by 31% ($125,739) to $278,624 for the six months ended June
30, 2001 from $404,363 for the six months ended June 30, 2000. The decrease
reflects the lack of funding available for all activities.

         Product and web development expenses consist of personnel, consultants
and services in the development of the Baby Genius web site and product line.
Product and web development costs decreased by 7% ($6,801) to $85,469 for the
three months ended June 30, 2001 from $92,270 for the three months ended June
30, 2000. Product and web development expenses decreased by 13% ($32,497) to
$220,394 for the six months ended June 30, 2001 from $252,891 for the six months
ended June 30, 2000.

         General and administrative expenses consist of payroll and related
costs for executive and administrative personnel, professional services and
other general corporate expenses. General and administrative expenses decreased
by 15% ($62,695) to $360,946 for the three months ended June 30, 2001 from
$423,641 for the three months ended June 30, 2000. This decrease is primarily a
result of a decrease in administrative salaries and related expenses due to the
reduction of staff. General and administrative expenses for the six months ended
June 30, 2001 decreased by 20% ($185,840) to $745,047 from $930,887 for the six
months ended June 30, 2000.

         Interest expense consists of costs related to short and long-term loans
and debentures. Interest expense increased by 1406% ($20,804) to $22,284 for the
three month period ended June 30, 2001 from $1,480 for the three month period
ended June 30, 2000. Interest expense increased by 1325% ($72,483) to $77,954
for the six months ended June 30, 2001 from $5,471 for the six months ended June
30, 2000. The increases in both periods reflect the increase in short-term loans
and other borrowings.

LIQUIDITY AND CAPITAL RESOURCES

         During the three months ended June 30, 2001 we obtained financing
primarily through the issuance of additional short-term convertible debt raising
cash proceeds of $50,000. The Company has retained a consultant to help us raise
funds through private placements of our common shares on a "best efforts" basis
over the short and medium term, as well as provide investor relations services.
No assurance can be made that the consultant will succeed in raising further
cash in a timely manner or at all. The retention is on a non-exclusive basis and
we are actively seeking funds from other sources.

                                       8





<PAGE>

                           PART II--OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         In the normal course of conducting business, we are involved in various
litigation. There has been no material change in legal proceedings from those
disclosed previously in our Form 1O-KSB for the year ended December 31, 2000.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         During the period from January 1, 2001 through the date of this filing,
we issued a total of 666,739 shares, of which (a) 15,000 restricted shares were
issued at a price of $1.00 per share for net proceeds of $15,000, to accredited
investors pursuant to a private placement under Section 506 of Regulation D of
the Securities Act of 1933, as amended (the "Securities Act"), (b) 435,526
shares were issued for the conversion of short-term debt and interest of
$435,526 and (c) an aggregate of 216,213 unregistered shares pursuant to a
number of agreements with third-party consultants and service providers and
related parties issued under Section 4 (2) of the Securities Act. All proceeds
were used for working capital purposes.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

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

         None.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-B

   Exhibit No.                                Description
   -----------                                -----------

2.1             Agreement and Plan of Reorganization with Salutations, Inc., and
                related exhibits and consents*
3.1             Articles of Incorporation, as amended*
3.2.1           Bylaws, as amended*
3.2.2           Bylaws, as amended on April 20, 2000****
4.2             Shareholders Agreement with Minnesota Communications Group, and
                related exhibits and schedules*
4.3             Convertible Debenture with Russ Karlen*
4.4             Convertible Debenture with Steve Livingston*
4.5             Option Agreement to Purchase Common Stock with Kevin Harrington
                Enterprises, Inc.*
4.6             Option agreement to Purchase Common Stock with Tim Harrington*
4.7             Form of Stock Option Agreement with Employees*
4.8             Specimen Certificate for Common Stock***
10.1            License Agreement with Minnesota Communications Group*
10.2            License Agreement with Minnesota Public Radio*
10.3            Spokesperson Agreement for Deidre Hall with Panache, Inc., and
                related exhibits and addendum thereto*
10.4            Sublease with Torrey Hills Corporate Center, and related
                exhibits*
10.5            Fulfillment Services Agreement with Professional Marketing
                Associates, Inc.*
10.6            Letter Agreement with Lido Group*
10.7            International Marketing and Distribution Agreement with HSND,
                and amendment and addendum thereto*
10.8            Non-Qualified Stock Option Plan*
10.9            Senior Executive Employment Agreement with Klaus Moeller*

                                       9





<PAGE>

   Exhibit No.                                Description
   -----------                                -----------

10.10           Change of Control Executive Employment Agreement with Klaus
                Moeller*
10.11           Senior Executive Employment Agreement with Dorian Lowell*
10.12           Change of Control of Executive Employment Agreement with Dorian
                Lowell*
10.13           Senior Executive Employment Agreement with Michael Meader*
10.14           Change of Control of Executive Employment Agreement with Michael
                Meader*
10.15           Executive Employment Agreement with Larry Balaban*
10.16           Change of Control of Executive Employment Agreement with Larry
                Balaban*
10.17           Executive Employment Agreement with Howard Balaban*
10.18           Change of Control of Executive Employment Agreement with Howard
                Balaban*
10.19           Executive Employment Agreement with Vinko Kovac*
10.20           Change of Control of Executive Employment Agreement with Vinko
                Kovac*
10.21           License Agreement with Sasha St. Clair*
10.22           Letter Agreement with Gerald Edick*
10.23           Form of License Agreement with Naxos of America, Inc.*
10.24           Financial Public Relations Letter of Agreement with Porter,
                LeVay & Rose, Inc.**
10.25           License Agreement with Boomerang Marketing, Inc/*
10.26           Service(s) Agreement with Cost Care, Inc. (dba Unicare Managed
                Care Services)**
10.27           Executive Employment Agreement with Alison Elliott***
10.28           Change of Control Agreement with Alison Elliott***
10.29           Consulting Agreement with Gerald Edick***
10.30           Production Agreement with Richard Perry*****
10.31           Representation Agreement with Global Icons*****
10.32           Consulting Agreement with Johnny Drummond+
10.33           Stock Option Agreement with Klaus Moeller+
10.34           Stock Option Agreement with Dorian Lowell+
10.35           Stock Option Agreement with Michael Meader+
10.36           Stock Option Agreement with Larry Balaban+
10.37           Stock Option Agreement with Howard Balaban+
10.38           Stock Option Agreement with Alison Elliott+
10.39           License Agreement with Jakks Pacific, Inc.++
10.40           License Agreement with Catton Apparel Group++
10.41           License Agreement with J. Wasson Enterprises, Inc.++
10.42           Settlement Agreement(Investment Agreement) with American Public
                Media Group(formerly known as Minnesota Communications Group)++
10.43           Settlement Agreement(Settlement Agreement) with American Public
                Media Group(formerly known as Minnesota Communications Group)++
10.44           Production Agreement with James Sommers++

-----------------
*        Incorporated by reference from the exhibits included with the Company's
         Registration Statement (No. 000-27915) on Form 10-SB filed with the SEC
         on November 2, 1999.
**       Incorporated by reference from the exhibits included with the Company's
         Registration Statement (No. 000-27915), Amendment No. 1, on Form 10-SB
         filed with the SEC on December 17, 1999.
***      Incorporated by reference from the exhibits included with the Company's

         Form 10-KSB (No. 000-27915) filed with the SEC on April 14, 2000.
****     Incorporated by reference from the exhibits included with the Company's
         Form 10-KSB (No. 000-27915), Amendment No. 1, filed with the SEC on May
         1, 2000.
*****    Incorporated by reference from the exhibits included with the Company's
         Form 10-QSB (No. 000-27915), Amendment No. 1, filed with the SEC on May
         18, 2000.

                                       10





<PAGE>

+        Incorporated by reference from the exhibits included with the Company's
         Form 10-QSB (No. 000-27915), filed with the SEC on August 14, 2000.
++       Incorporated by reference from the exhibits included with the Company's
         Form 10-KSB (No. 000-27915), filed with the SEC on April 17, 2001.

         (b)      REPORTS ON FORM 8-K

         The following is a list of Current Reports on Form 8-K filed by the
Company during the first half of the year ended December 31, 2001.

         A current report on Form 8-K, (Item 5 - Other Events), dated April 10,
2001 was filed reporting a one-for-four reverse stock split of the Company's
authorized shares of common stock.

                                   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.

                                           GENIUS PRODUCTS, INC.,
                                           a Nevada Corporation

                                           By: /s/ Klaus Moeller
August 17, 2001                               ---------------------------------
                                              Klaus Moeller, Chief Executive
                                              Officer, Chairman of the Board and
                                              Interim CFO

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on behalf of
the registrant and in the capacities and on the dates indicated.

 /s/ Klaus Moeller         Chief Executive Officer, Chairman     August 17, 2001
----------------------     of the Board and Interim CFO
 Klaus Moeller

 /s/ Deborah L. Cross      Director                              August 17, 2001
----------------------
 Deborah L. Cross

                                       11