SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

                      For Quarter Ended September 30, 2000

                         Commission file number: 0-28465

                               CIK No. 0001098331

                          INTERSPACE ENTERPRISES, INC.
             (Exact name of registrant as specified in this charter)

                 Colorado                             84-1283938
              -------------------------------     --------------------
              (State of other jurisdiction        (I.R.S. Employer
              of incorporation or organization)    Identification No.)



               7825 Fay Avenue, #200, La Jolla, California 92037
           ----------------------------------------------------------
               (Address of principal executive offices) (Zip Code)


       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (858)456-3539

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2)  has  been  subject  to the  filing
requirements for at least the past 90 days.

                         YES  X          NO
                            -----         -----

As of September  30, 2000,  there were  66,061,800  shares of $0.00001 par value
common stock outstanding.


<PAGE>
<TABLE>
<CAPTION>
                          PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
                                    INTERSPACE ENTERPRISES, INC.
                                   (A Development Stage Company)
                                     Balance Sheet (Unaudited)
                                     As of September 30, 2000

                                                ASSETS
<S>                                                                   <C>                 <C>
                                                                          SEPTEMBER 30,   DECEMBER 31,
                                                                            2000              1999
                                                                        -------------------------------
CURRENT ASSETS
     Cash                                                             $        36,616           10,223
     --------------------------------------------------------------------------------------------------
        Total current assets                                                   36,616           10,223

FIXED ASSETS
     Computer and office equipment                                              9,518            9,299
     Accumulated depreciation                                                  (3,444)          (1,968)
     --------------------------------------------------------------------------------------------------
       Total fixed assets                                                       6,074            7,331

OTHER ASSETS
     Goodwill                                                                 622,000                -
     Accumulated amortization                                                (402,000)               -
     ---------------------------------------------------------------------------------------------------
       Total fixed assets                                                     220,000                -
     ---------------------------------------------------------------------------------------------------
          TOTAL ASSETS                                                $       262,690           17,554
     ===================================================================================================


                            LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
     Accounts payable                                                 $       176,586          147,737
     Accrued payroll liabilities                                              197,341          110,527
     Accrued liabilities                                                          800              800
     Notes Payable                                                            170,000                -
     Current portion long term liabilities                                      1,085              719
     --------------------------------------------------------------------------------------------------
       Total current liabilities                                              545,812          259,783

LONG TERM LIABILITIES                                                           1,123            2,227

STOCKHOLDERS' EQUITY
     Common stock, $.00001 par value, 200,000,000 shares
       authorized, 66,061,800 shares issued and outstanding                       661           40,002
     Accounts receivable subscribed                                        (1,167,873)          (5,000)
     Additional paid in capital                                             3,010,603          402,438
     Accumulated deficit - during development stage                        (2,127,636)        (681,896)
     --------------------------------------------------------------------------------------------------
       Total stockholders' equity                                            (284,245)        (244,456)
     --------------------------------------------------------------------------------------------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                  $       262,690           17,554
     ==================================================================================================

                                             SEE ACCOMPANYING NOTES

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                    INTERSPACE ENTERPRISES, INC.
                                   (A Development Stage Company)
                                Statement of Operations (Unaudited)
                    For the three months and nine months ended September 30, 2000
<S>                           <C>               <C>           <C>               <C>          <C>
                                                                                                CUMULATIVE FROM
                                                                                                JANUARY 1, 1998
                                                                                                (INCEPTION OF THE
                                                                                                 DEVELOPMENT
                                 THREE MONTHS    THREE MONTHS     NINE MONTHS     NINE MONTHS     STAGE) TO
                                    ENDED           ENDED           ENDED           ENDED         SEPT. 30,
                                SEPT. 30, 2000  SEPT. 30, 1999  SEPT. 30, 2000  SEPT. 30, 1999      2000
                                ------------------------------------------------------------------------------
REVENUES
Sales                         $             -               - $             -               - $             -
Interest income                             -               -               -               -              36
--------------------------------------------------------------------------------------------------------------
   Total Revenue                            -               -               -               -              36

RESEARCH AND DEVELOPMENT                    -               -               -               -           5,059

ADMINISTRATIVE AND SELLING EXPENSES
Consulting                             24,500           3,750         173,087          36,350         246,662
Depreciation and amortization         220,492               -         403,476             663         405,444
Legal and professional                 12,000          41,516         103,117          61,320         254,433
License fees                                -               -         333,000          40,000         373,000
Marketing and promotion                 2,920          21,550          15,264          78,138         100,427
Office expense                         10,707           6,599          27,663          21,278          62,862
Other administrative expenses          29,117           8,665          81,668          32,075         137,591
Rent                                    1,195             676           3,765           2,696           8,811
Salaries                              110,223          53,250         303,851         121,407         539,358
--------------------------------------------------------------------------------------------------------------
   Total                              411,154         136,006       1,444,891         393,927       2,128,588

OTHER INCOME
Note Payable Forgiveness                    -               -               -               -          (7,575)
--------------------------------------------------------------------------------------------------------------
                                                                                                            -
   Net loss before tax               (411,154)       (136,006)     (1,444,891)       (393,927)     (2,126,036)

INCOME TAXES
State income tax                            -               -               -               -           1,600
--------------------------------------------------------------------------------------------------------------
     Net loss                 $      (411,154)       (136,006)$    (1,444,891)       (393,927)$    (2,127,636)
==============================================================================================================

                                   SEE ACCOMPANYING NOTES

</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                   INTERSPACE ENTERPRISES, INC.
                                   (A Development Stage Company)
                                Statement of Cash Flows (Unaudited)
                          For the nine months ended September 30, 2000

<S>                                                 <C>                  <C>              <C>
                                                                                             JANUARY 1, 1998
                                                                                            (INCEPTION OF THE
                                                                                              DEVELOPMENT
                                                       NINE MONTHS         NINE MONTHS         STAGE) TO
                                                          ENDED               ENDED            SEPT. 30,
                                                        SEPT. 30, 2000     SEPT. 30, 1999        2000
                                                      ------------------------------------------------------


CASH FLOWS FROM OPERATING ACTIVITIES

     Net loss                                       $     (1,444,891)           (393,927) $      (2,127,636)

     Adjustments  to  reconcile  net income to net cash
     provided by operating activities:
          Depreciation and amortization                      403,476                 663            405,444
          Stock issued for services                          469,000             124,750            627,500
          Changes in:
          Accounts payable                                    28,849              52,708            176,586
          Accrued payroll liabilities                         86,814              32,235            197,341
          State tax payable                                        -                   -                800

------------------------------------------------------------------------------------------------------------
Net Cash Used in Operating Activities                       (456,752)           (183,571)          (719,965)

CASH FLOWS FROM INVESTING ACTIVITIES
          Repayment of note receivable                             -               3,000                  -
          Loan payable                                          (738)                  -              2,208
          Purchase of computer equipment                        (219)             (5,537)            (9,518)
          Stock issued for merger                            672,000                   -            672,000
          Goodwill                                          (622,000)                  -           (622,000)

------------------------------------------------------------------------------------------------------------
Net Cash Used in Investing Activities                         49,043              (2,537)            42,690

CASH FLOWS FROM FINANCING ACTIVITIES
          Note payable                                       170,000              (8,000)           174,299
          Sale of common stock                               264,102             186,250            539,592

------------------------------------------------------------------------------------------------------------
Net Cash Used in Financing Activities                        434,102             178,250            713,891

          NET DECREASE IN CASH                                26,393              (7,858)            36,616

     Cash, beginning of the year                              10,223              22,210                  0
------------------------------------------------------------------------------------------------------------
     Cash, September 30, 2000                       $         36,616              14,352  $          36,616
============================================================================================================

                                     SEE ACCOMPANYING NOTES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                   INTERSPACE ENTERPRISES, INC.
                                   (A Development Stage Company)
                        Statement of Changes in Stockholders' Equity (Unaudited)

<S>                         <C>        <C>      <C>          <C>       <C>                <C>               <C>          <C>
                             Preferred Stock        Common Stock       Additional Paid    Accounts Rec      Accumulated
          Description       Shares     Dollars  Shares       Dollars     in Capital       Subscribed         Deficit        Total
------------------------------------------------------------------------------------------------------------------------------------
Balance December 31, 1999     -           -     4,672,200     $     47     $ 443,242         $ (5,000)     $ (682,745)  $ (244,456)

Shares issued for cash                          1,527,000     $     15    $1,426,960     $ (1,226,250)                   $ 200,725

Shares issued for services                        469,000     $      5     $ 468,995                                     $ 469,000

Net loss                                                                                                   $(  614,431) $( 614,431)
------------------------------------------------------------------------------------------------------------------------------------
Balance March 31, 2000        -           -     6,668,200           67     2,339,197       (1,231,250)     (1,297,176)   ( 189,162)
====================================================================================================================================
Shares issued for cash                                  -     $      -    $        -       $   37,340                    $  37,340

Shares issued for merger                          672,000     $      7    $  671,993                                     $ 672,000

Net loss                                                                                                   $ (419,306)  $ (419,306)
------------------------------------------------------------------------------------------------------------------------------------
Balance June 30, 2000         -           -     7,340,200           74     3,011,190       (1,193,910)     (1,716,482)     100,872
====================================================================================================================================

Shares issued for cash                                  -     $      -    $        -       $   26,037                    $  26,037

Shares issued for merger                       58,721,600     $    587    $    (587)                                     $       -

Net loss                                                                                                   $ (411,154)  $ (411,154)
------------------------------------------------------------------------------------------------------------------------------------
Balance September 30, 2000    -           -    66,061,800          661     3,010,603       (1,167,873)     (2,127,636)    (284,245)
====================================================================================================================================



                                              SEE ACCOMPANYING NOTES

</TABLE>
<PAGE>
                          INTERSPACE ENTERPRISES, INC.
                          (A Development Stage Company)

                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The  accompanying   unaudited  financial  statements  include  the  accounts  of
InterSpace Enterprises, Inc. (the "Company"). The financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information.  Accordingly,  they do not include all of the information
and footnotes required by generally accepted accounting principles.

On April 17, 2000, the Company  completed a merger with its parent company.  The
accompanying  unaudited  financial  statements  reflect the effect of the merger
from the beginning of the fiscal year. The cumulative figures also represent the
aggregate figures of both companies since inception.

In the opinion of management, the unaudited interim financial statements for the
period ended  September  30, 2000 are presented on a basis  consistent  with the
audited  financial  statements and reflect all  adjustments,  consisting only of
normal  recurring  accruals,  necessary for fair  presentation of the results of
such period.

The results for the three months ended  September  30, 2000 are not  necessarily
indicative  of the  results of  operations  for the full year.  These  financial
statements  and  related  footnotes  should  be read  in  conjunction  with  the
financial  statements and footnotes thereto included in the Company's  financial
statements of the period ended December 31, 1999.

NOTE 2 - GOODWILL

On April 14,  2000,  the Company  issued  672,000  shares of its common stock in
exchange for all 672,000  issued and  outstanding  shares of Marathon  Marketing
Corp., a fully  reporting 12g3 Company.  The  transaction was valued at $672,000
including an  allocation  for  goodwill in the amount of  $622,000.  The Company
plans to amortize this charge over the balance of the fiscal year.  Amortization
for the current quarter is $220,000.

NOTE 3 - MERGER WITH SUBSIDIARY

On April 17,  2000,  the Company  completed  a  statutory  merger of the Parent,
InterSpace  Enterprises,  Inc.,  a Delaware  corporation,  and its wholly  owned
subsidiary,  Marathon  Marketing  Corp., a Colorado  corporation,  with Marathon
Marketing  Corp.  being  the  survivor,  but  changing  its  name to  InterSpace
Enterprises,  Inc. The merger was completed via a share-for-share exchange, with
all acquired shares being retired by virtue of the merger.

NOTE 4 - NOTES PAYABLE

The Company has  secured  interim  funding  through a various  notes  payable to
individuals.  The  principal  and accrued  interest  at 10% p.a.  are due within
twelve  months and  contain an equity  conversion  at the  holders  option  into
restricted common stock at a discount to market value.

NOTE 5 - STOCK DIVIDEND

On July 14, 2000 the Company  declared a stock dividend to all  shareholders  of
record as of that date.  The  dividend  allowed for the issuance of eight shares
for each existing share outstanding,  increasing the total shares outstanding to
66,061,800.
<PAGE>

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

RESULTS OF  OPERATIONS  FOR THE THREE  MONTH  PERIOD  ENDED  SEPTEMBER  30, 2000
COMPARED TO THE SAME PERIOD IN 1999.

     The Company continued  development of its business model during the quarter
ended September 30, 2000, thus no revenues were achieved.  The Company  incurred
operating  expenses for the three month  period of $411,154 in 2000  compared to
$136,006 in the same period in 1999.  The Company  recorded a net operating loss
of ($411,154)  for the 2000 period as compared to ($136,006) for the same period
in fiscal  year 1999.  The Company  losses  will  continue  until  business  and
profitable operations are achieved. While the Company is seeking capital sources
for  investment,  there is no assurance that capital  sources can be found.  The
loss per share for the 2000 fiscal quarter was ($.01)  compared to ($.03) in the
fiscal quarter of 1999.

RESULTS OF  OPERATIONS  FOR THE NINE  MONTH  PERIOD  ENDED  SEPTEMBER  30,  2000
COMPARED TO THE SAME PERIOD IN 1999.

     The Company continued  development of its business model during the quarter
ended September 30, 2000, thus no revenues were achieved.  The Company  incurred
operating  expenses for the nine month period of  $1,444,891 in 2000 compared to
$393,927 in the same period in 1999.  The Company  recorded a net operating loss
of  ($1,444,891)  for the 2000  period as compared  to  ($393,927)  for the same
period in fiscal year 1999.  The Company losses will continue until business and
profitable operations are achieved. While the Company is seeking capital sources
for  investment,  there is no assurance that capital  sources can be found.  The
loss per share for the 2000 fiscal period was ($.05)  compared to ($.10) for the
nine month period in 1999.

LIQUIDITY AND CAPITAL RESOURCES

     The  Company  had cash  capital of $36,616  and $6,074 in fixed  assets for
total tangible  assets of $42,690 at the end of the period.  The Company will be
forced  to make  private  placements  of  stock  in  order  to  fund  operations
continuance. No assurance exists as to the ability to make private placements of
stock.

     At  September  30,  2000,  it had no accounts  receivable.  The Company has
current  liabilities of $545,812  which exceed  current assets by  approximately
$503,122.


<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 security holders - None.

Item 5.           Other information - None.

Item 6.           Exhibits and reports on Form 8-K

                         (a)  The  following  are  filed  as  Exhibits  to  this
                    Quarterly Report.  The numbers refer to the Exhibit Table of
                    Item 601 of Regulation S-K:

                                    None.

                         (b) Reports on Form 8-K filed  during the nine  months
                    ended September 30, 2000. (incorporated by reference)

                                    None.



<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 of the
undersigned thereunto duly authorized.

Dated: November 10, 2000

                                          INTERSPACE ENTERPRISES, INC.



                                          by:/s/Daniel P. Murphy
                                          President