SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB

                        For Quarter Ended June 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 June 30, 2000,  there were 7,340,200  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 June 30, 2000
<S>                                                                            <C>                  <C>
                                     ASSETS
                                                                                 JUNE 30,           DECEMBER 31,
                                                                                   2000                1999

                                                                               --------------       ------------
CURRENT ASSETS
     Cash                                                                    $         7,117             10,223
     -----------------------------------------------------------------------------------------------------------
        Total current assets                                                           7,117             10,223

FIXED ASSETS
     Computer and office equipment                                                     9,518              9,299
     Accumulated depreciation                                                         (2,952)            (1,968)
     -----------------------------------------------------------------------------------------------------------
       Total fixed assets                                                              6,566              7,331

OTHER ASSETS
     Goodwill                                                                        622,000                  -
     Accumulated amortization                                                       (182,000)                 -
     -----------------------------------------------------------------------------------------------------------
       Total fixed assets                                                            440,000                  -
     -----------------------------------------------------------------------------------------------------------
          TOTAL ASSETS                                                       $       453,683             17,554
     ===========================================================================================================

                       LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
     Accounts payable                                                        $       167,597            147,737
     Accrued payroll liabilities                                                     165,806            110,527
     Accrued liabilities                                                                 800                800
     Note Payable                                                                     16,000                  -
     Current portion long term liabilities                                             1,020                719
     -----------------------------------------------------------------------------------------------------------
       Total current liabilities                                                     351,223            259,783

LONG TERM LIABILITIES                                                                  1,588              2,227

STOCKHOLDERS' EQUITY
     Common stock, $.00001 par value, 200,000,000 shares
       authorized, 7,340,200 shares issued and outstanding                                74             40,002
     Accounts receivable subscribed                                               (1,193,910)            (5,000)
     Additional paid in capital                                                    3,011,190            402,438
     Accumulated deficit - during development stage                               (1,716,482)          (681,896)
     -----------------------------------------------------------------------------------------------------------
       Total stockholders' equity                                                    100,872           (244,456)
     -----------------------------------------------------------------------------------------------------------
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $       453,683             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 Six Months Ended June 30, 2000


<S>                                  <C>                <C>                <C>                 <C>            <C>
                                                                                                              CUMULATIVE FROM
                                                                                                               JANUARY 1, 1998
                                                                                                              (INCEPTION OF THE
                                                                                                                DEVELOPMENT
                                        THREE MONTHS     THREE MONTHS          SIX MONTHS     SIX MONTHS         STAGE) TO
                                               ENDED            ENDED              ENDED          ENDED            JUNE 30,
                                       JUNE 30, 2000    JUNE 30, 1999       JUNE 30, 2000     JUNE 30, 1999        2000
                                      --------------    ----------------   ------------------------------------------------------
REVENUES

Sales                                    $       -             -  $               -   $                -      $         -
Interest income                                  -             -                  -                    -               36
---------------------------------------------------------------------------------------------------------------------------------
   Total Revenue                                 -             -                  -                    -               36

RESEARCH AND DEVELOPMENT                         -             -                  -                    -            5,059

ADMINISTRATIVE AND SELLING EXPENSES

Consulting                                  22,587        30,600            148,587               32,600          222,162
Depreciation and amortization              182,492           608            182,984                  663          184,952
Legal and professional                      55,760        17,756             91,117               19,804          242,433
License fees                                     -             -            333,000               40,000          373,000
Marketing and promotion                      1,038         9,444             12,344               56,588           97,507
Office expense                              10,588         8,016             16,956               14,679           52,155
Other administrative expenses               36,276        11,155             52,551               23,410          108,474
Rent                                         1,736         1,052              2,570                2,020            7,616
Salaries                                   108,829        47,000            193,737               68,157          429,135
---------------------------------------------------------------------------------------------------------------------------------
   Total                                   419,306       125,631          1,033,737              257,921        1,717,434

OTHER INCOME

Note Payable Forgiveness                         -             -                  -                    -           (7,575)
---------------------------------------------------------------------------------------------------------------------------------
   Net loss before tax                   (419,306)    (  125,631)        (1,033,737)          (  257,921)      (1,714,882)

INCOME TAXES

State income tax                                -              -                  -                    -            1,600
---------------------------------------------------------------------------------------------------------------------------------
     Net loss                           $(419,306)  $ (  125,631)    $   (1,033,737)       $  (  257,921)     $(1,716,482)
=================================================================================================================================
Loss per share                              ($.06)         ($.02)             ($.14)              ($.035)               -
=================================================================================================================================


                                        SEE ACCOMPANYING NOTES

</TABLE>
<PAGE>
<TABLE>
                                   INTERSPACE ENTERPRISES, INC.
                                 (A Development Stage Company)
                              Statement of Cash Flows (Unaudited)
                           For the Six Months Ended June 30, 2000

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


CASH FLOWS FROM OPERATING ACTIVITIES

     Net loss                                               $     (1,033,737)      (257,921)        $     (1,716,482)

     Adjustments  to  reconcile  net income to net cash
      provided  by  operating activities:

          Depreciation and amortization                              182,984            663                  184,952
          Stock issued for services                                  469,000        123,500                  627,500
          Changes in:
          Accounts payable                                            19,860          3,857                  167,597
          Accrued payroll liabilities                                 55,279         15,823                  165,806
          State tax payable                                                -              -                      800
--------------------------------------------------------------------------------------------------------------------------
Net Cash Used in Operating Activities                               (306,614)      (114,078)                (569,827)

CASH FLOWS FROM INVESTING ACTIVITIES

          Repayment of note receivable                                     -          3,000                        -
          Loan payable                                                  (338)             -                    2,608
          Purchase of computer equipment                                (219)        (5,240)                  (9,518)
          Stock issued for merger                                    672,000              -                  672,000
          Goodwill                                                  (622,000)             -                 (622,000)

-------------------------------------------------------------------------------------------------------------------------
Net Cash Used in Investing Activities                                 49,443         (2,240)                  43,090

CASH FLOWS FROM FINANCING ACTIVITIES

          Note payable                                                16,000         (8,000)                  20,299
          Sale of common stock                                       238,065        123,500                  513,555

-------------------------------------------------------------------------------------------------------------------------
Net Cash Used in Financing Activities                                254,065        115,500                  533,854

          NET DECREASE IN CASH                                        (3,106)          (818)                   7,117

     Cash, beginning of the year                                      10,223         22,210                        0

-------------------------------------------------------------------------------------------------------------------------
     Cash, June 30, 2000                                    $          7,117         21,392            $       7,117
=========================================================================================================================


                             SEE ACCOMPANYING NOTES
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                  INTERSPACE ENTERPRISES, INC.
                                 (A Development Stage Company)
                    Statement of Changes in Stockholders' Equity (Unaudited)
                           For the Three Months Ended June 30, 2000

<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
====================================================================================================================================

                                              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 June 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  June 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 $182,000.

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.
<PAGE>

ITEM 2.

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

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

     The Company continued  development of its business model during the quarter
ended June 30,  2000,  thus no revenues  were  achieved.  The  Company  incurred
operating  expenses for the three month  period of $419,306 in 2000  compared to
$125,631 in the same period in 1999.  The Company  recorded a net operating loss
of ($419,306)  for the 2000 period as compared to ($125,631) 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 ($0.06) compared to ($0.03) in the same quarter of 1999.

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

     The Company  continued  development  of its  business  model during the six
months ended June 30, 2000, thus no revenues were achieved. The Company incurred
operating  expenses  for the six month  period of $1,033,737 in 2000 compared to
$257,921 in the same period in 1999. The Company recorded a net operating loss
of  $(1,033,737)  for the 2000  period as compared  to  ($257,921)  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
1999 six months ended June 30 was ($0.14) compared to ($0.07) in the same period
of 1999.


LIQUIDITY AND CAPITAL RESOURCES

     The Company had cash  capital of $7,117 and $6,566 in net fixed  assets for
total  tangible  assets of $13,683 at the end of the  period.  The  Company  has
$440,000 in other assets for a combined  total  assets of $453,683.  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 June 30, 2000, it had no accounts receivable.  The Company has current
liabilities of $351,223.

<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 quarter ended
                    June 30, 2000. (incorporated by reference)

                                 May 10, 2000
                                 June 27, 2000




<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: August 31, 2000

                                          INTERSPACE ENTERPRISES, INC.



                                          by: /s/ Daniel P. Murphy
                                              -------------------------
                                              Daniel P. Murphy, President