SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

(Mark one)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the quarterly period ended March 31, 2000

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

               For the transition period from ________to________.


                           Commission File No. 0-23900


                             IDM ENVIRONMENTAL CORP.
             -----------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


          New Jersey                                        22-2194790
--------------------------------               ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
  incorporation or organization)


               396 Whitehead Avenue, South River, New Jersey 08882
               ---------------------------------------------------
                    (Address of principal executive offices)


                                 (732) 390-9550
               ---------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)


            -------------------------------------------------------
              (Former name, former address and formal 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
    -----    -----

     As of April 11, 2000,  3,922,893  shares of Common Stock of the issuer were
outstanding.

<PAGE>

                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES

                                      INDEX

                                                                          Page
                                                                          Number
                                                                         -------
PART I - FINANCIAL INFORMATION

   Item 1.  Financial Statements

            Consolidated Balance Sheets - March 31, 2000 and
            December 31, 1999................................................1

            Consolidated Statements of Operations - For the three
            months ended March 31, 2000 and March 31, 1999...................2

            Consolidated Statements of Cash Flows - For the three
            months ended March 31, 2000 and March 31, 1999...................3

            Notes to Consolidated Financial Statements.......................5

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

   Item 3.  Quantitative and Qualitative Disclosures about Market Risk.......9

PART II - OTHER INFORMATION
   Item 2.  Changes in Securities and Use of Proceeds........................9

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

   Item 6.  Exhibits and Reports on Form 8-K................................10

SIGNATURES  . . . . . . ....................................................11

<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>



                                                                    March 31,    December 31,
                                                                      2000          1999
                                                                   ---------    -----------
ASSETS
                                                                  (Unaudited)
<S>                                                                <C>          <C>

Current Assets:
     Cash and cash equivalents                                   $   211,175     $   511,552
     Accounts receivable                                           4,366,589       4,548,531
     Recoverable income taxes                                        650,242         650,242
     Prepaid expenses and other current assets                     2,299,100       1,124,790
                                                                 ------------    ------------
         Total Current Assets                                      7,527,106       6,835,115

Investments in and Advances to Unconsolidated Affiliates             929,266         979,266
Investment in Affiliate, at cost                                   1,853,125       1,853,125
Property, Plant and Equipment                                      1,814,675       1,903,321
Other Assets                                                         979,925         979,925
                                                                 ------------    ------------
                                                                $ 13,104,097    $ 12,550,752
                                                                 ============    ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Current portion of long-term debt                               $13,873        $ 18,701
     Accounts payable and accrued expenses                         8,760,333       8,847,937
     Due to Officers                                                 220,682         217,403
     Billings in excess of costs and estimated earnings            1,327,722         912,699
                                                                 ------------    ------------
         Total Current Liabilities                                10,322,610       9,996,740

Long-Term Debt                                                        15,810          16,864
                                                                 ------------    ------------
         Total Liabilities                                        10,338,420      10,013,604
                                                                 ------------    ------------
Commitments and Contingencies

Stockholders' Equity:
     Common stock, authorized 7,500,000 shares $.01 par
       value, issued and outstanding 3,918,393 in 2000
       and 3,768,945 in 1999                                          39,184          37,689
     Additional paid-in capital                                   60,922,920      59,236,502
     Retained earnings (deficit)                                 (58,196,427)    (56,737,043)
                                                                -------------    -----------
                                                                   2,765,677       2,537,148
                                                                -------------    -----------
                                                                $ 13,104,097    $ 12,550,752
                                                                =============    ===========

</TABLE>


       The accompanying notes are an integral part of these consolidated
                             financial statements.

                                       1
<PAGE>


                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>

                                                       For the Three Months Ended March 31,
                                                       ------------------------------------
                                                             2000               1999
                                                            ------             ------
<S>                                                      <C>                <C>

Revenue:
     Contract income                                     $ 3,064,595         $2,428,878

Cost of Sales:
     Direct job costs                                      1,988,110          2,276,002
                                                          -----------        -----------
Gross Profit                                               1,076,485            152,876

Operating Expenses:
     General and administrative expenses                   2,453,333          1,820,874
     Depreciation and amortization                            67,047            127,515
     Equity in net loss of unconsolidated partnerships             -              8,711
                                                          -----------        -----------
                                                           2,520,380          1,957,100
                                                          -----------        -----------
Loss from Operations                                      (1,443,895)        (1,804,224)

Other Income (Expense):
     Loss on disposal of property, plant and equipment        (3,385)                -
     Interest income (expense)                               (12,104)          (14,887)
                                                          -----------        -----------
                                                             (15,489)          (14,887)
                                                          -----------        -----------
Loss before Provision (Credit)  for Income Taxes          (1,459,384)       (1,819,111)

Provision (Credit) for Income Taxes                                -                 -
                                                          -----------        -----------
Net Loss                                                  (1,459,384)       (1,819,111)

Preferred Stock Dividends                                          -             3,763
                                                          -----------        -----------
Net Loss on Common Stock                                $ (1,459,384)     $ (1,822,874)
                                                          ===========        ===========
Loss per Share:
     Basic Loss per share                               $      (0.38)     $      (0.61)
                                                          ===========        ===========
     Diluted Loss per share                             $      (0.38)     $      (0.61)
                                                          ===========        ===========
     Basic common shares outstanding                       3,798,658         2,966,925
                                                          ===========        ===========
     Diluted common shares outstanding                     3,798,658         2,966,925
                                                          ===========        ===========

</TABLE>

       The accompanying notes are an integral part of these consolidated
                             financial statements.

                                       2
<PAGE>

                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>

                                                                                For the Three Month Ended March 31,
                                                                                -----------------------------------
                                                                                      2000              1999
                                                                                     ------            ------
<S>                                                                               <C>                 <C>

Cash Flows from Operating Activities:
     Net loss on Common Stock                                                   $  (1,459,384)      $(1,822,874)
     Adjustments to reconcile net loss to net cash used
         in operating activities:
         Depreciation and amortization                                                 74,422           150,543
         Amortization of debt discount and beneficial conversion feature                    -            16,124
         Dividend on convertible preferred stock                                            -             3,763
         Compensation cost of consultant stock options                              1,073,441                 -
         Equity in net loss of unconsolidated affiliates                                    -             8,711
         Loss on disposal of assets                                                     3,385                 -

     Decrease (Increase) In:
         Accounts receivable                                                          181,942         1,210,609
         Costs and estimated earnings in excess of billing                                  -           202,464
         Prepaid expenses and other current assets                                    (97,688)         (394,405)

     Increase (Decrease) In:
         Accounts payable and accrued expenses                                       (613,663)         (632,686)
         Billings in excess of costs and estimated earnings                           415,023           108,698
                                                                                    ----------       -----------

         Net cash used in operating activities                                       (422,522)       (1,149,053)
                                                                                    ----------       -----------

Cash Flows from Investing Activities:
         Disposal of property, plant and equipment                                     10,839           112,478
         Investment in and advances from (to) unconsolidated affiliates                50,000           758,722
         Loans and advances from (to) officers                                          3,279                 -
                                                                                    ----------       -----------

         Net cash provided by investing activities                                     64,118           871,200
                                                                                    ----------       -----------
Cash Flows from Financing Activities:
         Principal payments on long-term debt                                          (5,882)          (83,507)
         Proceeds from exercise of stock options and warrants                          63,909            34,564

         Net cash (used in) provided by financing activities                           58,027           (48,943)
                                                                                    ----------       -----------
Net Increase (Decrease) in Cash and Cash Equivalents                                 (300,377)         (326,796)

Cash and Cash Equivalents, beginning of period                                        511,552           384,292
                                                                                    ----------       -----------
Cash and Cash Equivalents, end of period                                           $  211,175        $   57,496
                                                                                    ==========       ===========

</TABLE>

       The accompanying notes are an integral part of these consolidated
                              financial statements.

                                       3
<PAGE>

                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (Continued)
<TABLE>

                                                                         For the Three Months Ended March 31,
                                                                         ------------------------------------
                                                                              2000                1999
                                                                             ------              ------
<S>                                                                     <C>                   <C>

Supplemental Disclosures of Cash Flow Information:

Cash paid during the year for:
     Interest                                                           $    5,693            $  15,599
                                                                          ========             =========
     Income taxes                                                       $        -            $       -
                                                                          ========             =========
Supplemental Disclosure of Noncash Investing and Financing Activities:

     Repayment of stockholder's loan through issuance of common stock   $        -            $ 265,133
                                                                          ========             =========
     Issuance of restricted common stock for debt and deposits          $  550,562            $       -
                                                                          ========             =========

     </TABLE>


       The accompanying notes are an integral part of these consolidated
                              financial statements

                                       4
<PAGE>


                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   INTERIM PRESENTATION

     The interim consolidated  financial statements are prepared pursuant to the
     requirements  for  reporting  on Form 10-Q.  These  statements  include the
     accounts  of IDM  Environmental  Corp.  and  all of its  wholly  owned  and
     majority owned  subsidiary  companies.  The December 31, 1999 balance sheet
     data was derived from audited financial statements but does not include all
     disclosures  required by  generally  accepted  accounting  principles.  The
     interim   financial   statements  and  notes  thereto  should  be  read  in
     conjunction  with  the  financial  statements  and  notes  included  in the
     Company's Form 10-K for the year ended December 31, 1999. In the opinion of
     management,  the interim financial  statements reflect all adjustments of a
     normal  recurring  nature necessary for a fair statement of the results for
     the interim periods presented. The current period results of operations are
     not necessarily indicative of results which ultimately will be reported for
     the full year ending December 31, 2000.

2.   CONTINGENCIES

     On August 15, 1996, the U.S.  Department of Labor,  Occupational Safety and
     Health Administration  ("OSHA") issued wilful citations and notification of
     penalty in the  aggregate  amount of $147,000 on the Company in  connection
     with  the  accidental  death  of  an  employee  of  one  of  the  Company's
     subcontractors on the United  Illuminating  Steel Point Project job site in
     Bridgeport,  Connecticut.  A complaint was filed against the Company by the
     Secretary of Labor,  United  States  Department  of Labor on September  30,
     1996. A hearing was  conducted in the matter in April,  1997. In June 1998,
     the Company  received a copy of the written decision filed by OSHA's Review
     Commission.  The Commission vacated the first alleged wilful citation,  but
     affirmed each of the second and third wilful citations,  imposing a penalty
     in the amount of $70,000 for each citation.  The Company strongly  objected
     to the  Commission's  finding on the basis that it cannot be  sustained  as
     matters  of fact or law and filed a timely  Notice of Appeal  with the OSHA
     Review  Commission  for  Discretionary  Review,  which  body  has  accepted
     jurisdiction  of the  matter  on  administrative  appeal.  The  Company  is
     contesting the Citations and Notification of Penalty.

     Also in connection with this accidental  death, the employee's estate filed
     a complaint for wrongful death against the subcontractor and the Company on
     February 11, 1997.  The estate seeks  damages in the amount of $45 million.
     The Company is being  defended  by the  subcontractor's  insurance  carrier
     pursuant to the  subcontractor's  obligation  to defend and  indemnify  the
     Company with respect to the actions of its (subcontractor's)  employees and
     agents.  The Company will be fully  indemnified for any liability,  if any,
     for  any   potential   judgement  or  settlement  in  this  matter  by  the
     subcontractor's  carrier  and, if  necessary  by its own general  liability
     insurance  carrier and,  therefore,  the action is not expected to have any
     material effect on the Company's consolidated financial statements.

     In July of 1998, the Company,  it's  subsidiary,  Global Waste & Energy and
     certain  affiliates and officers were named as  co-defendants in a cause of
     action styled  Kasterka  Vrtriebs GmbH v. IDM  Environmental  Corp., et al,
     filed in the  Court of  Queen's  Bench of  Alberta,  Judicial  District  of
     Calgary.  The  plaintiff,  Kasterka,  has alleged that the Company and it's
     affiliates  breached a marketing  agreement  that had been entered  between
     Kasterka and  Enviropower.  The plaintiff  has alleged that the  defendants
     failed to supply the  required  plans and  specifications  relating  to the
     gasification  technology originally developed by Enviropower and that, as a
     result, Kasterka was unable to manufacture and market gasification units in
     the  territories  designated  in  the  marketing  agreement.  Kasterka  has
     asserted  a variety  of  claims  for  damages  in the  aggregate  amount of
     approximately  $42 million.  The Company believes the suit is without merit
     and intends to vigorously contest the cause of action.

     In  September  of 1998,  the Company was named as a defendant in a cause of
     action styled Balerna  Concrete  Corporation,  et al. v. IDM  Environmental
     Corp.,  et al, filed in the United States  District Court of  Massachusetts
     (Case No.  98CV11883ML).  The  plaintiffs  alleged  that the  Company,  and
     others,  engaged in a pattern of illegal  conduct to divert  funds from the
     plaintiffs  through the  operation of a concrete  finishing  business.  The
     plaintiffs  have  asserted  various  claims  under RICO,  common law fraud,
     conversion,  breach of  contract  and others  basis  seeking  damages in an
     amount  expected to exceed  $450,000.  The case was  dismissed  in February
     2000.

                                       5
<PAGE>

3.   EARNINGS PER SHARE

     For the periods reported in within these consolidated  financial statements
     weighted  average shares for basic and dilutive  computations  are the same
     due to losses reported for each of the periods.

4.   ISSUANCE OF STOCK FOR SERVICES AND IN LIEU OF BOND

     During the nine months ended March 31, 2000,  the Company issued a total of
     345,000 shares of restricted common stock in settlement of accounts payable
     and collateral totaling $1,511,562.

5.  MERGER WITH FUSION NETWORKS HOLDINGS, INC.

     The  proposed  reorganization  between the Company and Fusion  Networks was
     approved  by the  shareholders  of the Company and Fusion in March 2000 and
     the  reorganization  was  completed  in  April,  2000.  As a result  of the
     reorganization,  the Company and Fusion became wholly-owned subsidiaries of
     Fusion Networks Holdings, Inc. The Company and Fusion Networks both plan to
     continue their historical operations for the foreseeable future.

                                       6
<PAGE>

Item 2. Management's  Discussion and Analysis Of Financial Condition And Results
        Of Operations.

This report contains  forward-looking  statements  within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of Securities  Exchange Act of
1934.  Actual  results  could  differ  materially  from those  projected  in the
forward-looking  statements  as a result of the risk  factors  set forth in this
report.

Material  Changes in the Results of Operations  for the Three Months ended March
31, 2000 Compared with Three Months ended March 31, 1999

Revenues.  The Company's total revenues  increased by  approximately  26.2% from
$2,429,000  for the quarter ended March 31, 1999 to  $3,065,000  for the quarter
ended March 31,  2000.  The increase in contract  service  revenues in 2000 from
1999 is primarily  attributable to the receipt of  approximately  $.5 million in
insurance proceeds for a flood loss at one of the Company's job sites.

Cost of Sales.  Direct  job costs  decreased  by 12.7% from  $2,276,000  for the
quarter  ended March 31,  1999 to  $1,988,000  for the same period in 2000.  The
decrease in job costs was  attributable to the Bound Brook project.  The primary
elements  of such  decrease in job costs were job  salaries  and  materials  and
supplies.

General  and  Administrative  Expenses.   General  and  administrative  expenses
increased  34.7% from  $1,821,000  during the  quarter  ended  March 31, 1999 to
$2,453,000  during  the same  period  in  2000.  The  increase  in  general  and
administrative  expense was  primarily  attributable  to a $1.1 million  expense
recorded in March 2000 for options  granted to consultants  to purchase  130,000
shares of common stock of the Company at the market price of the company's stock
at the date of grant which was partially offset by approximately $0.3 million in
lower salaries expense in 2000 due to less employees..

Depreciation and amortization.  Depreciation and amortization  expense decreased
by  approximately  47.7% from $128,000 in 1999 to $67,000 in 2000.  The decrease
depreciation and amortization  expense was primarily  attributable to a decrease
in amount of equipment being depreciated due to prior years disposals.

Interest Expense. In addition to its operating income and expenses,  the Company
reported net interest expense of $12,000 for the quarter ended March 31, 2000 as
compared to net interest expense of $15,000 for the same period in 1999.

Miscellaneous.  During the first quarter of years 1999 and 2000 no provision was
made for post retirement benefits subject to FAS 106.

As a result of the foregoing,  the Company reported a net loss of $1,459,000 for
the quarter ended March 31, 2000 as compared to a net loss of $1,819,000 for the
same quarter in 1999.

The net loss  attributable  to common stock was increased by the preferred stock
dividends totaling $4,000 in 1999.

Liquidity and Capital Resources

At March 31,  2000,  we had a working  capital  deficit  of  approximately  $2.8
million and a cash  balance of $211,000.  This  compares to a deficit in working
capital of $3.2 million and a cash balance of $0.5 million at December 31, 1999.
The  changes  in  working  capital  and cash were  primarily  attributable  to a
combination of the loss incurred  during 2000 which was partially  offset by (1)
the non-cash charge of $1.1 million for the consultants option expense,  and (2)
the issuance of stock to pay various vendors.

During the third  quarter of 1999 we recorded a $1,200,000  tax benefit from the
New Jersey NOL. We received  $550,000 in December 1999 and expect to realize the
balance from our New Jersey tax credit in the third quarter of the year 2000.

                                       7
<PAGE>

We require substantial working capital to support our ongoing operations.  As is
common in the environmental services industry, payment for services rendered are
generally  received  pursuant to specific  draw  schedules  after  services  are
rendered.  Thus, pending the receipt of payments for services rendered,  we must
typically  fund  substantial  project  costs,  including  significant  labor and
bonding costs, from financing sources within and outside of the Company. Certain
contracts,  in particular those with United States  governmental  agencies,  may
provide for  payment  terms of up to 90 days or more and may require the posting
of  substantial  performance  bonds  which  are  generally  not  released  until
completion of a project.

Operations  were  historically  funded  through a combination  of operating cash
flow, term notes and bank lines of credit.  Since April of 1994, we have carried
no bank debt and have funded operations  principally  through the sale of equity
securities and securities convertible into equity securities. At March 31, 2000,
we had  no  bank  debt  and no  significant  long-term  debt  and  were  funding
operations entirely through cash on hand and operating cash flow.

In order to meet working  capital needs during 1999,  and 2000, we have borrowed
funds from various parties, including officers, and have issued stock in payment
of  certain  trade  payables.  At March 31,  2000,  we owed a total of  $221,000
primarily  to our two  principal  officers  for  funds  advanced.  There  are no
definitive repayment terms on such amounts.  During the first quarter of 2000 we
issued  127,357  shares of common stock in  connection  with the  settlement  of
accounts payable obligations amounting to $1,585,303.

In April 2000, we consummated a reorganization  pursuant to which we, and Fusion
Networks,  became  wholly-owned  subsidiaries of Fusion Networks Holdings.  As a
result of that transaction, we will no longer have the ability to issue stock or
options to pay  vendors and others or to raise  capital.  Under the terms of the
reorganization,  we are entitled to fifty percent (50%) of all proceeds from the
exercise of warrants and options  outstanding on the date of the reorganization.
On the  closing  date  of  the  reorganization,  we  had  approximately  198,475
outstanding  warrants and  2,615,177  outstanding  options with exercise  prices
ranging from $1.156 to $45.00 per share.  Exercise of the  outstanding  warrants
and options would produce  approximately  $20,400,000  of proceeds,  of which we
would  receive  one-half.   Warrants  and  options   outstanding,   representing
approximately   $1,500,000   of  potential   gross   exercise   proceeds,   were
"in-the-money"  as of May  10,  2000.  There  is no  assurance  that  any of the
outstanding  warrants and options,  particularly  warrants and options which are
not "in-the-money" will ever be exercised.

As a result of our limited  resources and  substantial  costs of pursuing energy
projects, we have substantially curtailed all efforts to develop energy projects
in the future.  In connection with our  determination to curtail  development of
energy  projects,  we are  attempting  to sell our  interest  in our El Salvador
energy project and various other energy projects. We have signed a Memorandum of
Understanding with a potential purchaser of the El Salvador Project. There is no
assurance  that we will be successful in our efforts to sell our energy  project
assets.

Other than funds provided by operations and the potential  receipt of funds from
the  exercise of  outstanding  warrants and  options,  settlement  of claims and
litigation  and sale of assets,  we  presently  have no sources of  financing or
commitments to provide financing.

We believe that our working capital, combined with the expected receipt of funds
from the exercise of options and  warrants,  the  resolution  of certain  change
orders and litigation and the sale of certain assets,  is sufficient to meet our
anticipated  needs for at least  the  following  twelve  months,  including  the
performance of all existing  contracts of the Company.  However,  as there is no
assurance as to the timing or amount of the receipt of funds from change orders,
litigation or other sources, we may be required to seek new bank lines of credit
or other financing in order to facilitate the performance of jobs.  While we are
conducting  ongoing  discussions with various  potential  lenders with a view to
establishing available credit facilities,  we presently have no commitments from
any  bank or  other  lender  to  provide  financing  if such  financing  becomes
necessary to support operations.

Year 2000 Issue

We experienced no material  failures and incurred no material costs or losses as
a result of the Year 2000 Issue.


                                       8
<PAGE>

Impact of Inflation

Inflation has not been a major factor in our business since inception. There can
be no assurances that this will continue.  However,  it is anticipated  that any
increases in costs can be passed on to customers in the form of higher prices.

Certain Factors Affecting Future Operating Results

This Form 10-Q contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934.  The Company's  actual results could differ  materially  from those set
forth in the forward-looking statements. Certain factors that might cause such a
difference  include the following:  uncertainty  regarding the rate of growth in
demand for nuclear decommissioning and site revitalization  services;  continued
delays in awarding  and  commencing  contracts;  delays in payment on  contracts
occasioned  by  dealings  with  governmental  and foreign  entities;  changes in
accepted  remediation  technologies  and  techniques;  fluctuations in operating
costs  associated with changes in project  specifications  and general  economic
conditions;  substantial  fluctuations in revenues resulting from completion and
replacement of contracts and delays in contracts;  economic conditions affecting
the ability of  prospective  customers to finance  projects;  and other  factors
generally affecting the timing and financing of projects.

ITEM 3A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Not applicable

                           PART II - OTHER INFORMATION

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

     (a)  Not applicable

     (b)  Not applicable

     (c) (i) Pursuant to the 350,000 shares reserve  established for issuance to
     various vendors in payment for services provided to the Company, at various
     dates  during the quarter  ended  March 31,  2000,  the  Company  issued an
     aggregate of 127,357 shares of its common stock to vendors pursuant to that
     reserve.

          (ii) The securities were issued, without an underwriter, to a total of
     15 vendors of the Company and to one bonding company.

          (iii) The securities  were issued in  satisfaction  of amounts owed to
     vendors of the Company totaling  approximately $350,000 and as a deposit in
     lieu  of a bond  to a  bonding  company  in  the  amount  of  approximately
     $200,000.  No commissions  were paid in connection with the issuance of the
     securities.

          (iv)  The  securities  were  issued  pursuant  to the  exemption  from
     registration  set forth in Section 4(2) of the  Securities Act of 1933. The
     securities  issuances  were  privately  negotiated  pursuant to  settlement
     efforts  with  selected   vendors   without  any  general   soliciation  or
     advertising. The securities bear legends restricting the resale thereof.

     (d)  Not applicable

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

     (a)  On  March  28,  2000,  a  special   meeting  of  shareholders  of  IDM
          Environmental Corp. was held.

     (b)  Not applicable

     (c)  The following matters were voted upon at such meeting:

          (i)  Approval of a Plan of Reorganization  and Merger by an among IDM,
               Fusion Networks Holdings and IDM Merger  Subsidiary,  pursuant to
               which a holding  company will be formed,  whereby Fusion Networks
               and IDM will  each  become  wholly-owned  subsidiaries  of Fusion
               Networks  Holdings and each  shareholder of Fusion  Networks will
               receive one share of common stock of Fusion Networks Holdings for
               each share of Fusion Networks held.
               (1,848,215 For, 68,850 Against, 16,404 Abstain)

          (ii) Approval of an  Agreement  and Plan of Merger by and among Fusion
               Networks  Holdings  Fusion  Networks and  IDM/Fusion  Acquisition
               Corporation,  pursuant  to which  Fusion  Networks  will become a
               wholly-owned subsidiary of Fusion Networks Holdings.
               (1,847,873 For, 69,022 Against, 16,574 Abstain)

          (iii)Approval of an  amendment  to the IDM  Environmental  Corp.  1998
               Comprehensive  Stock Option and Award Plan,  as assumed by Fusion
               Networks  Holdings,  Inc.  which will (a)  increase the number of
               shares of common stock  reserved for issuance  under such plan by
               an  additional  1,600,000  shares,  and  (b) fix  400,000  as the
               maximum  number of shares which may be subject to awards  granted
               under  the  1998  Stock  Option  Plan  to any  individual  in any
               calendar year.
               (1,658,646 For, 247,098 Against, 27,725 Abstain)

     (d)  Not applicable

                                       9
<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

              Exhibit No.                  Description
              -----------                  -----------
                  27.1                     Financial Data Schedule

     (b)  Reports on Form 8-K


          None


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<PAGE>

                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                 IDM ENVIRONMENTAL CORP.


Dated: May 15, 2000
                                           By: /s/ Joel Freedman
                                              --------------------------------
                                                Joel Freedman, President


Dated: May 15, 2000
                                           By: /s/ Michael B. Killeen
                                              --------------------------------
                                                Michael B. Killeen, Principal
                                                Financial and Accounting Officer



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