<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549

                                 FORM 10-QSB

         (X) Quarterly Report Pursuant to Section 12 or 15(d) of the 
                       Securities Exchange Act of 1934

              For the Quarterly Period Ended September 30, 1997

                                      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 Number: 0-22281

                                 SCOOP, INC.

            (Exact name of Registrant as specified in its charter)

                  Delaware                           33-0726608
       (State or other jurisdiction of        (I.R.S. Employer ID No.)
        incorporation or organization)

               205 Technology Drive                          92618
                    Irvine, CA                             (Zip Code)
              (Address of principal
                executive offices)

                                (714) 453-8383
             (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during
the past 12 months (or for any 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
                                  ---    ---

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.

             Common Stock, par value                5,501,214
                 $.001 per share          (outstanding on November 3, 1997)

<PAGE>

                        PART I - FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS


                                 SCOOP, INC.
                                BALANCE SHEET
                              SEPTEMBER 30, 1997
                                 (UNAUDITED)

                                    ASSETS
<TABLE>
<CAPTION>
<S>                                                                          <C>
CURRENT ASSETS:
Cash and cash equivalents                                                    $ 2,651,100
Accounts receivable, net of allowance for doubtful accounts of $47,500           146,900
Prepaid expenses                                                                 439,600
                                                                             -----------
   Total current assets                                                        3,237,600

EQUIPMENT, at cost, net of accumulated depreciation and amortization             598,800
COVENANT-NOT-TO-COMPETE, net of amortization                                      62,500
OTHER ASSETS                                                                      71,400
                                                                             -----------
                                                                             $ 3,970,300
                                                                             -----------
                     LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable                                                             $   345,400
Accrued payroll                                                                   97,400
Accrued royalty                                                                  402,500
Current portion of capital lease obligations                                      95,600
Current portion of covenant not-to-compete obligation                             15,300
Current portion of rent payable                                                   84,100
Other accrued liabilities                                                         83,700
                                                                             -----------
   Total current liabilities                                                   1,124,000

CAPITAL LEASE OBLIGATIONS, net of current portion                                 31,100
COVENANT-NOT-TO-COMPETE
  OBLIGATION, net of current portion                                              48,200
RENT PAYABLE (Note 5)                                                            168,200

STOCKHOLDERS' EQUITY (Note 2):    
Preferred stock $.001 par value; 5,000,000 shares authorized;
  no shares issued or outstanding
Common stock, $.001 par value; 20,000,000 shares authorized;
  5,501,214 shares issued and outstanding (Note 2)                           $      5,500
Additional paid-in capital (Note 2)                                             9,146,000
Accumulated deficit                                                            (6,755,800)
Deferred compensation                                                             203,100
                                                                              -----------
  Total stockholders' equity                                                    2,598,800
                                                                              -----------
                                                                             $  3,970,300
                                                                              -----------
</TABLE>
                See accompanying notes to financial statements

                                       2

<PAGE>

                                  SCOOP, INC.
                           STATEMENTS OF OPERATIONS
                                  (UNAUDITED) 

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED                  NINE MONTHS ENDED
                                                               SEPTEMBER 30,                       SEPTEMBER 30,
                                                            ------------------                  -----------------
                                                            1996          1997                  1996         1997
<S>                                                     <C>             <C>                <C>            <C>
Net sales                                               $  331,400      $  530,100         $  978,400     $ 1,492,100
Cost of sales                                              246,200         283,900            574,000         762,400
                                                        ----------      ----------         ----------     -----------
   Gross profit                                             85,200         246,200            404,400         729,700

Operating expenses: 
  Research and development                                 125,700         814,000            412,900       1,630,500
  Selling and marketing                                     72,000         303,300            189,100         656,800
  General and administrative                               664,600         519,000          1,199,900       1,491,000
  Other expense. (Note 5)                                        0         330,700                  0         330,700
                                                        ----------      ----------         ----------     -----------
                                                           862,300       1,967,000          1,801,900       4,109,000
                                      

Operating loss                                            (777,100)     (1,720,800)        (1,397,500)     (3,379,300)
Interest income (expense), net                               8,600          44,500            (23,600)         55,400
                                                         ----------      ----------        ----------     -----------
Loss before provision for income taxes                    (768,500)     (1,676,300)        (1,421,100)     (3,323,900)

Provision for income taxes                                     800                              1,600           1,600
                                                         ----------      ----------         ----------    -----------
Net loss                                                $ (769,300)   $ (1,676,300)      $ (1,422,700)   $ (3,325,500)
                                                         ----------      ----------         ----------    -----------

Net loss per common share (Note 3)                         $  (.19)        $  (.29)           $  (.42)        $  (.65)
                                                         ----------      ----------         ----------    -----------
Weighted average common shares outstanding (Note 3)      4,054,000       5,794,000           3,393,000      5,164,000
                                                        ----------      ----------         ----------     -----------
                                                        ----------      ----------         ----------     -----------

</TABLE>
                                       3

                 See accompanying notes to financial statements

<PAGE>

                                 SCOOP, INC.
                           STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)


<TABLE>
<CAPTION>
                                                                           NINE MONTHS ENDED
                                                                              SEPTEMBER 30,
                                                                         ----------------------
                                                                           1996          1997
<S>                                                                    <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                               $ (1,422,700)    $ (3,325,500)
Adjustments to reconcile net loss to net cash
  Used in operating activities:
    Depreciation and amortization                                            51,800          126,600
    Stock bonus                                                              81,800                 
    Deferred compensation                                                   154,900           10,900
    Abandonment of lease                                                                     330,700
    Changes in:
      Accounts receivable                                                    (8,000)         (31,000)
      Publishing materials                                                   10,200                 
      Income tax refund receivable                                            1,800           15,400
      Other assets                                                           (8,200)         (63,200)
      Prepaid expenses                                                      (30,400)        (252,100)
      Accounts payable                                                      145,900          (69,600)
      Accrued payroll                                                        16,400          (35,600)
      Accrued royalty                                                        37,500          118,300
      Other accrued liabilities                                             (15,200)          51,400
                                                                          ----------      ----------
         Net cash used in operating activities                             (984,200)      (3,123,700)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                                      (42,300)        (440,200)
  Purchase of investments                                                  (197,700)                
                                                                           ----------     ----------
      Net cash used in investing activities                                (240,000)        (440,200)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayment of note payable to stockholder                                  (88,000)                
  Repayment of note payable -other                                          (57,500)                
  Repayment of capital lease obligations                                    (47,700)         (94,700)
  Borrowings under line of credit (Note 4)                                 (150,000)         150,000
  Repayment of line of credit (Note 4)                                                      (150,000)
  Proceeds from bridge notes (Note 4)                                       400,000          300,000
  Repayment of bridge notes (Note 4)                                       (400,000)        (300,000)
  Repayment of covenant-not-to-compete obligation                           (12,500)         (17,100)
  Proceeds from issuance of common stock (Note 2)                           265,000        6,064,400
  Proceeds from issuance of redeemable common stock                       2,187,500                 
                                                                         ----------       ----------
    Net cash provided by financing activities                             2,096,800        5,952,600

INCREASE IN CASH AND CASH EQUIVALENTS                                    $  872,600      $ 2,388,700

CASH AND CASH EQUIVALENTS:
  Beginning of period                                                         1,300          262,400
                                                                         ----------       ----------
  End of period                                                          $  873,900      $ 2,651,100
                                                                         ----------       ----------
                                                                         ----------       ----------

</TABLE>
                                       4

                 See accompanying notes to financial statements

<PAGE>

                                 SCOOP, INC.
                     STATEMENTS OF CASH FLOWS (CONTINUED)
                                 (UNAUDITED)

<TABLE>
<CAPTION>                                                                         NINE MONTHS ENDED
                                                                            SEPTEMBER 30,
                                                                         1996         1997
                                                                      ---------   ----------
<S>                                                                   <C>         <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION - 
  Cash paid during the period for:
  Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . .   $  37,500   $   27,700
                                                                      ---------   ----------
  Income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . .   $   3,200   $    1,600
                                                                      ---------   ----------
SCHEDULE OF NONCASH INVESTING AND FINANCING TRANSACTIONS
  Contractual obligations incurred for the acquisition of equipment   $ 125,000   $   43,700
                                                                      ---------   ----------
  Increase in redemption value of redeemable shares of common stock   $  58,900   $   56,200
                                                                      ---------   ----------
  Common stock issued in repayment of debt and accrued interest       $ 155,000             
                                                                      ---------
  Termination of obligations related to redeemable shares of
   common stock (Note 2). . . . . . . . . . . . . . . . . . . . . .               $2,358,700
                                                                                  ----------
</TABLE>

                 See accompanying notes to financial statements

                                       5
<PAGE>

                                  SCOOP, INC. 
                          NOTES TO FINANCIAL STATEMENTS

1.   BASIS OF PRESENTATION

The accompanying consolidated financial statements of Scoop, Inc. (the 
"Company") have been prepared pursuant to the rules and regulations of the 
Securities and Exchange Commission ("SEC").  Certain information and footnote 
disclosures normally included in financial statements prepared in accordance 
with generally accepted accounting principles have been condensed or omitted 
pursuant to such rules and regulations.  In the opinion of management, the 
financial statements include all adjustments necessary for a fair 
presentation of the balance sheet at September 30, 1997, the results of 
operations for the three and nine months ended September 30, 1997 and 1996, 
and the cash flows for the nine months ended September 30, 1997 and 1996. The 
condensed consolidated financial statements should be read in conjunction 
with the financial statements and notes thereto included in the Company's 
Form SB-2 Registration Statement (file no. 333-15129) declared effective by 
the SEC on April 9, 1997.

In May 1996, the Company effected a 1,006.654-for-1 stock split of its then 
outstanding common stock.  All share and per share amounts included in the 
accompanying financial statements have been restated to reflect the stock 
split.

In November 1996, NewsMakers Information Services, Inc., a wholly owned 
subsidiary of the Company was merged into the Company.  The accompanying 
financial statements have been restated to reflect this reorganization, which 
has been accounted for on a basis similar to a pooling of interests.

In March 1997, the Company reincorporated in the State of Delaware.  The 
accompanying financial statements include the effects of the reincorporation 
and the resulting increase in the authorized common stock to 20,000,000 
shares and authorization of 5,000,000 shares of preferred stock.

2.   INITIAL PUBLIC OFFERING & REQUIRED ADDITIONAL FINANCING

On April 16, 1997, the Company completed its initial public offering of 
1,450,000 shares of common stock at $4.50 per share, resulting in proceeds to 
the Company of approximately $5.0 million, net of underwriting discounts and 
commissions and offering expenses.  In May 1997, the Company sold an 
additional 207,050 shares of common stock at $4.50 per share pursuant to the 
exercise of the underwriters' over-allotment option, resulting in additional 
net proceeds to the Company of approximately $800,000.  Upon the completion 
of the initial public offering, the mandatory redemption rights associated 
with 926,664 shares of common stock terminated.  As a result of the 
termination of the redemption rights, the Company reclassified manditorily 
redeemable common stock to equity.

     Through September 30, 1997, the Company has incurred significant 
operating losses and expects significant additional losses in the future.  
The Company's ability to continue as a going concern is dependent upon future 
events, including the successful development and market acceptance of its 
Scoop! service and its ability to secure additional sources of financing.  
These factors raise substantial doubt about the Company's ability to continue 
as a going concern. The Company believes that cash and cash equivalents on 
hand as of September 30, 1997, will be adequate to meet its capital needs for 
at least the next four months.  The Company's current operating plan shows 
that at the end of such four-month 

                                       6
<PAGE>

                                   SCOOP, INC.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


period, the Company will require substantial additional capital.  The Company 
requires additional capital to fund its operations, continue research and 
development programs, and commercialize any additional products that may be 
developed.  The Company is in the process of seeking additional capital.  
There can be no assurance, however,  that additional financing will be 
available at all or that, if available, such financing will be obtainable on 
terms favorable to the Company and would not be dilutive.

3.    NET LOSS PER SHARE

Net loss per common share has been computed by dividing the net loss by the 
weighted average number of common shares outstanding during the periods 
presented.  For purposes of calculating the weighted average number of common 
shares outstanding, the Company has considered the common stock which had 
redemption rights prior to the initial public offering (Note 2) as common 
stock equivalents.  Additionally, pursuant to SEC Staff Accounting Bulletin 
Topic 4d, stock options and warrants granted during the twelve months prior 
to the effective date of the Company's Form SB-2 Registration Statement have 
been included in the calculation of common equivalent shares using the 
treasury stock method, as if they were outstanding as of the beginning of 
each period net loss per share is presented.        

     In February 1997, the Financial Accounting Standards Board ("FASB") 
issued Statement of Financial Accounting Standard No. 128, Earnings Per Share 
(SFAS 128) which is effective for financial statements issued for periods 
ending after December 15, 1997. SFAS No. 128 requires the disclosure of basic 
and diluted earnings per share.  For the three and nine months ended 
September 30, 1996 and 1997, the amount reported as net loss per common share 
is not materially different than would have been reported for basic and 
diluted loss per common share in accordance with SFAS No. 128.

4.    FINANCING ARRANGEMENTS

Line of Credit - In February 1997, the Company entered into a credit 
agreement with an independent third party, which provided for maximum 
borrowings of $150,000.  The line of credit was secured by the Company's 
accounts receivable, accrued interest at 9.5% and had a commitment term 
expiring in August 1997.  In connection with entering into the credit 
agreement, the Company granted the lender a warrant to purchase up to 15,750 
shares of the Company's common stock at $5.50 per share.  The Company repaid 
all borrowings under the line of credit from the proceeds of its initial 
public offering and terminated the credit agreement in June 1997.

Bridge Notes - In February 1997, the Company borrowed $150,000 from a 
stockholder of the Company.  The loan was unsecured, accrued interest at 
9.75% and matured April 30, 1997.  As additional consideration for the loan, 
the Company granted the stockholder a warrant to purchase 15,000 shares of 
the Company's common stock at $4.50 per share.  The Company repaid the bridge 
note in full from the proceeds of its initial public offering.

Additionally, in February 1997, two separate individuals each loaned $75,000 
to the Company in exchange for the Company's promissory notes.  The 
borrowings were unsecured, accrued interest at 

                                       7
<PAGE>

                                   SCOOP, INC.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


9.75% and matured at the earlier of March 31, 1997, or upon the completion of 
an initial public offering. In April 1997, the Company repaid both bridge 
notes in full from the proceeds of its initial public offering.

5.    FACILITY LEASE AGREEMENT

In August 1997, the Company entered into a new non-cancelable operating lease 
for its principal facility which extends through September 2000.  The Company 
will incur lease payments aggregating approximately $924,800 over the 36 
month term of the lease.  The Company vacated its prior facility and moved 
into its new principal facility in October 1997.

During the three months ending September 30, 1997, the Company recorded a 
reserve equal to the net present value of the remaining lease payments 
required under the vacated building lease and wrote off the net book value of 
the leasehold improvements of the vacated facility.  The aggregate costs 
associated with vacating the facility totaled $330,700 and has been recorded 
as other expense in the accompanying statements of operations.  The Company is 
in the process of trying to sublease the vacated facility or find a third 
party to assume the Company's obligations under the lease agreement covering 
the vacated facility.

6.    SUBSEQUENT EVENT

     In October 1997, the Company obtained a $500,000 equipment lease line of 
credit ("Lease Line"). The Company intends to use the Lease Line to finance 
its capital equipment purchases for the remainder of 1997 and to finance a 
portion of amounts previously expended on capital equipment purchases under a 
sales leaseback arrangement.  Borrowings under the Lease Line will be for 
terms of up to 30 months, will bear interest at 8.25% and will require a cash 
security deposit equal to 25% of the equipment cost.  The lease line will be 
secured by the capital equipment being financed.  The Lease Line is available 
through October 1998, subject to certain conditions.










                                       8
<PAGE>

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


The following discussion and analysis of the Company's financial condition 
and results of operations for the three and nine months ended September 30, 
1996 and 1997 should be read in conjunction with the Company's Form SB-2 
Registration Statement (file no. 333-15129) declared effective by the SEC on 
April 9, 1997.

GENERAL    

Scoop, Inc. is in the business of providing information products and services 
to businesses.  In September 1997, the Company launched its first Scoop!-TM- 
online information service.  Scoop! Direct is an Internet and e-mail based 
business information service designed to enable customers to efficiently 
satisfy their daily information needs.  The Company currently intends to 
launch an expanded service early in 1998.  The successful development and 
release schedules for future Scoop! services are subject to potential delay 
and other risks inherent in the development of technology-related services 
and products.  A number of factors may affect the Company's ability to launch 
the enhanced version of the Scoop! service on the schedule described in the 
foregoing forward-looking statements, including, without limitation, the 
Company's ability to successfully develop enhancements to its Scoop! 
SmartGuide technology such that the technology actually performs as 
conceptualized and designed, and to achieve market acceptance of the Scoop! 
service.  For a more detailed description of these factors, see "Risk Factors 
-- Failure to Develop Service or Obtain Market Acceptance," " -- Dependence 
on Potential Strategic Distribution Partners," "--Established Competitors and 
Intense Competition," and "-- Risk of Technological Change and Evolving 
Industry Standards" in the Company's Form SB-2 Registration Statement.  There 
can be no assurance that the Company will be successful in its efforts to 
market Scoop! Direct or develop and market the Web-based version of the 
Scoop! service. 

As part of its strategy to deliver relevant information to business 
professionals, the Company announced on October 22, 1997, a distribution 
relationship with Netscape-Registered Trademark- Communications Corporation 
to provide Scoop! Direct through the Netscape In-Box Direct program.  The 
Company believes that this relationship will help to facilitate broad 
exposure of the Scoop! Direct service to business professionals.  The Company 
views this relationship as a key to the initiation of its corporate and 
small-business sales efforts being implemented in the fourth quarter.

The Company's Media Services group designs and markets a line of business 
information products consisting of customized media reprints and framed 
layouts of articles from newspapers, magazines and on-line publications.  
Scoop Media Services leverages exclusive reprint relationships with key 
business publications including "Investor's Business Daily", "Orange County 
Business Journal", and "The Motley Fool" as well as non-exclusive working 
relationships with numerous other publications.  Substantially all of the 
Company's net sales to date have been generated by the Scoop Media Services 
product line.

In April 1997, the Company completed its initial public offering of common 
stock.  The Company sold 1,657,050 shares of common stock at $4.50 per share, 
including shares sold upon the exercise of the 

                                       9
<PAGE>

underwriters' over-allotment option, resulting in net proceeds to the Company 
of approximately $5.8 million. The Company has used a substantial portion of 
the net proceeds from the offering for expenses relating to the development 
and launch of the Scoop! service.

In November, the Company began to implement a series of cost-cutting measures 
to reduce the Company's operating expenses.  These actions included 
reductions in contracted services as well as internal headcount and were 
targeted to reduce expenditures primarily in operations, marketing, and 
administrative areas.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, certain financial 
data as a percentage of net sales for the three and nine month periods ended 
September 30, 1996 and 1997.

<TABLE>

                                                       THREE MONTHS                    NINE MONTHS
                                                    ENDED SEPTEMBER 30,             ENDED SEPTEMBER 30,
                                                  -----------------------          --------------------
                                                   1996             1997            1996        1997
                                                  ------           ------          ------      ------
<S>                                               <C>              <C>             <C>         <C>    
Net sales. . . . . . . . . . . . . . . . . . .     100.0%           100.0%          100.0%      100.0%
Cost of sales. . . . . . . . . . . . . . . . .      74.3%            53.6%           58.7%       51.1%
                                                  ------           ------          ------      ------
  Gross profit . . . . . . . . . . . . . . . .      25.7%            46.4%           41.3%       48.9%

Operating expenses: 
 Research and development. . . . . . . . . . .      37.9%           153.6%           42.2%      109.3%
 Selling and marketing . . . . . . . . . . . .      21.7%            57.2%           19.3%       44.0%
 General and administrative. . . . . . . . . .     200.6%            97.8%          122.6%       99.9%
 Other expense . . . . . . . . . . . . . . . .                       62.4%                       22.2%
                                                  ------           ------          ------      ------
                                                   260.2%           371.0%          184.1%      275.4%
           
Operating loss . . . . . . . . . . . . . . . .    (234.5)%         (324.6)%        (142.8)%    (226.5)%
Interest income (expense), net . . . . . . . .       2.6%             8.4%           (2.4)%       3.7%
Loss before provision for income taxes . . . .    (231.9)%         (316.2)%        (145.2)%    (222.8)%
Provision for income taxes . . . . . . . . . .       0.2%                             0.2%        0.1%
                                                  ------           ------          ------      ------
Net loss . . . . . . . . . . . . . . . . . . .    (232.1)%         (316.2)%        (145.4)%    (222.9)%
                                                  ------           ------          ------      ------
                                                  ------           ------          ------      ------
</TABLE>

COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

     NET SALES.  Net Sales increased 60.0% in the three months ended 
September 30, 1997 to $530,100 from $331,400 in the comparable 1996 period.  
The growth in net sales was principally driven by the Company's focused 
efforts to expand sales of reprints from its Scoop Media Services product 
line.  The Company has focused its sales efforts on reprints because the 
Company believes that there is a larger market for reprints with a higher 
growth potential than there is for the other products marketed by Scoop Media 
Services. 

     Net sales of reprints increased 101.1% in the three months ended 
September 30, 1997 to $416,500 from $207,100 in the comparable 1996 period.  
This growth resulted primarily from increased sales generated through the 
Company's relationship with "Investor's Business Daily" ("IBD").  The Company 
has been the exclusive provider of content reprints for IBD since August 1995 
and derived 

                                       10
<PAGE>

approximately 67.7% of total net sales for the three months ended September 
30, 1997 from the sale of reprints of IBD content. 

     The Company began marketing the Scoop! information service with the 
launch of Scoop! Direct in September, 1997.  Currently, Scoop! Direct 
customers receive a 14-day free-trial as part of the  marketing program to 
promote the new service.  As a result, initial sales are expected to occur 
when customers move out of the promotional program in the fourth quarter of 
1997.  However, there can be no assurance that these sales will occur.

     COST OF SALES.  Cost of sales increased 15.3% in the three months ended 
September 30, 1997 to $283,900 from $246,200 in the comparable period in 
1996. The increase in cost of sales was primarily driven by higher royalty 
fees and production costs associated with the growth of reprint sales.  
Overall, gross profits from the sale of Scoop! Media products increased by 
$161,000 in the three months ended September 30, 1997 compared to the same 
period in 1996.

     Cost of sales consists primarily of the production costs, subscriptions, 
shipping and various usage, permission, and royalty fees arising from the 
reproduction of printed and electronic content for the media products.

     RESEARCH AND DEVELOPMENT EXPENSES.  Research and development ("R&D") 
expenses increased 547.6% in the three months ended September 30, 1997 to 
$814,000 from $125,700 in the comparable 1996 period.  The increase in R&D 
expenses was primarily driven by additional development team staffing and 
license fees and other costs associated with software licensed from third 
parties, all related to the Scoop! SmartGuide technology.  Also driving the 
increase in R&D expenses is the creation of the operations data center to 
support the Scoop! service; operations data center expenses include the cost 
of networking, telecommunications, computer equipment, and computer 
operators. Beginning in the fourth quarter of 1997, operations data center 
expenses will be included as part of cost of sales to coincide with the 
launch of the Scoop! service.  R&D expenses are expected to continue to 
increase during 1997 as the Company continues development of new Scoop! 
information service products and expects to expand the customer base of the 
Scoop! service. 

     R&D expenses in the 1997 and 1996 periods also include the cost of 
content acquisition from UMI Company ("UMI"), the Company's principal content 
supplier for the Scoop! service, and a prior content supplier for the purpose 
of developing the Scoop! SmartGuide technology.  Expenses for content 
acquisition in the three months ended September 30, 1997 were $74,800 versus 
$62,500 in the comparable 1996 period.  In October 1996, the Company signed a 
content agreement with UMI.  Costs for UMI content have been incurred as R&D 
expense up to the launch of the Scoop! service.  Beginning in the fourth 
quarter of 1997, these costs will be included as part of cost of sales.  The 
1997 contractual minimums with UMI are approximately $296,000.

     The license fees and certain costs associated with software licensed 
from third parties for the development of the Scoop! SmartGuide technology 
are being expensed over the term of the applicable license agreement.

                                       11
<PAGE>

     SELLING AND MARKETING EXPENSES.  Selling and marketing expenses 
increased 321.3% in the three months ended September 30, 1997 to $303,300 
from $72,000 in the comparable 1996 period.  The increase was driven by 
increased sales and marketing headcount and marketing expenses related to the 
September free trial period of the Scoop! Direct service including 
advertising and marketing promotional materials.  Selling and marketing 
expenses are expected to continue to increase during 1997 as the Company 
increases its sales and marketing efforts relating to the Scoop! service.

     GENERAL AND ADMINISTRATIVE EXPENSES.  General and administrative ("G&A") 
expenses decreased 21.9% in the three months ended September 30, 1997 to 
$519,000 from $664,600 in the comparable 1996 period.  The decrease in G&A 
expenses was primarily attributable to decreases in bad debt, professional 
accounting and legal service fees, and warrant-related compensation expense 
which more than offset the increases in salary resulting from the expansion 
of the management team.

     The Company implemented cost-cutting measures in November 1997 aimed at 
further reductions to G&A expenses.  

     OTHER OPERATING EXPENSES.  Other operating expenses were reported in the 
three months ended September 30, 1997 totaling $330,700; no expenses were 
reported in the comparable period for 1996.  The expense reflects the net 
present value of the remaining lease payments and the net book value of the 
leasehold improvements of the company's vacated facility. 

     INTEREST INCOME (EXPENSE).  Interest income, net of interest expense, 
was $44,500 for the three months ended September 30, 1997 compared to $8,600 
of interest income, net of interest expense, in the comparable 1996 period.  
Net interest income in the 1997 period was primarily attributable to the 
Company having interest bearing assets as a result of its initial public 
offering.

COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

     NET SALES.  Net Sales increased 52.5% in the nine months ended September 
30, 1997 to $1,492,100 from $978,400 in the comparable 1996 period.  The 
growth in net sales was principally driven by the Company's focused efforts 
to expand sales of reprints from its Scoop! Media Services product line.  

     Net sales of reprints increased 69.1% in the nine months ended September 
30, 1997 to $1,134,600 from $671,100 in the comparable 1996 period.  This 
growth resulted primarily from increased sales generated through the 
Company's relationship with IBD.  The Company derived approximately 58.5% of 
total net sales for the nine months ended September 30, 1997 from the sale of 
reprints of IBD content.

     No sales have been reported from the Company's Scoop! Direct information 
service launched in September 1997.  Sales commenced in the fourth quarter of 
1997.

     COST OF SALES.  Cost of sales increased 32.8% in the nine months ended 
September 30, 1997 to $762,400 from $574,000 in the comparable period in 
1996. The increase in cost of sales was primarily driven by higher royalty 
fees and production costs associated with the growth of reprint sales. 
Overall,

                                       12
<PAGE>

gross profits from the sale of Scoop! Media products increased by $325,300 in 
the nine months ended September 30, 1997 compared to the same period in 1996.

     RESEARCH AND DEVELOPMENT EXPENSES.  R&D expenses increased 294.9% in the 
nine months ended September 30, 1997 to $1,630,500 from $412,900 in the 
comparable 1996 period.  The increase in R&D expense was primarily driven by 
additional development team staffing, license fees and other costs associated 
with software licensed from third parties and increased utilization of third 
party design services, all related to the Scoop! SmartGuide technology. 
Initiation of the Scoop! data center also contributed to the increase of R&D 
expenses in 1997.  R&D expenses are expected to continue to increase during 
1997 as the Company continues development of the Scoop Smart Guide technology 
and the Scoop! service.

     R&D expenses for content acquisition in the nine months ended September 
30, 1997 were $164,300 versus $187,500 in the comparable 1996 period.

     SELLING AND MARKETING EXPENSES.  Selling and marketing expenses 
increased 247.3% in the nine months ended September 30, 1997 to $656,800 from 
$189,100 in the comparable 1996 period. The increase was driven by increased 
sales and marketing headcount and marketing expenses related to the September 
launch of the Scoop! service including advertising and marketing promotional 
materials as well as increased commissions earned by sales staff due to the 
growth in net sales of Scoop Media Services.  Selling and marketing expenses 
are expected to continue to increase during 1997 as the Company increases its 
sales and marketing efforts relating to the Scoop! service.

     GENERAL AND ADMINISTRATIVE EXPENSES.  G&A expenses increased 24.3% in 
the nine months ended September 30, 1997 to $1,491,000 from $1,199,900 in the 
comparable 1996 period.  The increase in G&A expenses was primarily 
attributable to additional salary expenses resulting from the expansion of 
the management team, recruiting fees relating to the Company's hiring 
activities and various costs associated with being a public company, 
including directors and officers insurance.

     OTHER OPERATING EXPENSES.  Other operating expenses were reported in the 
nine months ended September 30, 1997 totaling $330,700; no expenses were 
reported in the comparable period for 1996.  The expense reflects the net 
present value of the remaining lease payments and the net book value of the 
leasehold improvements of the company's vacated facility.  

     INTEREST INCOME(EXPENSE).  Interest income, net of interest expense, was 
$55,400 for the nine months ended September 30, 1997 compared to $23,600 of 
interest expense for the comparable 1996 period.  Net interest income in the 
1997 period was primarily attributable to the Company having interest bearing 
assets as a result of its initial public offering.

LIQUIDITY AND CAPITAL RESOURCES

     Historically, the Company has financed its operations primarily through 
private and public sales of common stock and has supplemented such funds with 
borrowings.  During the nine months ended September 30, 1997, the Company 
used approximately $3.1 million in operating cash flows, primarily to 

                                       13
<PAGE>

fund the Scoop! SmartGuide technology development activities and additional 
expenses, including those resulting from the expansion of the management, 
development, operations and marketing teams during the past 9 months.  Cash 
provided by financing activities in the nine months ended September 30, 1997 
totaled approximately $6.0 million, principally reflecting the proceeds from 
the Company's initial public offering which was completed in April 1997.  The 
Company has used a substantial portion of the proceeds from the initial 
public offering for the development of the Scoop! Smart Guide technology, 
sales and marketing expenses relating to the Scoop! service, the acquisition 
of capital equipment and the initiation of the Scoop! operations center.  The 
Company also had used proceeds from the initial public offering to repay 
indebtedness aggregating $450,000. The Company had approximately $2.7 million 
in cash and cash equivalents at September 30, 1997.

     The Company also has used equipment leases and debt instruments to 
finance a portion of its purchases of capital equipment, and at September 30, 
1997 had obligations of approximately $126,700 incurred in connection with 
these purchases.  During the nine months ended September 30, 1997, the 
Company expended $440,200 on purchases of capital equipment.  Capital 
requirements for the remainder of 1997 are currently expected to be 
approximately $250,000, primarily consisting of computer equipment required 
to support development of the Scoop! SmartGuide technology and to run the 
Scoop! service.   

     In October 1997, the Company obtained a $500,000 equipment lease line of 
credit ("Lease Line"). The Company intends to use the Lease Line to finance 
its capital equipment purchases for the remainder of 1997 and to finance a 
portion of amounts previously expended on capital equipment purchases under a 
sale leaseback arrangement.  Borrowings under the Lease Line will be for 
terms of up to 30 months, will bear interest at 8.25% and will require a cash 
security deposit equal to 25% of the equipment cost.  The lease line will be 
secured by the capital equipment being financed.  The Lease Line is available 
through October 1998, subject to certain conditions.

     In October 1996, the Company entered into a license agreement with UMI 
which gives the Company the right to resell content from news and information 
sources through the Scoop! service.  The Company will incur minimum royalty 
payments under the UMI license agreement of approximately $296,000 in 1997 
and $570,000 in 1998.

     In August 1997, the Company entered into a three-year lease agreement 
for its principal facility.  The term of the lease began in September 1997.  
The Company will incur minimum payments under the lease of approximately 
$105,000 in 1997 and $362,000 in 1998.

     Through September 30, 1997, the Company has incurred significant 
operating losses and expects significant additional losses in the future.  
The Company's ability to continue as a going concern is dependent upon future 
events, including the successful development and market acceptance of its 
Scoop! service and its ability to secure additional sources of financing.  
These factors raise substantial doubt about the Company's ability to continue 
as a going concern. The Company believes that cash and cash equivalents on 
hand as of September 30, 1997, will be adequate to meet its capital needs for 
at least the next four months.  The Company's current operating plan shows 
that at the end of such four-month period, the Company will require 
substantial additional capital.  The Company requires additional capital to 
fund its operations, continue research and development programs, and 
commercialize any additional 

                                       14
<PAGE>

products that may be developed.  The Company is in the process of seeking 
additional capital.  There can be no assurance, however,  that additional 
financing will be available at all or that, if available, such financing will 
be obtainable on terms favorable to the Company and would not be dilutive.

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS

     In June 1997, the FASB issues SFAS No. 130.  "Reporting Comprehensive 
Income."  SFAS 130 establishes standards for the reporting and display of 
comprehensive income and its components (revenues, expenses, gains and 
losses) in a full set of general purpose financial statements.  SFAS 130 
requires all items that are required to be recognized under accounting 
standards as components of comprehensive incomes to be reported in a 
financial statement that is displayed with the same prominence as other 
financial statements.  SFAS 130 does not require a specific format for that 
financial statement but requires that an enterprise display an amount 
representing total comprehensive income for the period covered by that 
financial statement.  SFAS 130 requires an enterprise to (a) classify items 
of other comprehensive income by their nature in a financial statement and 
(b) display the accumulated balance of other comprehensive income separately 
from retained earnings and additional paid-in-capital in the equity section 
of a statement of financial position.  SFAS 130 is effective for fiscal years 
beginning after December 15, 1997.  Management has not determined whether the 
adoption of SFAS 130 will have a material impact on the Company's 
consolidated financial position or results of operations.
          
     In June 1997, FASB issues SFAS No. 131, Disclosures about Segments of an 
Enterprise and Related Information (SFAS 131).  SFAS 131 establishes 
standards for the way public business enterprises are to report information 
about operating segments in annual financial statements and requires those 
enterprises to report selected information about operating segments in 
interim financial reports issued to shareholders.  It also establishes 
standards for related disclosures about products and services, geographic 
areas, and major customers. SFAS 131 is effective for financial statements 
for fiscal period beginning after December 15, 1997.  The Company does not 
believe that the adoption of SFAS 131 will have a significant impact on the 
presentation of its financial statements.

                                       15

<PAGE>

PART II - OTHER INFORMATION


ITEM 2.   CHANGES IN SECURITIES

     (c)  During the three months ended September 30, 1997, the Company issued
          25,000 shares of common stock in connection with the exercise of an 
          employee stock option.  The issuance of the shares was exempt from 
          the registration requirements of the Securities Act of 1933 pursuant 
          to Rule 701.


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K   

     (a)  The following exhibits are included herein:
          
          3.1     Certificates of Incorporation of Scoop, Inc.*
          3.2     Bylaws of Scoop, Inc.*
          4.1     Form of Common Stock Certificate*
          4.2     Form of Representative Warrant*
          4.3     Form of Consultant Warrant*
          4.4     Warrant Dated October 18, 1996 issue to Bell & Howell*
          4.5     Form of Subscription Supplement and Registration Rights 
                  Agreement*
          4.6     Form of Lock-up Agreement*
          10.13   Lease dated August 6, 1997 between The Irvine Company and 
                  Scoop, Inc.
          11.1    Computation of Net Loss Per Common Share
          27.1    Financial Data Schedule

     (b)  Reports on Form 8-K
          
          The Company did not file any reports on Form 8-K during the three
          months ended September 30, 1997.
-----------------------
*  Incorporated by reference to the corresponding numbered exhibit included 
   in the Company's Registration Statement on Form SB-2 (file no. 333-15129)



                                       16

<PAGE>


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.



     Date: November 12, 1997           /s/ Mark Davidson             
                                       -------------------------------
                                       Mark Davidson
                                       President and Chief Financial Officer
                                       (authorized officer and principal
                                         financial and accounting officer)


















                                       17