FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549


              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                      For Quarter Ended September 30, 1999

                                       OR

              [ ] TRANSITION REPORT PURSUANT O SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                For the Transition Period from _______ to _______

                         Commission file number 33-20432

                       MAGNITUDE INFORMATION SYSTEMS, INC.
             (Exact Name of Registrant as Specified in its Charter)

                               Delaware 75-2228828
                  (State or other Jurisdiction of (IRS Employer
               Incorporation or Organization) Identification No.)

                  50 Tannery Road, Branchburg, New Jersey 08876
               (Address of Principal Executive Office) (Zip Code)

                                 (908) 534-6400
               (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 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 such  filing
requirements for the past 90 days.
                                 Yes __X__ No _____

   The  number  of shares of  Registrant's  Common  Stock,  $0.0001  par  value,
outstanding as of September 30, 1999, was 9,027,929 shares.

<PAGE>






              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES




                                      INDEX


                                                                        Page
                                                                       Number

PART  1  -  FINANCIAL INFORMATION

Item 1   Financial Statements (unaudited)

         Consolidated Balance Sheet
          - September 30, 1999                                             3

         Consolidated Statements of Operations
          - Three and nine months ended September 30, 1999 and 1998        4

         Consolidated Statements of Cash Flows
          - Nine months ended September 30, 1999 and 1998                  5

         Notes to Consolidated Financial Statements                      6 - 11


Item 2  Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                      12 - 13


PART II  -  OTHER INFORMATION                                              14


SIGNATURES                                                                 15


FINANCIAL DATA SCHEDULE                                                    16

<PAGE>



PART I  - Item 1

              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
                                                           September 30, 1999
ASSETS
     Current Assets
     Cash  .............................................   $    2,588
     Accounts receivable, net of allowance for
     doubtful accounts of 61,777 .......................       95,911
     Inventories ........................................       8,963
     Prepaid expenses ...................................     507,135
                                                        ---------------------
        Total Current Assets ...........................      614,597
     Property, plant and equipment .....................      111,355
     Acquired software assets ..........................    1,230,113
     Other assets .....................................         3,059
                                                            ----------
TOTAL ASSETS ...........................................    1,959,124
                                                             ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
     Accounts payable and accrued expenses ..............     903,781
     Dividends payable ..................................       9,000
     Prepayments received ...............................           -
     Loans and notes payable ............................   3,161,022
     Accrued contingent liability .......................     374,890
     Current maturities long-term debt ..................      33,529
     Current maturities lease obligations ...............      15,826
                                                          -------------
        Total Current Liabilities .......................   4,498,048
     Long-term debt, less current portion ...............     175,000
     Lease obligations, less current portion ............      29,839
                                                          -------------
TOTAL LIABILITIES .......................................   4,702,887

STOCKHOLDERS' EQUITY
     Preferred Stock,  $0.01 par value,  3,000,000 shares
     authorized,  of which 2,500 shares have been designated
     as Cumulative Preferred Stock, $0.001 par value, with
     10 shares issued and outstanding .................             0
     Common Stock, $0.0001 par value, 30,000,000 shares
     authorized, 9,027,929 issued and outstanding .....           903
     Contributed capital ..............................        81,000
     Additional paid-in capital .......................     8,204,999
     Accumulated deficit ..............................   (11,030,665)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) .......               (2,743,763)

TOTAL LIABILITIES AND EQUITY .......................... $   1,959,124
                                                            ==========


                 See notes to consolidated financial statements


<PAGE>




              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                          Three Months Ended                   Nine Months Ended
                                             September 30,                         September 30,
                                          1999              1998             1999              1998
                                     ------------     -------------    -------------     -------------

<S>                                     <C>            <C>            <C>              <C>
Hardware Revenues ....................  $            0 $  325,857     $          0     $   2,734,683
Software Revenues ....................    52,250            9,019          162,430            41,686
                                      ----------       ---------        ------------      ----------
Total Revenues .......................    52,250          334,876          162,430         2,776,369
     Cost of Goods Sold ..............    41,257          372,150          127,696         1,567,278
                                      ----------       -----------      ------------      -------------

Gross Profit .........................    10,993          (37,274)          34,734         1,209,091

     Selling expenses ................   210,383          266,623          567,217         1,118,232
     General & administrative expenses   499,253          569,737        1,433,692         1,693,656
                                      -----------      ------------      -------------    -------------

Operating Income (Loss) .............   (698,643)        (873,634)      (1,966,175)       (1,602,797)

     Miscellaneous income ............    10,469              103           98,065               436
     Interest expense (net) ..........   (77,385)         (41,782)        (187,383)       (  221,139)
     Miscellaneous expenses ..........   (49,417)         (32,547)         (69,106)          (42,547)
                                      -------------     ------------     -------------     ------------
Non-Operating Income (Expense) .......  (116,333)         (74,226)        (158,424)       (  263,250)
                                       -------------     -------------    -------------     -----------


Net Loss ............................$  (814,976)     $  (947,860)    $ (2,124,599)    $  (1,866,047)
                                       ==========     ==============    ===============  ===============


Loss per Common Share ...........         (0.09)      $     (0.19)    $      (0.26)    $       (0.41)

                                      ===========     ==============    ===============   ==============
Weighted Average Number of
     Common Shares Outstanding ..      8,824,380         5,061,977       8,164,100          4,539,511
</TABLE>












                 See notes to consolidated financial statements

<PAGE>




              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                               Nine Months Ended September 30,
                                                  1999                   1998
Cash Flows from Operating Activities
     Net income (loss) .....................   $ (2,124,599)      $ (1,866,047)
     Adjustments to net income (loss)
        Depreciation and Amortization .......       139,694            235,414
        Loss on disposition of certain assets         8,993              7,776
     Decreases (increases) in Assets
        Accounts receivable ..................       68,281            (97,443)
        Inventories ..........................       17,827            (57,481)
        Prepaid advertising ..................            0           (388,275)
        Prepaid expenses .....................     (121,527)            19,935
        Other assets .........................        1,852                450
     Increases (decreases) in Liabilities
        Accounts payable and accrued expenses      (711,686)           227,912
                                                --------------  ---------------
Net Cash Provided (Used) by Operating Activities (2,721,165)        (1,675,815)

Cash Flows from Investing Activities
     Rolina & Vanity acquisition ...............          0         (1,455,390)
     Investment Input Technologies .............          0            (60,000)
     Disposition investment Input Technologies ..    60,000                  0
     Capital expenditures (net) .................    (2,606)          (160,425)
                                                     -------      -------------
Net Cash Provided (Used) by Investing Activities     57,394         (1,628,511)

Cash Flows from Financing Activities
     Proceeds from notes payable ..............   1,247,235            225,000
     Conversion of equity subscriptions .......           0           (275,000)
     Repayment of loans and notes .............    (293,200)          (295,000)
     Repayment of long-term debt ..............     (52,000)          (149,474)
     Accrual of contingent liability ..........     374,890               0
     Issuance of common stock .................   1,380,031          4,146,992
                                                -------------    --------------
Net Cash Provided (Used) by Financing Activitie   2,656,956          3,652,518
Net Increase (Decrease) in Cash ...............      (6,815)            58,544
Cash at Beginning of Period ...................       9,403              4,546
                                                    --------        ----------
Cash at End of Period ........................ $      2,588     $       63,490
                                             =================     ============










                 See notes to consolidated financial statements

<PAGE>




              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999

DESCRIPTION OF BUSINESS

         Magnitude  Information Systems, Inc. (the "Company" or "Magnitude") was
         incorporated as a Delaware corporation on April 19, 1988 under the name
         Fortunistics  Inc. On March 4, 1993,  the  Company  changed its name to
         Whitestone  Industries,  Inc. On July 14, 1997, the Company changed its
         name to Proformix Systems,  Inc., and on November 18, 1998, the Company
         changed its name to Magnitude Information Systems, Inc. .

         The Company's  primary  product is an integrated  suite of  proprietary
         software  modules  marketed under the name  "Magnitude  EMS" (Ergonomic
         Management System) which are designed to help individual computer users
         and businesses  deal with  potentially  preventable  repetitive  stress
         injury (RSI).  These software  modules can be applied  individually  or
         together in a comprehensive  ergonomic and early  intervention  program
         that seeks to modify a user's  behavior by  monitoring  computer  usage
         patterns over time and warning the user when to break a dangerous trend
         in repetitive  usage of an input  device,  such as a keyboard or mouse.
         The product was developed to train people working on computers, monitor
         computer-use related activities and evaluate a user's risk exposure and
         propensity  towards injury or loss of  effectiveness in connection with
         his/her day-to-day work. Moreover, the package enables a company to not
         only  address  the issue of health  risks  involving  employees  and to
         minimize resulting potential liabilities,  but delivers a powerful tool
         to increase overall productivity.

BACKGROUND

         On June 24, 1997, the Company, Royal Capital, Inc., and Proformix,
         Inc., a Delaware corporation and manufacturer of ergonomic keyboarding
         systems, entered into an Acquisition Agreement. Proformix, Inc. in
         November 1998 changed its name to Magnitude, Inc. and is hereafter
         referred to as Magnitude,  Inc. Pursuant to the June 1997 Acquisition
         Agreement, Magnitude Inc. shareholders were offered 1 share of the
         Company's  common stock for every 3.4676 shares of Magnitude, Inc.
         common  stock,  and 1 share of preferred  stock for every 1 share of
         Magnitude, Inc. preferred stock. At the time of this submission,
         holders of approximately 98% of Magnitude,  Inc.  common stock have
         tendered their shares in exchange for Magnitude Information Systems,
         Inc. common shares.  The  remaining  2%  of Magnitude, Inc.
         stockholders hold a minority interest which is valued at $0. For
         accounting  purposes,  the acquisition has been treated as an
         acquisition of Magnitude Information Systems, Inc. by Magnitude, Inc.
         and a recapitalization of Magnitude,  Inc.. As a result, the Company
         and  Magnitude,  Inc.  remain as two separate  legal entities
         whereby  Magnitude,  Inc.  operates as a subsidiary of Magnitude
         Information Systems, Inc.. The operations of the newly combined entity
         are currently comprised solely of the operations of Magnitude, Inc.

         On February 2, 1998, the Company  entered into an Agreement and Plan of
         Merger with Rolina  Corporation,  a privately held New Jersey  software
         developing  firm,  and on  April  30,  1998,  into  an  Asset  Purchase
         Agreement with Vanity Software  Publishing Co., a Canadian developer of
         specialized  software,  whereby the Company,  in return for payments in
         form of cash and  equity,  acquired  the  rights  to  certain  software
         products and related assets,  with such software products  subsequently
         forming  the basis for the further  development  during the year of the
         Company's  proprietary  "Magnitude EMS" (Ergonomic  Management  System)
         software  product.  The  "Magnitude  EMS" system was  introduced to the
         market  in  November  1998 and has since  been  expanded  and  enhanced
         through newer releases.


<PAGE>



              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999

         On November  18,  1998,  the Company  and its wholly  owned  subsidiary
         Magnitude,  Inc.  entered into an Asset Purchase  Agreement and several
         related  agreements with 1320236 Ontario Inc. ("OS"), a publicly traded
         Canadian  designer,  manufacturer  and distributor of office  furniture
         based  in  Holland  Landing,  Ontario,  Canada,  pursuant  to  which OS
         acquired Magnitude, Inc.'s hardware product line comprised of ergonomic
         keyboard platform  products and accessories,  and all related inventory
         and production  tooling and warehousing  assets,  and all  intellectual
         property  rights   including  the  Proformix   name,   against  a  cash
         consideration  and an ongoing  contingent stream of royalty payments on
         OS' sales of the Proformix  hardware  products.  The Agreement  with OS
         also provided for the  retirement  of the Company's  then existing bank
         debt, out of the proceeds of the transaction. Further details regarding
         this  transaction may be obtained from the Company's  related filing of
         February 9, 1999, on Form 8-K,  incorporated herein by reference.  With
         the sale of the hardware  product line,  the Company's  business is now
         focused exclusively on the further development and marketing of its new
         software  products.  The Company has not yet realized material revenues
         from  licensing  its  software,  and must  currently be  considered  an
         enterprise  in transition  (see Item 2:  "Management's  Discussion  and
         Analysis").

         Magnitude   Inc.'s  wholly  owned   subsidiary,   Corporate   Ergonomic
         Solutions,  Inc.  (Ergonomics)  was  incorporated  in the  State of New
         Jersey during October 1992.  Ergonomics,  which commenced operations in
         September 1997, was formed primarily to market hardware  products.  Its
         operations during 1998 and 1999 have not been significant.


SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Principles of Consolidation
         The consolidated  financial  statements  include the accounts of
         Magnitude  Information  Systems,  Inc. and its  subsidiaries,
         Magnitude,  Inc. and Corporate  Ergonomic  Solutions,  Inc.
         All significant  intercompany  balances and transactions have been
         eliminated.

     Inventories
         Inventory  consists of finished  goods which are stated at the lower of
         cost (determined by the first-in, first out method) or market.

     Depreciation and Amortization
         Property,  plant and  equipment are recorded at cost.  Depreciation  on
         equipment,   furniture  and  fixtures  and  leasehold  improvements  is
         computed on the straight line method over the estimated useful lives of
         such assets between 5-10 years.  Maintenance and repairs are charged to
         operations as incurred. Software assets acquired pursuant to the Rolina
         and Vanity agreements are amortized on the straight line method over 10
         years.

     Securities Issued for Services
         The Company accounts for stock and stock options issued for services by
         reference to the fair market value of the  Company's  stock on the date
         of stock issuance or option grant. Compensation expense is recorded for
         the fair market value of the stock  issued,  or in the case of options,
         for the difference between the stock's fair market value on the date of
         grant and the option  exercise  price.  Effective  January 1, 1996, the
         Company adopted Statement of Financial  Accounting  Standard (SFAS) No.
         123, "Accounting for Stock-based Compensation". The statement generally
         suggests,  but  does not  require,  employee  stock-based  compensation
         transactions   be  accounted  for  based  on  the  fair  value  of  the
         consideration  received  or the fair  value of the  equity  instruments
         issued, whichever is more reliably measurable.


<PAGE>




              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued

     Income Taxes
         The  Company  provides  for income  taxes  based on enacted tax law and
         statutory  tax rates at which items of income and expenses are expected
         to be settled in the  Company's  income tax  return.  Certain  items of
         revenue and expense are  reported  for Federal  income tax  purposes in
         different  periods  than  for  financial  reporting  purposes,  thereby
         resulting in deferred income taxes.  Deferred taxes are also recognized
         for  operating  losses  that are  available  to offset  future  taxable
         income.  Valuation  allowances are established when necessary to reduce
         deferred tax assets to the amount expected to be realized.  The Company
         has  incurred  net  operating   losses  for   financial-reporting   and
         tax-reporting purposes.  Accordingly,  the benefit for income taxes has
         been  offset  entirely  by a  valuation  allowance  against the related
         deferred  tax  asset  for  the  periods   ended   September  30,  1999.
         Notwithstanding  the above,  the Company has filed an application  with
         the New Jersey  Economic  Development  Authority  who  administers  the
         current New Jersey Tax Certification program pursuant to the New Jersey
         Emerging  Technology  and  Biotechnology  Financial  Assistance  Act to
         qualify for and be the  beneficiary of this program which will permit a
         participant  to  liquidate  its State  NOL tax  benefits  against  cash
         considerations.

     Net Loss Per Share
         Net loss per share,  in  accordance  with the  provisions  of Financial
         Accounting Standards Board No. 128, "Earnings Per Share" is computed by
         dividing  net loss by the weighted  average  number of shares of Common
         Stock outstanding during the period.  Common Stock equivalents have not
         been   included  in  this   computation   since  the  effect  would  be
         anti-dilutive.

     Revenue Recognition
         Revenue  from  hardware  product  sales  is  recognized  at the time of
         shipment  provided that the resulting  receivable is deemed probable of
         collection. Revenue from the licensing of proprietary software products
         is  recognized  at the time of licensing  provided  that the  resulting
         receivable is deemed probable of collection.

     Use of Estimates
         The  preparation of financial  statements in conformity  with generally
         accepted   principles   requires   management  to  make  estimates  and
         assumptions  that affect the reported amounts of assets and liabilities
         and disclosure of contingent  assets and liabilities at the date of the
         financial  statements and the reported amounts of revenues and expenses
         during the  reporting  period.  Actual  results could differ from those
         estimates.

PREPAID EXPENSES

         Prepaid  expenses  include a position  of  $375,000  resulting  from an
         agreement  in February  1998 with BNN  Business  News  Network  Inc., a
         nationwide  media  advertising and radio network  company,  whereby the
         Company   purchased   advertising  time  to  be  utilized  on  stations
         associated  with Business  News Network  Inc.,  usable over a period of
         three years and aggregating  $900,000 in retail value, against issuance
         of 150,000 new and  restricted  common shares.  The services  purchased
         were capitalized at the then fair market value of the stock issued, for
         a total of $375,000. The resulting asset will be amortized as utilized,
         over the time  frame of the next  eighteen  months.  As per the date of
         this  report,  no portion of this asset has been  utilized.  Management
         believes that the Company will derive  economic  benefits  commensurate
         with the value of this  asset.  If  management  determines  that  these
         assumptions  are  incorrect or that it may not be able to  economically
         utilize the entire amount during the time  allotted,  it will effect an
         accelerated amortization or write-down of this asset position.


<PAGE>



              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999

OTHER ASSETS

     During a meeting of the Board of Directors  on  September  7, 1999,  it was
     determined  that the Company  accept an offer from a third party to acquire
     its equity  investment in Input  Technologies  Inc. for a consideration  of
     approximately  $20,000. This investment was carried on the books at $60,000
     , however, in management's  opinion the change in the Company's business in
     connection with the November 1998 sale of its former hardware product line,
     and the current financial condition of Input Technologies Inc.
     warrant the divestiture.

PROPERTY, PLANT AND EQUIPMENT

     Property,  plant and  equipment  consist of the  following at September 30,
1999:

              Equipment                                     $       157,520
              Furniture and fixtures                                 64,184
              Leasehold improvements                                 45,770
                                                              --------------

                                                                    267,474

              Less accumulated depreciation                         156,119
                                                              --------------

                                        Total               $       111,355
                                                              ==============

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts  payable and accrued  expenses  consisted of the following at September
30, 1999:

              Accounts payable                            $       329,657

              Accrued interest                                    325,158

              Accrued commissions                                  47,474

              Accrued salaries and professional fees              131,299

              Miscellaneous accruals                               70,193
                                                                =============

                                    Total                  $      903,781
                                                                =============

LOANS AND NOTES PAYABLE

     At September 30, 1999,  Magnitude,  Inc. and the Company had borrowings
     under short term loan agreements with the following terms and conditions:


         Pursuant to three  promissory  notes signed throughout
         1995 and 1996, an investor                         $     119,735
         advanced Magnitude,  Inc. a total of $90,000
         payable  upon  demand with  interest at 12% per
         annum.  In July 1999,  these  obligations  and
         accrued  interest were converted into a new
         promissory note maturing February 2000.

<PAGE>

         On December 4, 1996,  Magnitude,  Inc. repurchased the
         equivalent  of 144,192 shares                              75,000
         of itscommon stock and retired same against  issuance of
         a promissory note  maturing  twelve  months thereafter
         accruing  interest at 5% per annum and due
         December 4, 1998.  This note is overdue at
         September 30, 1999 and no demand for payment has been
         made through today's date.


        MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999


     LOANS AND NOTES PAYABLE  continued
         Pursuant  to the Rolina  Corporation  Agreement  &
         Plan of Merger dated  February  2, 1998                     100,000
         the Company  was to  deliver  to  Steven  D.  Rudnik,
         current  President  and CEO of the  Company, $100,000
         eight  months  from  the  closing  date.  This
         indebtedness  has  been  recast  as a promissory note
         maturing  10/1/99 and accruing  interest at 10% p.a..
         In  consideration  of the indebtedness, Mr. Rudnik has
         a lien on certain software products owned by the Company.

         Note to the board chairman,  principal due May 31, 2000,
         accruing interest at a rate of                              351,060
         10% per annum.  This note is secured by all of Magnitude
         Inc.'s  assets and property and is guaranteed by the
         Company.

         Private  Placement  Offering:  During  February
         through June 1995, an underwriter acting as               1,475,000
         placement agent, on behalf of Magnitude, Inc., in
         a private  placement  offering,  placed  an
         aggregate  16 units,  each consisting  of a $100,000,
         12%  promissory  note and 10,000  shares of Magnitude,
         Inc.'s common stock.  The promissory  notes were
         originally due on the earlier of 12 months from their
         issuance or the  completion of a public or private
         financing of either debt or equity securities of
         Magnitude,  Inc.,  and were  subsequently  extended
         for an additional 6 months,  and  further  by  an
         additional  9  months.  In  May  1997  a restructuring
         agreement caused $1,075,000 of these notes to be
         extended and modified to, among other, mature by
         April 30, 2000. Two such notes, however, totaling
         $200,000 were extended and modified to, among other,
         mature on dates  ranging from  October 1, 1998
         through  April 30, 2000. The  total  amount  of notes
         outstanding  at  September  30,  1999 was
         $1.475,000.

         Convertible   promissory  notes  issued  to  seven          850,000
         individual  private accredited  investors  accruing
         interest at 7% p.a. and maturing during  the third
         quarter  2000.  The notes provide the holders with
         the option to convert part or all of the outstanding
         principal amounts into shares of the common stock
         of the Company at the rate of $0.50 per share.

         Promissory note issued to a member of the board             190,227
         of directors of the Company,  carrying interest
         at 12% p.a.  and maturing  July 2000,  convertible
         at the  holders'  option into shares of the common
         stock of the Company at the rate of $0.50 per share.
         The note as originally issued for $200,000 with
         $9,773 since repaid.
                                                               --------------
                  Total                                      $     3,161,022
                                                               ==============
<PAGE>
              MAGNITUDE INFORMATION SYSTEMS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999


ACCRUED CONTINGENT LIABILITY

        Pursuant to the  February 2, 1998,  Agreement  and    $      374,890
        Plan of Merger with Rolina  Corporation  (see
        "Background")  the Company had issued  155,556  shares
        (the "Shares") of its common stock to the principal of
        Rolina  Corporation  who  currently  serves as the
        Company's  President  and Chief Executive Officer, and
        had issued a Put Option for such Shares at a price of
        $2.41 per share in accordance with the provisions
        contained therein,  with notice for exercise eligible
        to be given at any time after February 1, 2000,
        and before 5:00 p.m. on the 90th day thereafter.
        In view of the relative  proximity of the exercise
        period of the option and the fact that the market price
        for the Company's shares currently is significantly
        lower than the option put price, the entire amount has
        been recognized as an accrued contingent liability.


LONG-TERM DEBT

     Long-term debt as of September 30, 1999 is comprised of the following:

        Convertible  promissory note issued to a private       $     175,000
        accredited  investor  accruing  interest at 7%
        p.a.  and  maturing during the fourth  quarter
        2000.  The note  provides the holder with the
        option to convert  part or all of the  outstanding
        principal  amounts into shares of the common
        stock of the Company at the rate of $0.50 per share.

        Discounted  present value of a non-interest  bearing
        $70,000  settlement with a former investor              $     33,529
        of  Magnitude,  Inc.  to be paid in  monthly
        payments  commencing  July 1,  1997.  The  imputed
        interest rate used to discount the note is 8% per annum.

  INCOME TAXES

       At December 31, 1998,  the Company had net operating
       loss carry forwards approximating                        $  8,900,000
       which expire between the years 2008 and 2013 and
       are subject to certain annual limitations.

  The Company's total deferred tax asset and valuation allowance
       at December 31, 1998 are as follows:
            Total deferred tax asset                            $  3,560,000
            Less valuation allowance                               3,560,000
            Net deferred tax asset                              $          -
                                                             ================

COMMITMENTS AND CONTINGENCIES

   Lease Agreement
     Magnitude,  Inc.  leases its  administrative  offices  pursuant  to a lease
     agreement dated December 9, 1998.  Such lease  commenced  December 16, 1998
     and expires on December  31, 2001 and requires  monthly  payments of $3,700
     from December 16, 1998 to October 31, 1999 and $3,250 from November 1, 1999
     to December 31, 2001.

   Licensing Agreement
     Pursuant to an August 29,  1997  letter of intent,  the Company may acquire
     Cornell Ergonomics ("Cornell"),  a software developer of a unique ergonomic
     assessment  tool.  This agreement was  subsequently  revised on December 1,
     1997  through a Software  Distribution  and Option  Agreement  whereby  the
     Company obtained a two-year exclusive license to distribute and sub-license
     a certain software product and obtained the exclusive right,  under certain
     circumstances,  to  purchase  either  the  assets of  Cornell or all of the
     issued and outstanding capital stock of Cornell.

<PAGE>

RELATED PARTY TRANSACTIONS

     -- None .

CHANGES IN KEY PERSONNEL

    In July 1999, J. Swon and B. Deichl  resigned  from the  Company's  Board of
Directors.



<PAGE>



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

New Software Business and Results of Operations:

Effective  with the sale of the  hardware  business in  November  1998 to Office
Specialty  (see  "Background"  in  Notes to  Financial  Statements)  no  further
revenues were being  generated  from this product line,  aside from royalties on
third party revenues from the sales of such hardware  products which amounted to
$10,469 for the quarter and which are included in non-operating  income.  In the
aftermath of the Office  Specialty  transaction,  the Company's  revenue base is
being supplied  solely by the licensing of the Company's  proprietary  software.
The Company has not yet realized  material revenues from licensing its software,
and must  currently be  considered an  enterprise  in  transition.  The software
business  accounted for less than 3% of total revenues during 1998 or $72,486. A
comparison  of  revenues  to  last  year's  fiscal  quarters  therefore  is  not
meaningful.   Comparisons  of  operating   expenses   likewise  are  of  limited
usefulness, and will therefore only be made where appropriate.

The Company is currently  introducing  to the market its new  Magnitude  EMS(TM)
("Ergonomic Management System") suite of software products.  This unique product
is the first  integrated suite of software tools that provides a complete system
for  evaluation  and  management  of  ergonomic  risk  factors for the  computer
workplace.  The software also provides an effective  productivity measuring tool
that  can  make a  verifiable  difference  in any  company's  bottom  line.  The
Company's  proprietary  software  products are designed to help  businesses deal
with potentially preventable repetitive stress injuries, by real-time monitoring
of  keyboarding  activities,  pro-active  dialog  with  at-risk  employees,  and
strategic profiling and management of computer use throughout an organization. A
significant  step  towards  introducing  EMS to the a large  number of potential
corporate users was a 1998 joint venture agreement with AON Ergonomic  Services,
a division of AON Worldwide Resources, to market and sell this product. During
the quarter, this agreement has been renewed and expanded.

The sales  cycle for larger  projects  involving  software  related  products is
relatively  long, and while the Company is  investigating  strategies to shorten
it, the new products are not expected to yield  significant  new revenues before
the end of this  fiscal  year and the  first  two  quarters  of the  next  year.
Revenues during the quarter ended  September 30, 1999,  totaled $52,250 and were
supplied  primarily  from  what the  Company  classifies  as  "pilot  projects".
Typically,  in view of the  new-ness of product and market,  a client  initially
purchases a license for a "pilot version" of the software, functionally complete
but  limited  to a smaller  number  of  users.  After  undergoing  a process  of
familiarization and evaluation the client is expected to upgrade to the intended
ultimate  number of users which, by definition,  should  encompass all personnel
exposed to the above described  risks.  Currently,  more than 100 companies in a
broad cross  selection of industries,  among them  Insurance,  Risk  Management,
Financial Institutions,  Oil & Energy, Technology, and Transportation as well as
several State and Federal  agencies and several  companies in the UK and Brazil,
are at various stages of evaluating the Magnitude EMS software.  Many such tests
and  evaluations by third parties have  confirmed to the Company's  satisfaction
that its product is mature,  stable, and effective.  It is with a high degree of
confidence,  therefore,  that the  Company  expects  many of the  ongoing  trial
installations to lead to larger enterprise orders during the periods to come and
thereby  to the  targeted  revenue  stream,  despite  some  delays  that must be
anticipated as a consequence of potential clients postponing decisions involving
software  acquisitions,  due to the  "Year-2000"  phenomenon.  Even though,  the
Company in October 1999 posted its best month ever, with $61, 000 in revenues,
as a result of the conversion of a pilot program by a client, in this case
one of the world's largest drug development services companies.

Software  assets  underlying  the  Company's  products are being  amortized on a
straight  line  over 10 years,  resulting  in a level  charge  of  approximately
$12,000 per month to  cost-of-goods-sold. Selling expenses amo unted to $210,383
and  general and  administrative  expenses  totaled  $499,253  for the  quarter,
roughly equal to the preceding  3-months period.  The relatively large amount of
G&A expenses is  attributable  to the fact that most of the Company's  operating
expenses  currently  have fixed or  quasi-fixed  character  covering the cost of
maintaining  an  operational  infrastructure  required  for  the  business.  The
operating  results for the  quarter  ended  September  30,  1999,  was a loss of
$698,643. The net loss for the quarter was $814,976 or $0.09 per share.


<PAGE>




Liquidity and Capital Resources

As a  consequence  of the  operating  losses  the  Company's  liquidity  remains
strained.  The increase by  approximately  $1.5  million in the working  capital
deficit during the quarter was primarily a consequence of a reclassification  of
long-term liabilities to current status because of approaching  maturities,  and
the placement of convertible promissory notes with private investors for purpose
of raising  working  capital.  Even though  management is confident  that - as a
consequence  of  anticipated  first larger orders - the  situation  will improve
considerably  during the next few quarters such  development will be gradual and
its impact may be  incremental.  Thus, the need for  additional  cash to augment
working capital from outside sources to finance  operations  during the upcoming
quarters will persist.

During the quarter ended June 30, 1999, the Company completed the placement
of an aggregate  $275,000 in convertible debt with accredited  private investors
which,  at  the  time  of  this  submission  has  resulted  in  the  receipt  of
approximately  the same amount in cash.  This debt unless  converted will mature
during the third and fourth  quarter  2000.  Anticipated  future  cash needs are
planned  to be met  from a  variety  of  sources  including  relatively  smaller
additional debt placements and a liquidation of unused NOL tax benefits pursuant
to the New Jersey Emerging Technology and Biotechnology Financial Assistance Act
which are expected to generate  approximately $500,000 during the fourth quarter
1999 and the first  quarter in 2000.  In  addition,  the  Company  is  currently
conducting exploratory discussions with several potential private investors with
respect to a larger  financing  transaction  expected to be consumed  during the
first quarter in 2000.  While there can be no assurance  that these efforts will
result in securing  such funds on terms  acceptable  to the Company,  management
expects  to be able to meet  cash  needs  throughout  the  rest of the  year and
beyond,  and to secure the financing  necessary to support the expected vigorous
growth during the upcoming year.



<PAGE>




PART  II  -  OTHER INFORMATION

Item 1   LEGAL PROCEEDINGS

In response to this item,  reference  is made to the  Company's  reports on Form
10-KSB  for the year  ended  December  31,  1998,  and on Forms  10-QSB  for the
quarters ended March 31, 1999 and June 30, 1999 as previously submitted.


Item 2   ISSUANCE OF UNREGISTERED SECURITIES

On September 1, 1999,  the Company  issued 7,210 shares of its common stock to a
shareholder of Magnitude, Inc., f/k/a Proformix, Inc. in exchange for his 25,000
shares in Proformix, Inc., pursuant to the terms of the Company's stock exchange
offer of July 2, 1997.

During the second and third  quarters of 1999 the Company  received an aggregate
$1,225,000 in cash against issuance of convertible  promissory notes in the same
aggregate amount, to eight individual  accredited  private investors pursuant to
transactions  under Section 4 (2) of the Securities Act, all of them maturing at
14 months from date of issuance,  convertible at the holders' option into shares
of the common  stock of the Company at the rate of $0.50  /share,  and  carrying
interest  at rates  between  7% and 12%  p.a.  . A  portion  of such  notes  was
accompanied  by  stock  purchase  warrants  for  the  purchase  of an  aggregate
1,450,000  shares at $1 per share,  with such  warrants  being  callable  by the
Company under certain circumstances, if and when the market price reaches $2 per
share.

Item 3   DEFAULTS ON SENIOR SECURITIES    -  None
         -----------------------------


Item 4   SUBMISSION OF MATTERS TO A VOTE OF
         SECURITIES' HOLDERS   -  None


Item 5   OTHER INFORMATION     -  None


Item 6   EXHIBITS AND REPORTS ON FORM 8-K

         (a)   Exhibit 27 - Financial Data Schedule - is attached hereto.

         (b) Reports on Form 8-K: - On July 19, 1991, the Company filed a report
         on Form 8-K,  informing  about the results of a research test conducted
         in  collaboration  with Cornell  University.  The project  involved the
         utilization  of the  Company's  primary  product,  the  "EMS  Ergonomic
         Management System" software product, in a typical office environment .



<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.



                                    MAGNITUDE INFORMATION SYSTEMS, INC.




Date:   November 11, 1999           By: _____/s/  Steven D. Rudnik___________
                                         ---------------------
                                          Steven D. Rudnik
                                          President and Chief Executive Officer





<PAGE>