FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


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


For the quarter ended:                      December 31, 1999

Commission file number:                     33-18050

                             Stone Media Corporation
                  ---------------------------------------------
             (exact name of registrant as specified in its charter)

       Colorado                                                 87-0447213
------------------------                                      ------------
(State of Incorporation)                                      (IRS ID No.)


                      806 S. St. Paul, Dallas, Texas              75201
             ----------------------------------------------     --------
                 (Address of principal executive offices)      (Zip code)

Registrant's telephone number, including area code: 214-742-1167

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 Act of 1934 during the past
12 months and (2) has been subject to such filing  requirements  for the past 90
days.

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

Shares of common stock outstanding at December 31, 1999:

                                   23,533,096


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                                TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION                                       Page Number


         Item  1.       Financial Statements                                 3-6

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


PART II - OTHER INFORMATION                                                    8










                                       2


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<TABLE>

<CAPTION>


                             Stone Media Corporation
                          Consolidated Balanace Sheets

                       December 31, 1999 and June 30, 1999


                                     ASSETS

                                                                December 31, 1999       June 30, 1999
<S>                                                                       <C>              <C>

CURRENT ASSETS:
Cash                                                                           0                    0
Total current assets                                                           0                    0

OTHER ASSETS:
Restricted common stock                                                    8,000                8,000
Total other assets                                                         8,000                8,000
TOTAL ASSETS                                                              $8,000               $8,000


                           LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES:
Current liabilities:
Accounts payable                                                      $1,050,253           $1,050,253
Accrued expenses                                                         288,150              285,800
Total current liabilities                                              1,338,403            1,336,053

TOTAL LIABILITIES                                                     $1,338,403           $1,336,053

STOCKHOLDER'S EQUITY
Preferred stock, $1.00 par                                                     0                    0
Common stock, no par value
  authorized 50,000,000
  and outstanding 22,268,250                                               23533                23533
Additional paid in capital                                               5239977              5239977
Retained earnings                                                       -6593913             -6591563
TOTAL STOCKHOLDER'S EQUITY                                              -1330403             -1328053
TOTAL LIABILITIES
        STOCKHOLDER'S EQUITY                                                8000                 8000

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                                       3

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<TABLE>

<CAPTION>


                             Stone Media Corporation
                  Consolidated Statement of Revenue and Expense

                 Three Months Ended September 30, 1999 and 1998

                                                                     Three months            Three months
                                                                  September 30, 1999      September 30, 1998
<S>                                                                            <C>                     <C>

Revenues:
Sales                                                                              0                       0
Cost of sales                                                                      0                       0
Gross profit                                                                       0                       0

Expenses:
General and administrative                                                       150                     150
Total expenses                                                                   150                     150

Operating income (loss)                                                         -150                    -150

Other income (expense):
Interest expense                                                               30568                   30568
Total other income (expense)                                                   -2200                   -2200

Net income before provision for federal income taxes                           -2350                   -2350

Provision for federal income taxes                                                 0                       0

Net income                                                                     -2350                   -2350

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                                       4

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<TABLE>

<CAPTION>


                             Stone Media Corporation
                 Consolidated Statement of Stockholders' Equity

                   Twelve Months Ended June 30, 1999 and 1998
                    and Three Months Ended September 30, 1999

                                     Common Stock            Common Stock
                                        Shares                  Amount            Paid in Capital               Total
<S>                                      <C>                    <C>                    <C>                    <C>

Balance,
        June 30, 1997                    23533096               23533                  5239977                -6573563

Net Loss                                                                                                       24168

Balance
        June 30, 1998                    23533096               23533                  5239977                -6582163

Net Loss                                                                                                       23368

Balance
        June 30, 1999                    23533096               23533                  5239977                -6591563

Net Loss - three
    months September 30                                                                                        30418

Balance
        June 30, 1999                    23533096               23533                  5239977                -6593913


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                                       5

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<TABLE>

<CAPTION>



                             Stone Media Corporation
                      Consolidated Statement of Cash Flows

          Three Months Ended September 30, 1999 and September 30, 1998

                                                                   Three months            Three months
                                                                September 30, 1999      September 30, 1998
<S>                                                                          <C>                     <C>

Cash flows provided by operating activities:
    Net income                                                               -2350                   -2350
    Non-cash charges included in income
        Depreciation and amortization                                            0                       0
    Changes in working capital, not including cash:
        Accrued expenses                                                      2350                    2350
    Net cash provided by operating activities                                    0                       0

Cash flows used by investing activities:                                         0                       0

Cash flows provided by financing activities:                                     0                       0

Increase in cash                                                                 0                       0


Cash, beginning of period                                                        0                       0

Cash, end of period                                                              0                       0


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                                       6

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


Results of Operations
---------------------

The Company has had no operations  for the quarter  ended  December 31, 1999 and
similarly, no operations for the same period last year. The Company is trying to
attract  capital in order to pursue its plan to develop and distribute real time
interactive  communications and multimedia technologies across networks.  Today,
Registrant is  experiencing a financial  crisis from which there is no guarantee
of recapitalizing or once again becoming a going concern.

There have been no economic events or changes that have affected the Registrant,
for better or worse,  to attract  capital  and there are no  economic  trends or
uncertainties that the Registrant expects will have a material impact on whether
it can attract capital in the future.

Liquidity
---------

The  Registrant  has  little  liquid  assets.  The  Registrant  has very  little
liquidity and any  significant  liquidity the Registrant will be able to attract
will be from the sale of stock in the  company,  either for cash or  issuance of
stock for purchase of a business.

The Registrant has minimal expenses and no commitments.

Capital Resources
-----------------

The Registrant has no capital resources and if it can generate capital,  it will
be from the  sale of stock in the  company  for cash or  issuance  of stock  for
purchase of a business.

There were no stock offerings during the quarter and none are currently planned.

There were no plans or  requirements  for  purchase of capital  items during the
quarter.  The Registrant does not foresee any material  capital  purchase in the
coming twelve months.









                                       7

<PAGE>



PART II.     OTHER INFORMATION


Item  1.     Legal Proceedings.

         Registrant   and/or  its   subsidiary  are  parties  to  several  legal
proceedings  involving  alleged  past due  payables.  At this time,  the amounts
claimed in the lawsuits known to the Company are between  $100,000 and $150,000.
The Company also has a judgement against it in the amount of

Item  2.     Changes in Securities.

                  None.

Item  3.     Defaults Upon Senior Securities.

                  None.

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

                  None.

Item  5.     Other Information.

                  None.












                                       8

<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.

                                                     Stone Media Corporation
                                                     -----------------------
                                                      (Registrant)


                                                     BY:  /S/ Elbert G. Tindell
                                                          ---------------------
                                                    Its:  President and CEO

DATE:   April 20, 2000
        Dallas, Texas
















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