FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

(Mark One)

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

For the quarterly period ended     June 30, 2000

OR

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

For the transition period from   ________________   to   _______________
Commission file number     2-74785-B

      Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  _______    No    X  

      The total number of issued and outstanding shares of the registrant's common stock, par value $0.01, as of September 26, 2000 was 6,206,897.

Item1. Financial Statements

NEXT GENERATION MEDIA CORPORATION
CONSOLIDATED BALANCE SHEETS

ASSETS

NEXT GENERATION MEDIA CORPORATION
CONSOLIDATED BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS' DEFICIT

NEXT GENERATION MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF OPERATION

NEXT GENERATION MEDIA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

1.         General

The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The interim condensed consolidated financial statements include the consolidated accounts of Next Generation Media Corporation and its majority owned subsidiaries (collectively, the Company). In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented have been made. The preparation of the financial statements includes estimates that are used when accounting for revenues, allowance for uncollectible receivables, telecommunications expense, depreciation and amortization and certain accruals. Actual results could differ from those estimates. The results of operations for the six months ended June 30, 2000, are not necessarily indicative of the results to be expected for the full year. Some information and footnote disclosures normally included in financial statements or notes thereto prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to SEC rules and regulations. The Company believes, however, that its disclosures are adequate to make the information presented not misleading. You should read these interim condensed consolidated financial statements in conjunction with the consolidated financial statements and notes thereto included in the Company's 1999 Annual Report on Form 10-KSB40.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

1.         General (continued)

Intangibles. The Company has recorded goodwill based on the difference between the cost and the fair value of certain purchased assets and it is being amortized on a straight-line basis over the estimated period of benefit, which ranges from five (5) to ten (10) years. The Company periodically evaluates the goodwill for possible impairment. The analysis consists of a comparison of future projected cash flows to the carrying value of the goodwill. Any excess goodwill would be written off due to impairment. In addition, the Company has a covenant not to complete which is being amortized over five (5) years.

	Impairment of Long-Lived Assets. The Company reviews the carrying values of its long-lived assets for possible impairment on a periodic basis and whenever events or changes in circumstances indicate that the carrying amount of the assets should be addressed. The Company believes that no permanent impairment in the carrying value of long-lived assets exist at June 30, 2000.

Revenue Recognition. The Company recognizes revenue from the design production and printing of coupons upon delivery. Revenue from initial franchise fees are recognized when substantially all services or conditions relating to the sale have been substantially performed. Franchise support and other fees are recognized when billed to the franchisee. Amounts billed or collected in advance of final delivery or shipment are reported as deferred revenue. Revenue from newspaper advertising is recognized upon publication.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

1.         General (continued)

	Comprehensive Income. The Company has adopted Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income. Comprehensive income as defined includes all changes to equity except that resulting from investments by owners and distributions to owners. The company has no item of comprehensive income to report.

Earnings Per Share. The Company calculates its earnings per share pursuant to Statement of Financial Accounting Standards No. 128, Earnings Per Share (ASFAS No. 128"). Under SFAS No. 128, basic earnings per share is computed by dividing reported earnings available to common stockholders by weighted average shares outstanding. Diluted earnings per share reflects the potential dilution assuming the issuance of common shares for all potential dilutive common shares outstanding during the period. The Company had 1,225,167 options and outstanding at June 30, 2000 to purchase common stock.

As of June 30, 2000, the Company had several financial instruments or obligations that could create future dilution to the Company's common shareholders and are not currently classified as outstanding common shares of the Company. The following table details such instruments and obligations and the common stock comparative for each. The common stock number is based on specific conversion or issuance assumptions pursuant to the corresponding terms of each individual instrument or obligation.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

2.         General (continued)

Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with generally accepted accounting 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.

	Risks and Uncertainties. The Company operates in environments where intense competition exists from other companies. This competition, along with increases in the price of paper and printing costs, can impact the Company's pricing and profitability.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

3.         General (continued)

New Accounting Pronouncements. In June, 1998, the Financial Accounting Standards Board issued SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. The new standard requires that all companies record derivatives on the balance sheet as assets or liabilities, measured at fair value. Gains or losses resulting from changes in the values of those derivatives would be accounted for depending on the use of the derivative and whether it qualifies for hedge accounting. Management is currently assessing the impact of SFAS No. 133 on the consolidated financial statements of the Company. The Company will adopt this accounting standard, as amended, on January 1, 2001, as required.

In December, 1999, the Securities and Exchange Commission (ASEC@) issued Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements (ASAB 101"), which provides guidance related to revenue recognition based on interpretations and practices followed by the SEC. SAB 101 is effective in the quarter ended December 31, 2000, and requires companies to report any changes in revenue recognition as a cumulative effect of a change in accounting principle at the time of implementation in accordance with Accounting Principles Board Opinion No. 20, Accounting Changes. The Company is currently assessing the impact of SAB 101 on its financial position and results of operations.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

4.         General (continued)

	Reclassifications. Certain prior year amounts have been reclassified to conform to the current year presentation.

5.         Purchase of United Marketing Solutions, Inc.

On April 1, 1999, the Company acquired all of the outstanding common stock of United for cash of $336,665 and assumption of debt. In addition, the Company accounted for certain debt forgiveness to UNICO, the former parent of United, as additional consideration and, accordingly, such amounts increased the goodwill related to the acquisition by $1,295,204. United is engaged in the cooperative direct mail marketing business. The acquisition was accounted for as a purchase. Net assets were recorded at fair value and the Company recorded goodwill of $912,259 related to the acquisition. The financial statements include the operations of United subsequent to the acquisition date.

3.         Investment in UNICO

	In May, 1998, the Company purchased 359,931 shares of common stock (approximately a six percent (6%) ownership interest) of UNICO, Inc., an unrelated third party. The Company accounted for this investment using the cost method in accordance with generally accepted accounting principles. In April, 1999, this investment was sold in conjunction with the acquisition of United (Note 2).

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

4.         Sale of Independent News, Inc.

	On June 30, 2000, the Company sold its entire interest in Independent News, Inc. (INI) in exchange for a promissory note, assumption of indebtedness and cancellation of remaining outstanding Series B Preferred Stock for a total sales price of $1,057,00.

5.         Redeemable Preferred Stock Series A

On May 7, 1998, the Company executed an agreement with the holders of certain subordinated debentures of UNICO, Inc. to purchase these debentures, with an outstanding balance of $1,034,000, in exchange for Callable Cumulative Convertible Preferred Stock, (the Series A Preferred Stock), par value $0.01. The Series A Preferred Stock is callable at the option of the holder five (5) years from the date of issuance at $6.00 per share. The fair market value of the preferred stock was determined to be $2.75 per share based on an independent appraisal. Accordingly, the Company recorded the Series A Preferred Stock at $687,500.

	The Company will record a deemed dividend to increase the carrying value of the preferred stock to the redemption value of $1,500,000 over the period from the date of issuance to the redemption period from the date of issuance to the redemption due.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

5.         Redeemable Preferred Stock Series A (continued)

	The shares have a conversion price which is the lesser of $4.50 and 110% of the price of the common stock in a public or private offering. The shares have a $5.00 per share preference on liquidation or dissolution of the Company.

	The Series A Preferred Stock pays a dividend of $0.30 per share per annum for the first six (6) months and $0.50 per annum thereafter and are not payable until eighteen (18) months following the date of issue. Accrued dividends amounted to $198,459 and $73,459 at December 31, 1999 and 1998.

Each one and one-half (1-1/2) shares of the Company's Series A Preferred Stock was accompanied by one stock purchase warrant (subject to adjustment) which entitles the holder to purchase one (1) share of the Company's common stock for $0.16, valid for five (5) years from May 7, 1998. Based on private sales of common stock to unrelated investors, the fair market value of each warrant was determined to be $2.00. Accordingly, the Company recorded additional paid in capital related to these warrants of $306,667.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

5.         Redeemable Preferred Stock Series A (continued)

Effective May 8, 1998, the Company canceled UNICO's obligation to the Company arising from its assumption of UNICO's subordinated debt. The assumption of UNICO's subordinated debt was required to complete the acquisition of United (Note 2). Therefore, the total of cash paid and the value assigned to the preferred stock and warrants of $1,094,167 had been recorded as a deferred acquisition cost at December 31, 1998 and was included in the cost of the acquisition in 1999 (see Note 2).

	On May 1, 2000, all but 2,635 shares of the Series A Preferred Stock were converted to 661,404 shares of common stock.

6.         Redeemable Preferred Stock Series B

In May, 1998, the Company issued 70,000 shares of Redeemable Cumulative Convertible Preferred Stock, (the Series B Preferred Stock) par value $0.01 with a redemption price of $5.00 per share. The original agreement was amended and restated in December, 1998. Under the restated agreement, the holder can redeem the Series B Preferred Stock, after May 4, 1999. The Company also issued 250,000 warrants for the purchase of one (1) share of common stock at an exercise price of $0.16 per warrant, valid for five (5) years from May, 1998. Gross proceeds from the original issuance, net of expenses, were $339,955. In conjunction with amending the original agreement, the Company sold 1,800,000 shares of common stock

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

6.         Redeemable Preferred Stock Series B (continued)

	of UNICO, Inc. to the preferred stockholder for one dollar ($1.00). The fair market value at the date of the transaction of these shares was determined to be $170,000. This amount has been recorded as an additional reduction of the Series B Preferred Stock. Thus, adjusted net proceeds are $169,955.

	Based on private sales of common stock to unrelated investors at $2.00, the fair market value of the warrants was determined to be in excess of the net proceeds and, therefore, the entire net proceeds have been allocated to the warrants.

	The Company will record a deemed dividend to increase the carrying value of the preferred stock to the redemption value of $350,000 over the period from the date of issuance to the redemption date.

	The Series B Preferred Stock has a conversion price which is the lesser of $4.50 and 110% of the price of the common stock in a public or private offering. The shares have a $5.00 per share preference on liquidation or dissolution of the Company.

	The Series B Preferred Stock pays a dividend of $0.50 per annum which is only payable upon redemption of the Series B Preferred Stock.

	During the six months ended June 30, 2000, all outstanding shares of Series B Preferred Stock were canceled as part of the consideration received in the sale of INI.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

7.         Common Stock

	On June 13, 2000, the Company issued 31,169 shares of common stock valued at $77,923 in full payment of a related party note payable.

On May 1, 2000, certain shareholders of the Company entered into a stock purchase agreement whereby they exchanged common and preferred stock and options to purchase common stock representing approximately fifty two percent (52%) of the Company's fully diluted common shares for common shares and, in certain instances, options to purchase common shares of The BigHub.com, Inc. As part of this transaction, the Company obtained a loan from The BigHub.com, Inc. in the amount of $500,000 which was used in part to liquidate certain trade payables and accrued liabilities.

	Also, on May 1, 2000, the Company issued 756,992 to redeem all outstanding Series A Preferred Stock plus all accrued and unpaid dividends.

	From March to May, 1999, the Company issued 331,500 shares of common stock through a private placement to various individual invests at $2.00 per share. Net proceeds from the private placement after deductions for both cash and non-cash issuance expenses, amounted to $385,943.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

8.         Common Stock (continued)

	In April, 1999, the Company issued 200,000 shares of common stock in exchange for consulting services to be rendered over a one (1) year period. The common stock was valued at $2.00 based on private sales to unrelated investors.

	During April, 1999, a majority shareholder contributed $100,000 to additional paid in capital in exchange for 1,000 shares of stock or $1.00 per share. The market value was determined to be $2.00 based on private sales to unrelated investors. The Company recorded compensation expense of $100,000.

During June, 1999, the Company issued 122,500 options to employees and directors to purchase common stock at a price of $0.50 per share. These options vested immediately. In addition, 92,500 options were issued to purchase common stock at a price of $0.50 per share which vest over a two (2) year period. The market value of the stock was determined to be $2.00 based on private sales to unrelated investors. The Company recorded compensation expense of $183,750 in relation to the vested options and deferred the remaining $138,750 for unvested options, which will be recorded as compensation expense over the vesting period.

NEXT GENERATION MEDIA CORPORATION
NOTES TO FINANCIAL STATEMENTS

8.         Segment Information

The Company has two reportable segments for the six months ended June 30, 2000: United and INI. United was acquired on April 1, 1999. Each entity is a wholly-owned subsidiary, with different management teams and different products and services. INI operates a newspaper publishing business and United operates a direct mail marketing business. The accounting policies of the reportable segments are the same as those set forth in the Summary of Accounting Policies. Summarized financial information concerning the Company's reporting segments for the six months ended June 30, 1999 and 2000 is presented below.