                   U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
SEPTEMBER 30, 2004

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: 000-28083

                       NEXT GENERATION MEDIA CORP.
        (Exact name of Company as specified in its charter)

           Nevada                                88-0169543
(State or jurisdiction of incorporation         (I.R.S. Employer
          or organization)                     Identification No.)

         7644 Dynatech Court, Springfield, Virginia      22153
           (Address of principal executive offices)    (Zip Code)

                Company's telephone number: (703) 644-0200

     Indicate by check mark whether the Company (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 Company was required to file such reports),
and (2) been subject to such filing requirements for the past 90
days. Yes X  No___

     As of September 30, 2004, the Company had 10,523,397 shares of common
stock issued and outstanding.

                               TABLE OF CONTENTS

Part I - Financial Information                                           Page

Item 1

Review Report of Independent Certified Public Accountants

Condensed Consolidated Interim Financial Statements

Consolidated Balance Sheet

Consolidated Statement of Income

Consolidated Statement of Stockholders' Equity

Consolidated Statement of Cash Flows

Notes to Financial Statements

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

Part Ii - Other Information

Item 1.  Legal Proceedings

Item 2.  Changes In Securities And Use Of Proceeds

Item 3.  Defaults Upon Senior Securities

Item 4.  Submission Of Matters To A Vote Of Security Holders

Item 5.  Other Information

Item 6.  Exhibits And Reports On Form 8-K

Signature

                                 REVIEW REPORT


To the Board of Directors and Stockholders of
Next Generation Media Corporation

     We have reviewed the accompanying condensed consolidated
statement of financial position of Next Generation Media Corporation
(a Nevada Corporation) as of September 30, 2004 and 2003, and the
related statements of earnings, stockholders' equity, and cash flows
for the three-month and nine-month periods then ended, in accordance
with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants.
All information included in these condensed consolidated interim
financial statements is the representation of the management of Next
Generation Media Corporation.

     A review of interim financial information consists principally
of inquiries of Company personnel and analytical procedures applied
to financial data.  It is substantially less in scope than an audit
in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the
consolidated financial statements taken as a whole.  Accordingly, we
do not express such an opinion.

     Based on our review, we are not aware of any material
modifications that should be made to the accompanying consolidated
financial statements in order for them to be in conformity with
accounting principles accepted in the United States.




Vienna, Virginia
November 9, 2004

PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

                  Next Generation Media Corporation

                      Condensed Consolidated

                   Interim Financial Statements

          For The Nine Months Ended September 30, 2004

                With Review Report of Independent

                   Certified Public Accountants

TURNER, JONES AND ASSOCIATES, P.L.L.C.
CERTIFIED PUBLIC ACCOUNTANTS


                                   Table of Contents

                                                                        Page

Review Report of Independent Certified Public Accountants

Condensed Consolidated Interim Financial Statements

Consolidated Statement of Earnings

Consolidated Statement of Financial Position

Consolidated Statement of Stockholders' Equity

Consolidated Statement of Cash Flows

Notes to Financial Statements

                         Next Generation Media Corporation
                 Consolidated Statements of Financial Position
                              For the Periods Ended

                                     ASSETS



<TABLE>
<CAPTION>
                                                                (Unaudited)             (Audited)
                                                               September 30,           December 31,
                                                                    2004                  2003
<S>                                                            <C>                     <C>
CURRENT ASSETS:
Cash and cash equivalents                                      $     448,328           $    123,013

Accounts receivable, net of allowance
   for uncollectible accounts                                        402,244                411,256

Notes receivable, net of allowance                                   162,863                321,279
  for uncollectible accounts

Inventories                                                           86,032                 66,410

Prepaid expenses & other current assets                              145,696                 46,434

Total current assets                                               1,245,163                968,392

PROPERTY, PLANT AND EQUIPMENT:
Equipment & vehicles                                               1,444,707              1,424,882

Furniture and fixtures                                                63,214                 61,348

Leasehold improvements                                                76,362                 80,644

Total property, plant and equipment                                1,584,283              1,566,874

Less accumulated depreciation                                     (1,302,549)            (1,191,372)

Net property, plant and equipment                                    281,734                375,502

Intangibles, net of accumulated amortization                         584,749                686,512

TOTAL ASSETS                                                       2,111,646              2,030,406
</TABLE>


See accompanying notes and accountant's review report

                            Next Generation Media Corporation
                Consolidated Statements of Financial Position (Continued)
                                  For the Periods Ended

                         LIABILITIES AND STOCKHOLDERS' EQUITY



<TABLE>
<CAPTION>
                                                                (Unaudited)             (Audited)
                                                               September 30,           December 31,
                                                                    2004                  2003
<S>                                                            <C>                     <C>
CURRENT LIABILITIES:
Notes payable, current portion                                 $      37,074           $   99,190

Accounts  and other payables                                         230,050              128,567

Accrued expenses                                                     250,414              156,003

Sales tax payable                                                      5,537              207,684

Obligation under capital lease                                        15,526                9,753

Total current liabilities                                            538,601              601,197

LONG TERM LIABILITIES:

Notes payable                                                          6,086               18,815

Obligation under capital lease                                        29,908               43,660

Total long term liabilities                                           35,994               62,475

Total liabilities                                                    574,595              663,672

STOCKHOLDERS' EQUITY  :
Common stock, $.01 par value, 50,000,000 shares
   authorized and 10,523,397                                         105,234              105,234
   issued and outstanding

Additional paid in capital                                         7,379,744            7,379,744

Accumulated deficit                                               (5,947,927)          (6,118,244)

Total stockholders' equity                                         1,537,051            1,366,734

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         2,111,646            2,030,406
</TABLE>


See accompanying notes and accountant's review report


                            Next Generation Media Corporation
               Condensed Consolidated Statement of Earnings (Unaudited)
                                   For The Periods Ended



<TABLE>
<CAPTION>
                                              For the Three Months Ended         For the Nine Months Ended
                                            September 30,   September 30,   September 30,  September 30,
                                                2004            2003            2004           2003
<S>                                             <C>             <C>             <C>            <C>
REVENUES (Note 1):
Coupon sales, net of discounts                  $  1,969,597    $  1,885,805    $  5,748,813   $  5,475,442

Franchise fees                                       122,500          88,350         358,000        146,050

Total revenues                                     2,092,097       1,974,155       6,106,813      5,621,492

COST OF GOODS SOLD:
Materials                                            263,808         248,398         782,749        796,897

Direct labor                                         427,962         365,449       1,202,116      1,103,569

Equipment repairs                                      9,857           3,854          22,398         11,009

Other direct costs                                    29,794          30,887          93,678        106,744

Postage and delivery                                 576,004         571,742       1,741,923      1,676,782

Payroll taxes from direct labor                       32,739          27,849          91,969         84,411

Total cost of goods sold                           1,340,164       1,248,179       3,934,833      3,779,412

Gross margin                                         751,933         725,976       2,171,980      1,842,080

OPERATING EXPENSES:
401(k) matching (Note 2)                              12,000          10,500          36,000         31,500

Advertising (Note 1)                                   2,980           5,090          26,495         22,432

Amortization (Note 1)                                 33,921          33,922         101,763        101,765

Bad debt expense                                      30,000           7,500         240,000         22,500

Bank charges  Depreciation (Note 1)                   40,155          40,155         111,177        120,465

Franchise development and support                     90,576          56,211         261,313         93,662

Insurance                                             14,057          10,768          42,321         37,956

Meals and entertainment                                1,376           2,656           3,495          5,725

Office expense                                        22,089          17,114          75,628         50,366

Payroll                                              221,774         158,341         683,268        454,864

Payroll taxes                                         13,023          10,190          58,673         43,103

Professional fees                                     45,609          29,024         105,894         92,042

Property taxes                                         3,375             900          11,964          8,700

Rent and pass thru expenses                           70,228          68,472         211,517        204,616

Repairs and maintenance                               16,063           3,763          32,343         13,125

Utilities                                             26,761          23,311          63,332         66,567

Total operating expenses                             643,987         477,917       2,065,183      1,369,388

Gain/(Loss) from operations                          107,946         248,059         106,797        472,692

OTHER INCOME AND EXPENSES:
Interest income                                                            -               -              -

Other income (expense)                               (14,519)        (17,363)        (88,095)      (60,807)

Gain/(Loss) on legal settlement (Note 11)                290               -         176,954         5,730

Interest expense                                      (8,671)        (7,356)         (25,339)      (16,895)

Total other income (expense)                         (22,900)       (24,719)          63,520       (71,972)

Net Income/(Loss)                                     85,046        223,340          170,317       400,720

Gain/(Loss) applicable to common shareholders         85,046        223,340          170,317       400,720

Basic gain/(loss) per common share (Note 1)           0.0081         0.0194           0.0162        0.0300

Weighted average common shares outstanding        10,523,397     11,523,397       10,523,397     11,523,397

Diluted gain per common share (Note 1)                0.0060         0.0174         0.012000         0.0312

Fully diluted common shares outstanding           14,213,397     12,863,397       14,213,397     12,863,397
</TABLE>


See accompanying notes and accountant's review report

                        Next Generation Media Corporation
            Consolidated Statements of Stockholders' Equity-Unaudited



<TABLE>
<CAPTION>
                                                             Additional
                                    Common Stock              Paid In           Accumulated
                                  Shares      Amount          Capital             Deficit        Total
<S>                               <C>         <C>             <C>               <C>              <C>
Balance: January 1, 2003          9,523,397       95,234       7,343,744        (6,280,350)      $1,158,628

Common stock issued in
exchange for services             1,000,000       10,000          36,000                 -           46,000

Net Income - Year to Date                 -            -               -           162,106          162,106

Balance: December 31, 2003       10,523,397      105,234       7,379,744        (6,118,244)       1,366,734

Net Income - Year to Date                 -            -               -           170,317          170,317

Balance: September 30, 2004      10,523,397      105,234       7,379,744        (5,947,927)       1,537,051
</TABLE>



                            Next Generation Media Corporation
                           Statement of Cash Flows - Unaudited
                                 For The Three Months Ended


<TABLE>
<CAPTION>
                                                                  September 30,          September 30,
                                                                      2004                   2003
<S>                                                                <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)                                                  $     85,046          $    223,340

Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                                            74,076                74,077

(Increase) decrease in assets
Accounts & notes receivable                                            (172,309)             (134,088)

Inventories                                                               2,256                 3,751

Prepaids and other current assets                                       (45,664)              (37,767)

Increase (decrease) in liabilities
Accounts and other payables                                              (1,746)              (43,313)

Pension payable                                                               -                (3,167)

Accrued expenses                                                        121,687               (13,285)

Net cash flows (used) by operating activities                            63,346                69,548

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                                      (18,291)              (15,563)

Net cash provided/(used) by investing activities                        (18,291)              (15,563)

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of notes payable and capital leases                           (36,081)              (30,393)

Net cash provided/(used) by financing activities                        (36,081)              (30,393)

NET INCREASE/(DECREASE) IN CASH                                           8,974                23,592

CASH, BEGINNING OF PERIOD                                               439,354               159,785

CASH, END OF PERIOD                                                     448,328               183,377

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

CASH PAID DURING THE PERIOD FOR:
Income taxes                                                                  -                     -

Interest                                                                  8,671                 1,776
</TABLE>


See accompanying notes and accountant's review report

                     UNAUDITED INTERIM FINANCIAL STATEMENTS

The accompanying unaudited interim 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 accounts of Next Generation Media
Corporation and its subsidiary (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 three and nine month periods ended
September 30, 2004, 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 provided not misleading.  You should
read these interim consolidated financial statements in conjunction
with the consolidated financial statements and notes thereto included
in the Company's 2003 Annual Report on Form 10-KSB40.

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business:

Next Generation Media Corporation was incorporated in the State of
Nevada in November of 1980 as Micro Tech Industries Inc., with an
official name change to Next Generation Media Corporation in April of
1997.  The Company, through its wholly owned subsidiary, United
Marketing Solutions, Inc., provides direct marketing products, which
involves the designing, printing, packaging, and mailing of public relations
and marketing materials and coupons for retailers who provide services.  Sales
are conducted through a network of franchises that the Company supports
on a wholesale basis.  At September 30, 2004, the Company had
approximately 50 active area franchise licenses located throughout
the United States.

Property and Equipment:

Property and equipment are stated at cost.  The company uses the
straight-line method in computing depreciation for financial
statement purposes.

Expenditures for repairs and maintenance are charged to income, and
renewals and replacements are capitalized.  When assets are retired
or otherwise disposed of, the cost of the assets and the related
accumulated depreciation are removed from the accounts.

Estimated useful lives are as follows:

Computers                                        3 years
Furniture, fixtures and equipment               10 years

Leasehold improvements are amortized over the lesser of the lease
term or the useful life of the property.

Depreciation expense for the three months ended September 30, 2004
and 2003 was $40,155.

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 compete, which is being amortized
over five (5) years.  Amortization expense for the three months ended
September 30, 2004 and 2003 amounted to $33,921 and $33,922 respectively.

Advertising Expense:

The Company expenses the cost of advertising and promotions as
incurred.  Advertising costs charged to operations for the three
months ended September 30, 2004 and 2003 was $2,980 and $5,090
respectively.

Revenue Recognition:

The Company recognizes revenue from the design production and
printing of coupons upon delivery.  Revenue from initial franchise
fees is 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.

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 exists as of
September 30, 2004.

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.

Reclassifications:

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

New Accounting Pronouncements:

FASB Interpretation No. 45 - In November 2002, the FASB issued
interpretation No. 45, Guarantor's Accounting and Disclosures
Requirements for Guarantees, Including Indirect Guarantees of
Indebtedness of Others (FIN 45), which changes the accounting for,
and disclosure of, guarantees. Beginning with transactions entered
into after December 31, 2002, the Interpretation requires certain
guarantees to be recorded at fair value, which is different from
prior practice, which was generally to record a liability only when a
loss was probable and reasonably estimable, as defined by SFAS No. 5,
Accounting for Contingencies. In general, FIN 45 applies to contracts
or indemnification agreements that require Next Generation Media
Corporation to make payments to a guaranteed third-party based on
changes in an underlying that is related to an asset, liability, or
an equity security of the guaranteed party. The accounting provisions
of FIN 45 apply only to new transactions entered into after December
31, 2002. FIN 45 immediately requires new disclosures effective
immediately. The adoption of FIN45 does not have a material impact on
the Company's financial position, results of operations or cash flows.

Use of Estimates:

The preparation of financial statements in accordance 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.

Income Taxes:

The Corporation uses Statement of Financial Standards No. 109
"Accounting for Income Taxes" (SFAS No. 109) in reporting deferred
income taxes.  SFAS No. 109 requires a company to recognize deferred
tax liabilities and assets for expected future income tax
consequences of events that have been recognized in the company's
financial statements.  Under this method, deferred tax assets and
liabilities are determined based on temporary differences in
financial carrying amounts and the tax bases of assets and
liabilities using enacted tax rates in effect in the years in which
temporary differences are expected to reverse.

Risks and Uncertainties:

The Company operates in an environment where intense competition
exists from other companies.  This competition, along with increases
in the price of paper, can impact the pricing and profitability of
the Company.

Credit Risk:

The Company at times may have cash deposits in excess of federally
insured limits.

Accounts Receivable:

The Corporation grants credit to its customers, which includes the
retail sector and their own franchisees.  The Company establishes an
allowance for doubtful accounts based upon on a percentage of
accounts receivable plus those balances the Company feels will be
uncollectible.  Allowance for uncollectible accounts as of September
30, 2004 and 2003 was $481,940 and $304,697 respectively.
Cash and Cash Equivalents:

The Company considers all highly liquid investments with maturities
of three months or less to be cash equivalents.

Earnings Per Common Share:

The Company calculates its earnings per share pursuant to Statement
of Financial Accounting Standards No. 128, "Earnings Per Share"
("SFAS 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 reflect the potential dilution assuming the
issuance of common shares for all potential dilutive common shares
outstanding during the period.

As of September 30, 2004, the Company had financial obligations that
could create future dilution to the Company's common shareholders and
are not currently classified as 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.

Instrument or Obligation                                   Common Stock

Stock options outstanding as of September 30, 2004
with a weighted average exercise price per share
of $0.26                                                    3,690,000

Inventories:

Inventories consist primarily of paper, envelopes, and printing
materials and are stated at the lower of cost or market, with cost
determined on the first-in, first-out method.

Principles of Consolidation:

The accompanying consolidated financial statements include the
accounts of the parent company, Next Generation Media Corporation and
its subsidiaries as of September 30, 2004.

NOTE 2 - RETIREMENT PLAN

The company maintains a 401(k) defined contribution plan covering
substantially all employees.  The Corporation may elect to contribute
up to 3% of each eligible employee's gross wages.  Employees can
elect up to 15% of their salary to be contributed before income
taxes, up to the annual limit set by the Internal Revenue Code.  The
company anticipates making a contribution for 2004. The Corporation
accrued $12,000 and $10,500 in the three months ended September 30,
2004 and 2003 respectively.

NOTE 3 - NOTES PAYABLE

Notes payable consists of the following:

September 30, 2004                                                   Amount

Note payable to Capital York, unsecured with payments                $ 10,500
inclusive of interest of $1,000 per month

Note payable to CIT Group, interest of 10% on principal only,
collateralized by the equipment of United Marketing Solutions, Inc.  $  7,998

Note payable to PS Business Park, face amount of
$130,000, interest at 5%, payable over three years                   $  15,424

Note payable to Frank Parsons Paper payable in monthly
Installments                                                         $   9,238

                                                                     $  43,160
Less: Current portion                                                $  37,074
Long-term portion                                                    $   6,086

NOTE 4 - NOTES RECEIVABLE

On June 30, 2000, the Company executed a promissory note with UNICO,
Inc. for $200,000 in conjunction with the sale of Independent News,
Inc.  The note is outstanding and currently in default, the Company's
management considers a portion of the note collectible.  Accordingly,
the Company recognized $150,000 of bad debt expense during the
quarter ended June 30, 2004.

NOTE 5 - COMMON STOCK

During the three months ended September 30, 2004 and 2003, the
Company issued no shares of common stock.

In 2003, the Company issued 2,350,000 options to purchase shares of
common stock at $0.01 per share to members of the Company's Board of
Directors and employees.  The options were issued at the then fair
market value of the underlying shares.  In addition, the Company
issued 1,000,000 shares of common stock valued at $46,000 to various
consultants and employees for services rendered.

NOTE 6 - EMPLOYEE STOCK INCENTIVE PLAN

One December 26, 2001, the Company adopted the Employee Stock
Incentive Plan authorizing 3,000,000 shares at a maximum offering
price of $0.10 per share for the purpose of providing employees
equity-based compensation incentives.

NOTE 7 - COMMITMENTS AND CONTINGENCIES

The Company has entered into various employment contracts.  The
contracts provided for the award of present and/or future options to
purchase common stock at then fair market value of the underlying
shares at date of grant or vesting. The contracts can be terminated
without cause upon written notice within thirty to ninety days.

The Company is party to various legal matters encountered in the
normal course of business.  In the opinion of management and legal
counsel, the resolution of these matters will not have a material
adverse effect on the Company's financial position or the future
results of operations.

Future minimum annual lease payments for capital and operating leases
as of September 30, 2004 are:

                                        Operating        Capital

2004                                     162,940          4,555
2005                                     282,780         14,628
2006                                     280,006         14,628
2007                                      23,409         14,628
2008                                           0          4,916
Thereafter                                     0              0
Total                                    749,135         53,355

Rent expense for the quarters ended September 30, 2004 and 2003 were
$70,229 and $68,472 Respectively.

NOTE 8 - OBLIGATION UNDER CAPITAL LEASE

The Company acquired machinery under the provisions of a long-term
leases.  For financial reporting purposes, minimum lease payments
relating to the machinery have been capitalized.

The future minimum lease payments under capital leases and net
present value of the future minimum lease payments as of September
30, 2004 are as follows:

Total minimum lease payments                               $53,355
Amount representing interest                                 7,921
Present value of net minimum lease payments                 45,434
Current portion                                             15,526
Long-term capital lease obligation                          29,908

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

The following Management Discussion and Analysis should be read in
conjunction with the financial statements and accompanying notes
included in this Form 10-QSB.

Total revenues in the quarter ended September 30, 2004 and the nine
months ended September 30, 2004, respectively $2,092,097 and
$6,106,813, increased from $1,974,155 in the quarter ended September
30, 2003 and $5,621,492 in the nine months ended September 30, 2003, a
three month increase of five percent (5%) and a nine month increase of
eight percent (8%).

Total cost of goods sold in the quarter ended September 30, 2004 and
the nine months ended September 30, 2004, respectively, $1,340,164 and
$3,934,833, increased from $1,248,179 in the quarter ended September
30, 2003 and $3,779,412 in the nine months ended September 30, 2003.
The gross margin in the quarter ended September 30, 2004 and the nine
months ended September 30, 2004, respectively, $751,933 and
$2,171,980, increased from $725,976 in the quarter ended September 30,
2003 and $1,842,080 in the nine months ended September 30, 2003.

Total operating expenses in the quarter ended September 30, 2004 and
the nine months ended September 30, 2004, respectively, $643,987 and
$2,065,183, increased from $477,917 in the quarter ended September 30,
2003 and $1,369,088 in the nine months ended September 30, 2003.  The
greatest percentage of this increase in expenses was due to an
increase in franchise development and support of $34,365 and an
increase in payroll expense of $63,433.

Total net gain from operations in the quarter ended September 30, 2004
and the nine months ended September 30, 2004, respectively, $85,046
and $170,317, decreased from a gain of $223,340 in the quarter ended
September 30, 2003 and $400,720 in the nine months ended September 30, 2003.

Net cash flows provided by operating activities was $63,346 for the
period ended September 30, 2004 as compared to $69,548 provided for
the period ended September 30, 2003.

Cash used by investing activities was $18,291 for the period ended
September 30, 2004, as compared to net cash provided by investing
activities of $69,548 for the period ended September 30, 2003.

While the Company has raised capital to meet its working capital and
financing needs in the past, additional financing may be required in
order to meet the Company's current and projected cash flow deficits
from operations. As previously mentioned, the Company has obtained
financing in the form of equity in order to provide the necessary
working capital. The Company currently has no other commitments for
financing. There are no assurances the Company will be successful in
raising the funds required.

The Company has issued shares of its common stock from time to time
in the past to satisfy certain obligations, and expects in the future
to also acquire certain services, satisfy indebtedness and/or make
acquisitions utilizing authorized shares of the capital stock of the
Company.

Quantitative And Qualitative Disclosures About Market Risk

In the normal course of business, operations of the Company may be
exposed to fluctuations in interest rates. These fluctuations can
vary the cost of financing, investing, and operating transactions.
Because the Company has only fixed rate short-term debt, there are no
material impacts on earnings due to fluctuations in interest rates.

New Accounting Pronouncements

In March 2000, the Financial Accounting Standards Board issued
interpretation No. 44 ("FIN 44"), "Accounting for Certain
Transactions Involving Stock Compensation, an Interpretation of APB
Opinion No. 25". FIN 44 clarifies the application of APB No. 25 for
(a) the definition of employee for purposes of applying APB No. 25,
(b) the criteria for determining whether a plan qualifies as a
noncompensatory plan, (c) the accounting consequences of various
modifications to previously fixed stock option or award, and (d) the
accounting for an exchange of stock compensation awards in a business
combination. FIN 44 is effective July 2, 2000 but certain conclusions
cover specific events that occur after either December 15, 1998 or
January 12, 2000. The adoption of FIN 44 did not have an affect on
the Company's financial statements but may impact the accounting for
grants or awards in future periods

In July 2001, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 141, Business
Combinations (FAS 141), and FAS 142, Goodwill and Other Intangible
Assets (FAS 142). FAS 141 addresses the initial recognition and
measurement of goodwill and other intangible assets acquired in a
business combination. FAS 142 addresses the initial recognition and
measurement of intangible assets acquired outside of a business
combination, whether acquired individually or with a group of other
assets, and the accounting and reporting for goodwill and other
intangibles subsequent to their acquisition. These standards require
all future business combinations to be accounted for using the
purchase method of accounting. Goodwill will no longer be amortized
but instead will be subject to impairment tests at least annually.

The Company is required to adopt FAS 141 and FAS 142 on a prospective
basis as of January 1, 2002; however, certain provisions of these new
standards may also apply to any acquisitions concluded subsequent to
June 30, 2001. As a result of implementing these new standards, the
Company will discontinue the amortization of goodwill as of December
31, 2001. The Company does not believe that the adoption of FAS 141
or 142 will have a material impact on its consolidated financial
statements.

In October 2001, the Financial Accounting Standards Board issued FAS
144, "Accounting for the Impairment or Disposal of Long-Lived Assets"
(FAS 144). FAS 144 addresses financial accounting and reporting for
the impairment or disposal of long-lived assets. This statement
supersedes FAS 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed of" (FAS 121) and
related literature and establishes a single accounting model, based
on the framework established in FAS 121, for long-lived assets to be
disposed of by sale. The Company is required to adopt FAS 144 no
later than January 1, 2002. The Company does not believe that the
adoption of FAS 144 will have a material impact on its consolidated
financial statements.

Forward Looking Statements.

The foregoing Managements Discussion and Analysis of Financial
Condition and Results of Operations "forward looking statements"
within the meaning of Rule 175 under the Securities Act of 1933, as
amended, and Rule 3b-6 under the Securities Act of 1934, as amended,
including statements regarding, among other items, the Company's
business strategies, continued growth in the Company's markets,
projections, and anticipated trends in the Company's business and the
industry in which it operates. The words "believe," "expect,"
"anticipate," "intends," "forecast," "project," and similar
expressions identify forward-looking statements. These forward-
looking statements are based largely on the Company's expectations
and are subject to a number of risks and uncertainties, including but
not limited to, those risks associated with economic conditions
generally and the economy in those areas where the Company has or
expects to have assets and operations; competitive and other factors
affecting the Company's operations, markets, products and services;
those risks associated with the Company's ability to successfully
negotiate with certain customers, risks relating to estimated
contract costs, estimated losses on uncompleted contracts and
estimates regarding the percentage of completion of contracts,
associated costs arising out of the Company's activities and the
matters discussed in this report; risks relating to changes in
interest rates and in the availability, cost and terms of financing;
risks related to the performance of financial markets; risks related
to changes in domestic laws, regulations and taxes; risks related to
changes in business strategy or development plans; risks associated
with future profitability; and other factors discussed elsewhere in
this report and in documents filed by the Company with the Securities
and Exchange Commission. Many of these factors are beyond the
Company's control. Actual results could differ materially from these
forward-looking statements. In light of these risks and
uncertainties, there can be no assurance that the forward-looking
information contained in this Form 10-QSB will, in fact, occur. The
Company does not undertake any obligation to revise these forward-
looking statements to reflect future events or circumstances and
other factors discussed elsewhere in this report and the documents
filed or to be filed by the Company with the Securities and Exchange
Commission.

Inflation

In the opinion of management, inflation has not had a material effect
on the operations of the Company.

Trends, Risks and Uncertainties

The Company has sought to identify what it believes to be the most
significant risks to its business as discussed in "Risk Factors"
above, but cannot predict whether or to what extent any of such risks
may be realized nor can there be any assurances that the Company has
identified all possible risks that might arise. Investors should
carefully consider all of such risk factors before making an
investment decision with respect to the Company's stock.

Limited operating history; anticipated losses; uncertainly of future results

The Company has only a limited operating history upon which an
evaluation of the Company and its prospects can be based. The
Company's prospects must be evaluated with a view to the risks
encountered by a company in an early stage of development,
particularly in light of the uncertainties relating to the business
model that the Company intends to market and the potential acceptance
of the Company's business model. The Company will be incurring costs
to develop, introduce and enhance its products, to establish
marketing relationships, to acquire and develop products that will
complement each other, and to build an administrative organization.
To the extent that such expenses are not subsequently followed by
commensurate revenues, the Company's business, results of operations
and financial condition will be materially adversely affected. There
can be no assurance that the Company will be able to generate
sufficient revenues from the sale of its products and services. The
Company expects that negative cash flow from operations may exist for
the next 12 months as it continues to develop and market its products
and services. If cash generated by operations is insufficient to
satisfy the Company's liquidity requirements, the Company may be
required to sell additional equity or debt securities. The sale of
additional equity or convertible debt securities would result in
additional dilution to the Company's shareholders.

Potential fluctuations in quarterly operating results may fluctuate
Significantly in the future as a result of a variety of factors, most
of which Are outside the Company's control including: the demand for
the Company's products and services; seasonal trends in demand and
pricing of products and services; the amount and timing of capital
expenditures and other costs relating to the expansion of the
Company's operations; the introduction of new services and products
by the Company or its competitors; price competition or pricing
changes in the industry; political risks and uncertainties involving
the world's markets; technical difficulties and general economic
conditions. The Company's quarterly results may also be significantly
affected by the impact of the accounting treatment of acquisitions,
financing transactions or other matters. Particularly the Company's
early stage of development, such accounting treatment can have a
material impact on the results for any quarter. Due to the foregoing
factors, among others, it is likely that the Company's operating
results will fall below the expectations of the Company or investors
in some future quarter.

Management of Growth

The Company may experience growth in the number of employees relative
to its current levels of employment and the scope of its operations.
In particular, the Company may need to hire sales, marketing and
administrative personnel. Additionally, acquisitions could result in
an increase in employee headcount and business activity. Such
activities could result in increased responsibilities for management.
The Company believes that its ability to increase its customer
support capability and to attract, train, and retain qualified
technical, sales, marketing, and management personnel, will be a
critical factor to its future success. In particular, the
availability of qualified sales and management personnel is quite
limited, and competition among companies to attract and retain such
personnel is intense. During strong business cycles, the Company may
experience difficulty in filling its needs for qualified sales, and
other personnel.

The Company's future success will be highly dependent upon its
ability to successfully manage the expansion of its operations. The
Company's ability to manage and support its growth effectively will
be substantially dependent on its ability to implement adequate
financial and management controls, reporting systems, and other
procedures and hire sufficient numbers of financial, accounting,
administrative, and management personnel. The Company is in the
process of establishing and upgrading its financial accounting and
procedures. There can be no assurance that the Company will be able
to identify, attract, and retain experienced accounting and financial
personnel. The Company's future operating results will depend on the
ability of its management and other key employees to implement and
improve its systems for operations, financial control, and
information management, and to recruit, train, and manage its
employee base. There can be no assurance that the Company will be
able to achieve or manage any such growth successfully or to
implement and maintain adequate financial and management controls and
procedures, and any inability to do so would have a material adverse
effect on the Company's business, results of operations, and
financial condition.

The Company's future success depends upon its ability to address
potential market opportunities while managing its expenses to match
its ability to finance its operations. This need to manage its
expenses will place a significant strain on the Company's management
and operational resources. If the Company is unable to manage its
expenses effectively, the Company's business, results of operations,
and financial condition will be materially adversely affected.

Risks associated with acquisitions

Although the Company does not presently intend to do so, as part of
its business strategy in the future, the Company could acquire assets
and businesses relating to or complementary to its operations. Any
acquisitions by the Company would involve risks commonly encountered
in acquisitions of companies. These risks would include, among other
things, the following: the Company could be exposed to unknown
liabilities of the acquired companies; the Company could incur
acquisition costs and expenses higher than it anticipated;
fluctuations in the Company's quarterly and annual operating results
could occur due to the costs and expenses of acquiring and
integrating new businesses or technologies; the Company could
experience difficulties and expenses in assimilating the operations
and personnel of the acquired businesses; the Company's ongoing
business could be disrupted and its management's time and attention
diverted; the Company could be unable to integrate successfully.

PART II.

ITEM 1.  LEGAL PROCEEDINGS.

Other than as set forth below, the Registrant is not a party to any
material pending legal proceedings and, to the best of its knowledge,
no such action by or against the Registrant has been threatened.

The Company is subject to other legal proceedings and claims that
arise in the ordinary course of its business.  Although occasional
adverse decisions or settlements may occur, the Company believes that
the final disposition of such matters will not have material adverse
effect on its financial position, results of operations or liquidity.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

Sales of Unregistered Securities.

The Registrant had no sales of unregistered securities during the
three-month period ending September 30, 2004.

Use of Proceeds.

Not Applicable.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

Not Applicable.

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

There were not any matters submitted requiring a vote of security
holders during the three-month period ending September 30, 2004.

ITEM 5.  OTHER INFORMATION.

None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  Reports on Form 8-K.  No reports on Form 8-K were filed
during the three-month period covered in this Form 10-QSB.

     (b)  Exhibits.  Exhibits included or incorporated by reference
herein: See Exhibit Index.

                              EXHIBIT INDEX

Exhibit         Description

3.1      Articles of Incorporation, under the name Micro Tech
         Industries, Inc. (incorporated by reference in the filing
         of the Company's annual report on Form 10KSB filed on April
         15, 1998).

3.2      Amendment to the Articles of Incorporation (incorporated by
         reference in the Company's quarterly report filed on Form
         10 Q filed on May 15, 1997).

3.3      Amended and Restated Bylaws (incorporated by reference in
         the filing of the Company's annual report on Form 10KSB
         filed on November 12, 1999).

16.1     Letter on change in certifying accountant (incorporated by
         reference in the filing of the Company's current report on
         Form 8-K filed on January 5, 2001).


                                     SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.

                                       Next Generation Media Corp.

Dated: November 13, 2004               By: /s/ Darryl Reed
                                       Darryl Reed, President


