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      STATES</strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      DC 20549</strong></font></div>
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      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT PURSUANT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TO
      SECTION 13 OR 15(</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>d</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>)
      OF THE</strong></font></div>
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      EXCHANGE ACT OF 1934</strong></font></div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
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      June
      13, 2006 </u></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 441pt">&#160;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><strong>SPATIALIGHT,
      INC. </strong></font>
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      Name of Registrant as Specified in Its Charter)</font></div>
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      York
</font>
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      or
      Other Jurisdiction</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      Incorporation)</font></div>
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                File Number)</font></div>
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                Employer Identification No.)</font></div>
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                Hamilton Landing, Suite 100, Novato, California</font></div>
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      883-1693 </font>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
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      satisfy the filing obligation of the registrant under any of the following
      provisions (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>see
      </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
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      240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.02</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Termination
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      June
      13, 2006 (the &#8220;Termination Date&#8221;), SpatiaLight, Inc. (the &#8220;Company&#8221;) accepted
      the resignation of Theodore H. Banzhaf as its Executive Vice President of
      Strategic Planning and as President and Chief Executive Officer of SpatiaLight
      Technologies, Inc., a non-active wholly-owned subsidiary of the Company,
      effective immediately. The Company informed Mr. Banzhaf that it is commencing
      an
      active search for a full-time Chief Financial Officer and expects that that
      position will comprise overall responsibility for financial transactions and
      reporting as well as investor relations activities. Mr. Banzhaf had been serving
      in the investor relations role.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Banzhaf&#8217;s Employment Agreement with the Company, dated as of July 7, 2003, as
      amended from time to time, has therefore been terminated as of the Termination
      Date.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      of the
      Termination Date, Mr. Banzhaf holds 265,000 options to purchase the Company&#8217;s
      common shares that are currently vested and exercisable at exercise prices
      of
      $5.00 with respect to 175,000 options and $12.50 with respect to the remaining
      90,000 options (collectively, the &#8220;Vested Options&#8221;) pursuant to his Time
      Accelerated Restricted Stock Award Plan (&#8220;TARSAP&#8221;) made as of July 7, 2003, as
      amended. Mr. Banzhaf may exercise only those Vested Options by no later than
      September 13, 2006, at which time any such Vested Options that Mr. Banzhaf
      has
      not exercised shall be canceled. Furthermore, effective as of the Termination
      date, 500,000 options to purchase the Company&#8217;s common shares that Mr. Banzhaf
      holds, which are not vested and exercisable by Mr. Banzhaf as of that date,
      have
      been canceled and Mr. Banzhaf shall have no further rights thereto or under
      his
      TARSAP and that TARSAP has been terminated as of the Termination
      Date.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company and Mr. Banzhaf are discussing a final severance agreement whereby
      Mr.
      Banzhaf may receive three months of additional salary at an annual rate of
      $360,000. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 18pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities and Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the undersigned
      hereunto duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: "><strong>SPATIALIGHT,
              INC.</strong></font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;
June
              14, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;ROBERT
              A.
              OLINS</font></td>
          </tr>
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          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Name:&#160;&#160;
                Robert A. Olins</font></div>
              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Title:&#160;&#160;&#160;&#160;
                Chief Executive Officer</font></div>
            </td>
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    <div>&#160;</div>
    <div>&#160;</div>
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{"company-data": {"conformed-name": "SPATIALIGHT INC", "cik": "0000881468", "assigned-sic": "3861", "irs-number": "161363082", "state-of-incorporation": "NY", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-19828", "film-number": "06903625"}, "business-address": {"street1": "FIVE HAMILTON LANDING", "street2": "SUITE 100", "city": "NOVATO", "state": "CA", "zip": "94949", "phone": "4158831693"}, "mail-address": {"street1": "FIVE HAMILTON LANDING", "street2": "SUITE 100", "city": "NOVATO", "state": "CA", "zip": "94949"}, "former-company": {"former-conformed-name": "SAYETT GROUP INC", "date-changed": "19930328"}}
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      DC 20549
FORM
      8-K
CURRENT
      REPORT PURSUANT
TO
      SECTION 13 OR 15(
d
)
      OF THE
SECURITIES
      EXCHANGE ACT OF 1934
Date
      of
      report (Date of earliest event reported)
June
      13, 2006
SPATIALIGHT,
      INC.
(Exact
      Name of Registrant as Specified in Its Charter)
New
      York
(State
      or
      Other Jurisdiction
of
      Incorporation)
000-19828
16-1363082
(Commission
                File Number)
(IRS
                Employer Identification No.)
Five
                Hamilton Landing, Suite 100, Novato, California
94949
(Address
                of Principal Executive Offices)
(Zip
                Code)
(415)
      883-1693
(
Registrant's
      Telephone Number, Including Area Code)
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
      1.02
Termination
      of a Material Definitive Agreement.
On
      June
      13, 2006 (the "Termination Date"), SpatiaLight, Inc. (the "Company") accepted
      the resignation of Theodore H. Banzhaf as its Executive Vice President of
      Strategic Planning and as President and Chief Executive Officer of SpatiaLight
      Technologies, Inc., a non-active wholly-owned subsidiary of the Company,
      effective immediately. The Company informed Mr. Banzhaf that it is commencing
      an
      active search for a full-time Chief Financial Officer and expects that that
      position will comprise overall responsibility for financial transactions and
      reporting as well as investor relations activities. Mr. Banzhaf had been serving
      in the investor relations role.
Mr.
      Banzhaf's Employment Agreement with the Company, dated as of July 7, 2003, as
      amended from time to time, has therefore been terminated as of the Termination
      Date.
As
      of the
      Termination Date, Mr. Banzhaf holds 265,000 options to purchase the Company's
      common shares that are currently vested and exercisable at exercise prices
      of
      $5.00 with respect to 175,000 options and $12.50 with respect to the remaining
      90,000 options (collectively, the "Vested Options") pursuant to his Time
      Accelerated Restricted Stock Award Plan ("TARSAP") made as of July 7, 2003, as
      amended. Mr. Banzhaf may exercise only those Vested Options by no later than
      September 13, 2006, at which time any such Vested Options that Mr. Banzhaf
      has
      not exercised shall be canceled. Furthermore, effective as of the Termination
      date, 500,000 options to purchase the Company's common shares that Mr. Banzhaf
      holds, which are not vested and exercisable by Mr. Banzhaf as of that date,
      have
      been canceled and Mr. Banzhaf shall have no further rights thereto or under
      his
      TARSAP and that TARSAP has been terminated as of the Termination
      Date.
The
      Company and Mr. Banzhaf are discussing a final severance agreement whereby
      Mr.
      Banzhaf may receive three months of additional salary at an annual rate of
      $360,000.
SIGNATURES
Pursuant
      to the requirements of the Securities and Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the undersigned
      hereunto duly authorized.
SPATIALIGHT,
              INC.
Date: 
June
              14, 2006
By:
/s/ ROBERT
              A.
              OLINS
Name:  
                Robert A. Olins
Title:    
                Chief Executive Officer