UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                   FORM 10-QSB

[X]  Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934.

         For the quarterly period ended March 31, 1997

[  ] Transition Report pursuant to 13 or 15(d) of the Securities  Exchange Act
     of 1934 For the transition period from              to 

Commission File Number 33-55254-24

                                   EGRET, INC.
        (Exact name of Small Business Issuer as specified in its charter)

            Nevada                                     87-0438635
(State or other jurisdiction of             (IRS Employer Identification No.)
        incorporation)

   1800 East Sahara Avenue, Suite 107
            Las Vegas, Nevada                             89104
(Address of principal executive offices)               (Zip Code)

Issuer's telephone number, including area code:   (702) 792-7449

Indicate by a check mark  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 preceding 12 months (or for such shorter period that the Issuer was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days [ ] Yes [X] No

Indicate the number of shares  outstanding  of each of the  Issuer's  classes of
common stock, as of the latest practicable date.

            Class                            Outstanding as of July 31, 1997
------------------------------------         --------------------------------
$.001 par value Class A Common Stock                2,500,000 Shares


                                        1

<PAGE>
                         PART I - FINANCIAL INFORMATION

Item 1.       Financial Statements

BASIS OF PRESENTATION

General

The accompanying unaudited financial statements have been prepared in accordance
with the  instructions  to Form 10-QSB  pursuant to the rules and regulations of
the  Securities  and  Exchange  Commission  and,  therefore,  do not include all
information and footnotes necessary for a complete presentation of the financial
position,  results  of  operations,  cash  flows,  and  stockholders'  equity in
conformity  with generally  accepted  accounting  principles.  In the opinion of
management,  all adjustments considered necessary for a fair presentation of the
results of  operations  and  financial  position have been included and all such
adjustments are of a normal recurring nature.

Operating  results for the three months ended March 31, 1997 are not necessarily
indicative of the results that can be expected for the year ending  December 31,
1997.

Item 2.
Management's  Discussion  and  Analysis of Financial  Conditions  and Results of
Operations.

The Company has had no operational  history and has yet to engage in business of
any kind. All risks inherent in new and  inexperienced  enterprises are inherent
in the  Company's  business.  The  Company  has not made a  formal  study of the
economic  potential  of any  business.  At the  present,  the  Company  has  not
identified any assets or business opportunities for acquisition.

During the quarter ended March 31, 1997, the Company received  $550,000 which is
being held in escrow and has received a total of $1,000,000  prior to the filing
of this report. The money is to be used to acquire a potential business venture.
If a suitable business  opportunity  becomes available within the next year, the
Company will issue 400,000  shares of its  restricted  common stock at $2.50 per
share to convert the $1,000,000 to equity. If the business  opportunity does not
become available the $1,000,000 will be returned to the investors.

During the quarter the Company lost $7,883.  The expenses related to looking for
business opportunities.

As of August,  1997,  the Company has no liquidity  and no  presently  available
capital resources, such as credit lines, guarantees, etc. and should a merger or
acquisition prove unsuccessful, it is possible that the Company may be dissolved
by the State of Nevada for failing to file  reports,  at which point the Company
would no longer be a viable  corporation under Nevada law and would be unable to
function as a legal entity.  Should  management decide not to further pursue its
acquisition activities,  management may abandon its activities and the shares of
the Company would become worthless.  However, the Company's officers,  directors
and  major  shareholder,  have  made an oral  undertaking  to make  loans to the
Company in amounts sufficient to enable it

                                        2

<PAGE>
to satisfy its reporting requirements and other obligations incumbent on it as a
public  company,   and  to  commence,   on  a  limited  basis,  the  process  of
investigating possible merger and acquisition  candidates.  The Company's status
as a  publicly-held  corporation  may enhance  its  ability to locate  potential
business ventures. The loans will be interest free and are intended to be repaid
at a future date, if or when the Company shall have  received  sufficient  funds
through  any  business  acquisition.  The loans are  intended to provide for the
payment of filing fees,  professional fees,  printing and copying fees and other
miscellaneous fees.

Based on current economic and regulatory conditions, Management believes that it
is possible,  if not  probable,  for a company  like the  Company,  without many
assets or many  liabilities,  to negotiate a merger or acquisition with a viable
private company.  The opportunity arises  principally  because of the high legal
and  accounting  fees and the length of time  associated  with the  registration
process of "going public". However, should any of these conditions change, it is
very possible that there would be little or no economic  value for anyone taking
over control of the Company.

                           PART II - OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K

         (a)      Exhibits
                  99.1 Financial Statements as of March 31, 1997
                  27 Financial Data Summary

         (b)      Reports on Form 8-K
                  None.



                                        3

<PAGE>



                                   SIGNATURES

     Pursuant to the  requirements  of the  Securities and Exchange Act of 1934,
the  Issuer  has duly  caused  this  report to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                             EGRET, INC.




DATED:        August 27, 1997                /s/ Pierre-Paul Lalonde
                                             Pierre-Paul Lalonde, President and 
                                             Director



                                        4

<PAGE>
                                   EGRET, INC.
                          (A Development Stage Company)
                                  BALANCE SHEET
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                         March 31,
                                                                           1997
                                                                  ----------------------
ASSETS
     CURRENT ASSETS
<S>                                                               <C>                   
         Cash in bank                                             $                    0
         Prepaid expense                                                          10,000
                                                                  ----------------------

                                      TOTAL CURRENT ASSETS                        10,000

OTHER ASSETS
     Organization costs                                                                0
                                                                                       0
                                                                  ----------------------
                                                                  $               10,000
                                                                  ======================

LIABILITIES & EQUITY
     CURRENT LIABILITIES
         Accounts payable - related parties                       $                7,883
                                                                  ----------------------

                                 TOTAL CURRENT LIABILITIES                         7,883

     STOCKHOLDERS' EQUITY 
         Common Stock $.001 par value:
              Authorized - 100,000,000 shares
              Issued and outstanding
               2,500,000 shares                                                    2,500
         Additional paid-in capital                                               14,500
         Deficit accumulated during the
              development stage                                                  (14,883)
                                                                  ----------------------
                                TOTAL STOCKHOLDERS' EQUITY                         2,117
                                                                  ----------------------
                                                                  $               10,000
                                                                  ======================

</TABLE>

                                       F-1

<PAGE>
                                   EGRET, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                  4/16/86
                                                             Three Months Ended                  (Date of
                                                                  March 31,                    inception) to
                                                          1997                1996                3/31/97
                                                   ------------------  -----------------  -----------------------
<S>                                                <C>                 <C>                <C>                    
Net sales                                          $                0  $               0  $                     0
Cost of sales                                                       0                  0                        0
                                                   ------------------  -----------------  -----------------------

                                     GROSS PROFIT                   0                  0                        0

General and administrative expenses                             7,883                  0                   14,883
                                                   ------------------  -----------------  -----------------------

                                         NET LOSS  $           (7,883) $               0  $               (14,883)
                                                   ==================  =================  =======================

Net income (loss) per weighted
   average share                                   $              .00  $             .00
                                                   ==================  =================

Weighted average number of common
   shares used to compute net income
   (loss) per weighted average share                        2,500,000          1,000,000
                                                   ==================  =================
</TABLE>


                                       F-2

<PAGE>
                                   EGRET, INC.
                          (A Development Stage Company)
                  STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                                              Deficit
                                                                                                            Accumulated
                                                           Common Stock                  Additional           During
                                                         Par Value $0.001                  Paid-in          Development
                                                     Shares            Amount              Capital             Stage
                                                 --------------    --------------    -----------------    --------------

<S>                                              <C>               <C>               <C>                  <C>           
Balances at 4/16/86 (Date of inception)                       0    $            0    $               0    $            0
     Issuance of common stock
       (restricted) at $.002 per share
       at 4/17/86                                     1,000,000             1,000                1,000
     Net loss for period                                                                                          (1,950)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/86                                  1,000,000             1,000                1,000            (1,950)
     Net loss for year                                                                                               (10)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/87                                  1,000,000             1,000                1,000            (1,960)
     Net loss for year                                                                                               (10)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/88                                  1,000,000             1,000                1,000            (1,970)
     Net loss for year                                                                                               (10)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/89                                  1,000,000             1,000                1,000            (1,980)
     Net loss for year                                                                                               (10)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/90                                  1,000,000             1,000                1,000            (1,990)
     Net loss for year                                                                                               (10)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/91                                  1,000,000             1,000                1,000            (2,000)
     Net income for year                                                                                               0
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/92                                  1,000,000             1,000                1,000            (2,000)
     Net income for year                                                                                               0
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/93                                  1,000,000             1,000                1,000            (2,000)
     Net income for year                                                                                               0
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/94                                  1,000,000             1,000                1,000            (2,000)
     Net income for year                                                                                               0
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/95                                  1,000,000             1,000                1,000            (2,000)
     Issuance of common stock
       (restricted) at $.01 per
       share into escrow  for services
       from related parties
       at 11/4/96                                     1,500,000             1,500               13,500
     Net loss for year                                                                                            (5,000)
                                                 --------------    --------------    -----------------    --------------

Balances at 12/31/96                                  2,500,000             2,500               14,500            (7,000)
     Net loss for period                                                                                          (7,883)
                                                 --------------    --------------    -----------------    --------------

Balances at 3/31/97                                   2,500,000    $        2,500    $          14,500    $      (14,883)
                                                 ==============    ==============    =================    ==============
</TABLE>


                                       F-3

<PAGE>
                                   EGRET, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                                        4/16/86
                                                                                                       (Date of
                                                                  Three Months Ended March 31,       Inception) to
                                                                     1997              1996             3/31/97
                                                               ---------------    ---------------  ----------------
OPERATING ACTIVITIES
<S>                                                            <C>                <C>              <C>              
  Net (loss)                                                   $        (7,883)   $             0  $        (14,883)
  Adjustments to reconcile net (loss) to cash used
     by operating activities:
       Stock issued for expenses                                             0                  0             5,000
       Amortization                                                          0                  0                50
  Change in assets and liabilities:
     Accounts payable                                                    7,883                  0             7,883
                                                               ---------------    ---------------  ----------------
                                               NET CASH USED
                                     BY OPERATING ACTIVITIES                 0                  0            (1,950)

INVESTING ACTIVITIES
  Organization costs                                                         0                  0               (50)
                                                               ---------------    ---------------  ----------------

                                    NET CASH PROVIDED (USED)
                                     BY INVESTING ACTIVITIES                 0                  0               (50)

FINANCING ACTIVITIES
  Proceeds from sale of common stock                                         0                  0             2,000
                                                               ---------------    ---------------  ----------------

                                        NET CASH PROVIDED BY
                                        FINANCING ACTIVITIES                 0                  0             2,000
                                                               ---------------    ---------------  ----------------

                                            INCREASE IN CASH
                                        AND CASH EQUIVALENTS                 0                  0                 0

Cash and cash equivalents at beginning of year                               0                  0                 0
                                                               ---------------    ---------------  ----------------

                                   CASH AND CASH EQUIVALENTS
                                            AT END OF PERIOD   $             0    $             0  $              0
                                                               ===============    ===============  ================
</TABLE>



                                       F-4