SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB


         (Mark One)

         [X]  Quarterly  report  under  Section  13 or 15(d)  of the  Securities
              Exchange Act of 1934

         For the quarterly period ended February 28, 1999

         [ ] Transition report under Section 13 or 15(d) of the Exchange Act

         For the transition period from _________ to ___________

         Commission file number 33-55254-15

                                 GRANDEUR, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)


         NEVADA                                        87-0438451     
(State or Other Jurisdiction of                      (IRS Employer
Incorporation or Organization)                       Identification No.)


         1801 McGill College, Suite 1330,
         Montreal, Quebec Canada                          H3A 2N4
         (Address of Principal Executive Offices)         (Zip Code)

(Issuer's Telephone Number, Including Area Code) (514) 282-9000

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. [X] Yes [ ] No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         State the  number of shares of each of the  issuer's  classes of common
equity, as of the latest practicable date:

         Class                     Outstanding as of February 28, 1999
--------------------------         -----------------------------------
$.001 PAR VALUE CLASS A                        13,848,300 SHARES
COMMON STOCK


<PAGE>



                                     PART I
                              FINANCIAL INFORMATION

ITEM 1.  Financial Statements.

         The accompanying unaudited financial statements (pages F-1 through F-3)
have been  prepared  in  accordance  with the  instructions  to Form 10-QSB and,
therefore, do not include all information and footnotes necessary for a complete
presentation  of  financial  position,  results  of  operations,  cash flows and
stockholders'   deficit  in  conformity  with  generally   accepted   accounting
principles.  In the opinion of management,  all adjustments considered necessary
for a fair presentation of the results of operation and financial  position have
been  included  and all  such  adjustments  are of a  normal  recurring  nature.
Operating  results  for  the  nine  months  ended  February  28,  1999  are  not
necessarily  indicative  of the results that can be expected for the year ending
May 31, 1999.

ITEM 2.  Management's Plan of Operation.

         Pursuant to an Agreement  made and entered  into on February  25th 1998
Grandeur  Inc.  (the  "Company")  issued and  delivered  on February  26,  1998,
12,848,300  shares of its Common Stock bearing a  restrictive  legend to 3127575
Canada Inc., a Canadian Corporation, in exchange for which issuance, it acquired
all of the  outstanding  shares of 3127575  Canada Inc.  Through  3127575 Canada
Inc., the Company has become the exclusive licensee of the del-ID technology for
personal   identification   by   means  of   electronic   scanning   of   finger
characteristics.  3127575 Canada Inc.,  obtained these  exclusive  rights by the
Exclusive  License  Agreement  dated  November 12, 1997 between it and Pierre de
Lanauze, inventor of the del-ID technology.

         The  transaction was exempt from the  registration  requirements of the
Securities  Act of 1933 by virtue of Section  4(2)  thereof.  Also,  because the
12,848,300  shares  were  issued  solely to non-U.S.  persons,  the  transaction
qualified for exemption under Rules 901 et seq.
of Regulation S.

     Following the above  transaction the former  shareholders of 3127575 Canada
Inc. owned 92.78% of the outstanding shares of the Company.

         The del-ID  technology  permits precise and positive  authentication of
the  identity  of any living  individual  and is  applicable  to a wide range of
financial  transactions  where  authentication of the individual is necessary to
eliminate  fraud and other improper use of services.  The del-ID system collects
biological  data from the finger image of the individual and transfers the image
to a unique  electronic  signature called the "del-gram".  The del-gram is not a
digitized  bitmap image of the finger,  but a  synthesized  subset of biological
data sufficient to identify the individual.

         Patent  protection  is currently  pending for the del-ID  system in the
United States.  The International  Preliminary  Examination Report was issued in
accordance with the Patent Cooperation Treaty application (PCT) that included 82
countries.  The Examiner has recognized and acknowledged the inventive step, the
novelty  and the  industrial  applicability  by  accepting  all of the 11 claims
represented by the technology.



<PAGE>



         In April 1998, 3127575 Canada Inc. signed an agreement with the "Centre
de Recherche en Informatique de Montreal (CRIM)" for a scientific  evaluation of
the  technology.  The  evaluation  holds two  topics.  The  primary  one  covers
theoretical and accurate  applications.  The secondary covers the implementation
of a study  in a  controlled  laboratory  environment.  Here  are the  following
details of the laboratory :

-   The basic analysis of the technology ( technical specifications).
-   Practical applications in simulated commercial environment such as banking,
    telephony, e-commerce etc.

         The primary topic  analysis has been done by the CRIM in  collaboration
with a major American  University.  The positive results have been published and
shall be available soon on the delSecur web site at delsecur.com.

         The  secondary  topic is  presently  in the  making and will be done in
collaboration  with  majors  firms who are well  recognized  in their  fields of
activity.  These majors firms will sponsor part of the  implementation  costs of
the laboratory studies.  For the time frame and more details about this section,
we refer the reader to the delSecur web site.

         Commercial  applications  of the del-ID  technology  are  numerous  and
include access to the information highway/internet,  identification of employees
working  from a home  office  and  requiring  access  to  certain  databases  or
informations,  health cards, social insurance cards, drivers' licenses, passport
control  encryptions  and access to  confidential  files,  control of payment by
debit or credit payment systems such as credit cards, smartcards, authentication
of oral  telephone  ordering,  access  control to  sensitive  areas,  hotel room
access,   cellular  and  digital  telephone   controls,   automobile  entry  and
protection,  census and election control,  door locks, vault locks,  residential
alarm system controls,  timesheet  management,  student file management and many
others.

         The  Company  expects  to  encounter  substantial  competition  in  the
business  in which it  proposes  to  engage.  It is  likely  that the  competing
entities will have  significantly  greater  experience,  resources,  facilities,
contacts and managerial expertise than the Company and will, consequently, be in
a better  position  than the  Company  to obtain  access to and to engage in the
proposed  business.  Therefore it is to our advantage to associate  ourselves to
such major firms by gaining credibility and recognition.  This enables us to use
their know how, their resources and networking.

         The Company will not manufacture del-ID cards or card readers directly.
This  will  tend to  minimize  the  capital  requirements  of the  Company,  its
principal   activities   being   limited  to  marketing  the  del-ID  system  to
manufacturers and/or users  internationally.  Anticipated sources of revenue are
license fees payable by government agencies and corporate entities for the right
to  manufacture,  use or sell cards and card  readers  incorporating  the del-ID
system,  as well as royalty  payments by such  entities for each card and reader
employed in a del-ID  system.  We  anticipate  the first  commercial  revenue in
twelve months from the present.

         As of  February  28,  1999,  the  Company's  balance  sheet  showed  an
accumulated  deficit of  $2,755,822,  an increase  of  $868,978  during the nine
months.  Operations to date have been financed  principally by loans from senior
management  and others.  Additional  unsecured  loan  facilities  continue to be
available and are believed by management to be


<PAGE>



sufficient  to finance  operations  over the next  several  months,  pending the
anticipated  initial receipt of contract  revenues during the second half of the
1999 fiscal year. No financing  involving  the issuance of additional  shares is
presently contemplated.

         The  Company  had a net loss of  $204,562  for the three  months  ended
February 28, 1999 and a $868,978 loss for the nine months then ended.

         The Company will continue to seek marketing  opportunities  for product
licensing  with  governmental  agencies and  corporate  entities on a world-wide
basis.

         As the Company will be engaged in securing licensing  contracts for use
of its existing  del-ID  technology,  no  significant  expansion of the physical
plant,  equipment  or number of employees is foreseen for the period of the next
twelve months.

                                     PART II
                                OTHER INFORMATION

ITEM 6.           Exhibits and Report on Form 8-K

         None.

                                   SIGNATURES

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized

                                                    Grandeur, Inc.


Date:    13 April 1999                     By:                       
     ------------------------------           ---------------------------------
                                           Pierre de Lanauze, President,
                                           Chairman of the Board and Director



<PAGE>



                          GRANDEUR INC. AND SUBSIDIARY
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEET
                         (expressed in Canadian dollars)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       February 28,
                                                                           1999         
                                                                  ----------------------
ASSETS
     CURRENT ASSETS
<S>                                                               <C>                   
       Cash                                                       $                    0
       Sales taxes receivable                                                     93,309
       Prepaid expenses                                                           34,899
       Receivable-related party (non-interest bearing)                           131,186
       Receivable - officer (non-interest bearing)                               372,345
                                                                  ----------------------

                                      TOTAL CURRENT ASSETS                       631,739

OTHER ASSETS
     Property and equipment                                                      184,996
     License from related party                                                        1
                                                                                 184,997
                                                                  ----------------------

                                                                  $              816,736
                                                                  ======================

LIABILITIES & DEFICIT
     CURRENT LIABILITIES
       Bank overdraft                                             $               32,013
       Accounts payable                                                          374,332
       Accrued liabilities                                                        44,105
       Payable-related party (non-interest bearing)                              214,812
       Payable - officer                                                       1,413,300
       Loan payable                                                              271,487
                                                                  ----------------------

                                 TOTAL CURRENT LIABILITIES                     2,350,049

     Deferred income                                                               7,411

     STOCKHOLDERS' DEFICIT 
       Common Stock $.001 par value:
         Authorized - 100,000,000 shares
         Issued and outstanding 13,848,300 shares                                 19,715
       Additional paid-in capital                                              1,195,383
       Deficit accumulated during the development stage                       (2,755,822)
                                                                  ----------------------

                               TOTAL STOCKHOLDERS' DEFICIT                    (1,540,724)
                                                                  ----------------------

                                                                  $              816,736
                                                                  ======================
</TABLE>

                                      F - 1

<PAGE>



                          GRANDEUR INC. AND SUBSIDIARY
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                         (expressed in Canadian dollars)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                     Three Months Ended                  Nine Months Ended              From
                                                        February 28,                       February 28,             inception to
                                                   1999              1998             1999              1998           2/28/99    
                                               -------------    -------------     -------------    --------------  ---------------
<S>                                            <C>              <C>               <C>              <C>             <C>            
Net sales                                      $           0    $           0     $           0    $            0  $             0
Cost of sales                                              0                0                 0                 0                0
                                               -------------    -------------     -------------    --------------  ---------------

                                GROSS PROFIT               0                0                 0                 0                0

Other income                                               0                0                 0                 0            8,000

Depreciation and amortization                         16,534                0            44,099            50,512          134,045
Interest expense                                       9,200                0            17,200             7,900           42,376
Research and development                              26,931                0           255,228            62,581          490,554
General and administrative expenses                  151,897                0           552,451           503,992        2,053,581
                                               -------------    -------------     -------------    --------------  ---------------
                                                     204,562                0           868,978           624,985        2,720,556
                                               -------------    -------------     -------------    --------------  ---------------

                                    NET LOSS   $    (204,562)   $           0     $    (868,978)   $     (624,985) $    (2,712,556)
                                               =============    =============     =============    ==============  ===============
Net income (loss) per weighted
   average share                               $        (.01)   $         .00     $        (.06)   $         (.62)
                                               =============    =============     =============    ==============

Weighted average number of common
   shares used to compute net income
   (loss) per weighted average share              13,848,300        1,000,000        13,848,300         1,000,000
                                               =============    =============     =============    ==============
</TABLE>



                                      F - 2

<PAGE>



                          GRANDEUR INC. AND SUBSIDIARY
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS
                         (expressed in Canadian dollars)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                                         From
                                                                 Nine Months Ended February 28,      Inception to
                                                                     1999              1998             2/28/99    
                                                               ---------------    ---------------  ----------------
OPERATING ACTIVITIES
<S>                                                            <C>                <C>              <C>              
  Net (loss)                                                   $      (868,978)   $      (624,985) $     (2,712,556)
  Adjustments to reconcile net (loss) to cash used
     by operating activities:
       Depreciation                                                     44,099             50,512           134,045
       Provision on common control company advances                          0                  0           290,402
       Changes in assets and liabilities:
         Sales tax receivable                                           39,344            (40,335)          (93,309)
         Prepaid expenses                                              (28,079)           (25,344)          (34,899)
         Officer loan                                                   14,762           (215,860)         (372,345)
         Accounts payable                                              279,714            141,977           374,332
         Accrued liabilities                                           (54,095)            78,487            44,105
         Payable - related party                                        68,605             35,776           214,812
         Deferred income                                                 7,411                  0             7,411
                                                               ---------------    ---------------  ----------------
                                               NET CASH USED
                                     BY OPERATING ACTIVITIES          (497,217)          (599,772)       (2,148,002)

INVESTING ACTIVITIES
  Receivable - related party                                             6,463            112,067          (421,588)
  Purchase of property & equipment                                     (50,601)          (117,858)         (319,041)
                                                               ---------------    ---------------  ----------------

                                               NET CASH USED
                                     BY INVESTING ACTIVITIES           (44,138)            (5,791)         (740,629)

FINANCING ACTIVITIES
  Loan                                                                 168,500            115,000           581,850
  Loan repayment                                                      (162,136)                 0          (310,363)
  Loan from shareholder                                                      0            370,033         2,085,250
  Increase in bank overdraft                                            32,013             39,869            32,013
  Increase in paid-in capital                                          499,781                  0           499,781
  Sale of stock                                                              0                  0               100
                                                               ---------------    ---------------  ----------------


                                        NET CASH PROVIDED BY
                                        FINANCING ACTIVITIES           538,158            524,902         2,888,631
                                                               ---------------    ---------------  ----------------

                                            DECREASE IN CASH
                                        AND CASH EQUIVALENTS            (3,197)           (80,661)                0

Cash and cash equivalents at beginning of year                           3,197             80,661                 0
                                                               ---------------    ---------------  ----------------

                                   CASH AND CASH EQUIVALENTS
                                            AT END OF PERIOD   $             0    $             0  $              0
                                                               ===============    ===============  ================

Cash paid for interest                                         $        14,200    $         7,900  $         33,944
                                                               ===============    ===============  ================
</TABLE>



                                      F - 3