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 September 30, 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 [X ] Yes [ ] 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 September 30, 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'  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  operations  and  financial  position have been included and all such
adjustments are of a normal recurring nature.

Operating  results  for  the  nine  months  ended  September  30,  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, although it has
been investigating a number of possible situations.

During the six months ended June 30, 1997, the Company received $1,000,000 which
is being held in escrow. 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.

The loss for the  three  months  ended  September  30,  1997  was  $9,740  which
consisted of various administrative expenses. The loss for the nine months ended
September  30,  1997 was  $19,010  consisting  of  administrative  expenses  and
expenses to find a viable business opportunity.

As of November,  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

                                        2

<PAGE>



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 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 September 30, 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:   November 19, 1997         /s/ Pierre-Paul Lalonde
                                   Pierre-Paul Lalonde, President and Director



                                        4

<PAGE>

                                   EGRET, INC.
                          (A Development Stage Company)
                                  BALANCE SHEET
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       September 30,
                                                                           1997
                                                                  ----------------------
ASSETS
     CURRENT ASSETS
<S>                                                               <C>                   
         Cash in bank                                             $                    0
         Prepaid expense                                                          15,714
                                                                  ----------------------

                                      TOTAL CURRENT ASSETS                        15,714

OTHER ASSETS
     Organization costs                                                                0
                                                                                       0
                                                                  ----------------------

                                                                  $               15,714
                                                                  ======================

LIABILITIES & (DEFICIT)
     CURRENT LIABILITIES
         Accounts payable                                         $               14,054
         Accounts payable - related parties                                       10,670
                                                                  ----------------------

                                 TOTAL CURRENT LIABILITIES                        24,724

     STOCKHOLDERS' (DEFICIT) 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                                                  (26,010)
                                                                  ----------------------

                             TOTAL STOCKHOLDERS' (DEFICIT)                        (9,010)
                                                                  ----------------------

                                                                  $               15,714
                                                                  ======================
</TABLE>


                                       F-1

<PAGE>

                                   EGRET, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                                      4/16/86
                                                        Three Months Ended              Nine Months Ended            (Date of
                                                           September 30,                  September 30,            inception) to
                                                        1997           1996           1997            1996            9/30/97
                                                   -------------  --------------  -------------  -------------  ------------------
<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

General and administrative expenses                        9,740               0         19,010              0              26,010
                                                   -------------  --------------  -------------  -------------  ------------------

                                         NET LOSS  $      (9,740) $            0  $     (19,010) $           0  $          (26,010)
                                                   =============  ==============  =============  =============  ==================

Net income (loss) per weighted
     average share                                 $         .00  $          .00  $        (.01) $         .00
                                                   =============  ==============  ============== =============

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


                                       F-2

<PAGE>

                                   EGRET, INC.
                          (A Development Stage Company)
             STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                                   (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                                                                                         (19,010)
                                               ---------------    --------------    -----------------    --------------

Balances at 9/30/97                                  2,500,000    $        2,500    $          14,500    $      (26,010)
                                               ===============    ==============    =================    ==============
</TABLE>


                                       F-3

<PAGE>

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


<TABLE>
<CAPTION>
                                                                                                               4/16/86
                                                                                                              (Date of
                                                                     Nine Months Ended September 30,      Inception) to
                                                                        1997                 1996              9/30/97
                                                                 ------------------    ----------------   ---------------
OPERATING ACTIVITIES
<S>                                                              <C>                   <C>                <C>             
   Net (loss)                                                    $          (19,010)   $              0   $       (26,010)
   Adjustments to reconcile net (loss) to cash used
       by operating activities:
           Stock issued for expenses                                              0                   0             5,000
           Amortization                                                           0                   0                50
   Changes in assets and liabilities:
       Prepaid expenses                                                      (5,714)                  0            (5,714)
       Accounts payable                                                      24,724                   0            24,724
                                                                 ------------------    ----------------   ---------------
                                                 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