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 March 31, 1998

              o 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 March 31, 1998
$.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-4)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' 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 operation  and  financial  position  have been  included and all such
adjustments are of a normal recurring nature.  Operating results for the quarter
ended March 31, 1998 are not  necessarily  indicative of the results that can be
expected for the year ending December 31, 1998.


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 and in other major countries.


                                       2

<PAGE>



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  information,  health
cards,  social insurance cards,  drivers' licenses,  passport control encryption
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.  The
Company  may not be in a position to compete  with  larger and more  experienced
entities. Business opportunities in which the Company may ultimately participate
are likely to be very risky and extremely speculative.

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.

As of March 31, 1998, the Company's balance sheet showed an accumulated  deficit
of $1,072,956,  an increase of $138,795 during the first quarter.  Operations to
date have been financed  principally by loans from senior management and others.
Additional  unsecured loan facilities continued to be available and are believed
by  management  to be  sufficient  to finance  operations  over the next several
months,  pending the anticipated initial receipt of contract revenues during the
second half of the 1998 fiscal  year.  No  financing  involving  the issuance of
additional shares is presently contemplated.

The  Company  had a net loss of $138,795  for the three  months  ended March 31,
1998.

The Company will continue to seek marketing  opportunities for product licensing
with governmental agencies and corporate entities on 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.


                                       3


<PAGE>



ITEM 6.  Exhibits and Report on Form 8-K

The  Acquisition  Agreement  dated  February 25, 1998 and the Exclusive  License
Agreement  dated November 12, 1997 were included as exhibits to a report on Form
8-K filed by the  Company  on March 10,  1998 which  documents  and Form 8-K are
incorporated herein by reference.

Items addressed in the report on Form 8-K were:

         Item 1: Change in Control of Registrant
         Item 2: Acquisition or Disposition of Assets
         Item 6: Resignation of Directors
         Item 7: Financial Statements and Exhibits
         Item 9: Sale of Equity Securities Pursuant to Regulation S.


                                       4

<PAGE>




                                   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:  May 20, 1998                  By: /s/ Pierre de Lanauze
                                        ----------------------
                                     Pierre de Lanauze, President,
                                     Chairman of the Board and Director


                                       5

<PAGE>


                                 SMITH & COMPANY
                          A PROFESSIONAL CORPORATION OF
                          CERTIFIED PUBLIC ACCOUNTANTS

MEMBERS OF:                                 10 WEST 100 SOUTH, SUITE 700
AMERICAN INSTITUTE OF                       SALT LAKE CITY, UTAH 84101
     CERTIFIED PUBLIC ACCOUNTANTS           TELEPHONE:       (801) 575-8297
UTAH ASSOCIATION OF                         FACSIMILE:       (801) 575-8306
     CERTIFIED PUBLIC ACCOUNTANTS           E-MAIL: smith&co@smithandcocpa.com
--------------------------------------------------------------------------------





                          INDEPENDENT AUDITOR'S REPORT

The Board of Directors and Shareholders
Grandeur, Inc.

The accompanying  consolidated balance sheet of Grandeur, Inc. and subsidiary as
of March 31, 1998, and the related statements of operations,  and cash flows for
the three  months  ended  March 31,  1998 and 1997 were not  audited  by us and,
accordingly, we do not express an opinion on them.




                                                   /s/ Smith & Company
                                              CERTIFIED PUBLIC ACCOUNTANTS

Salt Lake City, Utah
May 21, 1998


                                      F - 1

<PAGE>



                          GRANDEUR INC. AND SUBSIDIARY
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                        March 31,
                                                                          1998
                                                                 ----------------------
ASSETS
   CURRENT ASSETS
<S>                                                              <C>                   
        Accounts receivable                                      $               87,068
        Prepaid expenses                                                         13,400
        Receivable-related party                                                 98,854
                                                                 ----------------------

                                    TOTAL CURRENT ASSETS                        199,322

OTHER ASSETS
   Property and equipment                                                       132,917
   License from related party                                                 1,000,000
                                                                 ----------------------
                                                                              1,132,917
                                                                 ----------------------

                                                                 $            1,332,239
                                                                 ======================

LIABILITIES & DEFICIT
   CURRENT LIABILITIES
        Cash overdraft                                           $                2,292
        Accounts payable and accrued liabilities                                 88,838
        Loans*                                                                1,401,065
        Payable-related parties                                                 912,568
                                                                 ----------------------

                               TOTAL CURRENT LIABILITIES                      2,404,763

   STOCKHOLDERS' DEFICIT 
        Common Stock $.001 par value:
            Authorized - 100,000,000 shares
            Issued and outstanding
             13,848,300 shares                                                   13,848
        Additional paid-in capital                                              (11,776)
        Deficit accumulated during the
            development stage                                                (1,074,596)
                                                                 ----------------------

                             TOTAL STOCKHOLDERS' DEFICIT                     (1,072,524)
                                                                 ----------------------

                                                                 $            1,332,239
                                                                 ======================
</TABLE>

* May be converted to equity.


                                      F - 2

<PAGE>



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


<TABLE>
<CAPTION>
                                                          Three Months Ended
                                                                March 31,
                                                         1998                1997
                                                 ------------------  ------------------
<S>                                              <C>                 <C>               
Net sales                                        $                0  $                0
Cost of sales                                                     0                   0
                                                 ------------------  ------------------

                          GROSS PROFIT                            0                   0

Depreciation and amortization                                13,078                   0
Interest expense                                              2,098                   0
Research and development                                     11,187                   0
General and administrative expenses                         112,432                   0
                                                 ------------------  ------------------

                              NET LOSS           $         (138,795) $                0
                                                 ==================  ==================
Net income (loss) per weighted
   average share                                 $             (.03) $              .00
                                                 ==================  ==================

Weighted average number of common
   shares used to compute net income
   (loss) per weighted average share                      5,282,767           1,000,000
                                                 ==================  ==================

Cash paid for interest                           $            2,098  $                0
                                                 ==================  ==================
</TABLE>


                                      F - 3

<PAGE>



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



<TABLE>
<CAPTION>
                                                                  Three Months Ended March 31,
                                                                     1998              1997
                                                               ---------------    ---------------
OPERATING ACTIVITIES
<S>                                                            <C>                <C>            
  Net (loss)                                                   $      (138,795)   $             0
  Adjustments to reconcile net (loss) to cash used
     by operating activities:
       Depreciation                                                     13,078                  0
       Changes in assets and liabilities                              (234,273)                 0
                                                               ---------------    ---------------
                                               NET CASH USED
                                     BY OPERATING ACTIVITIES          (359,990)                 0

INVESTING ACTIVITIES
  Organization costs                                                         0                  0
                                                               ---------------    ---------------

                                    NET CASH PROVIDED (USED)
                                     BY INVESTING ACTIVITIES                 0                  0

FINANCING ACTIVITIES
  Loan proceeds                                                        365,947                  0
  Loan repayments                                                       (7,043)                 0
  Overdraft of subsidiary                                               (1,206)                 0
                                                               ---------------    ---------------

                                        NET CASH PROVIDED BY
                                        FINANCING ACTIVITIES           357,698                  0
                                                               ---------------    ---------------

                                            DECREASE IN CASH
                                        AND CASH EQUIVALENTS            (2,292)                 0

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

                                   CASH AND CASH EQUIVALENTS
                                            AT END OF PERIOD   $        (2,292)   $             0
                                                               ===============    ===============
</TABLE>






                                      F - 4