UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                FORM 10-QSB

[X]         QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                    THE SECURITIES EXCHANGE ACT OF 1934

                   For the Quarter Ended March 31, 1998

                                    OR

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934

         For the transition period from            to            

                     Commission File Number  333-29903

                            AMMONIA HOLD, INC.
     (Exact name of small business issuer as specified in its charter)

            Utah                              75-2337459
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)           Identification No.)

                 10 Gunnebo Drive, Lonoke, Arkansas  72086
                 (Address of principal executive offices)

Registrant's telephone no., including area code:  (501) 676-2994

     Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes   X   No       

                   APPLICABLE ONLY TO CORPORATE ISSUERS

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

              Class           Outstanding as of March 31, 1998

Common Stock, $.001 par value                7,538,828
<PAGE>

                             TABLE OF CONTENTS

Heading                                                    Page  
                      PART I.  FINANCIAL INFORMATION

Item 1.   Consolidated Financial Statements. . . . . . .    1

          Consolidated Balance Sheets -- March 31, 1998
            and June 30, 1997. . . . . . . . . . . . . .    2

          Consolidated Statements of Operations -- three and 
            nine months ended March 31, 1998 and 1997. .    4

          Consolidated Statements of Stockholders' Equity   5

          Consolidated Statements of Cash Flows -- nine 
            months ended March 31, 1998 and 1997 . . . .    6

          Notes to Consolidated Financial Statements . .    8

Item 2.   Management's Discussion and Analysis and
            Results of Operations. . . . . . . . . . . .    9

                        PART II. OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . .   11

Item 2.   Changes In Securities. . . . . . . . . . . . .   11

Item 3.   Defaults Upon Senior Securities. . . . . . . .   11

Item 4.   Submission of Matters to a Vote of
            Securities Holders . . . . . . . . . . . . .   11

Item 5.   Other Information. . . . . . . . . . . . . . .   12

Item 6.   Exhibits and Reports on Form 8-K . . . . . . .   12

          SIGNATURES . . . . . . . . . . . . . . . . . .   13








                                    -i-
<PAGE>

                                  PART I

Item 1.   Financial Statements

     The following unaudited Financial Statements for the period
ended March 31, 1998, have been prepared by the Company.















                            AMMONIA HOLD, INC.


                     CONSOLIDATED FINANCIAL STATEMENTS

                     March 31, 1998 and June 30, 1997
<PAGE>

                     Ammonia Hold, Inc. and Subsidiary
                        Consolidated Balance Sheets

                                  ASSETS

                                   March 31,     June 30,  
                                     1998          1997               
CURRENT ASSETS                   (unaudited)     (audited)            
  
  Cash and cash equivalents       $2,671,651    $3,224,211          
  Accounts receivable net of 
    allowance for doubtful accounts
    of $14,186 and $14,186           315,701       120,339      
  Prepaid expenses                    34,050        29,950      
  Prepaid consulting fees            317,325       334,482      
  Inventory                          307,307       198,915      
  Tax benefit receivable               5,000         5,000     

       Total Current Assets        3,651,034     3,912,897     

PROPERTY, PLANT AND EQUIPMENT

Depreciable assets-net of 
  accumulated depreciation           908,279       519,073      
Land                                 226,600       226,600              

    Total Property, Plant 
      and Equipment                1,134,879       745,673     

OTHER ASSETS

Building fund                           -             -         
Patents-net of accumulated
   amortization of $183,121 
   and $145,269                      456,277       480,074     
Prepaid consulting fees-non 
  current portion                      1,425           900     
Deposits                                -           16,200    

    Total Other Assets               457,702       497,174     

  TOTAL ASSETS                    $5,243,615    $5,155,744     


                                (continued)
<PAGE>

                    Ammonia Hold, Inc. and Subsidiary
                       Consolidated Balance Sheets
                               (continued)

                   LIABILITIES AND STOCKHOLDERS  EQUITY

                                  March 31,    June 30,              
                                    1998         1997            
CURRENT LIABILITIES              (unaudited)   (audited)              
                                                                               

  Accounts payable                $   99,691    $ 85,200         
  Accrued payroll taxes                2,077        -           
  Income tax payable                    -           -        

    Total Current Liabilities        101,768      85,200      

STOCKHOLDERS  EQUITY

  Series A convertible preferred 
    stock, $.001 par value;
    25,000,000 shares authorized;
    3,000 shares issued and
    outstanding                         -              3                    
                                                                  
  Common stock, par value $.001, 
    authorized shares 100,000,000:
    7,538,828 and 4,559,415 shares
    issued and outstanding             7,539       4,559                   
  Paid in capital - preferred           -      2,624,997                  
                                                                           
  Paid in capital - common         9,190,523   6,568,503                 
  Accumulated deficit             (4,033,995) (4,127,518)     
    Less Treasury Stock              (22,220)       -     

    Total Stockholders  Equity     5,141,847   5,070,544      

TOTAL LIABILITIES AND 
    STOCKHOLDERS  EQUITY          $5,243,615  $5,155,744      





<PAGE>
                     Ammonia Hold, Inc. and Subsidiary
                   Consolidated Statements of Operations
                                                                           
                        For the Three Months Ended  For the Nine Months Ended
                                  March 31,                  March 31,   
                               1998       1997            1998        1997
                          (unaudited) (unaudited)     (unaudited) (unaudited)
Sales - Net of Allowances           
    And Discounts          $  360,236  $  270,550      $  849,103  $  905,628

Cost of Sales                 173,293     191,320         432,436     672,491

Gross Profit                  186,943      79,230         416,667     233,137

General & Administrative      149,585     206,082         424,372     922,001 

Other Income                   31,205      14,564         101,228      48,386 

Income (Loss) Before 
    Income Taxes               68,563    (112,288)         93,523    (640,478)

Provisions (Benefit)
    for Income Taxes             -           -               -         (5,000)

Net Income (Loss)              68,563    (112,288)         93,523    (635,478)

Net Income (Loss) per Share $    .009   $   (.025)      $    .017   $    (.14)

Weighted Average
 Outstanding Shares         7,349,728   4,485,803       5,489,519   4,525,503 
<PAGE>
<TABLE>
                     Ammonia Hold, Inc. and Subsidiary
              Consolidated Statements of Stockholders  Equity
                 From July 1, 1995 through March 31, 1998

                            Preferred Stock                Common Stock  
<CAPTION>
<S>                    <C>      <C>    <C>          <C>        <C>       <C>       <C>         <C> 
                                       Additional                        Additional            Retained
                                       Paid-in                           Paid-in   Treasury    Earnings
                       Shares   Amount Capital      Shares     Amount    Capital   Stock       (Deficit)
Balance on June 30, 
 1995                    -        -          -      3,399,078  $3,399    $773,863  $   -       $ (274,192)

Issued common stock 
 for land                -        -          -         41,200      41     226,559      -             - 

Issued common stock for
 consulting services     -        -          -        117,000     114     643,383      -             - 

Issued common stock for
 licensing agreement
 and cash                -        -          -        200,000     200   1,099,800      -             -   

Issued shares in 
 exchange for the 
 cancellation of
 options                 -        -          -        110,000     110     480,590      -             -  

Net income (loss) for 
 the year ended June 
 30, 1996                -        -          -           -       -           -         -       (1,072,006)

Balance on June 
 30, 1996                -        -          -      3,867,278   3,867   3,224,195      -       (1,346,198)

Issued common stock
 for patent              -        -          -         35,714      36     199,964      -             - 

Issued common stock
 for cash                -        -          -        488,666     488     499,512      -             - 

Issued common stock
 for cash                -        -          -         76,923      77     499,923      -             - 

Issued common stock
 for cash                -        -          -         90,834      91     544,909      -             - 

Issued preferred 
 stock for cash         3,000     3     2,624,997        -       -           -         -             - 

Deemed dividend          -        -          -           -       -      1,600,000      -       (1,600,000)

Net loss for the year 
 ended June 30, 1997     -        -          -           -       -           -         -       (1,181,320)

Balance on June 30, 
 1997                   3,000     3     2,624,997   4,559,415   4,559   6,568,503      -       (4,127,518)

Company purchase of
 Treasury Stock          -        -          -           -       -           -      (22,220)         -  

Conversion of
 Preferred stock       (3,000)   (3)   (2,624,997)  2,979,413   2,980   2,622,020      -             - 

Net Income for the
 Nine months ended
 March 31, 1998
 (unaudited)             -        -          -           -       -           -         -           93,523

Balance March 31,
 1998                    -      $ -   $      -      7,538,828  $7,539  $9,190,523  $(22,220)  $(4,033,995)
</TABLE>
<PAGE>

                        Ammonia Hold, Inc. and Subsidiary
                    Consolidated Statements of Cash Flows

                             For the Nine months  For the Nine months
                               ended March 31,     ended March 31, 
                                      1998              1997          
                                  (unaudited)       (unaudited)     
Cash Flows from Operating Activities:

Net income (loss)                  $   93,523       $ (635,478)
Non-cash item:
    Depreciation                       22,200           23,674 
    Amortization                       23,797           27,741 
    Bad Debt expense                     -                -    
    Write off license agreement          -                -    
    Stock issued for services            -                -    
    Consulting expense                   -                -    
Changes in current assets 
  and liabilities:
    (Increase)decrease in:
       Accounts receivable           (195,362)         (27,562)
       Prepaid expense/deposits        28,732          622,175 
       Inventories                   (108,392)          (2,147)
    Increase (decrease) in:
       Accounts payable                14,491          115,159 
   Accrued liabilities                  2,077          (10,597)

         Net cash provided (used) by
          operating activities       (118,934)         112,965 

Cash flows from investing activities:

  Purchase Patent                        -            (237,346)
  Purchase of property and equipment (411,406)            -    
  Purchase of Treasury Stock          (22,220)        (492,648)

        Net cash provided (used) by
         Investing activities        (433,626)        (729,994)

Cash flows from financing activities:
   Issuance of preferred stock           -                -    
   Issuance of common stock              -           1,545,000 

      Net cash provided (used) by
       Financing activities              -           1,545,000 

   Increase (decrease) in Cash       (552,560)         927,971

Cash and Cash Equivalent at 
  beginning of period               3,224,211          349,494 

Cash and Cash Equivalent at 
  end of period                   $ 2,671,651      $ 1,277,465 
                                 (continued)


                      Ammonia Hold, Inc. and Subsidiary
                    Consolidated Statements of Cash Flows
                                 (continued)


                                      For the Nine months  For the Nine months
                                        ended March 31,      ended March 31,   
                                              1998                1997   

SUPPLEMENTAL DISCLOSURES
   OF CASH FLOW INFORMATION

     Cash paid for interest                  $    -            $    -
     Cash paid for income tax                $    -            $    -    

NON CASH FINANCING ACTIVITIES

    Issued stock for consulting services     $    -            $   -        
      Issued stock for land                       -                -    
      Issued stock for licensing agreement        -                -   
      Issued stock for patent                $    -            $   -    

<PAGE>

                                   Ammonia Hold, Inc. and Subsidiary
                              Notes to Consolidated Financial Statements
                                       

NOTE 1 - INTERIM FINANCIAL STATEMENTS

     Management has elected to omit all the disclosures for the interim
     financial statements ended December 31, 1997 but has made all the 
     necessary adjustments to present accurate financial statements for
     the six months presented.


UNAUDITED INFORMATION

     The information furnished herein was taken from the books and records of
     the Company without audit.  However, such information reflects all
     adjustment which are, in the opinion of management, necessary to properly 
     reflect the results of the interim period presented.  The information 
     presented is not necessarily indicative of the results from operations 
     expected for the full fiscal year.
<PAGE>

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

     The following table sets forth the percentage relationship to
sales of principal items contained in the Company's Statements of
Operations for the three month and nine month periods ended March
31, 1998 and 1997.  It should be noted that percentages discussed
throughout this analysis are stated on an approximate basis.

                           Three Months Ended Nine Months Ended
                                March 31,            March 31, 
                             1998      1997       1998     1997
                               (Unaudited)         (Unaudited)
Sales. . . . . . . . . .      100 %    100 %       100 %   100 %
Cost of sales. . . . .         48       71          51      74  
Gross profit . . . . . .       52       29          49      26  
General and Administrative
  expenses . . . . . . .       42       76          50     102  
Other income . . . . . .        9        5          12       5  
Income (loss) before
  income taxes . . . . .       19      (42)         11     (71) 
Provisions (benefit) for
  income taxes . . . . .        -        -           -      (1) 
Net income . . . . . . .       19      (42)         11     (70) 
                              

Results of Operations

    Total sales, net of allowances and discounts, for the three
month period ended March 31, 1998 ("third quarter of fiscal 1998")
increased 33% from the third quarter of fiscal 1997 due to new
customer shipments, and decreased 6% for the nine month period
ended March 31, 1998 ("first nine months of fiscal 1998") compared
to the 1997 period,  due to decreased orders from one customer. 
Cost of sales (as a percentage of total revenues) decreased to 48%
for the third quarter of fiscal 1998, from 71% for the third
quarter of fiscal 1997, and decreased to 51% for the first nine
months of fiscal 1998 from 74% for the comparable 1997 period. 
These percentage decreases for the 1998 periods are the result of
more efficient packaging and distribution procedures and a higher
margin product mix.  Actual cost of sales decreased 9% for the
third quarter of fiscal 1998 and 36% for the first nine months of
fiscal 1998 compared to the corresponding 1997 periods also due to
more efficient packaging and distribution and higher margin product
mix.

<PAGE>
    General and administrative expenses for third quarter and
first nine months of fiscal 1998 decreased 27% and 54%,
respectively, when compared to the corresponding 1997 periods,
primarily attributed to the one-time write-off of consulting fees
in the 1997 periods.  As a percentage of total revenues, general
and administrative expenses decreased from 76% for the third
quarter of fiscal 1997 to 42% for the third quarter of fiscal 1998,
and from 102% for the first nine months of fiscal 1997 to 50% for
the first nine months of fiscal 1998.

    Other income increased to $31,205 (114%) for the third quarter
of fiscal 1998 from $14,564 for the 1997 period, and also increased
to $101,228 (109%) for the first nine months of fiscal 1998 from
$48,386 for the 1997 period due to interest income from cash
balances.  The net profit for the third quarter and first nine
months of fiscal 1998 increased to $68,563 and $93,523,
respectively, as compared with losses of $112,288 and $635,478 for
the respective corresponding 1997 periods. 

Liquidity and Capital Resources

    Historically, the Company's working capital needs have been
satisfied by operations and financing activities through the sale
of securities.  Working capital at March 31, 1998 was $3,549,266,
a decrease from $3,827,697 at June 30, 1997, primarily attributed
to the $552,560 (17%) decrease in cash due to cash used for the
purchase of property and equipment of $411,406, and increases in
accounts payable of $195,362 due to increased raw material and
packaging supplies necessary for increased orders, and inventories
of $108,392 due to the necessity of having sufficient finished
product available for shipments. 

    Net cash used by operating activities for the first nine
months of fiscal 1998 was $118,934 compared to net cash provided of
$112,,965 for the comparable 1997 period.  This change is primarily
attributed to the increases in accounts receivable and inventories
during the 1998 period and due to the significant increase in
prepaid expenses and deposits and the increase in accounts payable
during the 1997 period.  Net cash provided by financing activities
for the first nine months of fiscal 1998 was $0 compared to
$1,545,000 for the 1997 period, realized from the issuance of
common stock.  Also during the first nine months of 1998, the
Company issued a total of 2,979,413 shares of common stock upon the
conversion of preferred stock.

    The Company anticipates meeting its working capital needs
during the next twelve months primarily with revenues from
operations resulting from increased marketing activities related to
the Company's products.  Management has not entered into any new
arrangements or definitive agreements for additional private
placement of securities and/or a public offering.  If the Company's
operations are not adequate to fund its operations and it is unable
to secure financing from the sale of its securities or from private
lenders, the Company could experience a cash flow shortage which
could curtail the Company's operations.

    As of March 31, 1998, the Company had total assets of
$5,243,615 and total stockholders' equity of $5,141,847.  In
comparison, as of June 30, 1997, the Company had total assets of
$5,155,744 and total stockholders' equity of $5,070,544.  This
increase in total assets for the first nine months of fiscal 1998
is primarily due to increased inventories and accounts receivable
and the acquisition of property and equipment during the period.

    In the opinion of management, inflation has not had a material
effect on the operations of the Company.

                                  PART II

Item 1.  Legal Proceedings

    There are presently no other material pending legal
proceedings to which the Company or any of its subsidiaries is a
party or to which any of its property is subject and, to the best
of its knowledge, no such actions against the Company are
contemplated or threatened.

Item 2.  Changes In Securities

    During the third quarter of 1998, the Company issued a total
of 2,979,413 shares of its authorized but previously unissued
common stock to 24 persons upon the conversion of certain preferred
stock.  The Company did not receive any cash related to the
issuance.  As of the date hereof, no shares of convertible
preferred stock remain outstanding.

Item 3.  Defaults Upon Senior Securities

    This Item is not applicable to the Company.

Item 4.  Submission of Matters to a Vote of Security Holders

    This Item is not applicable to the Company.



Item 5.  Other Information

    This Item is not applicable to the Company.

Item 6.  Exhibits and Reports on Form 8-K

    (a)  Exhibit 27 - Financial Data Schedules

    (b)  Reports on Form 8-K

         No report on Form 8-K was filed by the Company during the
         three month period ended March 31, 1998.
<PAGE>

                                SIGNATURES
                                     

    In accordance with the requirements of the Securities Exchange
Act of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                       AMMONIA HOLD, INC.



Date:  May 18, 1998                    By       /S/ Michael D. Parnell   
                                                 (Signature)
                                       MICHAEL D. PARNELL,
                                       President and Director



Date:  May 18, 1998                    By       /S/ Dan N. Thompson     
                                                 (Signature)
                                       DAN N. THOMPSON, Secretary,
                                       Treasurer, Chief
                                       Financial Officer and
                                       Director
                                       (Principal Accounting
                                        Officer)