FORM 10-QSB


                       SECURITIES AND EXCHANGE COMMISSION


                             WASHINGTON, D.C. 20549



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

                      For Quarter Ended September 30, 1996

                                       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: 2-96392-A

                          TRIANGLE IMAGING GROUP, INC.
             (Exact Name of Registrant as Specified in its Charter)

                               Florida 59-2493183
                 State or other jurisdiction of I.R.S. Employer
                incorporation or organization Identification No.

              12 South Penataquit Avenue, Bay Shore, New York 11706
               (Address of Principal Executive Office) (Zip Code)

                                  516-666-6890
               (Registrant's telephone number including area code)

         Indicate by check mark whether the registrant (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
registrant  was required to file such  reports) and (2) has been subject to such
filing requirements for the past 90 days.

                              Yes X           No

The number of shares of registrant's Common Stock, $.0007 par value, outstanding
as of September 30, 1996 was 3,957,165 shares.





<PAGE>



                          TRIANGLE IMAGING GROUP, INC.

                                      INDEX
<TABLE>
<CAPTION>

                                                                                                        Page
                                                                                                       Number
<S>                                                                                                     <C>

PART I - FINANCIAL INFORMATION:

         Item 1.  Financial Statements

                  Balance Sheet - September 30, 1996 and December 31, 1995.............................  1

                  Statement of Operations - For the Three Months and Nine Months Ended
                  September 30, 1996 and 1995..........................................................  2

                  Statement of Cash Flows - For the Nine Months Ended
                  September 30, 1996 and 1995..........................................................  3

                  Notes to Financial Statements........................................................  4

         Item 2.  Management's Discussion and Analysis.................................................  5

PART II - OTHER INFORMATION............................................................................. 6

SIGNATURES.............................................................................................  7

</TABLE>



















<PAGE>
                         PART 1 - FINANCIAL INFORMATION

Item 1.  Financial Statements

                          TRIANGLE IMAGING GROUP, INC.

                                  BALANCE SHEET

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                 September 30,          December 31,
                                                                     1996                   1995
                                                              ------------------     ------------------

                                     ASSETS
<S>                                                          <C>                    <C>
CURRENT ASSETS:
     Cash                                                    $               286    $             1,371
                                                              ==================     ==================



                        LIABILITIES AND DEFICIT IN ASSETS

CURRENT LIABILITIES:
     Accrued expenses                                        $            51,630    $            32,211
     Due to stockholders                                               -                         15,000
                                                              ------------------     ------------------
                                                                          51,630                 47,211
                                                              ------------------     ------------------


DEFICIT IN ASSETS:
     Preferred stock, no par,
     authorized 1,000,000 shares:  100,000 shares
         issued and outstanding                                           10,000                 10,000
     Common stock, $.0007 par value,
     authorized 100,000,000 shares: 3,957,165 and 1,507,126
       issued and outstanding                                              2,771                  2,445
     Paid-in capital                                                   1,548,200              1,481,774
     Accumulated deficit                                              (1,600,200)            (1,527,944)
     Treasury stock - at cost                                            (12,115)               (12,115)
                                                              ------------------     ------------------
            TOTAL DEFICIT IN ASSETS                                      (51,344)               (45,840)
                                                              ------------------     ------------------

                                                             $               286    $             1,371
                                                              ==================     ==================


</TABLE>












                       See notes to financial statements.
                                       -1-
<PAGE>


                          TRIANGLE IMAGING GROUP, INC.

                             STATEMENT OF OPERATIONS

                                   (Unaudited)

<TABLE>
<CAPTION>

                                                        Three Months Ended                       Nine Months Ended
                                                           September 30,                            September 30,
                                                -----------------------------------     -----------------------------------
                                                     1996                1995                   1996              1995
                                                ----------------   ----------------     ----------------   ----------------
<S>                                            <C>                <C>                  <C>                 <C>

REVENUES                                       $        -         $         -          $           -      $        -          
                                                ----------------   ----------------     ----------------   ----------------

EXPENSES:

     Non-cash imputed compensation expense              -                   -                     13,250            388,000
     Operating                                            14,210              5,920               24,006             60,117
     Litigation settlement                                35,000            -                     35,000           -
                                                ----------------   ----------------     ----------------   ----------------
                                                          49,210              5,920               72,256            448,117
                                                ----------------   ----------------     ----------------   ----------------

NET (LOSS)                                     $         (49,210) $          (5,920)   $         (72,256) $        (448,117)
                                                ================   ================     ================   ================

NET (LOSS) PER SHARE                           $           (0.01) $           (0.00)   $           (0.02) $           (0.38)     
                                                ================   ================     ================   ================

WEIGHTED AVERAGE SHARES OUTSTANDING                    3,907,165          1,507,125            3,748,276          1,167,959
                                                ================   ================     ================   ================

</TABLE>































                       See notes to financial statements.
                                       -2-
<PAGE>
                          TRIANGLE IMAGING GROUP, INC.

                            STATEMENT OF CASH FLOWS

                                  (Unaudited)

<TABLE>
<CAPTION>

                                                                   Nine Months Ended
                                                                      September 30,
                                                          -----------------------------------
                                                                1996               1995
                                                          ----------------   ----------------
<S>                                                      <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                         $        (72,256)  $       (448,117)
        Adjustments to reconcile net loss to net cash
                provided by operating activities:
                        Non-cash imputed expenses                  48,250            388,000

Changes in assets and liabilities:
        Increase (decrease) in due to shareholders                (15,000)            49,821
        Increase (decrease) in accrued expenses                    19,421             10,306
                                                          ----------------   ----------------
CASH FLOWS FROM OPERATING ACTIVITIES                              (19,585)                10

CASH FLOWS FROM FINANCING ACTIVITIES:
        Issuance of common stock to cancel indebtedness            18,500                -
                                                          ----------------   ----------------
NET INCREASE (DECREASE) IN CASH                                    (1,085)                10

CASH - BEGINNING OF PERIOD                                          1,371                -
                                                          ----------------   ----------------
CASH - END OF PERIOD                                     $            286   $             10
                                                          ================   ================

</TABLE>























                       See notes to financial statements.
                                      -3-
<PAGE>










                          TRIANGLE IMAGING GROUP, INC.

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)


1.       BASIS OF PRESENTATION

                  The accompanying  financial statements reflect all adjustments
         which,  in  the  opinion  of  management,  are  necessary  for  a  fair
         presentation   of  the  financial   position  for  the  interim  period
         presented.

                  Certain  financial  information  which is normally included in
         financial  statements  prepared in accordance  with generally  accepted
         accounting principles,  but which is not required for interim reporting
         purposes has been  condensed  or omitted.  The  accompanying  financial
         statements should be read in conjunction with the financial  statements
         and notes  thereto as of December 31, 1995  contained in the  Company's
         Annual Report on Form 10- KSB.

2.       EARNING (LOSS) PER SHARE

                  Per  share  information  is  computed  based  on the  weighted
         average number of shares outstanding during the period.

3.       LITIGATION SETTLEMENT

                  During the three  months ended  September  30, 1996 a total of
         350,000  shares  of  common  stock  were  issued  as an  out  of  court
         settlement  in  the  lawsuit  by  Medical   Literature  Review  against
         Triangle.  Such shares were valued at their market value (bid price) on
         the date of  issuance  resulting  in a  non-cash  charge  to  income of
         $35,000.

4.       SHARES ISSUED TO CANCEL INDEBTEDNESS

                  In September  1996 the Company issued 350,000 shares of common
         stock to its  Chairman/President  in exchange for the  cancellation  of
         indebtedness totaling $18,500.

5.       CANCELLATION OF SHARES

                  During the three  months ended  September  30, 1996 a total of
         500,000 shares of common stock were  canceled.  Since these shares were
         issued as part of the  consideration  for the  "Transfer of  Technology
         Agreement"  between  Triangle  and Pegasus  Technologies,  the Board of
         Directors  has  determined  that these  shares are  canceled due to the
         "Recision Agreeement" concerning the Technology Transfer Agreement.

                                       -4-

<PAGE>









ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS


Results of Operations

         A total of  350,000  shares of common  stock  were  issued as an out of
court  settlement in the lawsuit by Medical  Literature  Review against Triangle
during the quarter  ended  September  30, 1996.  Such shares have been valued at
their market value (bid price) on the date of issuance.

         During the three months ended September 30, 1996, the Company  incurred
a net loss of $49,210 which consisted of a non-cash  imputed charge to income of
$35,000  for the shares  issued to Medical  Literature  Review and  general  and
administrative expenses of $14,210. The loss for the nine months ended September
30,  1996 was  $72,256  which is  attributable  to $48,250 of  non-cash  imputed
charges and $24,006 in general and administrative expenses.

Liquidity and Capital Resources

         As of September 30, 1996, the Company had $286 in cash. During the nine
months ended September 30, 1996, a principal shareholder funded a portion of the
Company's expenses through short-term non-interest bearing advances.

         A total of 350,000  shares of common stock were issued to the Company's
Chairman/President in exchange for the cancellation of indebtedness.
















                                       -5-

<PAGE>









PART II - Other Information

Item 6.           Exhibits and Reports on Form 8-K

         A.       Exhibits

                  None.

         B.       Reports on Form 8-K

                  None.




























                                       -6-

<PAGE>








                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.



                                            TRIANGLE IMAGING GROUP, INC.


Date:10/30/1996                By:s\ Vito Bellezza_______
                                Vito Bellezza
                                President


























                                       -7-