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 period ended September 30, 1996

[   ]   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:     0-16052  

                       	Quadrax Corporation		
         (Exact name of registrant as specified in its charter)


                Delaware                		           05-0420158		
       (State or other jurisdiction of 	          (I.R.S. Employer 
        incorporation or organization)	            Identification Number)

          	 300 High Point Avenue   Portsmouth, Rhode Island      02871			 
            (Address of principal executive offices)            (Zip Code)

                                  (401) 683-6600		                
             (Registrant's telephone number, including area code)

					
   (Former name, former address and former fiscal year, if changed since
   last report)

  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__

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

 	Class                                	Outstanding at October 25, 1996
 	Common Stock, par value              	28,112,875 shares
 	$.000009 per share



                         QUADRAX CORPORATION 


                         INDEX TO FORM 10-QSB


	Part I - Financial Information                               	Page
	

  Item 1  Condensed Consolidated Financial Statements
                                          
          Condensed Consolidated Balance Sheets at
          September 30, 1996 and at December 31, 1995           3-4


          Condensed Consolidated Statements of Operations
          for the three and nine months ended
          September 30, 1996 and September 30, 1995              5


          Condensed Consolidated Statements of Cash Flows
          for the nine months ended September 30, 1996 and
          September 30, 1995                                     6-7


          Notes to Condensed Consolidated Financial
          Statements                                             8-9


  Item 2  Management's Discussion and Analysis of
          Financial Condition and Results of Operations          10-15


	Part II - Other Information	

  Item 6  Exhibits and Reports on Form 8-K                       16

  Signatures                                                     17
		



                              Quadrax Corporation

                             Consolidated Balance Sheets
                                   (Unaudited)

                                        ASSETS

     	                              September 30,	           December 31,
	                                        1996		                 1995
                                    -------------            ------------
Current assets:

Cash and cash equivalents, 
  including $100,000 and 	
  $481,146 of restricted cash, 
  respectively	                     	$ 653,672               	$ 2,613,555
  Accounts receivable, net of 
  allowances for doubtful 
  accounts of $24,000	              	1,161,336	                 1,265,301
  Inventories	                       1,755,050	                 1,466,813
  Other current assets	                208,470	                   134,197
				                                 ---------	                 ---------
            TOTAL CURRENT ASSETS	   	3,778,528	                 5,479,866
				                                 ---------                  ---------
		
Property and equipment, at cost: 			
  Machinery and equipment           	3,431,302	                 3,319,881
  Office equipment		                   900,224	                   851,160
  Leasehold improvements            	1,087,482               	  1,071,532
  Construction-in-progress          	1,284,389	                      	  0
			                                 	---------	                 ---------
			                                 	6,703,397	                 5,242,573
Less accumulated depreciation 
  and amortization                 		3,455,004	                 3,000,093
		                              	   	---------	                 ---------
       NET PROPERTY AND EQUIPMENT    3,248,393	                 2,242,480

Goodwill, net of amortization 
  of $5,927 at September 30, 199	      112,626                    118,553

Other assets	  		                      289,626	                   267,855

License agreement, net of 
  amortization of $210,000 
  and $120,000, respectively	          390,000	                   480,000

Deferred assets, net of 
  amortization of $68,428 
  and $61,912, respectively	           233,452	                   211,498
			                                 ----------	                 ----------
	                   TOTAL ASSETS	   $8,052,625                  $8,800,252
				                                ===========                 ==========
		


                                See accompanying notes. 





                                Quadrax Corporation

                           Consolidated Balance Sheets
                                         (Unaudited)


                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                				September 30,	        	December 31,
			                                     	1996		              	1995
			
Current liabilities:			
  Accounts payable                		$    986,602	         	$    870,988
  Accrued expenses		                   1,011,552	  	          1,200,779
  Notes payable to related party		             0		              300,000
  Notes payable 			                    1,017,362	             1,114,301
				                                   ----------		           ---------
          TOTAL CURRENT LIABILITIES	   3,015,516		            3,486,068

Long-term debt less current portion		    397,443                356,034

Convertible debentures payable		               0		            2,250,000
				                                  ----------		            ---------
                TOTAL LIABILITIES		    3,412,959		            6,092,102
                                				  ----------		            ---------

Stockholders' equity:

  Original convertible
    preferred stock 	                          0		                   6
  Class A Series B convertible 
    preferred stock		                  2,334,000			                   0
  Common stock			                            254		                  160
  Additional paid-in capital	         62,733,544             57,179,364
  Retained earnings (deficit)	       (58,269,216)	          (53,088,602)
				                                 ------------		         ------------
				                                   6,798,582	             4,090,928

Less:			
  Treasury stock, at cost	            (1,091,969)		          (1,043,009)
  Unearned compensation and
   deferred expenses                   	(545,587)              (339,769)
  Notes receivable for the
   exercise of stock options            (521,360)	                    0
                                      ----------              ---------
       TOTAL STOCKHOLDERS' EQUITY     	4,639,666             	2,708,150
                                      ----------              ---------
       TOTAL LIABILITIES
         AND STOCKHOLDERS EQUITY      $8,052,625             $8,800,252
                                      ==========             ==========


                          See accompanying notes.




                            Quadrax Corporation

                 Condensed Consolidated Statements of Operations
	
                                       (Unaudited) 

                	   Three Months 	  Three Months 	    Nine Months   Nine Months
	                      Ended           	Ended          	Ended        	Ended 
	                    September    	  September        	September     September 
	                    30, 1996         30,	1995         30, 1996      30, 1995
	 
                   --------------   -------------    ------------  -----------
Revenue:									
 Sales                   $723,082    	$1,160,994    	$2,650,426   	$3,470,059
 Interest income	          17,145          9,941         48,106	       19,301
 Other income	              6,393	             0 	       50,338		           0 
                       ----------      ----------     ----------     ----------
 
       	TOTAL REVENUE	    746,620     	1,170,935      	2,748,870    3,489,360
                       ----------       ----------     ----------     ----------
Expenses:
			
 Cost of goods sold      	918,666	       768,596      	2,691,328   	2,526,224
 Research and
   developmt             	114,657       	215,640        	373,268     	426,881 
 Selling, general
   and administrative  	1,389,135     	1,517,521      	4,046,958   	4,351,460 
 Depreciation and
   amortization          	191,017       	183,956        	561,056     	607,873 
 Interest expense         	54,906         	3,482        	180,453      	12,895
 Reserve for 
  restructuring costs          	0     	2,600,000              	0   	2,600,000
                       ----------     ----------       ----------   ----------
		
     	TOTAL EXPENSES	   2,668,381	     5,289,195      	7,853,063  	10,525,333 
                       ----------     ----------       ----------  ----------

           NET LOSS  	($1,921,761)  	($4,118,260)   	($5,104,193)	($7,035,973)
                      ============   ============    ============ ==============

     NET LOSS PER
        COMMON SHARE	      ($0.08)       	($0.29)        	($0.23)     	($0.53)
	                     ============   ============    ============  ===========
                     
    WEIGHTED AVERAGE
       COMMON SHARES
         OUTSTANDING	 	24,741,950     	14,189,979    	22,576,236   13,392,893
                      ============   ============    ===========   ===========


                                  See accompanying notes							
  
                               
                                      Quadrax Corporation
                          Consolidated Statements of Cash Flows
                    Increase (Decrease) in Cash and Cash Equivalents
                                         (Unaudited)

                                         	Nine Months	        Nine Months
                                           	Ended                	Ended
	                                        September 30,        	September 30, 
                                              1996                1995
                                         ------------          ------------
Cash flows from operating activities:
 Net loss                              	($5,104,193)         	($7,035,973)
  Adjustments to reconcile net
   income to net cash used 
   in operating activities:
    Depreciation & amortization of
     fixed assets                          	458,613              	537,660
    Amortization of intangibles            	102,443               	62,865
    Amortization of unearned compensation   	79,182               	61,070
    Amortization of deferred expense        	15,000              	191,430
    Common stock issued for expenses       	160,854              	529,864
    Write-off of goodwill                        	0              	685,504
    Effect on cash flows of changes in
     assets and liabilities:
      (Increase) decrease in receivables,
       inventories, prepaid expenses and
       other assets                       	(258,545)            	(731,559)
    Increase (decrease) in officer
       payables, accounts payable and 
       accrued expenses                   	(373,613)            	(267,361)
                                         -----------           -----------
   Net cash used in operating activities	(4,920,259)          	(5,966,500)
                                         -----------           -----------

Cash flows from investing activities:
  Capital expenditures, net             	(1,460,824)            	(374,969)
  Other intangible assets purchased	        (50,241)                    0 
  Payments for businesses acquired					 
  net of cash acquired                           	0              	140,000
                                         -----------            -----------
   Net cash provided by (used in)
        investing activities            	(1,511,065)            	(234,969)
		                                       -----------            -----------
Cash flows from financing activities:
  Proceeds from exercise of 
   common stock options                      27,042                25,300
  Net proceeds from sale of stock
   and warrants                                   0            	5,569,162
  Issuance of debt                          	39,850	                   	0 
  Issuance of convertible debt, 
   net of costs                           	1,471,372              	91,334
  Issuance of convertible preferred
   stock, net of costs                    	3,028,557           	1,339,200
  Repayment of debt                         	(95,380)            	(60,000)
                                          -----------           -----------

              Net cash provided by
               financing activities       	4,471,441           	6,964,996
                                          -----------           -----------

             Net increase (decrease) in
               cash and cash equivalents  (1,959,883)            	763,527

             Cash and cash equivalents
               at beginning of period      2,613,555             	382,721
                                          -----------           -----------
             Cash and cash equivalents
              at end of period             	$653,672          	$1,146,248
                                          ===========          ===========

                                 See accompanying notes



                                    QUADRAX CORPORATION



                  Consolidated Statements of Cash Flows (continued)
                            for the Nine Months Ended 
                       September 30, 1996 and September 30, 1995




  	Supplemental schedule of significant noncash transactions:
	
	  1996:
	
	    	The Company issued 6,355,976 shares of its common stock in
      exchange for the	cancellation of $3,916,666 of its convertible
      debentures.
	
	    	The Company issued 217,026 shares of its common stock for payment
      in full for	$160,854 of accrued liabilities and expenses.

    		The Company acquired 90,308 shares of common stock for the Treasury 
      via the 	exercise of stock options.

      The Company issued 300,000 shares of its common stock for consulting
      services.

      The Company issued 1,355,132 shares of its common stock in exchange
      for the cancellation of $1,166,000 of its Series B Convertible
      Preferred Stock.

      The Company issued 522,738 shares of its common stock to the former
      shareholders of McManis Sports Associates, Inc. in settlement of a
      claim relating to the sale to the Company of all of the issued and
      outstanding shares of Common Stock of McManis Sports Associates, Inc.
      in 1994.

	
	1995:
	
   			The Company assumed $750,000 of debt due its former chairman from
      Conagher & Co., Inc. for Conagher's purchase of the original preferred
      stock.

      The Company issued 1,489,946 shares of its common stock in exchange
      for the cancellation of $1,500,000 of its Series A Convertible
      Preferred Stock.



                           Quadrax Corporation

             Notes to Condensed Consolidated Financial Statements

                               (Unaudited)

 1.	The unaudited condensed consolidated financial statements presented
    herein have been prepared in accordance with the instructions to 
    Form 10-Q and do not include all of the information and note
    disclosures required by generally accepted accounting principles. 
    In the opinion of management, such condensed consolidated financial
    statements include all adjustments, consisting only of normal recurring
    adjustments, necessary to present fairly the Company's financial
    position as of September 30, 1996 and the results of operations for
    the nine months ended September 30, 1996 and September 30, 1995.
    The results of operations for the nine month period ended
    September 30, 1996 may not be indicative of the results that may be 
    expected for the year ending December 31, 1996.  It is suggested that
    these Condensed Consolidated Financial Statements be read in conjunction
    with the Consolidated Financial Statements and the notes thereto 
    included in the Company's latest annual report to the Securities and
    Exchange Commission on Form 10-KSB for the year ended December 31, 1995.


2.	Debt

  	Long-term debt consists of the following:

 
                                             September 30,    December 31, 
                                                  1996              1995
                                             ------------     ------------
 
   Note payable - bank                          $ 732,000       $ 801,000
   Notes payable - former Lion shareholders       331,493         331,634
   Equipment financing notes payable              101,312          87,701
   Other non-interest bearing note                250,000         250,000
                                              ------------     ------------
                                                1,414,805       1,470,335

  Less current maturities                      (1,017,362)     (1,114,301)
                                              ------------     ------------
                                               $  397,443      $  356,034
                                              ============     ============
	
  Note Payable - Bank

 	The Company's wholly-owned subsidiary, Lion Golf of Oregon, Inc., an
  Oregon corporation ("Lion Golf"), has a $1,000,000 revolving line of
  credit with its bank.  The line of credit is secured by substantially  
  all of Lion Golf's assets and is guaranteed by the Company and the 
  former majority shareholder of Lion Golf.  The note was renewed  
  January 2, 1996 and bears interest at 10.75% per annum.  Loan advances
  are limited to 75% of "eligible accounts receivable" plus 45% of   
  "eligible inventories" up to a maximum of $500,000, as such terms are 
  defined under the line of credit.  The Company's current outstanding
  balance due on the line of credit is approximately $732,000.  The bank
  has indicated that this line of credit when it expires on December 15,
  1996 will not be renewed.  The Company is currently exploring alternative 
  financing arrangements for its Lion Golf subsidiary to replace the current
  banking arrangement.

	
	Notes Payable - Lion Shareholders
	
 	Lion Golf has three unsecured notes bearing interest at the rate of 8%
  per annum, payable to its former shareholders.  These notes are
  subordinated to the bank credit line.  The first of the notes, for
  the principal amount of $270,000, has annual principal payments of $54,000
  commencing March 31, 1997.  These annual payments can be limited to the
  extent of Lion Golf's pretax profits as defined in the Purchase Agreement
  among the Company, Lion Golf, and Lion Golf's former shareholders
  dated December 29, 1995 (the"Purchase Agreement").  The second note for 
  the principal amount of $50,200, has monthly principal payments of
  $2,400 until paid-in-full. The third note is a demand note in the
  principal amount of $10,500.
	

3.	Shareholders Equity

  	The Company's capital shares are as follows:

  	Original Convertible Preferred Stock, $0.01 par value, -0- shares
   authorized at September 30, 1996 and 1,172 shares authorized at
   December 31, 1995.   There were 318 shares of the Original Convertible
   Preferred Stock issued and outstanding at December 31, 1995.  Subsequent
   to December 31, 1995 all shares of Original Convertible Preferred Stock
   were converted into common stock which were then redeemed by the Company
   for a nominal consideration.
	
	  Class A, Series B Convertible Preferred Stock, $0.01 par value,
   7,000 shares and -0- shares were authorized at September 30, 1996 and
   December 31, 1995, respectively.  There were 2,334 shares and -0- shares
   of Series B Convertible Preferred Stock issued and outstanding at 
   September 30, 1996, and December 31, 1995, respectively.

  	Common Stock, $.000009 par value, 90,000,000 shares were authorized
   at September 30, 1996 and December 31, 1995.  27,663,451 and 17,772,812
   shares were outstanding at September 30, 1996 and December 31, 1995,
   respectively.  


4.	Earnings Per Share

  	For the fiscal quarters ending September 30, 1996 and September 30, 1995,
   the net loss per share was computed using the weighted number of average
   shares outstanding during the respective periods.  Common Stock
   equivalents did not enter into the computation because the impact would
   have been anti-dilutive.


	Item II
	


                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


    	The Private Securities Litigation Reform Act of 1995 provides a "safe
  harbor" for forward-looking statements.  Certain matters discussed in
  this section and elsewhere in this Form 10-Q are forward-looking 
  statements.  These forward-looking statements involve risks and
  uncertainties including, but not limited to, economic conditions, product 
  demand and industry capacity, competition, and other risks.

    	Competition.  As the Company enters the sporting goods and recreational
  equipment market, it faces competition from other materials used in the
  manufacture of such goods and equipment, and from other suppliers of
  thermoplastic composites.  The Company's success in entering this market
  will depend largely upon its ability to displace other materials currently
  in use.  If the Company is unsuccessful in creating a niche within the
  sporting goods and recreational equipment market by convincing the market
  of the strategic benefits of thermoplastic composites, the Company would
  be adversely affected.  Many of the companies whose product offerings
  compete with the Company's product offerings have significantly greater
  financial, manufacturing and marketing resources than the Company.

    	Development of Distribution Channels.  Success in the sporting goods
  and recreational equipment market will also hinge on the Company's ability
  to develop distribution channels, including both retailers and 
  distributors, and there can be no assurance that the Company will be able
  to effectively develop such channels.

    	Continued Investment.  Maintaining the Company's technological and 
  strategic advantages over its competitors will require continued investment
  by the Company in design and development, sales and marketing, and
  customer service and support.  There can be no assurance that the Company
  will have sufficient resources to make such investments.

    	Technological Advances.  The Company's ability to maintain a competitive
  edge by making technological advances ahead of its competition will have a
  significant impact on the success of the Company.

    	Outside Financing.  The Company believes that it will need significant
  outside financing over the next five years.  There can be no assurance
  that it will be able to obtain such financing.


    Results of Operations for Quarter Ended September 30, 1996 as Compared
                    to Quarter Ended September 30, 1995

    	The Company's net loss from operations for the quarter ended
  September 30, 1996 ("1996 third quarter") of $1,922,000 was approximately
  $2,196,000 less than its net loss from operations of approximately 
  $4,118,000 for the quarter ended September 30, 1995 ("1995 third quarter").

    	Total revenue recognized during the 1996 third quarter was $746,620
  compared to $1,170,935 in the 1995 third quarter, a decrease of $424,315.
  An increase in sales of approximately $236,000 for the 1996 third quarter
  for the Company's Consumer Products Group, which includes Lion Golf, was
  more than offset by a decline in sales for the Company's Advanced
  Materials Systems division ("AMS") of approximately $684,000. The decrease
  in the AMS division reflects the completion of the defense programs late
  in 1995 with no corresponding increase in consumer product shipments in
  1996.  The AMS 1996 third quarter sales are thermoplastic tape of
  approximately $78,000 and development contract revenues of $45,000.
	
     Interest income increased by approximately $7,000 in the three months
  ended September 30, 1996, as compared to the same period one year ago
  because of the greater amount of money the Company had on deposit in
  interest bearing paper in 1996.

    	Other income increased approximately $6,000 in the 1996 third quarter.
  The primary reason for this increase is that the Company was the
  beneficiary of debt forgiven in a financing transaction for the purchase 
  of equipment.

    	Cost of goods sold for the third quarter of 1996 of $918,666 increased
 approximately $150,000 in the three months ended September 30, 1996
 vis-a-vis the three months ended September 30, 1995.  The reasons for this
 increase are the reduction in gross margins in 1996 due to the Company's
 change in revenue source from defense related products to consumer oriented
 products, along with inventory product write-downs at the Company's Lion
 Golf subsidiary.

    	Research and development expenses were $114,657 in the 1996 third
 quarter, which is approximately $101,000 lower than in the 1995 third
 quarter.  The reason for this decrease is the Company's significant 
 downsizing of its research and development program.  The majority of the
 Company's remaining research and development expenditures have been
 dedicated to the development of a production facility for golf shafts 
 in Vista, California by the Company's AMS Division.  These development
 costs were capitalized in the 1996 third quarter.  Production will not
 commence at this facility until the fourth quarter of 1996.

    	Selling, general and administrative expenses decreased by
 approximately $128,000 to $1,389,135 in the three months ended
 September 30, 1996 over the comparable period a year ago.  The primary
 reason for this decrease is that advertising and trade show expenditures are
 down, particularly, in the golf area.

    	Depreciation and amortization expense increased by approximately $7,000
 to $191,017 in the third quarter of 1996, an insignificant fluctuation.

    	Interest expense for the third quarter of 1996 increased from
 approximately $3,500 to $54,906.  This reflects the Company's 1996
 subordinated debt along with the financing costs associated with the
 financing leases which the Company entered into during the past year.
 Lastly, interest on the Lion Golf line of credit is reflected in the 1996
 third quarter, which was not present in the 1995 third quarter.

    	Expenses related to restructuring costs decreased $2,600,000 to $-0-
 in the 1996 third quarter.  The Company established this reserve in 1995
 after evaluating the carrying value of its assets and determining that
 certain of its intangibles, in particular goodwill associated with the
 acquisition of McManis Sports Associates, were overvalued.  In addition,
 the Company decided that it would not use the services of various 
 executives.  The restructuring costs in the 1995 third quarter relate to
 the reserve for these costs.


      Results of Operations for Nine Months Ended September 30, 1996
           as compared to Nine Months Ended September 30, 1995


     	The Company's net loss from operations for the nine months ended
 September 30, 1996 ("1996 period") of $5,104,193 was approximately
 $1,932,000 less than its net loss from operations of approximately 
 $7,036,000 for the nine months ended September 30, 1995 ("1995 period").
 The decrease in net loss was caused by the reduction in gross margins which
 has resulted from the change in the Company's primary source of revenues
 from defense related products to consumer oriented products in the 1996
 period offset by a reserve for restructuring costs in the 1995 period.

     	Total revenue recognized during the 1996 period was $2,748,870 compared
 to $3,489,360 in the 1995 period.  This decrease of approximately $740,000
 from the 1995 period resulted from the Company shipping approximately
 $1,947,000 in product to its defense related customers in 1995, while in
 the 1996 period, there were inconsequential defense related sales. This
 decline in defense related sales was somewhat offset by an increase 
in consumer product sales of $1,426,000 in the 1996 period.
	
    	Interest income in the 1996 period was approximately $48,000, an
 increase of $29,000 from the 1995 period, due to the Company having a
 greater amount of money invested in interest bearing paper in 1996.
 
     Other income increased by approximately $50,000 in the 1996 period. 
 This increase resulted primarily from Lion Golf's settlement of a product
 trademark dispute with another golf equipment manufacturer pursuant to
 which Lion Golf received a lump-sum settlement of $40,000.

    	Costs of goods sold increased approximately $165,000 in the 1996 period
 to $2,691,328.  The reason for this increase is the reduction in gross
 margins in 1996 due to the Company's change in revenue source from 
 defense related products to consumer oriented products.

    	Research and development expenses were $373,268 in the 1996 period,
 a decrease of approximately $54,000 as compared to the 1995 period. 
 The reason for this decrease is that a significant portion of the Company's
 product development costs in 1996, particularly in the second and third
 quarters of 1996, have been capitalized into the Vista, California golf
 shaft manufacturing facility.

    	Selling, general and administrative expenses decreased by approximately
 $304,000 from $4,351,460 to $4,046,958 in the 1996 period.  This decrease
 is the result of a decline in advertising and trade show expenditures for
 the Wimbledon and McManis product lines.

    	Depreciation and amortization expense decreased by approximately $46,000
 to $561,056 in the 1996 period, primarily due to the one-time write-off
 in the 1995 period of machinery and equipment no longer utilized by the
 Company.

    	Interest expense for the 1996 period was $180,453, while in the 1995
 period it was $12,895, an increase of approximately $168,000.  This
 increase was caused by the Company's payment of interest on Lion Golf's 
 working capital line of credit in 1996, along with the interest paid on
 the Company's convertible debentures.

    	Expenses related to restructuring costs decreased $2,600,000 to $-0- in
 the 1996 period.  The Company established this reserve in 1995 after
 evaluating the carrying value of its assets and determining that certain 
 of its intangibles, in particular goodwill associated with the acquisition
 of McManis Sports Associates, were overvalued.  In addition, the Company
 decided that it would not use the services of various executives.  The 
 restructuring costs in the 1995 period relate to the reserve for these costs.


           Financial Position, Liquidity and Capital Resources

    	At September 30, 1996, the Company had total assets of $8,052,625 and
 stockholders' equity of $4,639,666.  Current assets were $3,778,528 and
 current liabilities were $3,015,516 resulting in working capital of
 approximately $750,000 which is a decrease of approximately $1,200,000 from
 December 31, 1995, when working capital was approximately $2 million. 
 This decrease in working capital resulted from the Company's continued
 losses from operations in the first nine months of calendar 1996.
	
    	Cash and cash equivalents decreased by approximately $1,960,000 from
 $2,613.555 at December 31, 1995 to $653,672 at September 30, 1996.
 This decrease is due to the Company's use of approximately $4,920,000
 to fund its operations and approximately $1,461,000 to prepare and equip
 its golf shaft manufacturing facility in Vista, California and to purchase
 hockey stick manufacturing equipment from Vega, U.S.A.  These $6,381,000
 in expenditures were partially offset by the Company's raising of
 additional capital of approximately $4,500,000 in the 1996 period.
	
     Accounts receivable decreased by approximately $104,000.  The primary
 reasons for this decrease are that the Company collected its trade
 receivables from its defense customers which were outstanding at December
 31, 1995,  and the decline in revenues in 1996.
	
    	Inventories increased by approximately $288,000.  This increase is due
 to the build-up of product for the Company's consumer sales.
	
     Other current assets increased by approximately $74,000 between
 September 30, 1996 and December 31, 1995.  This increase was primarily
 caused by the Company's renewal of various insurance policies as of 
 September 30, 1996, and the prepayment of the premium.
	
     Notes payable decreased by approximately $77,000.  This reflects the
 Company's decreased usage of its line of credit with the Bank of the
 Cascades.
	
     Accounts payable and accrued expenses decreased approximately $74,000
 from $2,072,000 at December 31, 1995. This decrease was caused by payments
 made to trade vendors and to former employees in 1996. The employee payments
 were charged against the reserve for restructuring costs accrued as of
 December 31, 1995.
	
     Notes payable to related parties decreased $300,000 to zero at
 September 30, 1996.  The reason for this decrease is that the Company paid
 Richard Fisher, its former chairman and chief executive officer, in full
 in February 1996 pursuant to the December 1995 settlement agreement.
	
     Long term debt increased approximately $41,000 to $397,443 at
 September 30, 1996.  The reason for this increase is the new equipment
 financing leases the Company entered into in 1996.

    	Convertible debentures decreased to $-0- at September 30, 1996 from
 $2,250,000 at December 31, 1995.  This reflects the debenture holder's
 conversion of its debentures to common stock during the nine months 
 ended September 30, 1996.

    	In the first nine months of fiscal 1996, capital expenditures were
 approximately $1,511,000.  These capital expenditures are an integral part
 of the Company's program to construct a golf shaft manufacturing line, a
 thermoplastic tape manufacturing line, and a hockey stick manufacturing
 line. These equipment acquisitions are expected to be paid for through
 equipment leasing programs and from funds raised through the placement of
 the Company's securities.

    	The Company generated revenues of approximately $2,750,000 in the
 first nine months of fiscal 1996, and as a result, operations were not a
 source of funds or liquidity for the Company.  The Company continues to
 depend on outside financing for the cash required to fund its operations.
 Net funds provided by financing activities in the first nine months of
 fiscal 1996, after giving effect to the repayment of debt, totaled 
 approximately $4,500,000 during the period ended  September 30, 1996.

    	The Company believes that funds provided by operations and cash on hand
 (approximately $650,000 at September 30, 1996), will be sufficient to meet
 the Company's near-term cash requirements.  In addition, the Company
 believes that it will be able to raise additional monies from the sale of
 convertible securities prior to the end of fiscal 1996 and during fiscal
 1997 of at least $5,000,000.  There can be no assurance, however, that the
 Company will be able to raise additional funds, and that even if raised,
 that such funds will be sufficient to satisfy the Company's cash
 requirements for the remainder of 1996 and 1997.

    	The Company received a going concern qualification from its outside 
 independent auditors on its fiscal 1995 audited financial statements. 
 While the Company believes it has made and will continue to make 
 substantial progress towards achieving profitability, the results to date
 have not yet been sufficient to negate the auditors' qualifications.
 During this transition, management continues to redirect the Company's focus 
 from the defense related products to consumer oriented products. 
 Management believes that the Company will be able to continue to raise
 money from outside third parties in sufficient amounts to support its 
 operations until such time as which the Company's consumer product programs
 generate sufficient revenues.  There can be no assurance, however, that the
 Company will be able to raise additional funds from third parties, or even
 that if raised, such funds will be sufficient to fund the Company's product
 programs until such programs are able to generate enough revenue to support
 themselves.  If the Company is unable to meet its cash requirements, it may
 be required to defer for a period of time, or indefinitely, the design, 
 development, fabrication and marketing of new products and the marketing of
 existing products and materials in new markets.

    	The Company believes that it can achieve viability and profitability
 by continuing to expand sales of consumer sporting goods products, as well
 as other products that employ its thermoplastic materials.  Management
 believes that the Company's acquisition of Lion Golf in late 1995 will
 further this strategy because of Lion Golf's manufacturing expertise and
 access to new distribution channels, such as golf and tennis pro shops. 
 Management also expects sales of composite based lacrosse sticks and
 continuing efforts to develop and market other consumer products should
 contribute to the Company's viability and profitability.  There can be
 no assurances that the Company's transition to consumer oriented products
 will succeed to the extent necessary to make the Company profitable. 
 Nor can there be any assurances that Lion Golf's manufacturing expertise
 and access to distributon channels will be sufficient for the Company to
 overcome institutional resistance to the use of thermoplastic composite
 materials in sporting equipment products, or to the intense competition 
 in this field.

    	There is no assurance that the Company's efforts to achieve viability
 and profitability or to raise money will be successful or that the
 forecasts will be achieved.  It is difficult for the Company to predict
 with accuracy the point at which the Company will be viable and profitable
 or whether it can achieve viability or profitability at all, due to the
 difficulty of predicting accurately the amount of revenues that the
 Company will generate, the amount of expenses that will be required by its
 operations, and the Company's ability to raise additional capital.


	
                         QUADRAX CORPORATION


 Part II - Other Information
	
	
	
	    Item 6 - Exhibits and Reports on Form 8-K
	
	       	(a)  Exhibits
	
	         None since Form 10-KSB for fiscal year ended December 31, 1995
          was filed	on April 12, 1996.

	
       		27.1       Financial Data Schedule
                 		(Electronic Filing Only)
	

		
       		(b)  Reports on Form 8-K

         The following Current Reports on Form 8-K were filed with
         the Securities and Exchange Commission since August 14, 1996,
         the date the Company's Form 10-QSB for the quarter ending
         June 30, 1996 was filed.

         -  On September 10, 1996, the Company filed a Form 8-K with
            respect to its press release announcing that it had signed
            a contract with Taylor Made Golf Company to develop new
            golf products made with Quadrax's thermoplastic composite
            materials.

 
 
        -   On October 4, 1996, the Company filed a Form 8-K with respect
            to its press release announcing a reduction in the exercise
            price of its Class C Warrants from $4.53 to $3.33 and an
            increase in the number of shares of the Company's common stock
            purchasable upon the exercise of each Class C Warrant, from
            3.18 to 4.3262 shares.


	



                           QUADRAX CORPORATION



                                 SIGNATURES



       	Pursuant to the requirements 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.
		
	
	
	                                     	QUADRAX CORPORATION
                                         			(Registrant)

	
	                       
		November 15, 1996                  								
		 (Date)	                              /s/ James J. Palermo                
                                           	James J. Palermo
                                            Chairman and
                                    			    	Chief Executive Officer
	
	
	
 	November 15, 1996                  					                    	 
	  	(Date)		                             /s/Edward A. Stoltenberg
                                            Edward A. Stoltenberg, 
                                            Senior Vice	President,
                                            and Chief Financial Officer
                                        				(Principal Accounting Officer)