<PAGE>

                    U.S. SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  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:        June 30, 1999
                                         --------------------------------

     [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

        For the transition period from _______________ to _______________

        Commission file number __________________________________________


                              Contessa Corporation
                    ---------------------------------------
                    (Exact name of small business issuer as
                           specified in its charter)


               Delaware                               65-0656268
     ---------------------------------            -------------------
      (State or other jurisdiction                   (IRS Employer
     of incorporation or organization)            Identification No.)



             2700 West Cypress Creek Rd., Ft. Lauderdale, FL 33309
     ----------------------------------------------------------------------
                   (Address of principal executive offices)


                                 (954) 973-7779
                   ------------------------------------------
                          (Issuer's telephone number)


                                 Not Applicable
--------------------------------------------------------------------------------
   (Former name, former address and former fiscal year, if changed since last
                                    report.)


     Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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                No       X
                            ---------          ----------


                      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 practical date:            2,866,506
                                                ------------------------------


     Transitional Small Business Disclosure Format (check one).
Yes              ;  No      X
    -------------      -----------
<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS

The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial reporting and pursuant to the rules and regulations of the Securities
and Exchange Commission. While these statements reflect all normal recurring
adjustments which are, in the opinion of management, necessary for fair
presentation of the results of the interim period, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. For further information, refer to
the financial statements and footnotes thereto included in the Company's annual
report filed on Form 10-KSB for the fiscal year ended December 31, 1998.

                             CONTESSA CORPORATION
                         (a development stage company)
                                 BALANCE SHEET

                                                                       June 30,
                                                  December 31,           1999
                                                      1998             Unaudited
                                                  ------------         ---------
                Assets

Current assets

 Cash and cash equivalents                            $4,318             $4,518
                                                      ------             ------
 Total current assets                                  4,318              4,518

Capital assets                                       132,148            132,148

Other assets

 Excess of purchase paid over book values            196,644            196,644

 Security deposits                                    10,533             10,533
                                                     -------            -------
 Total other assets                                  207,177            207,177
                                                    --------           --------

Total assets                                        $343,643           $343,843
                                                    ========           ========


        Liability and Stockholders' Equity

Current liabilities

 Accounts payable and accrued expenses              $127,432           $174,556
                                                    --------           --------
 Total liabilities                                   127,432            174,556


Stockholders equity

Common stock-$.0001 par value, authorized
5,000,000 shares. The number of shares
outstanding at December 31, 1998 and
June 30, 1999 was 2,866,506 and 2,866,506
respectively                                             287                287

 Additional paid in capital                          507,450            507,450

 Accumulated deficit during development stage       (291,526)          (338,450)
                                                    --------           --------
Total stockholders equity                            216,211            169,287
                                                     -------            -------
Total liabilities and stockholders equity           $343,643           $343,843
                                                    ========           ========

                                       1
<PAGE>

                             CONTESSA CORPORATION
                         (a development stage company)
                     CONSOLIDATED STATEMENT OF OPERATIONS
                                 Unaudited

<TABLE>
<CAPTION>
                                                                   For the period
                                    For the  six    For the six   from inception
                                    months ended     months ended March 7, 1996 to
                                      June 30,        June 30,        June 30,
                                       1998             1999             1999
                                    -------------   ------------- ----------------
<S>                                 <C>             <C>              <C>
Income                               $   -0-          $    -0-       $     -0-

Costs of goods sold -                    -0-               -0-             -0-
                                       --------          --------       ---------
Gross profit                             -0-               -0-             -0-

Operations:
 General and                           59,550            46,924         338,450
  administration
 Depreciation and
  amortization                           -0-               -0-             -0-
                                      --------          --------       ---------

Total expense                          59,550            46,924         338,450

Net Profit (Loss)
 from operations                     $(59,550)         $(46,924)      $(338,450)
                                     ========           ========       =========
Net income per
 share-basic                           $(.02)            $(.02)          $(.12)
                                    =========          ========       =========
Total number of
 shares outstanding                 2,812,000         2,866,506       2,866,506
                                    =========         =========       =========
</TABLE>

                                       2
<PAGE>

                             CONTESSA CORPORATION
                         (a development stage company)
                     CONSOLIDATED STATEMENT OF OPERATIONS
                                 Unaudited

<TABLE>
<CAPTION>

                                    For the three    For the three
                                    months ended     months ended
                                      June 30,        June 30,
                                       1998             1999
                                    -------------   -------------
<S>                                 <C>             <C>
Income                               $   -0-          $    -0-

Costs of goods sold -                    -0-               -0-
                                       --------          --------
Gross profit                             -0-               -0-

Operations:
 General and                           35,250            22,284
  administration
 Depreciation and
  amortization                           -0-               -0-
                                      --------          --------

Total expense                          35,250            22,284

Net Profit (Loss)
 from operations                     $(35,250)         $(22,284)
                                     ========           ========
Net income per
 share-basic                           $(.01)            $(.01)
                                    =========          ========
Total number of
 shares outstanding                 2,812,000         2,866,506
                                    =========         =========
</TABLE>
<PAGE>

                             CONTESSA CORPORATION
                         (a development stage company)
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                                Unaudited

<TABLE>
<CAPTION>

                                                                                                 For the period
                                                For the  six            For the six             from inception
                                                months ended             months ended           March 7, 1996 to
                                                  June 30,                June 30,                  June 30,
                                                   1998                     1999                       1999
                                                -------------           -------------           ----------------
<S>                                             <C>                         <C>                      <C>
Cash Flows from Operating Activities
 Net profit (loss)                               $(59,550)                  $(46,924)                 $(338,450)
 Depreciation and amortization                      -0-                        -0-                         -0-
 Non-cash transactions                                                                                   10,056
                                                  -------                     ------                    -------
Total Cash Flows from
 Operations                                       (59,550)                   (46,924)                  (328,394)

Cash Flows from Financing Activities
 Loan payable-affiliated parties                   47,401                     47,124                    174,556
 Sale of stock                                                                                          301,093
                                                   ------                     ------                    -------
Total Cash Flows from
 Financing Activities                              47,401                     47,124                    475,649

Cash Flows from Investing Activities
 Capital assets                                                                                        (132,148)
 Security deposit                                                                                       (10,533)
                                                  -------                    -------                   --------
Total Cash Flows from
 Investing Activities                                                                                  (142,681)

Net Increase(Decrease)in Cash                     (12,149)                       200                      4,518

Cash Balance Beginning
 of Period                                         28,136                      4,318                        -0-
                                                   ------                      -----                      -----
Cash Balance End of Period                        $15,987                     $4,518                     $4,518
                                                   ======                      =====                      =====

</TABLE>

Note A - Basis of Reporting

     The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, such statements include all adjustments which are considered
necessary for a fair presentation of the financial position of Harmony Trading
Corp. (the "Company") at June 30, 1999 and the results of its operations, and
cash flows for the six-month period then ended. The results of operations for
the six-month period ended June 30, 1998 and 1999 are not necessarily indicative
of the operating results for the full year. It is suggested that these financial
statements be read in conjunction with the financial statements and related
disclosures for the year ended December 31, 1998 included in the Company's Form
10-SB.


Note B - Net Income Per Share of Common Stock

     In 1997, the Financial Accounting Standards Board issued Statement No. 128,
"Earnings Per Share".  Statement No. 128 replaced the calculation of primary and
fully  diluted  earnings  per share with basic and diluted  earnings  per share.
Unlike primary earnings per share, basic earnings per share exclude any dilutive
effects of options, warrants, and convertible securities.  Dilutive earnings per
share is very similar to the  previously  reported  fully  diluted  earnings per
share. The Company has adopted Statement No. 128.

Note C - Income Taxes


     The Company provides for the tax effects of transactions reported in the
financial statements. The provision if any, consists of taxes currently due plus
deferred taxes related primarily to differences between the basis of assets and
liabilities for financial and income tax reporting. The deferred tax assets and
liabilities, if any represent the future tax return consequences of those
differences, which will either be taxable or deductible when the assets and
liabilities are recovered or settled. As of December 31, 1998 and June  30,
1999, the Company had no material current tax liability, deferred tax assets, or
liabilities to impact on the Company's financial position because the deferred
tax asset related to the Company's net operating loss carryforward and was fully
offset by a valuation allowance.

     At June 30, 1999, the Company has net operating loss carry forwards for
income tax purposes of $338,450. This carryforward is available to offset future
taxable income, if any, and expires in the year 2010. The Company's utilization
of this carryforward against future taxable income may become subject to an
annual limitation due to a cumulative change in ownership of the Company of more
than 50 percent.

The components of the net deferred tax asset as of  June 30, 1998 are as
follows:

     Deferred tax asset:
          Net operating loss carry forward        $ 115,073
          Valuation allowance                     $(115,073)
                                                  ---------
          Net deferred tax asset                  $  -0-
                                                   ========

     The Company recognized no income tax benefit for the loss generated in the
period from inception, March 7, 1996, to June 30, 1999.

     SFAS No. 109 requires that a valuation allowance be provided if it is more
likely than not that some portion or all of a deferred tax asset will not be
realized. The Company's ability to realize benefit of its deferred tax asset
will depend on the generation of future taxable income.   Because the Company
has yet to recognize significant revenue from the sale of its products, the
Company believes that a full valuation allowance should be provided.

                                       3
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
          OF OPERATIONS

Forward-Looking Statements

The statements contained in this Report on Form 10-QSB that are not historical
facts are forward-looking statements (as such term is defined in the Private
Securities Litigation Reform Act of 1995) that involve risks and uncertainties.
Such forward-looking statements may be identified by, among other things, the
use of forward-looking terminology such as "believes," "expects," "may," "will,"
"should" or "anticipates" or the negative thereof or other variations thereon or
comparable terminology, or by discussions of strategy that involve risks and
uncertainties. From time to time, the Company or its representatives have made
or may make forward-looking statements, orally or in writing. Such forward-
looking statements may be included in various filings made by the Company with
the Securities and Exchange Commission (the "SEC"), or press releases or oral
statements made by or with the approval of an authorized executive officer of
the Company. These forward-looking statements, such as statements regarding
anticipated future revenues, capital expenditures, Year 2000 compliance and
other statements regarding matters that are not historical facts, involve
predictions. The Company's actual results, performance or achievements could
differ materially from the results expressed in, or implied by, these forward-
looking statements.

Development stage activities.

     The Company has been a development stage enterprise since its inception
March 7, 1996 to December 31, 1998 and for the six months ended June 30, 1999.
During this period, management had devoted the majority of its efforts to
construction of the restaurant, pursuing and finding a management team to
continue the process of completing its marketing goals, obtain sufficient
working capital through officer loans and private placements. These activities
were funded by the Company's management aggregating $127,432 through December
31, 1998 and $174,556 through June 30, 1999 and investments from stockholders
aggregating $318,902 through June 30, 1999. The Company has expended funds to
purchase restaurant equipment aggregating $132,148 through June 30, 1999, paid
out $109,363 in restaurant pre-opening expenses, paid security deposits of
$10,533 and paid $338,450 in general and administrative expenses for the period
from inception, March 7, 1996, through March 31, 1999. The Company has not yet
generated sufficient revenues during its limited operating history to fund its
ongoing operating expenses, repay outstanding indebtedness or to fund its food
service related expenses.

Results of Operations for the period from the Company's inception March 7, 1996
through June 30, 1999.

          For the period from the Company's inception March 7, 1996 through June
30, 1999, (a period of approximately 39 months) and for the three and six months
ended June 30, 1999, the Company generated net sales of approximately $-0-.

          The Company's gross profit on sales was approximately -0-% for the
period from March 7, 1996 through June 30, 1999, and for the three and six month
period ended June 30, 1999.

          The Company's overhead costs aggregated approximately $338,450 for the
period from inception March 7, 1996 through June 30, 1999. Of these initial
start up costs, $155,362 is attributed to a consulting contracts for an
unrelated  business operated prior to the Company's entrance into the restaurant
business, $131,647 in restaurant pre-opening expenses, an aggregate of $84,751
in rent and real estate taxes and an additional $11,690  related to
administrative costs of organizing the building of the new restaurant.

Liquidity and capital resources.

     The Company increased liquidity by $4,518 from a cash balance at the
Company's inception of $-0-. The Company has been funded  through the process
of selling shares of common stock through various private placements aggregating
$301,037 for the period, March 7, 1996 to June 30, 1999 which includes a
private placement  to fund the new venture of $18,902 during 1998, and received
loans from officers amounting to $174,556 through June 30, 1999.

     The Company expended an aggregate of $132,148 for equipment and
furnishings, $10,533 in security deposits, and paid an aggregate of  $131,647 in
pre-opening expenses which has been charged to operations.

     The accompanying financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. The Company incurred net losses of
$338,450 for the period from inception March 7, 1996 to June 30, 1999. These
factors indicate that the Company's continuation as a going concern is dependent
upon its ability to obtain adequate financing. The Company will require
substantial additional funds to finance its business activities on an ongoing
basis and will have a continuing

                                       5
<PAGE>

long-term need to obtain additional financing.  The Company plans to engage in
such ongoing financing efforts on a continuing basis.

                             RESULTS OF OPERATIONS

                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

  None.

Item 2.  Changes in Securities

  None.

Item 3.   Defaults Upon Senior Securities

  None.

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

  None.

Item 5.  Other Information

 None.

Item 6.  Exhibits and Reports on Form 8-K

  The Company did not file a report on Form 8-K during the three months ended
June 30, 1999.

                                       6
<PAGE>

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.


                                    Contessa Corporation
                                    (Registrant)


Date: October 18, 1999                 By:     /s/ Thomas Knudson
                                       ------------------------------
                                          President and Treasurer





                                    By:     /s/ Anthony Markofsky
                                       ------------------------------
                                        Vice President and Secretary
                                        Treasurer

                                       7