<PAGE>

                                                                   PAGE 1 OF 21
                                                                   EXHIBIT INDEX
                                                                   IS ON PAGE 19

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

                                   FORM 10-KSB

(Mark one)

     [X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
          SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

          For the fiscal year ended JUNE 30, 1996

                                       OR

     [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
          THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

          For the transition period from ______________ to ________

          Commission file number 33-37534-NY
                                 -----------------------------------

                             WESTECH CAPITAL CORP.
        ----------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

New York                                          13-3577716
--------------------------------                  ----------------------
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                    Identification No.)

180 West End Avenue, Apt. 23F
New York, New York                                       10023
----------------------------------------                 ----------------
(Address of principal executive offices)                 Zip Code

Issuer's telephone number (212) 873-1050
                          --------------

Securities registered under Section 12(b) of the Exchange Act:

                                             Name of each exchange on
Title of each class                          Which registered
-------------------                          -------------------------

       N/A                                              N/A
-------------------                          -------------------------

Securities registered under Section 12(g) of the Exchange Act:

                                      None
---------------------------------------------------------------------------
                                (Title of class)

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  X     No
    ----      ----

<PAGE>

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year.  NONE.

State the aggregate market value of the voting stock held by nonaffiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of a specified date within the past 60
days. (See definition of an affiliate in Rule 12b-2 of the Exchange Act.)  ZERO.
(ACCORDING TO THE NATIONAL QUOTATION BUREAU, INC. THERE ARE NO PUBLISHED
QUOTATIONS FOR THE ISSUER'S COMMON STOCK.)

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.  62,500 SHARES OF COMMON STOCK, $.001
PAR VALUE, OUTSTANDING AS OF SEPTEMBER 24, 1996.


                   DOCUMENTS INCORPORATED BY REFERENCE - None


                                        2
<PAGE>

                                     PART I

Item 1.  Description of Business.


GENERAL

     Westech Capital Corp. (the "Company" or the "Registrant") was organized as
a New York corporation on July 18, 1990 for the purpose of investing in any and
all types of assets, properties and businesses.  It has not engaged in any
business operations.  The Company, which is commonly known as a "blind pool" or
"blank check", will attempt to acquire a business in an industry as yet
undetermined.  The Company presently has no specified type of business
contemplated to be acquired.

     In connection with its initial capitalization, the Registrant issued 12,500
shares of its Common Stock to its officers and directors for the aggregate sum
of $2,500.  In furtherance of its corporate purpose, on May 26, 1992, the
Registrant closed its initial public offering of 50,000 Units at a price of
$1.00 per Unit.  Each Unit consisted of one share of Common Stock, one Class "A"
Common Stock Purchase Warrant, and one Class "B" Common Stock Purchase Warrant.
The Warrants, which entitled the holders to purchase additional Common Stock at
$5.00 and $10.00, respectively, have expired.

     The Registrant is seeking the acquisition of or merger with an existing
company ("Potential Business Acquisitions").  Given the limited assets of the
Registrant, it is likely to acquire or merge with a company which is not seeking
immediate substantial amounts of cash but one which desires to establish a
public trading market for its shares.  However, within the next six months the
Company intends to seek to raise additional funds to augment its cash on hand,
which also could be used for the benefit of any Business Acquisition seeking an
immediate cash infusion.  There can be no assurance that the Company's financing
efforts will be successful.

     There are numerous reasons why an existing privately-held company would
seek to become a public company through a merger or acquisition rather than
doing its own public offering.  Such reasons include avoiding the time delays
involved in a public offering; retaining a larger share of voting control of the
publicly-held company; reducing the cost factors incurred in becoming a public
company; and avoiding any dilution requirements set forth under various states'
blue sky laws.

     The Registrant does not propose to restrict its search for Potential
Business Acquisitions to any particular industry or any particular geographic
area and may, therefore, engage in essentially any business to the extent of its
limited resources.


                                        3
<PAGE>

     It is anticipated that knowledge of Potential Business Acquisitions will be
made known to the Registrant by various sources, including its officers and
directors, shareholders, professional advisors such as attorneys and
accountants, securities broker-dealers, venture capitalists, members of the
financial community, and others who may present unsolicited proposals.  In
certain circumstances, the Registrant may agree to pay a finder's fee or to
otherwise compensate such persons for services rendered in bringing about a
transaction.  However, no cash finder's fee shall be paid to any officer or
director of the Registrant or their affiliates or associates.  The amount of any
such finder's fee or other compensation which may be paid to such persons for
services rendered in bringing about a transaction is subject to future
negotiation between the Registrant, the entity to be acquired and the finder.

SELECTION OF OPPORTUNITIES

     The analysis of new business opportunities has and will be undertaken by or
under the supervision of the officers and directors of the Registrant, none of
whom is a professional business analyst or has any previous training or
experience in business analysis or in selecting or hiring business analysts.
The Registrant has, since the date of the closing of its public offering,
considered potential acquisition transactions with several companies but as of
this date has not entered into any definitive agreement with any party.  The
Registrant has unrestricted flexibility in seeking, analyzing and participating
in Potential Business Opportunities.  In its efforts to analyze potential
acquisition targets, the Registrant will consider the following kinds of
factors:

     (a)  Potential for growth, indicated by new technology, anticipated market
expansion or new products;

     (b)  Competitive position as compared to other firms of similar size and
experience within the industry segment as well as within the industry as a
whole;

     (c)  Strength and diversity of management, either in place or scheduled for
recruitment;

     (d)  Capital requirements and anticipated availability of required funds,
to be provided by the Registrant or from operations, through the sale of
additional securities, through joint ventures or similar arrangements or from
other sources;

     (e)  The cost of participation by the Registrant as compared to the
perceived tangible and intangible values and potentials;

     (f)  The extent to which the business opportunity can be advanced;



                                        4
<PAGE>

     (g)  The accessibility of required management expertise, personnel, raw
materials, services, professional assistance and other required items; and

     (h)  other relevant factors.

     In applying the foregoing criteria, no one of which will be controlling,
management will attempt to analyze all factors in the circumstances and make a
determination based upon reasonable investigative measures and available data.
Potentially available business opportunities may occur in many different
industries and at various stages of development, all of which will make the task
of comparative investigation and analysis of such business opportunities
extremely difficult and complex.  Due to the Registrant's limited capital
available for investigation and management's limited experience in business
analysis, the Registrant may not discover or adequately evaluate adverse facts
about the opportunity to be acquired.

FORM OF ACQUISITION

     The manner in which the Registrant participates in an opportunity will
depend upon the nature of the opportunity, the respective needs and desires of
the Registrant and the promoters of the opportunity, and the relative
negotiating strength of the Registrant and such promoters.

     It is likely that the Registrant will acquire its participation in a
business opportunity through the issuance of common stock or other securities of
the Registrant.  Although the terms of any such transaction cannot be predicted,
it should be noted that in certain circumstances the criteria for determining
whether or not an acquisition is a so-called "tax free" reorganization under
Section 368(a)(1) of the Internal Revenue Code of 1986, as amended, depends upon
the issuance to the shareholders of the acquired company of at least 80 percent
of the common stock of the combined entities immediately following the
reorganization.  If a transaction were structured to take advantage of these
provisions rather than other "tax free" provisions provided under the Internal
Revenue Code, all prior shareholders would in such circumstances retain 20%. or
less of the total issued and outstanding shares.  This could result in
substantial additional dilution to the equity of those who were shareholders of
the Registrant prior to such reorganization.

     The present shareholders of the Registrant will likely not have control of
a majority of the voting shares of the Registrant following a reorganization
transaction.  As part of such a transaction, all or a majority of the
Registrant's directors may resign and new directors may be appointed without any
vote by shareholders.


                                        5
<PAGE>

     In the case of an acquisition, the transaction may be accomplished upon the
sole determination of management without any vote or approval by shareholders.
In the case of a statutory merger or consolidation, it will likely be necessary
to call a shareholders' meeting and obtain the approval of the holders of a
majority of the outstanding shares.  The necessity to obtain such shareholder
approval may result in delay and additional expense in the consummation of any
proposed transaction and will also give rise to certain appraisal rights to
dissenting shareholders.  Most likely, management will seek to structure any
such transaction so as not to require shareholder approval.

     It is anticipated that the investigation of specific business opportunities
and the negotiation, drafting and execution of relevant agreements, disclosure
documents and other instruments will require substantial management time and
attention and substantial costs for accountants, attorneys and others.  If a
decision is made not to participate in a specific business opportunity, the
costs theretofore incurred in the related investigation would not be
recoverable.  Furthermore, even if an agreement is reached for the participation
in a specific business opportunity, the failure to consummate that transaction
may result in the loss to the Registrant of the related costs incurred.

ACQUISITION RESTRICTIONS

     The Company does not intend to pursue any business opportunity or
transaction which would render it an "investment company" as the term is defined
in the Investment Company Act of 1940.  In this regard, the Company has not
engaged and does not intend to engage in the business of (1) investing,
reinvesting, or trading in securities as its primary business, (2) issuing face
amount certificates of the installment type or (3) investing, reinvesting,
owning, holding, or trading in securities.  Being deemed an "investment company"
under such Act, without registration as such, could result in certain instances
in civil liability and criminal penalties to controlling persons of, as well as
civil liabilities and unenforceability of contracts with regard to, the Company.


     The Company has not engaged and does not intend nor have authority to
engage in the business of advising others, either directly or through
publications or writings, as to the value of securities or as to the
advisability of investing in, purchasing, or selling securities for compensation
nor as a part of its regular business to issue or promulgate analyses or reports
concerning securities.  The Company does not intend, nor does it have any
authority, to pursue any course of business which would render it an "investment
advisor" as that term is defined in the Investment Advisors Act of 1940.


                                        6
<PAGE>

DAILY OPERATIONS AND EMPLOYEES

     To date, the Company has had no, and until an active business is commenced
or acquired the Company will have no, employees or day-to-day operations.
Management is unable to make any estimate as to the future number of employees
which may be necessary, if any, to work for the Company.  If an existing
business is acquired it is possible that its existing staff would be hired by
the Company.  At the present time it is the intention of management to meet or
be in telephone contact as needed to review business opportunities, evaluate
potential acquisitions and otherwise operate the affairs of the Company.
Management will not be compensated for these services rendered on behalf of the
Company.


Item 2.  Description of Property.

     The Company has entered into an oral arrangement with Neil Ragin,
President, Treasurer and Chairman of the Board of the Company, providing for him
to furnish the use of a portion of his business office as a temporary office for
the Company until such time it needs additional facilities.  The Company will
not pay rent for the use of such temporary facilities.


Item 3.  Legal Proceedings.

     There are no material pending legal proceedings to which the Company is a
party or to which any of its property is subject and no such proceedings are
known to the Company to be threatened or contemplated by or against it.


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

     No matters were submitted to a vote of security holders during the fiscal
year covered by this Report.


                                     PART II

Item 5.  Market for Common Equity and Related Stockholder Matters.

MARKET INFORMATION

     There is no public market for the Company's securities.

HOLDERS

     As of September 24, 1996, there were 39 record holders of the Company's
Common Stock.


                                        7
<PAGE>

COMMON STOCK

     The Company is authorized to issue 50,000,000 shares of Common Stock, par
value $.001 each.  As of September 24, 1996 there were 62,500 such shares issued
and outstanding, all of which were fully paid and non-assessable.  Holders of
shares of Common Stock are entitled to one vote for each share held.  There are
no preemptive, subscription, conversion or redemption rights pertaining to the
shares.  Holders of the shares of Common Stock are entitled to receive such
dividends as may be declared by the Board of Directors out of assets legally
available therefor and to share ratably in the assets of the Company available
upon liquidation.

     The holders of shares of Common Stock do not have the right to cumulate
their votes in the election of directors and, accordingly, the holders of more
than 50% of all such shares outstanding can elect all of the directors.
Remaining shareholders will not be able to elect any directors.

DIVIDENDS

     The Company has not paid cash dividends to date and intends to retain
earnings, if any, for use in its activities.  Payment of cash dividends in the
future will be wholly dependent upon the Board of Directors and upon the
Company's earnings, financial condition, capital requirements and other factors
deemed relevant by them.  It is not likely that cash dividends will be paid in
the foreseeable future.

     In the event of the acquisition of or merger with a business by the
Company, control of the Company and its Board of Directors may pass to others.
In that event, the payment of dividends would be wholly dependent upon such
persons.


Item 6.  Management's Discussion and Analysis or Plan of Operation.

     (a)  Plan of Operation

     The Registrant was formed July 18, 1990 for the purpose of investing in any
and all types of assets, properties and businesses.  In connection with the
initial capitalization of the Company a total of 12,500 shares of its common
stock were issued to its officers and directors for the aggregate sum of $2,500.
On November 12, 1991, the United States Securities and Exchange Commission
granted effectiveness to a Registration Statement on Form S-18 for an offering
of 50,000 Units of Common Stock and Warrants to purchase shares of Common Stock
at a price of $1.00 per Unit.  The offering was closed in May 1992.

     The Registrant is implementing its plan of operation by seeking to locate a
suitable company which desires to go public


                                        8
<PAGE>

through a "reverse acquisition" with it.  Although no assurance can be given,
the Company believes its cash on hand will satisfy its cash requirements until
it effects such an acquisition.  However, it intends to seek to raise additional
funds in the next six months to augment its cash on hand, which also could be
used for the benefit of any company it acquires or with which it merges.  There
can be no assurance that the Company's financing efforts will be successful.
The Company's Plan of Operation is further described in Item 1 hereof.

     (b)  Management's Discussion and Analysis of Financial Condition and
          Results of Operations

     Since inception the Registrant has not any business operations, and its
activities have been limited to the sale of its securities and the search for a
company to acquire or with which to merge through a "reverse acquisition".  The
Registrant will not have any business operations until, if ever, such time as it
effects an acquisition or merger.  Accordingly, no operating income has been
generated by the Registrant since its inception.

     For the years ended June 30, 1996 and 1995, the Company had a net loss of
($7,743) and ($7,108), respectively, or ($.12) and ($.11) per share,
respectively.  From inception to June 30, 1996, the Company had a net loss of
$32,293, or ($.69) per share.  Such losses are attributable primarily to costs
associated with the Company's attempts to identify and acquire a business.


Item 7.  Financial Statements.

                          INDEX TO FINANCIAL STATEMENT

     Independent Accountants' Report

     Balance Sheets

          June 30, 1996 and 1995

     Statement of Operations

          Years ended June 30, 1996, 1995 and 1994

     Statement of Changes in Stockholders' Equity

          Years ended June 30, 1996, 1995 and 1994

     Statement of Cash Flows
          Years ended June 30, 1996, 1995 and 1994

     Notes to Financial Statements


                                        9
<PAGE>

                                     [LETTERHEAD]


                             INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Stockholders of
Westech Capital Corp.

We have audited the accompanying balance sheets of Westech Capital Corp. (a 
development stage company) as of June 30, 1996 and 1995, and the related 
statements of operations, stockholders' equity and cash flows for the years 
ended June 30, 1996, 1995 and 1994 and for the period July 18, 1990 
(inception) to June 30, 1996. These financial statements are the 
responsibility of the Company's management.  Our responsibility is to express 
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing 
standards. Those standards require that we plan and perform the audit to 
obtain reasonable assurance about whether the financial statements are free 
of material misstatement. An audit included examining on a test basis 
evidence supporting the amounts and disclosures in the financial statements.  
An audit also included assessing the accounting principles used and 
significant estimates made by management, as well as evaluating the overall 
financial statement presentation.  We believe that our audits provide a 
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in 
all material respects, the financial position of Westech Capital Corp. (a 
development stage company) as of June 30, 1996 and 1995 and the results of 
its operations and its cash flows for the years ended June 30, 1996, 1995, 
1994 and for the period July 18, 1990 (inception) to June 30, 1996 in 
conformity with generally accepted accounting principles.

     /s/ Scott & Guilfoyle

     Lake Success, New York
     August 21, 1996


                                          10

<PAGE>
                                WESTECH CAPITAL CORP.
                            (A DEVELOPMENT STAGE COMPANY)
                                    BALANCE SHEET
                                       JUNE 30
<TABLE>
<CAPTION>


                                                           1996           1995
<S>                                                  <C>            <C>
                                         ASSETS
CURRENT ASSETS
  Cash                                                $   7,060     $   15,155
                                                      ---------     ----------


                          LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
  Accrued expenses                                    $   2,271     $    2,623
                                                      ---------     ----------

     TOTAL LIABILITIES                                    2,271          2,623
                                                      ---------     ----------


STOCKHOLDERS' EQUITY
     Common stock, $.001 par value
      50,000,000 shares authorized
      62,500 shares issued and outstanding                   63             63
     Capital in excess of par value                      37,019         37,019
     Deficit accumulated during development stage      ( 32,293)      ( 24,550)
                                                      ---------     ----------

TOTAL STOCKHOLDERS' EQUITY                                4,789         12,532
                                                      ---------     ----------

TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                                $   7,060      $  15,155
                                                      ---------     ----------
                                                      ---------     ----------
</TABLE>






The accompanying notes are an integral part of these financial statements.

                                          11

<PAGE>


                                WESTECH CAPITAL CORP.
                            (A DEVELOPMENT STAGE COMPANY)
                          STATEMENT OF STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                           Deficit
                                                         Accumulated     Total
                                             Capital in    During        stock-
                              Common Stock    Excess of  Development    holders'
                            Shares    Amount  Par Value     Stage        Equity
<S>                           <C>        <C>     <C>         <C>         <C>                   
Balance, August 24, 1990
  (inception)                       0  $    0   $      0    $      0    $     0

Issuance of shares to 
  Officer and Directors 
  of the Company for cash 
  July 23, 1990                12,500      13      2,487                  2,500

Net loss from inception to 
  June 30, 1991                                               (  962)    (  962)

Proceeds of initial public 
 offering                      50,000      50     49,950                 50,000

Offering costs                                   (14,627)               (14,627)

Net loss for the year ended 
  June 30, 1992                                               (5,123)   ( 5,123)

Offering costs                                    (  791)                (  791)

Net loss for the year ended 
  June 30, 1993                                              ( 5,428)   ( 5,428)
                              --------  ------   --------    --------   --------

Balance, June 30, 1993         62,500      63     37,019     (11,513)    25,569

Net loss for the year ended 
  June 30, 1994                                              ( 5,929)   ( 5,929)
                              --------  ------   --------    --------   --------


Balance, June 30, 1994         62,500      63     37,019     (17,442)    19,640

Net loss for the year ended 
  June 30, 1995                                             (  7,108)   ( 7,108)
                              --------  ------   --------    --------   --------

Balance, June 30, 1995         62,500      63     37,019     (24,550)    12,532

Net loss for the year ended 
  June 30, 1996                                             (  7,743)   ( 7,743)
                              --------  ------   --------    --------   --------

Balance, June 30, 1996         62,500   $  63   $ 37,019    $(32,293)  $  4,789
                              --------  ------   --------    --------   --------
                              --------  ------   --------    --------   --------
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                          12

<PAGE>


                                WESTECH CAPITAL CORP.
                            (A DEVELOPMENT STAGE COMPANY)
                               STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
                                                                   FROM
                                    FOR THE YEARS ENDED          INCEPTION
                                         JUNE 30,              JULY 18, 1990
                              ------------------------------        TO
                                1996       1995        1994    JUNE 30, 1996
<S>                         <C>         <C>         <C>         <C>
REVENUE
     Interest               $   NONE    $   NONE    $   NONE    $   NONE
                              ------      ------      ------      ------

EXPENSES
     Miscellaneous                                        10         190
     Office                                  165         600       2,415
     Professional              6,220       5,503       3,890      21,763
     Filing fee                  802         719         700       3,441
                              ------      ------      ------      ------

     TOTAL                     7,022       6,387       5,200      27,809
                             -------     -------     -------     -------

LOSS BEFORE INCOME TAXES     ( 7,022)    ( 6,387)    ( 5,200)    (27,809)


INCOME TAXES                     721         721         729       4,484
                             -------     -------     -------     -------

NET LOSS                    $( 7,743)   $( 7,108)   $( 5,929)   $(32,293)
                             -------     -------     -------     -------
                             -------     -------     -------     -------

LOSS PER SHARE
     Net loss per share     $(   .12)   $(   .11)   $(   .09)   $(   .69)
                             -------     -------     -------     -------
                             -------     -------     -------     -------

WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING    62,500      62,500      62,500      47,052
                             -------     -------     -------     -------
                             -------     -------     -------     -------

</TABLE>
The accompanying notes are an integral part of these financial statements.


                                          13

<PAGE>


                                WESTECH CAPITAL CORP.
                            (A DEVELOPMENT STAGE COMPANY)
                               STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>

                                                           FROM INCEPTION
                               FOR THE YEARS ENDED         JULY 18, 1990
                                       JUNE 30,                  TO
                              1996      1995       1994    JUNE 30, 1996
<S>                           <C>        <C>       <C>        <C>
CASH FLOWS FROM OPERATING
  ACTIVITIES

     Net loss                $(7,743)    $(7,108)    $(5,929)   $(32,293)
     Increase (decrease) in
     accrued expenses         (  352)        544                   2,271
                            --------    --------    --------    --------

NET CASH USED BY OPERATING
  ACTIVITIES                  (8,095)     (6,564)     (5,929)    (30,022)
                            --------    --------    --------    --------


CASH FLOWS FROM FINANCING
  ACTIVITIES

     Issuance of common stock                                         63
     Paid in capital                                              52,437
     Offering costs                                              (15,418)
                            --------    --------    --------    --------

NET CASH PROVIDED (USED) BY
  FINANCING ACTIVITIES                                            37,082
                            --------    --------    --------    --------

NET INCREASE (DECREASE) IN
  CASH                        (8,095)     (6,564)     (5,929)      7,060

BEGINNING CASH BALANCE        15,155      21,719      27,648
                            --------    --------    --------    --------

ENDING CASH BALANCE         $  7,060    $ 15,155    $ 21,719    $  7,060
                            --------    --------    --------    --------
                            --------    --------    --------    --------
</TABLE>

The accompanying notes are an integral part of these financial statements.


                                          14

<PAGE>


                                WESTECH CAPITAL CORP.
                            (A DEVELOPMENT STAGE COMPANY)
                            NOTES TO FINANCIAL STATEMENTS
                              JUNE 30, 1996, 1995, 1994


NOTE 1;  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION BUSINESS ACTIVITY AND DIVIDEND POLICY

    The Company was incorporated under the laws of the State of New York on 
July 18, 1990.  The Company is in the development stage and has not commenced 
planned principal operations.  The Company is seeking the acquisition of, or 
merger with an existing Company.  The fiscal year of the corporation is June 
30.  The Company has, at the present time, not paid any dividends and any 
dividends that may be paid in the future will depend upon the financial 
requirements of the Company and other relevant factors.

    The preparation of financial statements in conformity with GAAP requires 
management to make estimates and assumptions that affect the reported amounts 
and disclosures.  Actual results could differ from those estimates and 
assumptions.

    The Company has entered into an oral arrangement with Mr. Neil Ragin, 
President of the Company, providing for the use of a portion of his business 
office as a temporary office until such time as the Company needs additional 
facilities. The Company does not pay rent for the use of such facilities.

SUPPLEMENTAL CASH FLOW INFORMATION

The following were paid during the year ended June 30, 1996:


 Income taxes                           $ 721
 Interest                                 -0-

INCOME TAXES

As of June 30, 1996, the Company had a $32,293 net operating loss 
carryforward available to offset future taxable income through 2005.

                                          15
<PAGE>

Item 8.   Changes in and Disagreements with Accountants on Accounting and
          Financial Disclosure.

     N/A


                                    PART III

Item 9.   Directors, Executive Officers, Promoters and Control  Persons;
          Compliance with Section 16(a) of the Exchange  Act.

     The following table sets forth certain information concerning the current
directors and executive officers of the Company, who have served since the
inception of the Company and will serve for one year or until their respective
successors are elected and have qualified:

NAME                     AGE            POSITION
----                     ---            --------

Neil Ragin               54        Chairman of the Board,
                                   President and Treasurer

Michael J. Tannenholtz   39        Secretary and Director

Dr. William Esh          46        Director

     NEIL RAGIN has been Chairman of the Board, President and Treasurer of the
Company since July 1990.  Mr. Ragin is, and has been since 1974, the President
of Gartner's Hardware, Inc., a retail hardware store located in New York City.
From 1988 to June 1995, Mr. Ragin was the President of Ragar Corp., then a
publicly-held blind pool company which acquired Carpet Barn.

     MICHAEL J. TANNENHOLTZ has been the Secretary and a Director of the Company
since July 1990.  Mr. Tannenholtz is, and has been since 1979, the owner of
Michael J. Tannenholtz Consulting Corp., a New York city based accounting firm.


     DR. WILLIAM ESH was appointed a director of the Company in August 1991.
Dr. Esh has been actively engaged in the private practice of dentistry since
1975.  From 1988 to June 1995, Dr. Esh was a director of Ragar Corp., then a
publicly-held blind pool company which acquired Carpet Barn.

     The Company has no significant employees and no family relationships exist
between any of the executive officers and directors.


                                       16
<PAGE>

Item 10.  Executive Compensation.

     No officer or director of the Company has received remuneration from the
Company in fiscal 1995 or prior years, and it is not anticipated that
remuneration will be paid prior to the Company's acquisition of a business.  The
Company has no current intent to issue shares of its common stock to management
in connection with a Business Acquisition.  However, the Company may
subsequently deem the issuance of shares to management for services rendered in
connection with such an Acquisition to be fair and reasonable to the Company and
its public shareholders in light of the services rendered.  In the event any
shares are issued for services rendered by management they shall be issued in
such an amount as the Board of Directors deems fair and reasonable to the
Company and its public shareholders and in compliance with management's
fiduciary duties under state law.  Officers and directors will be reimbursed for
actual out-of-pocket expenses incurred on behalf of the Company as approved by
the Board of Directors.


Item 11.  Security Ownership of Certain Beneficial Owners and
         Management.

     The following table sets forth certain information as to the number of
shares of the Company's Common Stock deemed to be owned beneficially by each
person known by the Registrant to be deemed to be the beneficial owner of more
than 5% of the outstanding Common Stock, each of its executive officers and
directors, and all of its executive officers and directors as a group, at
September 24, 1996.  Except as indicated in the footnote to this table, the
Company believes that the named persons have sole voting and investment power
with respect to the shares indicated:
<TABLE>
<CAPTION>
Name and Address of                Position With      Number of   Percentage
Beneficial Owner                   Company            Shares      of Class
-------------------                -------------      --------    ----------
<S>                                <C>                 <C>        <C>  
Neil Ragin(1)                      President,          11,500        18.4%
180 West End Avenue                Treasurer,
New York, NY  10023                Director

Michael J. Tannenholtz(1)          Secretary,           1,000         1.6%
250 West 54th Street               Director
Suite 703
New York, NY  11706

Dr. William Esh(1)                 Director              -0-          -0-
243 West End Avenue
New York, NY  10023

GSM Consulting                       N/A                5,000         8.0%
501 5th Avenue
New York, NY  10017

Executive Officers and
Directors as a Group                                   12,500        20.0%
(3 persons)
____________________

1    These individuals are the officers and directors of the Registrant and may
     be deemed "parents" and the promoters of the Registrant as those terms are
     defined in the Rules and Regulations promulgated under the Securities Act
     of 1933, as amended.
</TABLE>

                                       17
<PAGE>

Item 12.  Certain Relationships and Related Transactions

     No member of management nor controlling shareholder has had any
transactions with the Company during its past fiscal year, nor proposes any such
transactions, in which the amount involved exceeds $60,000.

     In connection with its initial capitalization, the Company sold 12,500
shares of its Common Stock to its founding shareholders for an aggregate
consideration of $2,500 in cash.

     AGREEMENT FOR CLERICAL SERVICES - PROMOTER.  In fiscal 1994 the Company
retained Stanley Kaplan Management Consultants, Inc. ("SKMC") to provide
clerical and bookkeeping services to the Registrant for a fee of $50.00 per
month.  The agreement between Mr. Kaplan and the Company was oral and was
terminable at will by either party.  SKMC terminated such agreement effective
November 23, 1994.  Stanley A. Kaplan, the president and sole shareholder of
SKMC, referred the Company to its legal counsel and auditor.  Mr. Kaplan is not
a parent or control party of the Company.  Inasmuch as Mr. Kaplan offered
certain advice to management in connection with the formation of the Company, he
may be deemed a "promoter" of the Company as that term is defined in Rule 405 of
Regulation C as promulgated by the Securities and Exchange Commission.

     Mr. Kaplan has been the president and sole shareholder of SKMC, an
accounting firm, for at least the past ten years.  Since January 1987,
Mr. Kaplan has also been an officer and director of Gro-Vest, Inc., a management
consulting firm.

     On August 12, 1994, Mr. Kaplan settled, without admitting or denying any
allegations, a civil action brought against him by the Securities and Exchange
Commission relating to Atratech, Inc.  The action charged Mr. Kaplan with
certain violations of the Securities Act of 1933 and the Securities Exchange Act
of 1934 (the "Exchange Act").  As part of the settlement, Mr. Kaplan was
permanently restrained and enjoined from future violations of the securities
laws and was permanently barred from acting as an officer or director of any
issuer that has a class of securities registered under Section 12 of the
Exchange Act or that is required to file reports pursuant to Section 15(d) of
the Exchange Act.

     The Company neither has nor had any written or oral agreement or
understanding with Mr. Kaplan or SKMC regarding his services or participation in
connection with future mergers or acquisitions.  Mr. Kaplan's firm had been
retained solely to provide clerical and bookkeeping services.  If Mr. Kaplan
becomes aware of a merger or acquisition possibility he may or may not refer
such possibility to the Company's management for consideration.  If Mr. Kaplan
becomes aware of a merger or acquisition possibility and refers it to the
Company, the Company's management will review such merger or


                                       18
<PAGE>

acquisition possibility in the same manner and with the same efforts as it
reviews merger and acquisition possibilities referred to it by other persons.
The Company may agree to pay a finder's fee to any non-management "finder",
including Mr. Kaplan, in connection with an acquisition or merger.  Although
there is no current intent, agreement, understanding or expectation to do so,
there exists the possibility that the Company may ultimately acquire or merge
with a business or property in which Mr. Kaplan or his affiliates or associates
have a beneficial interest.  There is no business or property in which Mr.
Kaplan or his affiliates or associates have a beneficial interest which is under
consideration by the Company as a potential acquisition or merger candidate.

Item 13.  Exhibits and Reports on Form 8-K.

     (a)  Exhibits.

          3(i)   Certificate of Incorporation -
                 incorporated by referenced to
                 Exhibit 3.1 of Registrant's
                 Registration Statement on
                 Form S-18
                 (SEC File No. 33-37534-NY)

          3(ii)  By-Laws - incorporated by
                 reference to Exhibit 3.2
                 of Registrant's Registration
                 Statement  on Form S-18
                 (SEC File No. 33-37534-NY)

     (b)  No reports on Form 8-K were filed during the last quarter of the
period covered by this report.


                                       19
<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                                   WESTECH CAPITAL CORP.
                                             ------------------------------
                                                      (Registrant)


                                         By  /s/ Neil Ragin
                                             ------------------------------
                                             Neil Ragin
                                             Principal Executive Officer and
                                             Principal Financial Officer

                                             Date:  September 26, 1996



In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.



                                             /s/ Neil Ragin
                                             ------------------------------
                                             Neil Ragin
                                             Director

                                             Date:  September 26, 1996



                                             /s/ Michael J. Tannenholtz
                                             ------------------------------
                                             Michael J. Tannenholtz
                                             Director

                                             Date:  September 26, 1996



                                             /s/ William Esh
                                             ------------------------------
                                             William Esh
                                             Director

                                             Date:  September 26, 1996


                                       20
<PAGE>

     Supplemental Information to be Furnished With Reports Filed Pursuant to
Section 15(d) of the Exchange Act By Non-reporting Issuers

     (1)  No annual report to security holders covering the  registrant's last
fiscal year; and

     (2)  No proxy statement, form of  proxy  or  other  proxy  soliciting,
material has been sent to more than ten of the registrant's security holders
with respect to any annual or other meeting of security holders.


                                       21