UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                   FORM 10-QSB

[X]  Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

         For the quarterly period ended March 31, 1998

[  ] Transition Report pursuant to 13 or 15(d) of the Securities  Exchange Act
     of 1934

         For the transition period from              to

Commission File Number 33-55254-03

                            DYNAMIC ASSOCIATES, INC.
        (Exact name of Small Business Issuer as specified in its charter)


         Nevada                                      87-0473323
(State or other jurisdiction of                      (IRS Employer
         incorporation )                              Identification No.)

7373 North Scottsdale Road, Suite B-169
Scottsdale, Arizona                                    85253
(Address of principal executive offices                (Zip Code)

Issuer's telephone number, including area code (602) 483-8700

Indicate by a check mark  whether the issuer (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 issuer was required
to file such reports),  and (2) has been subject to such filing requirements for
the past 90 days [U] Yes [ ] No

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

                                                              Outstanding as of
                           Class                              March 31, 1998

         $.001 par value Class A Common Stock                 14,223,929 shares




<PAGE>



                         PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

BASIS OF PRESENTATION

General

The accompanying unaudited financial statements have been prepared in accordance
with  the  instructions  to Form  10-QSB  and,  therefore,  do not  include  all
information  and footnotes  necessary for a complete  presentation  of financial
position,  results  of  operations,  cash  flows,  and  stockholders'  equity in
conformity  with generally  accepted  accounting  principles.  In the opinion of
management,  all adjustments considered necessary for a fair presentation of the
results of  operations  and  financial  position have been included and all such
adjustments are of a normal recurring  nature.  Operating  results for the three
months ended March 31, 1998 are not  necessarily  indicative of the results that
can be expected for the year ending December 31,1998.

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

         The   Company   is   engaged   in    managing    the    operation    of
psychiatric/geriatric  units for  various  hospitals  through  Genesis and GCCA,
wholly owned subsidiaries.

         Management  anticipates  that the  spin-off of P&H and MMC will provide
the Company with a healthier cash flow as it will free the Company from carrying
the  financial  burden of funding MMC. The  Company's  focus will be directed to
furthering  the growth of Genesis  and GCCA.  This will enable the Company to be
better positioned in the healthcare market place.

         The Company completed the spin-off of MW Medical, Inc. ("MW Medical" or
"MW") on March 11, 1998.  MW Medical is the owner of P&H and MMC,  each of which
was a subsidiary of the Company until completion of the spin-off.  MW Medical is
a Nevada corporation  incorporated on December 4, 1997. The Company  distributed
to the shareholders, one common share of MW Medical for each common share of the
Company held by the  shareholder.  The  distribution  was completed on March 11,
1998 to  shareholders  of the  Company  of  record  on  February  25,  1998.  No
consideration was paid by Dynamic shareholders for shares of MW Common Stock.

         In 1997, the Company issued Convertible Notes in Reliance on Regulation
S to non U.S. persons. Each note is for $18,500.00 and bears interest at 10% per
annum and is  convertible  into common  stock of the Company at $3.50 per share.
With the spin off of MMC and P&H March 11, 1998,  the decline in material  asset
value of the Company  resulted in the conversion  price being lowered from $3.50
to $2.75. The notes mature September 16, 2006.

         The businesses of P&H and MMC are summarized as follows:

                  (A)      P&H Laboratories

                  P&H is engaged in the business of manufacturing  various types
                  of devices utilizing microwave technology. The devices include
                  isolators,   circulators,   power  monitor  devices,  filters,
                  diplexers,  switching diplexers,  multi-junction  circulators,
                  microwave  sub-systems and integrated packages and subsystems.
                  P&H also



<PAGE>



                  provides  special  engineering   services  to  customers  with
                  specific microwave technology requirements.

                  (B)      Microwave Medical Corp.

                  MMC is in the business of  developing  proprietary  technology
                  relating   to  the  use  of   microwave   energy  for  medical
                  applications.  MMC has a patent pending entitled,  "Method and
                  Apparatus  for Treating  Subcutaneous  Histological  Features"
                  which focuses on the  application  of microwave  energy to the
                  treatment of spider veins and for use in hair removal. MMC has
                  no  revenues  and  has  not  completed   development   of  its
                  technology.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 1998, the Company had $911,161 in cash and cash equivalents. The
Company  incurred  a loss  of  $.02  per  share  after  deducting  $651,294  for
amortization  of goodwill and  depreciation.  The cost of goodwill and debt cost
amortization  is  approximately   $.05  per  share.  Cash  flow  generated  from
operations was approximately $.03 per share.

Genesis, a Louisiana corporation,  is a 100% owned subsidiary of the Company. It
provides  elderly  healthcare and  gero-psychology  services to small healthcare
facilities  unable to provide  these  services in house.  The Genesis  treatment
program  conforms  to the  guidelines  of the  JCAHO  Accreditation  Manual  for
Hospitals and Medical  Standards.  The program is reimbursed at cost by Medicare
when  established as a distinct part unit of a hospital  which  qualifies for an
exemption from the Medicare Prospective Payment System("PPS"). The PPS exemption
provides  for a cost plus  reimbursement  system for the unit,  which allows the
hospital to receive full reimbursement of the direct operating expenses, plus an
allocation  to the  unit of a  substantial  portion  of the  hospital's  overall
overhead and capital costs.  Genesis , together with GCCA, expects to generate a
profit.

RESULTS OF OPERATIONS

The financial  statements  present the  activities  of the Company,  Genesis and
GCCA. Financial  information on MMC and P&H has been omitted due to the spin-off
to MW Medical.

During the three months ended March 31,  1998,  management  fees of $45,000 were
paid compared to $90,000 for the same period in 1997.  The  Company's  President
received $45,000 and the Company's  Secretary/Treasurer  received or was accrued
the amount of $32,867.

Net loss for the three months ended March 31, 1998 was $2,727,268  compared to a
loss of $335,838 for the same period in 1997. The net loss is $.19 per share for
the quarter.  A charge for amortization of goodwill and depreciation of $651,294
was  incurred  in the  period  which  represents  $.05 per  share.  The  Company
generated from  operations a positive cash flow of $.03 per share.  Net loss for
the period is due largely to the write off of debts of our former  subsidiaries;
Microwave Medical Corp., and Microwave Medical GmBH.

Management  fee income was  $3,722,506 for the three months ended March 31, 1998
compared to $3,453,000 for the same period in 1997. This is a 7.8% increase from
1997.




<PAGE>



Net sales for the three months ended March 31, 1998 was $0, compared to $900,233
for the same period in 1997.  Cost of sales for the three months ended March 31,
1998 was $0 compared to  $658,147  for the same period in 1997.  Due to the spin
off of P&H  Laboratories  on March 11,  1998 to MW  Medical,  Inc.,  the Company
currently only earns management fee income and no sales income.

Selling and general and administrative expenses for the three months ended March
31, 1998 were $3,112,905 compared to $2,591,979 for the same period in 1997.

Research and development expenses incurred by the former subsidiaries, Microwave
Medical  Corp.  and  Microwave  Medical  GmBH  are  no  longer  included  in the
financials of the Company,  since the spin off of March 11, 1998.  For the three
months ended March 31, 1997 these costs were $203,620.

Depreciation and amortization expenses for the three months ended March 31, 1998
were $651,294 compared to $654,521 for the same period in 1997.

Interest  expense  for the  three  months  ended  March 31,  1998 were  $472,115
compared to $489,277 for the same period in 1997.  Interest  expense is incurred
to the Convertible Note Holders of the Company.

                                       PART II - OTHER INFORMATION

Item 5. Other Information

Genesis Health Management Corporation (Genesis)

In December 1996, the Company purchased 100% of the outstanding  common stock of
Genesis for $25,373,000.  Of the purchase price, $15,050,000 was paid in cash or
notes and accounts payable and $10,323,000 was paid by issuing  3,100,000 shares
of the  Common  Stock of the  Company  at a value of $3.33 per  share.  The note
issued in connection  with the  acquisition of Genesis was paid in full on March
3, 1997.  Genesis  had been  operating  in  Louisiana  for 3 years  prior to the
purchase by the Company.  Genesis is in the  business of managing and  operating
psychiatric/geriatric   units  in  various   hospitals   (both   in-patient  and
out-patient).  At March 31, 1998,  Genesis had 22 contracted units.  Genesis has
contracts with hospitals in the states of Louisiana,  Arkansas,  Mississippi and
Tennessee.

Geriatric Care Centers of America, Inc. (GCCA)

On  March  13,  1997,  Geriatric  Care  Centers  of  America  ("Geriatric"),   a
corporation  organized  pursuant to the laws of the state of  Tennessee,  merged
with Geriatric Care Centers  Acquisition  Corporation,  for $500,000 in cash and
150,000  shares of Common Stock of the Company.  The  surviving  corporation  is
Geriatric Care Centers of America, Inc. ("GCCA"),  with its registered office at
1613 Jimmie Davis Highway, Bossier City, Louisiana, 71112. The Company owns 100%
of  GCCA.   GCCA  is  also  in  the   business   of   managing   and   operating
psychiatric/geriatric  units  in  hospitals.  At  March  31,  1998,  GCCA  had 3
operating units.  The financial  statements at March 31, 1997 do not include any
income or expenses for GCCA as it was acquired late in the quarter.






<PAGE>



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

         (a)      Exhibits
                  99-1 Financial Statements as of March 31, 1998
                  27 Financial Data Schedule

         (b)      Reports on Form 8-K
                  None





                       THIS SPACE INTENTIONALLY LEFT BLANK






<PAGE>



                                   SIGNATURES

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

                            DYNAMIC ASSOCIATES, INC.



DATED: May 20, 1998       /S/ Grace Sim
        --------            -------------
                            Grace Sim, Secretary/Treasurer




<PAGE>


                                 SMITH & COMPANY
                          A PROFESSIONAL CORPORATION OF
                          CERTIFIED PUBLIC ACCOUNTANTS

MEMBERS OF:                                  10 WEST 100 SOUTH, SUITE 700
AMERICAN INSTITUTE OF                        SALT LAKE CITY, UTAH 84101
     CERTIFIED PUBLIC ACCOUNTANTS            TELEPHONE:       (801) 575-8297
UTAH ASSOCIATION OF                          FACSIMILE:       (801) 575-8306
     CERTIFIED PUBLIC ACCOUNTANTS            E-MAIL: smith&co@smithandcocpa.com
--------------------------------------------------------------------------------



                          INDEPENDENT AUDITOR'S REPORT

The Board of Directors and Shareholders
Dynamic Associates, Inc.

The accompanying balance sheet of Dynamic Associates, Inc. as of March 31, 1998,
and the related  statements of  operations,  and cash flows for the three months
ended March 31, 1998 and 1997,  and  statement of  shareholders'  equity for the
three months ended March 31, 1998 were not audited by us and, accordingly, we do
not express an opinion on them.


                                   /S/ Smith & Company
                                 CERTIFIED PUBLIC ACCOUNTANTS

Salt Lake City, Utah
May 13, 1998


                                                  F-1

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                 March 31,
                                                                                                   1998
                                                                                          ----------------------
ASSETS
     CURRENT ASSETS
<S>                                                                                       <C>                   
       Cash                                                                               $              911,161
       Accounts receivable (less allowance for doubtful accounts of $1,580,050)                        4,339,764
       Other receivables                                                                                 113,315
       Prepaid expense and other current assets                                                           33,445
       Deferred Tax Benefit                                                                              300,000
                                                                                          ----------------------
                                                                  TOTAL CURRENT ASSETS                 5,697,685

     PROPERTY, PLANT & EQUIPMENT                                                                         314,564

     OTHER ASSETS
       Deferred debt issue costs (less amortization of $237,781)                                       1,481,076
       Investment - restricted stock                                                                      15,000
       Goodwill (less amortization of $3,354,040)                                                     21,503,735
       Deposits                                                                                              410
                                                                                          ----------------------
                                                                                                      23,000,221
                                                                                          ----------------------

                                                                                          $           29,012,470
                                                                                          ======================

LIABILITIES & EQUITY
     CURRENT LIABILITIES
       Accounts payable                                                                   $              317,349
       Accrued expenses                                                                                  578,349
       Current portion of long-term debt                                                                  22,167
       Income taxes payable                                                                               45,000
       Accrued interest payable                                                                          349,346
                                                                                          ----------------------
                                                             TOTAL CURRENT LIABILITIES                 1,312,211

LONG-TERM DEBT                                                                                            22,607
CONVERTIBLE NOTES                                                                                     17,001,500
                                                                                          ----------------------
                                                                                                      17,024,107
                                                                                          ----------------------
                                                                     TOTAL LIABILITIES                18,336,318

     STOCKHOLDERS' EQUITY Common stock $.001 par value:
         Authorized - 25,000,000 shares
         Issued and outstanding 14,223,929 shares                                                         14,224
       Additional paid-in capital                                                                     18,512,330
       Retained deficit                                                                               (7,850,402)
                                                                                          ----------------------
                                                            TOTAL STOCKHOLDERS' EQUITY                10,676,152
                                                                                          ----------------------

                                                                                          $           29,012,470
                                                                                          ======================
</TABLE>


                                                  F-2

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Three Months Ended March 31,
                                                                                  1998                1997
                                                                           ------------------  -----------------
<S>                                                                        <C>                 <C>              
Net sales                                                                  $                0  $         900,233
Management fees                                                                     3,722,506          3,453,000
Cost of sales                                                                               0            658,147
                                                                           ------------------  -----------------

                                                           GROSS PROFIT             3,722,506          3,695,086

Selling and General & administrative expenses                                       3,112,905          2,591,979
Depreciation and amortization                                                         651,294            654,521
Research and development                                                                    0            203,620
Bad debts                                                                             250,000                  0
                                                                           ------------------  -----------------
                                                                                    4,014,199          3,450,120
                                                                           ------------------  -----------------

                                            NET OPERATING INCOME (LOSS)              (291,693)           244,966

OTHER INCOME (EXPENSE)
     Interest income                                                                    9,653             23,587
     Interest expense                                                                (472,115)          (489,277)
     Miscellaneous income                                                                   0              3,072
     Bad debts - former subsidiaries                                               (2,169,806)                 0
     Disposition of subsidiaries                                                      256,493                  0
     Unrealized increase (decrease) in investment                                     (14,800)            31,400
                                                                           ------------------  -----------------
                                                                                   (2,390,575)          (431,218)
                                                                           ------------------  -----------------
                                               NET (LOSS) BEFORE INCOME
                                            TAXES AND MINORITY INTEREST            (2,682,268)          (186,252)

INCOME TAX EXPENSE                                                                     45,000            137,785
                                                                           ------------------  -----------------

                                                      NET (LOSS) BEFORE
                                                      MINORITY INTEREST            (2,727,268)          (324,037)

MINORITY INTEREST                                                                           0             11,801
                                                                           ------------------  -----------------

                                                             NET (LOSS)    $       (2,727,268) $        (335,838)
                                                                           ==================  =================

Net (loss) per weighted average share                                      $             (.19) $            (.03)
                                                                           ==================  =================

Weighted average number of common shares used to compute
     net (loss) per weighted average share                                         14,068,373         12,353,511
                                                                           ==================  =================

</TABLE>


                                       F-3

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                Common Stock                   Additional
                                               Par Value $.001                   Paid-In            Retained
                                         Shares              Amount              Capital             Deficit
                                    -----------------  ------------------  ------------------  -----------------
<S>                                 <C>                <C>                 <C>                 <C>               
Balances at 12/31/97                       13,973,929  $           13,974  $       18,262,580  $      (5,123,134)
   Sale of common stock (S-8)
     at $1.00 per share                       250,000                 250             249,750
Net loss for quarter                                                                                  (2,727,268)
                                    -----------------  ------------------  ------------------  -----------------

Balances at 3/31/98                        14,223,929  $           14,224  $       18,512,330  $      (7,850,402)
                                    =================  ==================  ==================  =================
</TABLE>




                                       F-4

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                Three months ended March 31,
                                                                                  1998                1997
                                                                           ------------------  -----------------
OPERATING ACTIVITIES
<S>                                                                        <C>                 <C>               
   Net (loss)                                                              $       (2,727,268) $        (335,838)
   Adjustments to reconcile net (loss) to cash used by operating
     activities:
       Depreciation and amortization                                                  701,217            702,730
       Minority interest                                                                    0             11,801
       Book value of spun-off subsidiaries                                          1,743,312                  0
       Adjustment for Investment received as interest income                                0              5,000
       Unrealized change in investment                                                 14,800            (31,400)
       Deferred taxes                                                                       0             11,500
   Changes in assets and liabilities:
       Accounts receivable                                                           (707,697)          (481,778)
       Inventories                                                                          0             (3,537)
       Prepaid expenses and other                                                       5,983            (10,443)
       Accounts payable and accrued expenses                                         (356,467)          (732,324)
       Income taxes payable                                                          (208,328)            63,335
                                                                           ------------------  -----------------

                                NET CASH USED BY OPERATING ACTIVITIES              (1,534,448)          (800,954)

INVESTING ACTIVITIES
   Loans to related parties and accrued interest                                            0            (12,445)
   Loan - other                                                                        (9,014)                 0
   Purchase of equipment                                                               (4,980)          (137,004)
   Deposits                                                                           (11,496)           (17,429)
   Goodwill                                                                                 0           (500,000)
   Deferred debt issue costs                                                                0           (340,356)
                                                                           ------------------  -----------------

                                NET CASH USED BY INVESTING ACTIVITIES                 (25,490)        (1,007,234)

FINANCING ACTIVITIES
   Cash from (to) subsidiaries                                                       (387,982)            41,518
   Principal payments on debt                                                          (7,093)        (3,169,149)
   Proceeds from sale of common stock                                                 250,000            317,000
   Capital raising costs                                                                    0             (3,000)
   Convertible note proceeds                                                                0          3,811,000
                                                                           ------------------  -----------------

                                             NET CASH PROVIDED (USED)
                                              BY FINANCING ACTIVITIES                (145,075)           997,369
                                                                           ------------------  -----------------

                                DECREASE IN CASH AND CASH EQUIVALENTS              (1,705,013)          (810,819)

Cash and cash equivalents at beginning of period                                    2,616,174          3,447,019
                                                                           ------------------  -----------------

                           CASH AND CASH EQUIVALENTS AT END OF PERIOD      $          911,161  $       2,636,200
                                                                           ==================  =================

SUPPLEMENTAL INFORMATION
   Cash paid for interest                                                  $          864,838  $         298,420
   Cash paid for income taxes                                                         253,768             62,950
</TABLE>

During 1997, the Company issued 150,000 shares of its restricted common stock as
part of the acquisition of GCCA. The transaction has been recorded at $300,000.

During  1998,  the  Company  purchased  a vehicle  in the  amount of  $16,943 by
incurring a loan in the same amount.


                                       F-5

<PAGE>



                    DYNAMIC ASSOCIATES, INC. AND SUBSIDIARIES
                   UNAUDITED PRO FORMA CONSOLIDATED CONDENSED
                             STATEMENT OF OPERATIONS
                          Quarter ended March 31, 1997
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                     Pro Forma      Consolidated
                                                                 Dynamic (1)     Geriatric (2)      Adjustments       Pro Forma
                                                              ---------------   ---------------  ---------------   ---------------
<S>                                                           <C>               <C>              <C>                              
Net Sales                                                     $       900,233   $             0  $                 $       900,233
Management fee income                                               3,453,000           244,125                          3,697,125
Cost of sales                                                         658,147                 0                            658,147
                                                              ---------------   ---------------  ---------------   ---------------

                                                GROSS PROFIT        3,695,086           244,125                          3,939,211

Selling and general and administrative expenses                     2,591,979            26,792                          2,618,771
Depreciation and amortization                                         654,521                 0                            654,521
Research and development                                              203,620                 0                            203,620
                                                              ---------------   ---------------  ---------------   ---------------
                                                                    3,450,120            26,792                          3,476,912
                                                              ---------------   ---------------                    ---------------
                                        NET OPERATING INCOME          244,966           217,333                            462,299

OTHER INCOME (EXPENSE)
   Interest income                                                     23,587                 0                             23,587
   Interest expense                                                  (489,277)                0                           (489,277)
   Miscellaneous income                                                 3,072                 0                              3,072
   Unrealized increase in investment                                   31,400                 0                             31,400
                                                              ---------------   ---------------  ---------------   ---------------
                                                                     (431,218)                0                           (431,218)
                                                              ---------------   ---------------                    ---------------
                             NET INCOME (LOSS) BEFORE INCOME
                                 TAXES AND MINORITY INTEREST         (186,252)          217,333                             31,081

INCOME TAX EXPENSE                                                    137,785            13,000                            150,785
                                                              ---------------   ---------------  ---------------   ---------------

                                    NET INCOME (LOSS) BEFORE
                                           MINORITY INTEREST         (324,037)          204,333                           (119,704)

MINORITY INTEREST                                                      11,801                 0                             11,801
                                                              ---------------   ---------------  ---------------   ---------------

                                           NET INCOME (LOSS)  $      (335,838)  $       204,333  $                 $      (131,505)
                                                              ===============   ===============  ===============   ===============

Net income (loss) per weighted average share                  $          (.03)                                     $          (.01)
                                                              ===============                                      ===============

Weighted average number of common shares
   used to compute net income (loss) per weighted
   average share                                                   12,353,511                                           12,308,900
                                                              ===============                                      ===============
</TABLE>

   (1) Includes all  subsidiaries  except  Geriatric which was acquired on March
14, 1997.

   (2) Not included on page F-3 since acquisition was made late in the quarter.


                                       F-6