<PAGE> 1
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                   Quarterly Report Under Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

For Quarter Ended June 30, 1998

Commission File Number 2-31080


                    NATIONAL INDUSTRIAL SECURITY CORPORATION
------------------------------------------------------------------------------
             (Exact Name of Registrant As Specified In Its Charter)


     DELAWARE                                  860214815
-----------------                           ---------------
 (State or other                            (I.R.S. Employer
 jurisdiction of                           Identification No.)
  incorporation
 or organization)


                225 East Kirkham Ave St. Louis, Missouri 63119
              --------------------------------------------------
              (Address of Principal Executive Offices, Zip Code)

                                (314) 962-1414
              --------------------------------------------------
                              (Telephone Number)

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding twelve 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
                          -------          -------


                    APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock, as of the latest practicable date:

                     6,994,100 shares of Common Stock
                     were issued and outstanding as of
                              June 30, 1998


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<TABLE>
                                 PART I

                          FINANCIAL INFORMATION
                          ---------------------
                      Item 1 - Financial Statements


                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEETS
                                (unaudited)
                                  ASSETS
                                  ------

<CAPTION>
                                                      6/30/98         12/31/97
                                                      -------         --------
                                                    (unaudited)
<S>                                                  <C>              <C>
CURRENT ASSETS
  Cash                                               $ (8,321)        $  5,741
  Accounts Receivable: (Note B & E)
    Trade                                              49,559           64,147
    Other                                                 294              336
  Prepaid Expenses                                     21,633           16,996
                                                     --------         --------
  TOTAL CURRENT ASSETS                                 63,165           87,220

PROPERTY & EQUIPMENT, at cost (Note D)
  Furniture and Equipment                              85,034           85,034
  Less Accumulated Depreciation
    and Amortization                                  (85,034)         (85,034)
                                                     --------         --------

DEFERRED CHARGES, Net of accumulated
  amortization                                          9,002            9,908

DUE FROM OFFICER                                                        16,235
                                                     --------         --------
TOTAL ASSETS                                         $ 72,167         $113,364
                                                     ========         ========


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

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<TABLE>
                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEETS

                    LIABILITIES & STOCKHOLDERS EQUITY
                    ----------- - ------------ ------

<CAPTION>
                                                      6/30/98         12/31/97
                                                      -------         --------
                                                    (unaudited)
<S>                                               <C>               <C>
CURRENT LIABILITIES
  Accounts payable and accrued expenses              $ 17,783         $ 28,288
  Accrued salaries and related taxes                   20,504           27,892
  Accrued legal fees                                                    40,722
  Line of Credit                                        4,963           31,000
  Deferred revenue                                      1,517            1,811
                                                     --------         --------
    TOTAL CURRENT LIABILITIES                          44,767          129,713



Long Term Note (Note B)                                95,000           71,000

STOCKHOLDERS' EQUITY (Deficiency in Assets)
  Common Stock - authorized
    12,000,000 shares; par value
    $.1667 per share; issued
    and outstanding 6,994,100
    shares                                          1,165,680        1,165,680
  Additional Paid in Capital                           38,785           38,785

  Deficit                                          (1,272,065)      (1,291,814)
                                                   -----------      -----------
    TOTAL STOCKHOLDERS' EQUITY                        (87,349)         (87,349)
    (Deficiency in Assets)

TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                               $ 72,167         $113,364
                                                     ========         ========
  (Deficiency in Assets)



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

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<PAGE> 4

<TABLE>
                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF OPERATIONS
                    FOR THE THREE MONTHS ENDED JUNE 30
                               (UNAUDITED)

<CAPTION>
                                                       1998             1997
                                                       ----             ----
<S>                                                  <C>              <C>
SERVICE REVENUES (Note E)                            $159,441         $158,550

COST AND EXPENSES:
  Labor                                               119,757          121,712
  General and Administrative                           12,466           46,783
                                                     --------         --------

                                                      132,223          168,495
                                                     --------         --------

PROFIT (LOSS) FROM OPERATIONS                          27,218           (9,945)

OTHER INCOME (EXPENSE):
  Interest expense                                     (3,202)          (2,927)
  Investment income                                         0                0
  Miscellaneous                                           (65)            (160)
                                                     --------         --------

NET (LOSS) PROFIT                                    $ 23,951         $(13,032)
                                                     ========         ========

NET (LOSS) PROFIT PER COMMON SHARE                   $    .00         $   (.00)
                                                     ========         ========


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

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<TABLE>
                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  FOR THE SIX MONTHS ENDED JUNE 30, 1998
                               (UNAUDITED)

<CAPTION>
                                                       1998             1997
                                                       ----             ----
<S>                                                  <C>              <C>
SERVICE REVENUES (Note E)                            $329,852         $342,283

COST AND EXPENSES:
  Labor                                               249,693          261,517
  General and Administrative                           54,865          100,831
                                                     --------         --------

                                                      304,558          362,348
                                                     --------         --------

PROFIT (LOSS) FROM OPERATIONS                          25,294          (20,065)

OTHER INCOME (EXPENSE):
  Interest expense                                     (6,160)          (6,521)
  Investment income                                         0               42
  Miscellaneous                                           614             (124)
                                                     --------         --------

NET PROFIT (LOSS)                                    $ 19,748         $(26,668)
                                                     ========         ========

NET PROFIT LOSS PER COMMON SHARE                     $    .00         $   (.00)
                                                     ========         ========


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

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<TABLE>
                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                        SIX MONTHS ENDED JUNE 30
                               (UNAUDITED)

<CAPTION>
                                                       1998             1997
                                                       ----             ----
<S>                                                  <C>              <C>
CHANGE IN CASH AND SHORT-TERM INVESTMENTS:
  Cash flows from operating activities:
    Net PROFIT (LOSS)                                $ 19,748         $(26,668)
    Adjustments to reconcile net earnings to
      net cash provided by operating activities:
        Depreciation                                        0              600
        Amortization                                      906              906
        Change in assets and liabilities:
        Accounts receivable                            14,630           43,076
        Prepaid expenses                               (4,637)           9,602
        Due from officer                               16,235                0
        Accounts payable and accrued expenses         (10,505)          (4,423)
        Accrued salaries and related taxes             (7,388)          (5,703)
        Accrued legal fees                            (40,722)           1,800
        Deferred revenue                                 (294)            (340)
                                                     --------         --------
        Net cash provided by (used in) operating
          activities                                  (12,025)          18,850
                                                     --------         ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Borrowings under line-of-credit with bank
  Payments under line-of-credit with bank             (26,037)         (11,000)
  Borrowings on note payable to officer                24,000                0
  Payments under note payable to officer                    0          (23,000)

    Net cash provided by financing activities          (2,037)         (34,000)
                                                     --------         --------
                                                      (14,062)         (15,150)
NET INCREASE (DECREASE) IN CASH

CASH, beginning of period                               5,741            9,103
                                                     --------         --------
CASH, end of period                                  $ (8,321)        $ (6,047)
                                                     ========         ========



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

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                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       QUARTER ENDED JUNE 30, 1998

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

  Principles of consolidation:
  ----------------------------

        The consolidated financial statements include the accounts of
National Industrial Security Corporation ("the Company") and its wholly-owned
subsidiaries, none of which operated in the three years ended December 31,
1997 or during fiscal 1998. All material intercompany balances have been
eliminated.

        In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (which include only normal
recurring accruals) necessary to fairly present the financial position of
the Company and its subsidiaries at June 30, 1998 and the results of the
operations and changes in their cash flows for the six month period ending
June 30, 1998.

  Depreciation and amortization:
  ------------------------------

        Property and equipment is depreciated on straight-line and
accelerated methods over the useful lives of the related assets which
approximate five years. Leasehold improvements and equipment under capital
leases are amortized over the asset life or the lease term, if shorter.

        Deferred charges at June 30, 1998 consist principally of goodwill
and patent costs which are being amortized over 5 to 20 years. Accumulated
amortization of deferred charges was $20,724 at December 31, 1997 and
$21,630 at June 30, 1998.

  Income/Loss per share:
  ----------------------

        Income or loss per share computations are based on the weighted
average number of common shares outstanding each year.


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                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       QUARTER ENDED JUNE 30, 1998
                              (Continued)

NOTE B - DEBT

        At June 30, 1998, the Company had a $50,000 bank line of credit,
of which $4,963 was outstanding. Advances under the line of credit are
collateralized by eligible accounts receivable and a personal guarantee of
the Company's President and require monthly interest payments at prime
plus 2%. The line of credit expires in June 1999.

        The Company has a $100,000 loan from the President of the Company
to meet its working capital requirements. As of June 30, 1998, the loan amount
was $95,000 and is due May 31, 1999. The note is collateralized by accounts
receivable and property and equipment of the Company and is subordinated to
the bank line of credit. The note requires monthly interest payments at prime
plus 5.25%. Interest expense relating this note was $4,217 for the 6 months
ending June 30, 1998.


NOTE C - INCOME TAXES

        At June 30, 1998 the Company had net operating loss carryforwards
aggregating approximately $819,000 expiring through 2010 and new jobs tax
credit carryforwards of $8,450 expiring principally in 1998.


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                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       QUARTER ENDED JUNE 30, 1998

NOTE D - COMMITMENTS AND CONTINGENCIES:

  Leases:
  -------

        The Company leases its office space under an operating lease expiring
August 31, 1998. Future minimum lease commitments under all non cancelable
operating and capital leases in effect at June 30, 1998 as follows:

<TABLE>
<CAPTION>
                                    Operating
                                      Leases
                                    ---------
<S>                                  <C>
1998                                 $ 2,000

Total payments                       $ 2,000

                                     $ 2,000
                                     =======
</TABLE>

    Rent expense was $6,000 and $6,000 for the six months ending June 30,
1998 and 1997, respectively.


NOTE E - SIGNIFICANT CUSTOMERS:

        Revenues with 2 major customers accounted for approximately 54% of
total service revenues at June 30, 1998. Accounts receivable from these
2 customers represent approximately 67% of total trade accounts receivable
at June 30, 1998.


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                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       QUARTER ENDED JUNE 30, 1998
                              (Continued)


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

        The Company is a Missouri-based corporation providing security
guard and related security services to commercial, and industrial clients in
the St. Louis metropolitan area. In addition to guard services, the Company
continues to provide monitoring services for 40 alarm systems already in
service. This activity accounts for less than 1% of the Company's revenues.

        The labor market for security guards continues to be extremely
difficult for the Company to obtain sufficient applicants, and to hire staff
replacement personnel when needed. This tight labor condition restricts the
Company's ability to market for new clients, and to maintain its existing
client base. The Company presently employs approximately 50 security guards
and an office staff of 4 part time employees all in St. Louis, Missouri.

        The Company is actively seeking merger or acquisition candidates both
through traditional means and through on-line solicitations on the internet.
If the acquiring party considered it advantageous, management of the Company
would consider a transaction in which the purchaser would acquire only the
public shell of the Company and the existing assets and operations would be
transferred to a private entity which would assume all assets and liabilities.
The Company's prior efforts to complete a sale or merger have not been
successful.


RESULTS OF OPERATIONS

        Revenues for the six months ending June 30, 1998, decreased $12,431
(4%) compared with the same period in 1997. The decrease in revenues is due
to the loss of clients due to competitive bidding, client restructuring,
relocations and budget reductions. The Company hopes to reestablish revenue
growth through the recruitment of additional new clients. Start up costs
for new customers vary depending on the size of that client. Such costs are
expensed as incurred.

        The Company is continuing to reduce its administrative and operating
expenses to a level to provide profitable operations.


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                 NATIONAL INDUSTRIAL SECURITY CORPORATION
                             AND SUBSIDIARIES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       QUARTER ENDED JUNE 30, 1998
                              (Continued)

        The percentage of labor expense to service revenues was 76% at
June 30, 1997 and remained 76% at June 30, 1998. At June 30, 1998 general
and administrative expenses decreased by $45,966 due to lower administrative
salaries and reduced rent expense.

        Net profit for the six months ended June 30, 1998 was $19,748 compared
with a net loss of $26,668 during the same period last year.


LIQUIDITY AND CAPITAL RESOURCES

        The Company's independent auditors have concluded that there is
material uncertainty as to the Company's ability to continue as a going
concern. Management of the Company agrees and if operating conditions do not
improve so as to allow for more profitable results from operation, the
Company will consider alternatives such as (1) a sale of all or substantially
all assets, (2) complete wind-down of operations and liquidation of the
Company, or (3) a merger with another entity.

        The Company's short term liquidity is dependent on existing loans
from the Company's chairman. Long-term financing is not feasible based on
the Company's poor results from operation. The Company believes it has
adequate financing to continue its current operations in coming months
while a sale, wind-down, or merger of the Company is being arranged.


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<PAGE> 12

                                   SIGNATURES
                                   ----------

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

                                       NATIONAL INDUSTRIAL SECURITY
                                       CORPORATION

Date: August 15, 1998                  By: /s/ Max T. Jackson
                                          ------------------------------------
                                          Max T. Jackson, President,
                                          Treasurer and Chairman of the
                                          Board of Directors
                                          (Principal Executive, Financial
                                          and Accounting Officer)

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