U.S. SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549

                              ------------------


                                  FORM 10-QSB

               [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                     For the Quarter Ended March 31, 1998

              [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                        Commission File Number 33-82468
                        -------------------------------


                                AIM GROUP, INC.
       (Exact name of small business issuer as specified in its charter)

         2001 W. Sample Road (Suite 300), Pompano Beach, Florida 33064
             (Address of registrant's principal executive office)

                                 954-972-9339
                        (Registrant's telephone number)

                  Delaware                              13-3773537
         (State of Incorporation)                    (I.R.S. Employer
            Identification No.)

                              -------------------



Check  whether  the issuer (1) filed all  reports to be filed by Section 13 or
(15(d) of the  Exchange Act during the past 12 months and (2) has been subject
to such filing requirements for the past 90 days. Yes [X]  No [ ]

The  number  of  shares of common  stock  outstanding  as of May 13,  1998 was
3,980,053

Transitional Small Business Disclosure Format: [ ] Yes    [X] No


<PAGE>

                        AIM GROUP, INC.AND SUBSIDIARIES
                                     INDEX
                       THREE MONTHS ENDED MARCH 31, 1998

                                                                           Page
                                                                           ----

PART 1.             FINANCIAL INFORMATION

Item 1.             Schedule A- Financial Statements & Notes

                    Condensed Consolidated Balance Sheets -
                     March 31, 1998 and December 31, 1997                    3

                    Condensed Consolidated Statements of
                     Operations  - Three Months Ended March 31,
                     1998 and 1997                                           4

                    Condensed Consolidated Statements of
                     Cash Flows - Three Months Ended March 31,
                     1998 and 1997                                           5

                    Notes to Condensed Consolidated
                     Financial Statements                                    6


Item 2.              Management's Discussion and Analysis of
                     Financial Condition and Results of
                     Operations                                            7-8
                      

PART II:             OTHER INFORMATION                                       8

                     Exhibits and Reports on Form 8-K


                                       2

<PAGE>

Part 1. Financial Information

                       AIM GROUP, INC. AND SUBSIDIARIES

<TABLE>
                     CONDENSED CONSOLIDATED BALANCE SHEETS

<CAPTION>
                                                      March 31,        December 31,
                                                        1998             1997
                                                    -------------    -------------
<S>                                                 <C>              <C>
ASSETS                                              (Unaudited)          (Note)
CURRENT ASSETS
  Cash                                              $     30,022     $      9,898
  Accounts receivable
    Trade                                                546,475          368,832
  Inventories                                            224,191          202,155
  Prepaid expenses                                         8,387            6,967
                                                    -------------    -------------
               Total current assets                      809,075          587,852

  PROPERTY, PLANT AND EQUIPMENT                          834,289          809,396
  Less allowances for depreciation                      (254,415)        (236,685)
                                                    -------------    -------------
                                                         579,874          572,711

  RESOURCE PROPERTY                                    4,010,168        4,000,373

  OTHER ASSETS                                            43,540           40,511
                                                    -------------    -------------
                                                    $  5,442,657     $  5,201,447
                                                    =============    =============
  LIABILITIES AND STOCKHOLDERS' EQUITY
  CURRENT LIABILITIES
    Accounts payable                                $    677,309     $    630,692
    Receivable financing liability                       429,943          277,441
    Current portion of long-term debt                     96,055           80,954
    Accrued expenses                                      41,635           46,062
                                                    -------------    -------------
               Total current liabilities               1,244,942        1,035,149

  LONG-TERM DEBT, less current portion                    90,118           93,091

  CONVERTIBLE NOTES PAYABLE                            1,050,000        1,050,000

  STOCKHOLDERS' EQUITY
    Preferred Stock; 1,000,000 shares authorized;
      $1 par value; no shares issued or
       outstanding.                                            -                -
    Common stock; 12,000,000 shares authorized;
       $.01 par value; 3,980,053 shares issued
       and 3,971,107 shares outstanding at
       December 31, 1997 and March 31, 1998.              39,801           39,801
    Additional paid in capital                         4,222,809        4,222,809
    Common stock held in treasury - 8,946 shares          (6,876)          (6,876)
    Accumulated  deficit                              (1,198,137)      (1,232,527)
                                                    -------------    -------------
                                                       3,057,597        3,023,207
                                                    -------------    -------------
                                                    $  5,442,657     $  5,201,447
                                                    =============    =============
</TABLE>

  Note:  The balance  sheet at December  31,  1997 has been  derived  from the
  audited  financial  statements  at that  date but does not  include  all the
  information  and  footnotes  required  by  generally   accepted   accounting
  principles for complete financial statements.

  See notes to condensed consolidated financial statements.


                                       3

<PAGE>

                       AIM GROUP, INC. AND SUBSIDIARIES

<TABLE>
                            STATEMENT OF OPERATIONS
                                  (Unaudited)
<CAPTION>

                                                   Three Months Ended
                                                        March 31,
                                                   ------------------
                                                   1998          1997
                                                   ----          ----
<S>                                           <C>           <C>
Net sales                                     $   778,189   $    572,092
Costs and expenses
  Cost of products sold                           546,355        428,538
  Selling and administrative expenses             123,355        226,976
  Interest                                         54,689         49,782
  Depreciation and amortization                    19,400         19,401
                                              ------------  ------------
                                                  743,799        724,697
                                              ------------  ------------
      Earnings (loss) before taxes                 34,390       (152,605)

Income taxes                                            -             -
                                              ------------  ------------
Net earnings (loss)                           $    34,390   $  (152,605)
                                              ============  ============

Net earnings per share                        $     0.009   $    (0.038)
                                              ============  ============

Weighted average shares outstanding             3,971,107     3,978,766
                                              ============  ============
</TABLE>

See notes to condensed consolidated financial statements.


                                       4

<PAGE>

                       AIM GROUP, INC. AND SUBSIDIARIES

<TABLE>
                            STATEMENT OF CASH FLOWS

<CAPTION>

                                                           Three Months Ended
                                                                March 31,
                                                           ------------------
                                                           1998          1997
                                                           ----          ----
<S>                                                   <C>           <C>
CASH FLOWS FROM OPERATIONS                            $    47,385   $   (21,741)

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and equipment                     (24,894)           -
  Increases in other assets and resource property         (14,495)       (4,327)
                                                      ------------  ------------
        Net cash used by investing activities             (39,389)       (4,327)
                                                      ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from long-term debt financing                   15,101             -
  Payment of long-term debt                                (2,973)       (4,117)
                                                      ------------  ------------
        Net cash provided by financing activities          12,128        (4,117)
                                                      ------------  ------------

   NET INCREASE (DECREASE) IN CASH                    $    20,124   $   (30,185)
                                                      ============  ============
</TABLE>

See notes to condensed consolidated financial statements.


                                       5

<PAGE>

                       AIM GROUP, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements
(Unaudited)

March 31, 1998


NOTE A - BASIS OF PRESENTATION

The accompanying  unaudited condensed financial  statements have been prepared
in  accordance  with  generally  accepted  accounting  principles  for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation  S-X.  Accordingly,  they do not include all of the information and
footnotes  required by generally accepted  accounting  principles for complete
financial   statements.   In  the  opinion  of  management,   all  adjustments
(consisting  of normal  recurring  accruals)  considered  necessary for a fair
presentation have been included.  Operating results for the three months ended
March 31,  1998 are not  necessarily  indicative  of the  results  that may be
expected for the year ended December 31, 1998. For further information,  refer
to the refer to the financial statements and footnotes thereto included in the
AIM Group, Inc. annual report on FORM 10-KSB for the period ended December 31,
1997.

NOTE B - INVENTORIES

The components of inventory consist of the following:

<TABLE>
<CAPTION>
                                       March 31,                  December 31,
                                         1998                         1997
                                         ----                         ----
<S>                                    <C>                        <C>
Finished goods                         $     -0-                  $      -0-
Raw materials                            163,379                    141,926
Klannerite Ore                            48,645                     48,645
Spare parts and supplies                  12,167                     11,584
                                       ---------                  ----------
                                       $ 224,191                  $ 202,155
</TABLE>


                                       6

<PAGE>

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

RESULTS OF OPERATIONS

      Net sales of AIM Group,  Inc. (the  "Company")  for the first quarter of
1998 amounted to $778,189,  an increase of $206,097,or  36%, over net sales of
$572,092 in the prior year's comparable quarter. The increase in net sales was
primarily attributable to a significant increase in a major customer's product
line.  Cost of products  sold  amounted to $546,355  and $428,538 in the first
quarters of 1998 and 1997, respectively, resulting in a gross margin of 30% in
the first  quarter of 1998 compared to a 25% gross margin in the first quarter
of 1997.  The increase in the gross margin was primarily  attributable  to the
increase in net sales.

      Selling  and  administrative  expenses  during  the first  quarter  were
$123,355,  or 16% of net sales,  compared to $226,976, or 40% of net sales, in
the first quarter of 1997. The decrease in selling and administrative expenses
is primarily  attributable to the major cost reduction program  implemented by
new management in the last half of 1997.  Various  personnel and other expense
reductions have been achieved primarily in the corporate overhead area.

      Interest expenses were $54,689, or 7% of net sales, in the first quarter
of 1998 compared to $49,782, or 9% of net sales, in the first quarter of 1997.
The dollar  increase in interest  expenses was mainly  attributable to a plant
improvement loan obtained in the third quarter of 1997.

      Primarily as a result of the above,  the Company  earned a net profit of
$34,390,  or $.009 per share, in the quarter ended March 31, 1998, compared to
a net loss of  $152,605,  or $.038 per share,  in the quarter  ended March 31,
1997.

      No assurance can be given that the first  quarter's  increased  revenues
and earnings will be experienced in the second quarter or balance of the year.


                                       7


<PAGE>

LIQUIDITY AND SOURCES OF CAPITAL

      The Company had a positive  cash flow from  operations of $47,385 in the
first  quarter of 1998,  compared to a negative  cash flow from  operations of
$21,741 in the first quarter of 1997. As of March 31, 1998,  the Company had a
working capital deficit of $435,867.

      In order to increase  available cash to meet expenses in the short term,
the Company  continued  its  factoring  arrangement  which  provides  for cash
advances  against  invoices  to  customers  during  the  period in which  such
invoices  are  outstanding.  Generally,  the  cost of  factoring,  similar  to
interest rates on short term borrowings, is payable on the amounts outstanding
and customer payments are then applied directly to advances.  Factoring, while
not increasing  working capital,  does provide  liquidity of receivables.  The
improved financial results in the first quarter of 1998 enabled the company to
reduce its  factoring  and it is the  continued  intention  of  management  to
minimize  and  ultimately   discontinue  the  use  of  factoring  as  soon  as
practicable.

On March 23, 1998 the Company  entered into  agreements with the three holders
of its 10% Convertible  Promissory Notes (the "Notes").  The agreements extend
the maturity dates to Dec. 31, 1998, maintain the current interest rate at 10%
per annum and conversion price at $.70 per share, provide that Noteholders may
not  convert  their  Notes  prior to August 1,  1998 and  provide  that if the
Company is successful in closing a proposed  equity offering in mid-1998 there
will be a mandatory  conversion if the closing  price of the Company's  common
stock on the Vancouver  Stock  Exchange  averages in excess of $1.50 per share
for the 90-day period following the closing.

PART II.  OTHER INFORMATION

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) EXHIBITS. The following exhibit is filed herewith:

         Exhibit No.               Document
         -----------               --------
            27                     Financial Data Schedule

(b) REPORTS ON FORM 8-K.  There were no Forms 8-K filed by the Company  during
the first quarter ended March 31, 1998.


                                       8

<PAGE>

                                  SIGNATURES

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

                                AIM GROUP, INC.

May 13, 1998                    By: /s/PAUL R. ARENA
                                    ----------------
                                    Paul R. Arena
                                    Chairman of the Board,
                                    Chief Executive Officer
                                     and President

May 13, 1998                    By: /s/LEIGH S. ZOLOTO
                                    -------------------
                                    Leigh S. Zoloto
                                    Chief Financial Officer,
                                     Secretary and Treasurer