FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


(Mark One)

[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
OR

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

For the transition period from ............to..............

Commission file number 0-10128


                       PERSONAL DIAGNOSTICS, INCORPORATED
             (Exact name of registrant as specified in its charter)


           New Jersey                                   22-2325136
 (State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)

   PO Box 5310, Parsippany, NJ                             07054
 (Address of principal executive                        (Zip Code)
            offices)

         (201) 952-9000
(Registrant's telephone number, including
              area code)

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

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 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 __

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

            Class                       Outstanding at April 30, 1998
            -----                       -----------------------------
Common Stock, $.01 par value                      5,014,000



<PAGE>


                       PERSONAL DIAGNOSTICS, INCORPORATED


        Index                                                           Page No.
        -----                                                           --------
       
Part I  Financial Information
       
        Item 1.  Financial Statements:
       
        Balance Sheets - March 31, 1998 and September 30, 1997             3
       
        Statements of Operations - For the Three and SixMonths Ended
        March  31, 1998 and 1997                                           4
       
        Statements of Cash Flows - For the Six Months Ended  
        March 31, 1998 and 1997                                            5
       
       
        Notes to Financial Statements                                      6
       
        Item 2.  Management's Discussion and Analysis of 
                 Financial Condition and Results of Operations             8
       
      
Part II Other Information
        Item 6.  Exhibits and Reports on Form 8-K                         11



<PAGE>


                       PERSONAL DIAGNOSTICS, INCORPORATED
                                 BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                                   September 30,
                                                                    March 31, 1998                      1997
                                                                 --------------------           -------------------
                                                                     (UNAUDITED)
                                  ASSETS
CURRENT ASSETS:
<S>                                                                      <C>                           <C>        
     Cash and equivalents (including three month Treasury Bills)         $ 6,640,000                   $ 6,117,000
     Property held for development and sale-net                              860,000                     1,661,000
     Other current assets                                                      5,000                         7,000
                                                                 --------------------           -------------------
         Total Current Assets                                              7,505,000                     7,785,000

                                                                 --------------------           -------------------
TOTAL ASSETS                                                             $ 7,505,000                   $ 7,785,000
                                                                 ====================           ===================

                   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Accounts payable                                                        $ 5,000                      $ 12,000
     Accrued payroll                                                          88,000                            -
     Current liabilities of discontinued operations                          100,000                       125,000
     Other current liabilities                                                65,000                        93,000
                                                                 --------------------           -------------------
         Total Current Liabilities                                           258,000                       230,000
                                                                 --------------------           -------------------


STOCKHOLDERS' EQUITY:
     Common Stock,$.01 par value; authorized,
      25,000,000 shares; issued and outstanding,
      5,014,000 shares                                                        50,000                        50,000
     Capital in excess of par value                                       13,420,000                    13,420,000
     Accumulated deficit                                                  (6,223,000)                   (5,915,000)
                                                                 --------------------           -------------------
         Total Stockholders' Equity                                        7,247,000                     7,555,000
                                                                 --------------------           -------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                               $ 7,505,000                   $ 7,785,000
                                                                 ====================           ===================
</TABLE>


                 See accompanying notes to financial statements.

<PAGE>

                       PERSONAL DIAGNOSTICS, INCORPORATED
                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                           Three Months Ended                            Six Months Ended
                                               March 31,                                     March 31,
                                    ---------------------------------           ------------------------------------
                                        1998               1997                      1998                1997
                                    --------------     --------------           ----------------    ----------------
INCOME:
<S>                                      <C>                <C>                       <C>                 <C>      
    Interest                             $ 85,000           $ 71,000                  $ 167,000           $ 147,000
    Trading gains (losses)               (340,000)           266,000                   (323,000)            704,000
                                    --------------     --------------           ----------------    ----------------
                                         (255,000)           337,000                   (156,000)            851,000
                                    --------------     --------------           ----------------    ----------------

EXPENSES:
    General and administrative             63,000            332,000                    152,000             690,000
                                    --------------     --------------           ----------------    ----------------

INCOME (LOSS) BEFORE
INCOME TAXES                             (318,000)             5,000                   (308,000)            161,000
                                    --------------     --------------           ----------------    ----------------

PROVISION (BENEFIT)
FOR INCOME TAXES                          -                  -                         -                   -
                                    --------------     --------------           ----------------    ----------------

NET INCOME (LOSS)                      $ (318,000)           $ 5,000                 $ (308,000)          $ 161,000
                                    ==============     ==============           ================    ================

NET INCOME (LOSS) PER COMMON
SHARES OUTSTANDING                     $    (0.06)           -                       $    (0.06)          $    0.03
                                    ==============     ==============           ================    ================


AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING                      5,050,000          5,014,000                  5,050,000           5,014,000
                                    ==============     ==============           ================    ================
</TABLE>


                 See accompanying notes to financial statements.



<PAGE>
                       PERSONAL DIAGNOSTICS, INCORPORATED
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                               Six Months Ended
                                                                                  March 31,
                                                               -------------------------------------------------
                                                                      1998                         1997
                                                               -------------------          --------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                    <C>                            <C>      
     Net income (loss)                                                 $ (308,000)                    $ 161,000
     Adjustments to reconcile net income (loss) to net
         cash flows from operating activities:
     Provision for loss on property held for sale                               -                       120,000
     Changes in assets and liabilities:
         Property held for development and sale                           801,000                      (904,000)
         Accounts payable and accrued liabilities                          28,000                      (113,000)
         Other current assets                                               2,000                        (4,000)
                                                               -------------------          --------------------
           Net cash flows from operating activities                       523,000                      (740,000)
                                                               -------------------          --------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Additions to property and equipment                                        -                             -
     Proceeds from disposal of property and equipment                           -                             -
                                                               -------------------          --------------------
           Net cash flows from investing activities                             -                             -
                                                               -------------------          --------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from exercise of stock options                                    -                       105,000
                                                               -------------------          --------------------
           Net cash flows from financing activities                             -                       105,000
                                                               -------------------          --------------------

INCREASE (DECREASE)  IN CASH AND EQUIVALENTS                              523,000                      (635,000)

CASH AND EQUIVALENTS, BEGINNING OF PERIOD                               6,117,000                     6,910,000
                                                               -------------------          --------------------

CASH AND EQUIVALENTS, END OF PERIOD                                   $ 6,640,000                   $ 6,275,000
                                                               ===================          ====================
</TABLE>


                 See accompanying notes to financial statements.



<PAGE>


                       PERSONAL DIAGNOSTICS, INCORPORATED

                          NOTES TO FINANCIAL STATEMENTS
                                   (Unaudited)



1.  BASIS OF PRESENTATION

         The  balance  sheet at the end of the  preceding  fiscal  year has been
derived from the audited  balance sheet contained in the Company's Form 10-K and
is presented  for  comparative  purposes.  All other  financial  statements  are
unaudited.  In the opinion of  management,  all  adjustments  which include only
normal recurring adjustments necessary to present fairly the financial position,
results of operations  and cash flows for all periods  presented have been made.
The results of operation for interim periods are not  necessarily  indicative of
the operating results for the full year.

         Footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been omitted in
accordance  with the  published  rules and  regulations  of the  Securities  and
Exchange  Commission.  These financial  statements should be read in conjunction
with the financial  statements and notes thereto  included in the Company's Form
10-K for the most recent fiscal year.


2.  TRADING SECURITIES

         For the  three  months  ending  March 31,  1998 and 1997,  there was no
charge or credit  to  earnings  representing  the  change in the net  unrealized
holding  loss on trading  securities.  At March 31, 1998 the Company had no open
trading or investment positions.  During the quarter the Company incurred a loss
of $340,000 on its trading and investment  activities as compared with a gain of
$266,000 in the prior year period.  During the quarter the nominal  value of the
Company's exposure to financial derivatives averaged  approximately $475,000 per
month  compared  with an average  of  $250,000  per month  during the prior year
period.

         A t March 31, 1998  approximately  80% of total  Company's  assets were
held in United States Treasury  Bills.  Since it is the intention of the Company
to acquire or develop an operating  business,  the Company  presently intends to
risk no more than 15% of net worth in trading or investment activities.



3.  PROPERTY HELD FOR DEVELOPMENT AND SALE

         The Company  presently owns one property in Washington  D.C.,  which it
    acquired  with the  intention to improve and resell.  The property is in the
    process of renovation.  The Company is evaluating its experience in the real
    estate  improvement  business and will decide during the next several months
    whether to continue or expand this activity.


<PAGE>


4. STATEMENT OF CASH FLOWS

                                                             Six Months Ended
                                                                 March 31,
                                                                 ---------
                                                           1998            1997
                                                           ----            ----

Supplemental disclosure of cash flows information-

Income taxes paid/(refunded)                               $-0-         $(2,000)
                                                           ====         ========





<PAGE>



                       PERSONAL DIAGNOSTICS, INCORPORATED

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

         Liquidity and Capital Resources

         At March 31, 1998,  the Company had a cash and Treasury Bill balance of
$6,640,000 which represents an $523,000 increase from the $6,117,000  balance at
September 30, 1997. This $523,000  increase results entirely from cash flow from
operations  which  includes  the result of a net loss of $308,000  offset by the
proceeds  from the sale of a property  for  $801,000  and  changes in  operating
assets and liabilities of $30,000.  The Company's  working  capital  position at
March 31, 1998 was  $7,247,000  as compared to a September  30, 1997  balance of
$7,555,000.  Subsequent  to the end of the  quarter,  the Company  agreed in two
private  transactions  with parties unrelated to the Company to purchase a total
of 138,211 shares of the Company's common stock at $1.20 per share or a total of
$165,853.  This transaction will be completed May 4, 1998 and the shares will be
cancelled.

         Management  intends to  continue in business  and has no  intention  to
liquidate the Company. The Company has considered various business  alternatives
including  the possible  acquisition  of an existing  business,  but to date has
found possible  opportunities  unsuitable or excessively  priced. The Company is
also considering developing a business itself, believing that start up costs may
be preferable to the premiums required to purchase a going concern.  The Company
does  not  contemplate  limiting  the  scope  of its  search  to any  particular
industry.  Management has considered the risk of possible  opportunities as well
as their potential rewards. Management continues to invest considerable time and
effort evaluating proposals for possible acquisition or combination. The Company
believes present valuation levels requested for alternative  operating  entities
are  excessive  partly  due to the  expectations  of  sellers  being  raised  by
generally  high stock  market  valuations.  The Company has decided to focus its
present operating activities on the acquisition,  improvement and resale of real
property.  This decision does not preclude the possibility of becoming  involved
in the future with additional businesses in other areas.

         The Company  presently  owns one property in Washington  D.C.  which it
acquired  with the  intention  to improve  and  resell.  The  property is in the
process of renovation. The Company is presently evaluating its experience in the
real estate development  business and will decide during the next several months
whether to continue or expand this activity.

         The Company  intends to continue its investing  and trading  activities
and as a consequence the future financial  results of the Company may be subject
to  substantial  fluctuations.  Mr.  Michael,  the President of the Company is a
graduate of Harvard  Business School (MBA). As part of the Company's  investment
activities the Company may buy and sell a variety of equity,  debt or derivative
securities including market index options and futures contracts. Such investment
often  involves  a  high  degree  of  risk  and  must  be  considered  extremely
speculative.  Futures Contracts are particularly  risky since a relatively small
amount  of  capital   controls  a  large  nominal   market  value  thus  greatly
exaggerating  the exposure to potential  losses.  During the quarter the Company
incurred a loss of $340,000 on its trading and investment activities as compared
with a gain of $266,000 in the prior year period. During the quarter the nominal
value of the Company's exposure to financial derivatives averaged  approximately
$475,000  per month  compared  with an average of $250,000  per month during the
prior year period.

         The  focus  of the  Company's  efforts  is to  acquire  or  develop  an
operating  business.  The Company  presently intends to risk no more than 15% of
net worth in trading or investment  activities.  At March 31, 1998,  the Company
had  approximately  80% of its assets in United States  Treasury Bills. At March
31, 1998 the Company had no outstanding investment or trading positions.

<PAGE>


Results of Operations

Three Months Ended March 31, 1998


Net income (loss)

         The  Company  incurred  a loss in the  current  three-month  period  of
$318,000  versus a gain of $5,000  in the prior  year  period.  Interest  income
increased  $14,000 to $85,000  primarily  due to more  invested  funds.  Trading
losses equaled $340,000  compared to trading gains of $266,000 in the prior year
period. General and administrative  expenses of $63,000 were $269,000 lower than
the prior year period of $332,000.  The reduction of $269,000 was due to a lower
level of  compensation  to President John Michael,  a lower level of real estate
development  activity and lower  insurance and  professional  costs.  During the
current  quarter Mr. Michael accrued total  compensation of $44,000  compared to
compensation  of  $244,000  (which  included  a  $200,000   special   investment
performance bonus) in the prior year quarter. In addition, a lower level of real
estate development activity and lower insurance and professional costs accounted
for the remaining decline of $69,000 compared to last year.

         During the current  quarter the Company had not  recorded an income tax
benefit due to unavailable tax carryforwards.


<PAGE>


Results of Operations

Six  Months Ended March 31, 1998


Net income (loss)

         The Company incurred a loss in the current six-month period of $253,000
versus a gain of $161,000 in the prior year period.  Interest  income  increased
$20,000 to $167,000 primarily due to more invested funds. Trading losses equaled
$323,000 compared to trading gains of $704,000 in the prior year period. General
and administrative  expenses of $152,000 were $538,000 lower than the prior year
period of  $690,000.  The  reduction  of  $538,000  was due to a lower  level of
compensation to President John Michael, a lower level of real estate development
activity  and  lower  insurance  and  professional  costs.  During  the  current
six-month  period Mr. Michael accrued total  compensation of $88,000 as compared
to compensation of $438,000  (which  included a special  investment  performance
bonus  of  $350,000)  in  the  prior  year  period.  In  addition,  general  and
administrative  expenses were $188,000 lower in the current six-month period due
to lower  insurance  and  professional  costs and a lower  level of real  estate
development  activity  which last year included a special  provision of $120,000
for the diminished value of one of the Company's real estate properties.

         During the current  six-month  period the  Company had not  recorded an
income tax benefit due to unavailable tax carryforwards.


<PAGE>


                       PERSONAL DIAGNOSTICS, INCORPORATED




PART II           Other Information


Item 6.           Exhibits and Reports on Form 8-K

                  (a)  Exhibits - None

                  (b) Reports on Form 8-K - None



<PAGE>



                                   SIGNATURES


         Pursuant to the  requirements  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.



                                              PERSONAL DIAGNOSTICS, INCORPORATED

                                              Registrant


Date:  April 30, 1998                         By:__________________________
                                                  John H. Michael, Chairman
                                                  (on behalf of the registrant)