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

                                   FORM 10-QSB

(Mark One)

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

For the quarterly period ended November 30, 1997.

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

For the transition period from __________________ to __________________

Commission file number 000-22813


                        North Atlantic Acquisition Corp.
             (Exact name of registrant as specified in its charter)


                                    Delaware
         (State or other jurisdiction of incorporation or organization)
 

                                   13-3853272
                      (I.R.S. Employer Identification No.)


            5 East 59th Street, 3rd. Floor, New York, New York 10022
               (Address of principal executive offices - Zip code)

Registrant's telephone number, including area code: (212) 486-4444


________________________________________________________________________________
Former  name,  former  address and former  fiscal  year,  if changes  since last
report.  

Indicate by checkmark  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 [ ]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:


Indicate by checkmark whether the registrant has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the  Securities  Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court.

                                 Yes [ ]         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.  

Class A, common stock, par value $.01 per share, 906,000 shares outstanding as
of December 31, 1997.

Class B, common stock, par value $.01 per share, 150,000 shares outstanding as
of December 31, 1997.


<PAGE>

                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                                           Index

================================================================================

Part  I - Financial Information

          Item 1. Financial Statements:

                  Balance sheets as of November 30, 1997 and
                    August 31, 1997                                            3
                  Statements of operations for the three months
                    ended November 30, 1997 and 1996 and period
                    from September 1, 1995 (inception) to
                    November 30, 1997                                          4
                  Statements of stockholders' equity for the three
                    months ended November 30, 1997                             5
                  Statements of cash flows for the three months
                    ended November 30, 1997 and 1996 and period from
                  September 1, 1995 (inception) to
                    November 30, 1997                                          6
                  Notes to financial statements                                7
              
          Item 2. Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                          8

Part II - Other Information

          Item 1. Legal Proceedings                                            9
          Item 2. Changes in Securities                                        9
          Item 3. Defaults Upon Senior Securities                              9
          Item 4. Submission of Matters to a Vote of Security Holders          9
          Item 5. Other Information                                            9
          Item 6. Exhibits and Reports on Form 8-K                             9

          Signatures                                                          10


                                                                               2
<PAGE>


                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                   Part 1. Financial Information
                                                    Item 1. Financial Statements
                                                                  Balance Sheets
================================================================================

<TABLE>
<CAPTION>
                                                                                            November 30,               August 31, 
                                                                                               1997                      1997
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             (Unaudited)                (Audited)
<S>                                                                                          <C>                      <C>    
Assets
Cash                                                                                         $  249,503               $  400,535
Cash held in escrow                                                                               1,676                    1,676
Investment in treasury securities held in escrow                                              8,103,324                7,998,324
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             $8,354,503               $8,400,535
====================================================================================================================================
Liabilities and Stockholders' Equity
Liabilities:
   Accrued expenses                                                                          $  133,099               $  182,431
   Notes payable                                                                                    --                   100,000
------------------------------------------------------------------------------------------------------------------------------------
        Total liabilities                                                                       133,099                  282,431
------------------------------------------------------------------------------------------------------------------------------------
Commitments
Common stock subject to possible conversion, 160,000 shares at redemption value               1,600,000                1,600,000
------------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity:
   Convertible preferred stock, $.01 par value - shares authorized 1,000,000;                        93                        1
      outstanding none; subscribed 94; liquidation value - $9,400
   Subscription receivable                                                                         (100)                  (9,400)
   Class A common stock, $.01 par value - shares authorized 10,000,000; outstanding               9,060                    9,060
      906,000
   Class B common stock, $.01 par value - shares authorized 250,000; issued and                   1,500                    1,500
      outstanding 150,000
   Additional paid-in capital                                                                 6,586,856                6,586,948
   Earnings (deficit) accumulated during the development stage                                   23,995                  (70,005)
------------------------------------------------------------------------------------------------------------------------------------
        Total stockholders' equity                                                            6,621,404                6,518,104
------------------------------------------------------------------------------------------------------------------------------------
                                                                                             $8,354,503               $8,400,535
====================================================================================================================================
</TABLE>

                                 See accompanying notes to financial statements.


                                                                               3
<PAGE>

                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                    Item 1. Financial Statements
                                                        Statements of Operations
                                                                     (Unaudited)
================================================================================

<TABLE>
<CAPTION>
                                                                                                             Period from 
                                                              Three months ended November 30,             September 1, 1995 
                                                      ----------------------------------------------       (inception) to
                                                             1997                      1996               November 30, 1997
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                      <C>                       <C>                        <C>     
Interest income                                          $  105,000                $    --                    $105,000
General and administrative expenses 
   and debt  costs                                          (11,000)                 (2,431)                   (81,005)
------------------------------------------------------------------------------------------------------------------------------------
Net income (loss)                                        $   94,000                $ (2,431)                  $ 23,995
====================================================================================================================================
Net income (loss) per common share                       $      .09                $   (.02)
====================================================================================================================================
Weighted average common shares outstanding                1,056,000                 106,000
====================================================================================================================================
</TABLE>


                                 See accompanying notes to financial statements.


                                                                               4
<PAGE>

                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                    Item 1. Financial Statements
                                              Statements of Stockholders' Equity
================================================================================

<TABLE>
<CAPTION>
                                                                                                                                    
                                                                                                          Earnings                 
                                                             Class A            Class B                   (deficit)                
                                                         -----------------  ----------------             accumulated               
                           Preferred stock                 Common stock        Common stock   Additional during the        Total    
                           ---------------  Subscription -----------------  ----------------   paid-in   development   stockholders'
                            Shares Amount    receivable    Shares   Amount    Shares  Amount    capital     stage         equity
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>     <C>    <C>         <C>        <C>     <C>      <C>     <C>           <C>         <C>   
Balance, August 31, 1996      94       1     $(9,400)    106,000    $1,060       --  $    -- $    61,939   $(31,085)   $   22,515
Net loss                      --      --        --            --        --       --       --          --    (38,920)      (38,920)
Sale of common stock, net     --      --        --       800,000     8,000  150,000    1,500   8,125,009         --     8,134,509
Reclassification to
   redeemable 
   common stock               --      --        --            --        --       --       --  (1,600,000)        --    (1,600,000)
------------------------------------------------------------------------------------------------------------------------------------
Balance, August 31, 1997      
  (Audited)                   94       1      (9,400)    906,000     9,060  150,000    1,500   6,586,948    (70,005)    6,518,104
Subscription paid             --      92       9,300          --        --       --       --         (92)        --         9,300
Net income                    --      --          --          --        --       --       --          --     94,000        94,000
====================================================================================================================================
Balance, November 30,         94     $93     $  (100)    906,000    $9,060  150,000   $1,500  $6,586,856   $ 23,995    $6,621,404
   1997 (Unaudited)
====================================================================================================================================
</TABLE>

                                 See accompanying notes to financial statements.


                                                                               5
<PAGE>


                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                    Item 1. Financial Statements
                                                        Statements of Cash Flows
                                                                     (Unaudited)
================================================================================


<TABLE>
<CAPTION>
                                                                                                      Period from    
                                                               Three months ended November 30,     September 1, 1995 
                                                               ---------------------------------    (inception) to   
                                                                  1997               1996          November 30, 1997 
---------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>                 <C>                <C>   
Cash flows from operating activities:                                                                                
    Net income (loss)                                           $ 94,000            $ (2,431)          $   23,995
    Adjustments to reconcile net income (loss) to                                                     
      net cash provided by (used in) operating                                                        
      activities:                                                                                     
        Amortization of deferred debt costs                         --                  --                  9,800
        Amortization of discount on notes payable                   --                 2,431               35,000
        Changes in assets and liabilities:                                                            
           Accrued expenses                                      (49,332)               --               (105,000)
           Interest receivable on investments                   (105,000)               --                 43,099
---------------------------------------------------------------------------------------------------------------------
              Net cash provided by (used in)                     
                operating activities                             (60,332)               --                  6,894
---------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:                                                                 
      Purchase of treasury securities in escrow                     --                  --             (7,998,324)
      Increase in cash held in escrow                               --                  --                 (1,676)
---------------------------------------------------------------------------------------------------------------------
              Net cash used in investing activities                 --                  --             (8,000,000)
---------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:                                                                 
      Proceeds from sale of common stock, net                       --                  --              8,188,109
      Subscription paid                                            9,300                --                  9,300
      Deferred costs:                                                                                 
        Registration                                                --                  --                 90,000
        Debt                                                        --                  --                 (9,800)
        Repayment of notes payable                              (100,000)               --               (100,000)
      Proceeds from issuance of notes payable                       --                  --                 65,000
---------------------------------------------------------------------------------------------------------------------
              Net cash provided by (used in)                     
                financing activities                             (90,700)               --              8,242,609               
---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash                                 (151,032)               --                249,503
Cash, beginning of period                                        400,535              25,734                  --
---------------------------------------------------------------------------------------------------------------------
Cash, end of period                                             $249,503            $ 25,734           $  249,503
=====================================================================================================================
Supplemental disclosures for cash flow information:                                                   
    Cash paid for:                                                                                        
        Interest                                                $    --             $    --            $      --
        Taxes                                                        --                  --                   --

--------------------------------------------------------------------------------------------------------------------
</TABLE>

In  fiscal 1996,  the Company  received a note for  subscribed  preferred  stock
    amounting to $9,400, which is a noncash financing activity.

In  fiscal  1996,  the Company has  recorded a $90,000  liability  relating to a
    license agreement, which is a noncash financing activity.

================================================================================
                                                                                
See accompanying notes to financial statements.


                                                                               6
<PAGE>



                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                    Item 1. Financial Statements
                                                   Notes to Financial Statements
================================================================================

1. Basis of Presentation      The   financial   statements   are   presented  in
                              accordance with the  requirements of Form 10-Q and
                              Regulation  210 of  S-X  and  consequently  do not
                              include all of the disclosures normally made in an
                              annual   Form  10-K   filing.   Accordingly,   the
                              financial  statements  included  herein  should be
                              reviewed  in   conjunction   with  the   financial
                              statements and footnotes  therein  included within
                              the  Company's  Annual Report on Form 10-K for the
                              year ended August 31, 1997.

                              The  financial  information  has been  prepared in
                              accordance with the Company's customary accounting
                              practices and has not been audited. In the opinion
                              of  management,   the  information   presents  all
                              adjustments  necessary  for a  fair  statement  of
                              interim  results.  All such  adjustments  are of a
                              normal and recurring nature. The foregoing interim
                              results  are  not  necessarily  indicative  of the
                              results of  operations  to be expected  for a full
                              year.

2. Investments                The  Company  has  invested  the  majority  of the
                              proceeds  from  the  initial  public  offering  in
                              United  States  Treasury  Bills.   These  treasury
                              bills,  which were  purchased  at a discount,  are
                              presented   at   their   accreted   cost,    which
                              approximates its market value.


                                                                               7
<PAGE>



                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

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


North Atlantic  Acquisition  Corp.  (the "Company") is a "blank check" or "blind
pool" company which was formed on August 9, 1995 to serve as a vehicle to effect
a merger,  exchange  of  capital  stock,  asset  acquisition  or other  business
combination  (a "Business  Combination")  with an operating  business (a "Target
Business").  The  business  objective  of the  Company  is to effect a  Business
Combination  with a Target  Business which the Company  believes has significant
growth potential. To date, the Company has not effected a Business Combination.

On August  27,  1997 (the  "Closing  Date"),  the  Company  sold  800,000  units
("Units")  in the  Offering and 150,000  shares of Class B  exchangeable  common
stock. Each Unit consists of one share of the Company's Class A common stock and
one Class A redeemable  common stock purchase warrant ("Class A Warrant").  Each
Class A Warrant  entitles  the holder to purchase  from the Company one share of
common  stock at an exercise  price of $9.00;  each Class B stock  entitles  the
holder to  receive  two Units in  exchange  90 days after the date of a Business
Combination.  On the Closing  Date,  the  Registrant  received  net  proceeds of
approximately  $8,100,000  (the  "Net  Proceeds"),  after  giving  effect to the
payment of all underwriting discounts, the underwriters'  nonaccountable expense
allowance  and  offering  expenses.  Pursuant  to the  terms  of  the  Offering,
approximately  $8 million of the Net Proceeds,  representing  an amount equal to
the gross  proceeds  from the sale of the Units,  was placed in escrow  with the
Chase Manhattan Bank,  N.A.,  subject to release in accordance with the terms of
the Offering.  These Net Proceeds  have been invested in United States  Treasury
Bills and a Treasury Note.


                                                                               8
<PAGE>



                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                     Part II - Other Information
================================================================================


Item 1. Legal Proceedings

        None


Item 2. Changes in Securities

        None


Item 3. Defaults Upon Senior Securities

        None


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

        None


Item 5. Other Information

        None


Item 6. Exhibits and Reports on Form 8-K

        None


                                                                               9
<PAGE>



                                                North Atlantic Acquisition Corp.
                                            (formerly Orion Acquisition Corp. I)
                                        (a corporation in the development stage)

                                                     Part II - Other Information
================================================================================


                                   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.


Date:  January 14, 1998               North Atlantic Acquisition Corp.
                                      -------------------------------------
                                      (Registrant)

                                      By: /s/ David J. Mitchell
                                          ---------------------------------
                                          David J. Mitchell
                                          Chairman of the Board and
                                          Chief Executive Officer


                                                                              10