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 February 28, 1998.

[ ]  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.

Common stock, par value $.01 per share,  906,000 shares  outstanding as of March
31, 1998.


<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 February 28, 1998 and
                 August 31, 1997                                              3
             Statements of operations for the three and six months
                 ended February 28, 1998 and 1997 and period
                 September 1, 1995 to November 30, 1997                       4
             Statements of stockholders' equity for the period
                 September 1, 1995 to February 28, 1998                       5
             Statements of cash flows for the six months
                 ended February 28, 1998 and period
                 September 1, 1995 to February 28, 1998                       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)

                                                    Item 1. Financial Statements
                                                                  Balance Sheets
================================================================================
<TABLE>
<CAPTION>
                                                                                                February 28,            August 31,
                                                                                                    1998                   1997
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                (Unaudited)              (Audited)
<S>                                                                                              <C>                    <C>      
Assets
Cash                                                                                             $  190,485             $  400,535
Cash held in escrow                                                                                     324                  1,676
Investment in treasury securities held in escrow                                                  8,213,300              7,998,324
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                 $8,404,109             $8,400,535
----------------------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Liabilities:
   Accrued expenses                                                                              $  166,094             $  182,431
   Notes payable                                                                                          -                100,000
----------------------------------------------------------------------------------------------------------------------------------
        Total liabilities                                                                           166,094                282,431
----------------------------------------------------------------------------------------------------------------------------------
Commitments
Common stock subject to possible conversion, 160,000 shares at
   redemption value                                                                               1,642,725              1,600,000
----------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity:
   Convertible preferred stock, $.01 par value - shares authorized 1,000,000;
      outstanding none; subscribed 94; liquidation value - $9,400                                        93                      1
   Subscription receivable                                                                             (100)                (9,400)
   Class A common stock, $.01 par value - shares authorized 10,000,000;
      outstanding 906,000                                                                             9,060                  9,060
   Class B common stock, $.01 par value - shares authorized 250,000;
      issued and outstanding 150,000                                                                  1,500                  1,500
   Additional paid-in capital                                                                     6,586,856              6,586,948
   Earnings (deficit) accumulated during the development stage                                       (2,119)               (70,005)
----------------------------------------------------------------------------------------------------------------------------------
        Total stockholders' equity                                                                6,595,290              6,518,104
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                 $8,404,109             $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>
                                                   Three months ended                    Six months ended             Period from   
                                                       February 28,                        February 28,            September 1, 1995
                                              --------------------------------------------------------------         (inception) to 
                                                  1998              1997             1998             1997         February 28, 1998
------------------------------------------------------------------------------------------------------------------------------------
<S>                                           <C>               <C>              <C>              <C>                  <C>      
Interest income                               $ 108,624         $    --          $ 213,624        $    --              $ 213,624
General and administrative                                                                                         
   expenses and debt costs                       92,013             1,415          103,013            3,846              173,018
------------------------------------------------------------------------------------------------------------------------------------
Net income (loss)                             $  16,611         $  (1,415)       $ 110,611        $  (3,846)              40,606
====================================================================================================================================
Net income (loss) per common                                                                                       
share                                         $     .02         $    (.01)       $     .12        $    (.04)       
====================================================================================================================================
Weighted average common                                                                                            
   shares outstanding                           906,000           106,000          906,000          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>
                                                                                     Class A         
                                                                              ---------------------  
                                     Preferred stock                              Common stock       
                                    ------------------     Subscription       ---------------------  
                                    Shares      Amount      receivable         Shares       Amount   
-----------------------------------------------------------------------------------------------------
<S>                                   <C>    <C>           <C>               <C>        <C>    
Issuance of founders' shares          --     $      --     $      --           86,000   $       860
Sale of common stock                  --            --            --           20,000           200
Subscription receivable                 94             1        (9,400)          --            --   
Net loss                              --            --            --             --            --   
-----------------------------------------------------------------------------------------------------
Balance, August 31, 1996                94             1        (9,400)       106,000         1,060
Net loss                              --            --            --             --            --   
Sale of common stock, net             --            --            --          800,000         8,000
Reclassification to
   redeemable common stock            --            --            --             --            --   
-----------------------------------------------------------------------------------------------------
Balance, August 31, 1997
   (Audited)                            94             1        (9,400)       906,000         9,060
Subscription paid                     --              92         9,300           --            --   
Net income                            --            --            --             --            --   
Accretion to redemption
   value of common stock              --            --            --             --            --   
-----------------------------------------------------------------------------------------------------
Balance, February 28, 1998
   (Unaudited)                          94   $        93   $      (100)       906,000   $     9,060
=====================================================================================================

<CAPTION>
                                                                              Earnings                      
                                         Class B                              (deficit)                     
                                   -------------------                       accumulated                    
                                      Common stock           Additional       during the         Total       
                                   -------------------        paid-in        development    stockholders'    
                                   Shares       Amount        capital           stage      equity (deficit)  
-----------------------------------------------------------------------------------------------------------
<S>                                <C>       <C>           <C>               <C>             <C>    
Issuance of founders' shares          --     $      --     $     7,740      $      --        $     8,600
Sale of common stock                  --            --          44,800             --             45,000
Subscription receivable               --            --           9,399             --               --
Net loss                              --            --            --            (31,085)         (31,085)
-----------------------------------------------------------------------------------------------------------
Balance, August 31, 1996              --            --          61,939          (31,085)          22,515
Net loss                              --            --            --            (38,920)         (38,920)
Sale of common stock, net          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)                       150,000         1,500     6,586,948          (70,005)       6,518,104
Subscription paid                     --            --             (92)            --              9,300
Net income                            --            --            --            110,611          110,611
Accretion to redemption                                                                     
   value of common stock              --            --            --            (42,725)         (42,725)
-----------------------------------------------------------------------------------------------------------
Balance, February 28, 1998                                                                  
   (Unaudited)                     150,000   $     1,500   $ 6,586,856      $    (2,119)     $ 6,595,290     
-----------------------------------------------------------------------------------------------------------
</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    
                                                                         Six months ended February 28,            September 1, 1995 
                                                                     ------------------------------------          (inception) to   
                                                                           1998                  1997             February 28, 1998 
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>                   <C>                     <C>         
Cash flows from operating activities:
    Net income (loss)                                                 $    110,611          $     (3,846)           $     40,606
    Adjustments to reconcile net income (loss) to                                                                  
      net cash used in operating activities:                                                                       
        Amortization of deferred debt costs                                   --                    --                     9,800
        Amortization of discount on notes                                                                          
           payable                                                            --                   3,846                  35,000
        Changes in assets and liabilities:                                                                         
           Accrued expenses                                                (16,337)                 --                   (72,005)
           Interest receivable on investments                             (163,102)                 --                   (15,003)
------------------------------------------------------------------------------------------------------------------------------------
              Net cash used in operating                                                                           
                activities                                                 (68,828)                 --                    (1,602)
------------------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:                                                                              
      Purchase of treasury securities in escrow                         (4,157,874)                 --               (12,156,198)
      Sale of treasury securities in escrow                              4,106,000                  --                 4,104,324
      Decrease in cash held in escrow                                        1,352                  --                     1,352
------------------------------------------------------------------------------------------------------------------------------------
              Net cash provided by (used in)                                                                       
                investing activities                                       (50,522)                                   (8,050,522)  
------------------------------------------------------------------------------------------------------------------------------------
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                                           (210,050)                 --                   190,485
Cash, beginning of period                                                  400,535                25,734                    --
------------------------------------------------------------------------------------------------------------------------------------
Cash, end of period                                                   $    190,485          $     25,734            $    190,485
====================================================================================================================================
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
$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

        Exhibit 27 - Financial Data Schedule


                                                                               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:  April 15, 1998             North Atlantic Acquisition Corp.
                                  ---------------------------------------------
                                   (Registrant)




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


                                                                              10