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 May 31, 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 May 31,
1998.


<PAGE>

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

                                                                                                        Index
=============================================================================================================
<S>                                                                                                      <C>
                                                                                                          2
Part I - Financial Information

           Item 1. Financial Statements:

                    Balance sheets as of May 31, 1998 and August 31, 1997
                                                                                                          3
                    Statements of operations for the three and nine months ended
                         May 31, 1998 and 1997 and period September 1, 1995 to May 31,
                         1998                                                                             4
                    Statements of stockholders' equity for the period September 1,
                         1995 to May 31, 1998                                                             5
                    Statements of cash flows for the nine months ended May 31, 1998                       6
                         and period September 1, 1995 to May 31, 1998
                                                                                                          
                    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
</TABLE>


                                                                               2
<PAGE>

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

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

                                                                   May 31,       August 31,
                                                                    1998           1997
-------------------------------------------------------------------------------------------
                                                                 (Unaudited)     (Audited)
<S>                                                              <C>            <C>        
Assets
Cash                                                             $   135,726    $   400,535
Cash held in escrow                                                      324          1,676
Investment in treasury securities held in escrow                   8,321,852      7,998,324
-------------------------------------------------------------------------------------------
                                                                 $ 8,457,902    $ 8,400,535
===========================================================================================
Liabilities and Stockholders' Equity
Liabilities:
   Accrued expenses                                              $   204,499    $   182,431
   Notes payable                                                          --        100,000
-------------------------------------------------------------------------------------------
              Total liabilities                                      204,499        282,431
-------------------------------------------------------------------------------------------
Commitments
Common stock subject to possible conversion, 160,000 shares at
   redemption value                                                1,664,435      1,600,000
-------------------------------------------------------------------------------------------
Stockholders' equity:
   Convertible preferred stock, $.01 par value - shares
      authorized 1,000,000; outstanding none; subscribed
      94; liquidation value - $9,400                                       1              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                                      6,586,948      6,586,948
   Earnings (deficit) accumulated during the development stage        (8,441)       (70,005)
-------------------------------------------------------------------------------------------
              Total stockholders' equity                           6,588,968      6,518,104
-------------------------------------------------------------------------------------------
                                                                 $ 8,457,902    $ 8,400,535
===========================================================================================
</TABLE>

                                 See accompanying notes to financial statements.


                                                                               3
<PAGE>

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

                                                                                                        Item 1. Financial Statements
                                                                                                            Statements of Operations
                                                                                                                         (Unaudited)

                                                                                                                    Period from
                                                   Three months ended May 31,       Nine months ended May 31,       September 1,
                                                 ----------------------------       -------------------------     1995 (inception)
                                                    1998             1997             1998             1997       to May 31, 1998
------------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>              <C>               <C>              <C>               <C>      
Interest income                                  $ 110,380        $      --         $ 324,004        $      --         $ 324,004
General and administrative
   expenses and debt costs                          62,992            1,415           166,005            3,846           236,010
Income taxes                                        10,000               --            32,000               --            32,000
------------------------------------------------------------------------------------------------------------------------------------
Net income (loss)                                $  37,388        $  (1,415)        $ 125,999        $  (3,846)        $  55,994
====================================================================================================================================
Net income (loss) per common
   share                                         $     .04        $    (.01)        $     .14        $    (.04)         
====================================================================================================================================
Weighted average common shares
   outstanding                                     906,000          106,000           906,000          106,000          
====================================================================================================================================
</TABLE>

                                 See accompanying notes to financial statements.


                                                                               4
<PAGE>

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

                                                                                                        Item 1. Financial Statements
                                                                                                  Statements of Stockholders' Equity
====================================================================================================================================
Period from September 1, 1995 to May 31, 1998
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           Earnings                 
                                                                                                           (deficit)                
                                                           Class A           Class B                      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>       
Issuance of founders'                     
    shares                --      $--      $    --     86,000     $860        --   $   --        $7,740    $      --         $8,600
Sale of common stock      --       --           --     20,000      200        --       --        44,800           --         45,000
Subscription receivable   94        1       (9,400)        --       --        --       --         9,399           --             --
Net loss                  --       --           --         --       --        --       --            --      (31,085)       (31,085)
------------------------------------------------------------------------------------------------------------------------------------
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,     --       --           --    800,000    8,000   150,000    1,500     8,125,009           --      8,134,509
    net                                   
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         --       --        9,300         --       --        --       --            --           --          9,300
Net income                --       --           --         --       --        --       --            --      125,999        125,999
Accretion to redemption                   
    value of common                       
    stock                 --       --           --         --       --        --       --            --      (64,435)       (64,435)
------------------------------------------------------------------------------------------------------------------------------------
Balance, May 31, 1998                     
    (unaudited)           94      $ 1        $(100)   906,000   $9,060   150,000   $1,500    $6,586,948      $(8,441)    $6,588,968
====================================================================================================================================
</TABLE>

                                 See accompanying notes to financial statements.


                                                                               5
<PAGE>

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

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

============================================================================================================
                                                                                               Period from
                                                                        Nine months ended     September 1,
                                                                             May 31,         1995 (inception)
                                                                    ------------------------        to
                                                                      1998           1997      May 31, 1998
------------------------------------------------------------------------------------------------------------
<S>                                                                 <C>            <C>         <C>         
Cash flows from operating activities:
   Net income (loss)                                                $   125,999    $ (3,846)   $     55,994
   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                                              22,068          --         (33,600)
           Interest receivable on investments                          (271,654)         --        (123,555)
------------------------------------------------------------------------------------------------------------
              Net cash used in operating activities                    (123,587)         --         (56,361)
------------------------------------------------------------------------------------------------------------
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 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                                        (264,809)         --         135,726
Cash, beginning of period                                               400,535      25,734              --
------------------------------------------------------------------------------------------------------------
Cash, end of period                                                 $   135,726    $ 25,734    $    135,726
============================================================================================================
Supplemental disclosures of cash flow information: Cash paid for:
      Interest                                                      $        --    $     --    $         --
      Taxes                                                                  --          --              --
============================================================================================================
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.
============================================================================================================
</TABLE>

                                 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

         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  reported  to be signed on its  behalf by the
undersigned, thereunto duly authorized.





Date:  July 17, 1998                  North Atlantic Acquisition Corp.
                                      ------------------------------------------
                                      (Registrant)



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



                                                                              10