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 EXCHANGE ACT OF 1934
         For the quarterly period ended September 30, 1998

         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: 33-15097-D
                          SYNAPTIX SYSTEMS CORPORATION
             (Exact name of registrant as specified in its charter)

                  Colorado                           84-10457105
         (State or other Jurisdiction of         (I.R.S. Employer
         incorporation or organization)         Identification  Number)


         3050 Post Oak Boulevard
         Suite 1080, Houston Texas                            77056
       (Address of Principal Executive Offices)             (Zip Code)

       Registrant's telephone number, including area code: (713) 355-8940

         Check whether the issuer (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 CORPORATE ISSUERS

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

Common Stock, $.003 Par Value                       14,523,518
                                    (Shares outstanding as of November 18, 1998)

Transitional Small Business Disclosure Format (Check One)   Yes    No     X  

                                        1

<PAGE>



                   SYNAPTIX SYSTEMS CORPORATION AND SUBSIDIARY
                     (dba AFFILIATED RESOURCES CORPORATION)
                 QUARTERLY REPORT ON FORM 10-QSB FOR THE INTERIM
                         PERIOD ENDED SEPTEMBER 30, 1998

                                TABLE OF CONTENTS

                                                                  Page
                                                                  Number

Part I.  Financial Information

Item I.  Financial Statements

         Balance Sheets at September 30, 1998 
          and June 30, 1998......................................... 3

         Statements of Operations for the Three
          Months Ended September 30, 1998 and 1997...................4

         Statements of Cash Flows for the Three 
          Months Ended September 30, 1998 and 1997...................5

         Notes to  Financial Statements..............................6

Item 2.  Management's Discussion and Analysis of 
          Financial Condition and Results of Operations..............6

Part II. Other Information

Item 1.  Legal Proceedings...........................................9

Item 6.  Exhibits and Reports on Form 8-K............................9

         Signatures..................................................9



                                        2

<PAGE>



                   SYNAPTIX SYSTEMS CORPORATION AND SUBSIDIARY
                     (dba AFFILIATED RESOURCES CORPORATION)
                           CONSOLIDATED BALANCE SHEETS



<TABLE>
<CAPTION>
                                                                                  September 30, 1998    June 30, 1998
                                                                                     (Unaudited)            (Audited)
                                                                                  -----------------     -----------------
ASSETS
Current Assets:
<S>                                                                               <C>                   <C>              
     Cash and cash equivalents                                                    $           1,542     $             455
     Receivables and other                                                                   21,330                     0
                                                                                  -----------------     -----------------

                                                          Total Current Assets               22,872                   455

PROPERTY, PLANT, & EQUIPMENT                                                                 34,186                23,570
                                                                                  -----------------     -----------------

                                                                  Total Assets    $          57,058     $          24,025
                                                                                  =================     =================

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities:

     Accounts payable and accrued liabilities                                     $         532,641     $         541,677
                                                                                   ----------------      ----------------

                                                     Total Current Liabilities              532,641               541,677

     Long-term debt                                                                         163,000               140,000
                                                                                  -----------------     -----------------
                                                             Total Liabilities              695,641               681,677

Stockholders' Equity (Deficit):
Preferred  Stock,  $1  par  value,  10,000,000  shares  authorized;   no  shares
outstanding  
Common  Stock - $.003  par  value,  25,000,000  shares  authorized,
14,483,518 and 13,742,492 shares issued and outstanding
at September 30, 1998 and at June 30, 1998, respectively                                     43,450                41,227
Additional paid-in capital                                                                8,414,405             8,306,628
Accumulated deficit                                                                      (7,289,271)           (7,103,227)
Unamortized stock compensation                                                           (1,807,167)           (1,902,280)
                                                                                  -----------------     -----------------

                                         Total Stockholders' Equity (Deficit)              (638,583)             (657,652)
                                                                                  -----------------     -----------------

                                    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $          57,058     $          24,025
                                                                                  =================     =================
</TABLE>


               See Accompanying Notes to the Financial Statements.

                                        3

<PAGE>



                   SYNAPTIX SYSTEMS CORPORATION AND SUBSIDIARY
                     (dba AFFILIATED RESOURCES CORPORATION)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                            Three Months Ended
                                                                                               September 30,             
                                                                                        1998                  1997
                                                                                     (Unaudited)           (Unaudited)   
                                                                                  -----------------     -----------------
<S>                                                                               <C>                   <C>              
REVENUES                                                                          $               0     $               0

Cost and Expenses:                                                                          186,044               221,900
                                                                                  -----------------     -----------------

                                                      Total Costs and Expenses              186,044               221,900
                                                                                  -----------------     -----------------

Income (loss) from Continuing Operations:                                                  (186,044)             (221,900)
                                                                                  -----------------     ------------------

     Income tax expense (benefit)                                                                 0                     0
                                                                                  -----------------     -----------------

                                                             Net Income (Loss)    $        (186,044)             (221,900)
                                                                                  =================     -----------------

                                                       Income (Loss) Per Share    $            (.01)    $            (.01)
                                                                                  =================     =================

Weighted Average shares outstanding for the period                                       14,236,509            15,487,033
                                                                                  =================     =================
</TABLE>



               See Accompanying Notes to the Financial Statements.

                                        4

<PAGE>



                   SYNAPTIX SYSTEMS CORPORATION AND SUBSIDIARY
                     (dba AFFILIATED RESOURCES CORPORATION)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                            Three Months Ended
                                                                                               September 30,             
                                                                                        1998                  1997       
                                                                                  -----------------     -----------------
CASH FLOWS OPERATING ACTIVITIES:
<S>                                                                               <C>                   <C>               
     Net income (loss)                                                            $        (186,044)    $        (221,900)
     Adjustments to reconcile net income (loss) to net cash used in
         operating activities:
         Depreciation                                                                         1,179                 7,216
         Non-cash compensation expense                                                       95,113                     0
     Changes in Current Assets and Liabilities:
         Prepaid expenses                                                                         0                26,327
         Receivables and other                                                              (21,330)                    0
         Accounts payable and accrued expenses                                               (9,036)               20,886
                                                                                  -----------------     -----------------

                                         Net Cash Used by Operating Activities             (120,118)             (167,471)

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of equipment                                                                  (11,795)               (7,975)
                                                                                  -----------------     -----------------

                                         Net Cash Used by Investing Activities              (11,795)               (7,975)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Sale of common stock                                                                   110,000                16,000
     Loans                                                                                   86,000               161,002
     Loan repayments                                                                        (63,000)                 (174)
                                                                                  -----------------     -----------------
                                    Net Cash Provided by Financing Activities               133,000               176,828
                                                                                  -----------------     -----------------

                                                          Net Increase in Cash                1,087                 1,382

CASH AT BEGINNING OF YEAR                                                                       455                   989
                                                                                  -----------------     -----------------
CASH AT END OF PERIOD                                                             $           1,542     $           2,371
                                                                                  =================     =================

SUPPLEMENTAL CASH FLOW INFORMATION
     Interest paid                                                                $             651     $              46
     Income taxes paid                                                                            0                     0
                                                                                  -----------------     -----------------

                                                                                  $             651                    46
                                                                                  =================     =================
</TABLE>

         During the quarter ended September 30, 1998, the Company issued 641,026
         shares of its restricted common stock to acquire CobolTexas,  Inc. as a
         wholly-owned subsidiary.


               See Accompanying Notes to the Financial Statements.

                                        5

<PAGE>



                   SYNAPTIX SYSTEMS CORPORATION AND SUBSIDIARY
                     (dba AFFILIATED RESOURCES CORPORATION)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998


1.       Basis of Presentation

         The  financial   statements  of  Synaptix   Systems   Corporation  (the
"Company"),  included herein,  are unaudited for all periods ended September 30,
1998 and 1997.  They reflect all  adjustments  (consisting  of normal  recurring
adjustments) which are, in the opinion of management, necessary to fairly depict
the results for the periods presented. Certain information and note disclosures,
normally included in financial  statements prepared in accordance with generally
accepted accounting principles, have been condensed or omitted pursuant to rules
and regulations of the Securities and Exchange Commission.  It is suggested that
these  financial  statements be read in conjunction  with the audited  financial
statements for the years ended June 30, 1998 and 1997, which are included in the
Company's  annual report.  The Company believes that the disclosures made herein
are adequate to make the information presented not misleading.

2.       Earnings per Common and Common Equivalent Share

         Earnings per common and common equivalent share is based on the average
number of common  shares  outstanding  for the three months ended  September 30,
1998 and 1997.

Item 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

         Introduction

         The Company had been engaged in the  development  of computer  software
equipment  during  the  fiscal  year  ended  June  30,  1998.  The  Company  had
anticipated  that it would be able to provide  related  systems  integration and
networking  services in connection  with the license of its  corporate  software
products  that had been  purchased  from Swallen  Investments  Corp. in December
1996. In connection with a management change that occurred in March, the Company
sold the Software Assets to Mobile Link Communications Inc. ("Mobile"),  because
it did not have the resources and funding to develop the Software  Assets and to
deliver the product to market in a timely  manner.  The Company  retained a five
percent interest in Mobile's gross sales of the Software Assets,  beginning with
the fiscal  quarter  ending June 30, 1998.  In the event that gross sales do not
exceed  $200,000  by March  2000,  the  Software  Assets will be returned to the
Company.  As a result of the  management  change in March,  the Company is being
repositioned  to focus on the  acquisition of those  companies  whose product or
service  is  technically   innovative  and  market  proven,   but  whose  market
penetration  can  be  significantly   expanded  through  enhanced  marketing  or
additional capitalization.

         As of September 30, 1998, and subsequent thereto, the Company has had a
working  capital  deficiency.  CobolTexas  Inc. is  currently  negotiating  with
domestic and international organizations and governments to enter into contracts
for services to be rendered in connection  with its email  response  system that
uses on-line technology and enables businesses,  government and organizations to
solve the year 2000  problems  for COBOL  and PL1  software  over the  Internet.
Management  is confident  that current  discussions  with  investors  will yield
additional  capital to complete the  acquisition  of ChemWay  Systems,  Inc. and
provide  sufficient  working  capital for  operations  and future  acquisitions.
Management  believes that ChemWay is uniquely  suited to  management's  business
strategy to focus on the acquisition of those

                                        6

<PAGE>



companies whose product or service is technically  innovative and market proven,
but whose market  penetration can be  significantly  expanded  through  enhanced
marketing or  additional  capitalization,  and believes that  acquisitions  will
generate sufficient revenues and provide an asset base for continued growth.

Results of Operations

     Analysis of Three Months ended  September 30, 1998 Compared to Three Months
     ended September 30, 1997

         Costs and  expenses  for the three  months  ended  September  30,  1998
decreased  significantly  compared  to the  same  period  in 1997.  The  Company
recorded a net loss of $186,044, or a ($.01) loss per share for the three months
ended September 30, 1998, compared with a net loss of $221,900, or a ($.01) loss
per share for the same  period in 1997.  The  Company  incurred  expenses in the
amount of $186,044 related to general and  administrative  costs, which includes
$95,113  for the  amortization  of  deferred  compensation  cost and  $41,750 of
compensation expense accrued to officers.

         Revenues

         The  Company  did not record  any  meaningful  revenues  for the fiscal
quarter ended September 30, 1998 or 1997. During this time, the Company received
investor  funds to pay for working  capital  expenditures.  The Company plans to
develop its continuing operations by expansion through acquisition. The proposed
acquisitions will be financed primarily through the issuance of common stock. In
July 1998, the Company  purchased  CobolTexas  Inc. In September 1998 it entered
into a letter of intent to  purchase  all of the  outstanding  stock of Chem Way
Systems,  Inc.  Each of these  companies  is  uniquely  suited  to  management's
business  strategy in acquiring  companies,  and it is management's  belief that
these acquisitions will generate  sufficient  revenues and provide an asset base
for continued growth.

         Financial Condition

         The Company is focusing on the  acquisition  of those  companies  whose
product or service is technically innovative and market proven, but whose market
penetration  can  be  significantly   expanded  through  enhanced  marketing  or
additional capitalization,  and the information,  financial statements and notes
to the  financial  statements  have been prepared on the premise that it will be
successful  in raising  additional  capital  and  continue  as a going  concern.
Management  is confident  that current  discussions  with  investors  will yield
additional  capital to complete the acquisition  strategy  identified herein, in
addition to potential  acquisitions  it is  considering  at this time,  and will
provide  sufficient  working  capital  for  future  operations.  There can be no
assurance that the Company will be able to raise sufficient  additional  capital
to achieve these objectives or meet its working capital needs.

         General and Administrative Expenses

         General and administrative  expenses were $186,044 and $221,900 for the
three  months ended  September  30, 1998 and 1997,  respectively,  a decrease of
$35,856.   This  decrease  was  attributable  to  fewer  expenses  incurred  for
administrative,  legal,  accounting  expenses and the discontinuance of expenses
associated with the development of its software.



                                        7

<PAGE>



         Loss from Operations

         The Company had an  operating  loss of  $186,044  for the three  months
ended  September 30, 1998 and $221,900 for the same period in 1997. The net loss
for the three  months  ended  September  30,  1998 was  attributable  to general
administrative and legal and accounting expenses,  and also includes $95,113 for
the  amortization of deferred  compensation  cost. The loss for the period ended
September  30,  1997,  was the  result of  operating  expenses  incurred  in the
development and production of the Eagle software product, in addition to general
and administrative costs.

         Income Taxes

         The Company had no income tax expense.  As of September  30, 1998,  the
Company had net operating loss  carryfowards of  approximately  $5,476,000.  The
utilization  of net  operating  carryforwards  will  be  limited  as  determined
pursuant  to  applicable  provisions  of the  Internal  Revenue  Code  and U. S.
Treasury regulations thereunder.

         Net Loss

         The  Company  had a net loss of  $186,044  for the three  months  ended
September 30, 1998,  compared with a net loss of $221,900 for the same period in
1997.  The  net  loss  for  the  three  months  ended  September  30,  1997  was
attributable  to  an  increase  in  administrative   operating  expenses.  These
increases in expenditures in administrative  expenses were anticipated under the
Company's operating plan following the acquisition of the software products. The
net loss for the three  months  ended  September  30, 1998 was mainly due to the
amortization  of deferred  compensation  expense and accrual of  compensation to
officers.

         Liquidity and Capital Resources

         There were no recorded  revenues for the three  months ended  September
30, 1998. At September  30, 1998,  the Company  maintained a negative  liquidity
position  which is evidenced by a current  ratio of .04 to 1. The Company has no
major  capital  commitments  at  the  present  time.   Management  continues  to
restructure  the Company in order to increase the  Company's  current  ratio and
liquidity,  and  generate  capital  which  would  provide  cash flow for  future
expansion.

         At September 30, 1998, the Company had a working capital  deficiency of
$509,769,  compared to a working capital deficiency of $297,668 at September 30,
1997. Subsequent to September 30, 1998, the Company's working capital deficiency
has  continued  to  increase.  The  cash  balance  at  September  30,  1998  was
approximately $1,542, and at September 30, 1997, was approximately $2,371.

         Cash used by  operations  totaled  $120,118  for the three months ended
September 30, 1998,  compared to $167,471 for the same period in 1997. Cash used
in  investing  activities  for the three  months  ended  September  30, 1998 was
approximately $11,795 (approximately $7,975 in 1997). Cash provided by financing
activities  during the three months ended  September  30, 1998 totaled  $133,000
($176,828 in 1997),  which  included the proceeds from the sale of stock and the
borrowing of funds.



                                        8

<PAGE>



PART II           OTHER INFORMATION

Item 1.           Legal Proceedings

                  None.

Item 5.           Other Information

                  Subsequent to September  30, 1998,  it was mutually  agreed by
                  the Company and Frontier Services,  Inc., that the acquisition
                  of Frontier Services,  Inc. would not be consummated,  and all
                  discussions have terminated.

Item 6.           Exhibits and Reports on Form 8-K

                  A.       Exhibits

                           None

                  B.       Reports on Form 8-K

                           A Form 8-K was filed on August 3, 1998 announcing the
                           acquisition   of   CobolTexas,   Inc.  The  8-K  also
                           announced  the  dismissal  of the  prior  independent
                           auditors and the appointment of new auditors.



                                   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.


                                   SYNAPTIX SYSTEMS CORPORATION



Dated: November 19, 1998           By: /s/ Peter C. Vanucci      
                                      ---------------------------------------
                                            Peter C. Vanucci
                                            Chairman & Chief Executive Officer



                                        9