<PAGE>   1


                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                                  FORM 10-QSB
                        Quarterly or Transitional Report

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

                    FOR THE QUARTER ENDED SEPTEMBER 30, 1996

                                       or

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

                         COMMISSION FILE NUMBER 2-29987

                         UPWARD TECHNOLOGY CORPORATION
             (Exact name of registrant as specified in its charter)


<TABLE>
<S>                                       <C>
          NEW YORK                                   11-1714403
          --------                                   ----------
(State or other jurisdiction of           (IRS Employer Identification No.)
incorporation or organization)


301 CITY AVENUE, BALA CYNWYD, PA                           19004
----------------------------------------                 ---------
(Address of principal executive offices)                 (Zip Code)
</TABLE>

                                  610 667-8225
                                  ------------
                          (Issuer's telephone number)

     Check whether the issuer (1) 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

     The number of shares outstanding of the issuer's common stock as of
December 31, 1996 was 8,100,000.

     Transitional Small Business Disclosure Format (check one): Yes    No X
                                                                   ---   ---


<PAGE>   2




                               TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
PART I - FINANCIAL INFORMATION:                                              PAGE NO.

         ITEM 1. Balance Sheets as of December 31, 1995
                 and September 30, 1996                                         3

                 Statements of Operations
                 Nine Months Ended September 30, 1996                           4

                 Statement of Cash Flows
                 Nine Months Ended September 30, 1996                           5

                 Notes to Financial Statements                                  6

         ITEM 2. Management's Discussion and
                 Analysis of Financial Condition
                 and Results of Operations                                      7

PART II - OTHER INFORMATION:

         ITEM 1. Legal Proceedings                                              8

         ITEM 2. Changes in Securities                                          8

         ITEM 3. Defaults Upon Senior Securities                                8

         ITEM 4. Submission of Matters to a Vote                                8
                 of Security Holders

         ITEM 5. Other Information                                              8

         ITEM 6. Exhibits and Reports on Form 8-K                               8

                 Signatures                                                     9
</TABLE>


                                      2


<PAGE>   3
                                                   UPWARD TECHNOLOGY CORPORATION

                      STATEMENTS OF ASSETS, LIABILITIES AND STOCKHOLDER'S EQUITY


<TABLE>
<CAPTION>
==========================================================================================
                                                   September 30,         December 31,
                                                             1996                 1995
------------------------------------------------------------------------------------------
<S>                                                 <C>                  <C>

ASSETS

CURRENT
      Cash and cash equivalents                      $    204,760         $    205,943
      Prepaid expenses                                        422                  422
------------------------------------------------------------------------------------------

TOTAL ASSETS                                         $    205,182         $    206,365
==========================================================================================




LIABILITIES AND STOCKHOLDER'S EQUITY

CURRENT
      Accrued liabilities                            $      4,321         $      8,000
------------------------------------------------------------------------------------------

TOTAL CURRENT LIABILITIES                                   4,321                8,000
------------------------------------------------------------------------------------------

STOCKHOLDER'S EQUITY
      Common stock, par value $.02 per share
          Authorized 24,000,000 shares
          Issued and outstanding 8,100,000 shares         162,000              162,000
      Additional paid-in capital                        1,983,208            1,983,208
      (Deficit)                                        (1,944,347)          (1,946,843)
------------------------------------------------------------------------------------------

TOTAL STOCKHOLDER'S EQUITY                                200,861              198,365
------------------------------------------------------------------------------------------

                                                     $    205,182         $    206,365
==========================================================================================
</TABLE>





                                     -3-

<PAGE>   4
                                                   UPWARD TECHNOLOGY CORPORATION

                                   STATEMENTS OF REVENUE, EXPENSES AND (DEFICIT)

<TABLE>
<CAPTION>
=========================================================================================
                                                        Nine months                 Year
                                                              ended                ended
                                                      September 30,         December 31,
                                                               1996                 1995
-----------------------------------------------------------------------------------------
<S>                                                    <C>                   <C>

REVENUE
      Interest income                                   $     7,291          $    11,012
-----------------------------------------------------------------------------------------

EXPENSES
      Administrative                                          4,795               19,677
-----------------------------------------------------------------------------------------

NET INCOME (LOSS)                                             2,496               (8,665)

(DEFICIT), at beginning of period/year                   (1,946,843)          (1,938,178)
-----------------------------------------------------------------------------------------

(DEFICIT), at end of period/year                        $(1,944,347)         $(1,946,843)
=========================================================================================

GAIN (LOSS) PER SHARE                                   $       .00          $       .00
=========================================================================================

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING             8,100,000            8,100,000
=========================================================================================
</TABLE>


                                     -4-

<PAGE>   5
                                                   UPWARD TECHNOLOGY CORPORATION

                                                        STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
=========================================================================================
                                                       Nine months                 Year
                                                             ended                ended
                                                     September 30,         December 31,
                                                              1996                 1995
-----------------------------------------------------------------------------------------
<S>                                                    <C>                  <C>
CASH FLOWS FROM OPERATING ACTIVITIES
      Income (loss)                                     $    2,496           $   (4,831)
      (Decrease) increase in accrued liabilities            (3,679)               3,260
-----------------------------------------------------------------------------------------

NET CASH (USED) IN OPERATING ACTIVITIES                     (1,183)              (1,571)

CASH AND CASH EQUIVALENTS, at beginning
  of period/year                                           205,943              208,618
-----------------------------------------------------------------------------------------

CASH AND CASH EQUIVALENTS, at end of period/year        $  204,760           $  207,047
=========================================================================================
</TABLE>


                                     -5-
<PAGE>   6
                                                 UPWARD TECHNOLOGY CORPORATION

                                                 NOTES TO FINANCIAL STATEMENTS


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

1.   BASIS OF        The accompanying unaudited financial statements have been
     PRESENTATION    prepared in accordance with generally accepted accounting
                     principles for interim financial reporting and
                     instructions to Form 10-QSB and of Regulation S-B
                     (including Item 310(b) thereof).  These statements do not
                     include all of the information and footnotes required by
                     generally accepted accounting principles for complete
                     financial statements.  These statements should be read in
                     conjunction with the audited financial statements for
                     1994 included in the Company's Form 10-KSB.  Effective
                     January 1, 1993, the Company adopted Statement of
                     Financial Accounting Standards No. 109, "Accounting for
                     Income Taxes."  Under SFAS No. 109, deferred income taxes
                     are recognized for the tax consequences in future years
                     of differences between the tax bases of assets and
                     liabilities and their financial reporting amounts at each
                     year-end based on enacted tax laws and statutory tax
                     rates applicable to the periods in which the differences
                     are expected to affect taxable income.  The adoption of
                     SFAS No. 109 has not had a material impact on the
                     financial position of the Company.  Due to the
                     uncertainty of future earnings, the Company fully
                     reserved for any assets relating to net operating loss
                     carryforwards.  In the opinion of management, all
                     adjustments necessary (consisting only of normal
                     recurring accruals) for a fair presentation have been
                     made to the accompanying financial statements for the
                     interim periods.

                     It is suggested that these financial statements be read
                     in conjunction with the financial statements and the
                     notes thereto for the nine months ended September 30,
                     1996, included in the Upward Technology Corporation Form
                     10-KSB Annual Report to the Securities and Exchange
                     Commission.

                     The results of operations for the nine months ended
                     September 30, 1996 are not necessarily indicative of
                     results to be expected for the entire year ending
                     December 31, 1996.






                                     -6-
<PAGE>   7

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

          The following discussion and analysis provides information which the
Company's management believes is relevant to an assessment and understanding of
the Company's results of operations and financial condition.  This discussion
should be read in conjunction with the financial statements and notes thereto
included elsewhere herein.

RESULTS OF OPERATIONS

          The Company, having sold its operating assets in 1989, had no
operations for the quarter ending September 30, 1996.  Although the Company is
spending only minimum amounts to keep current with required Exchange Act
filings and stock transfers, declining interest rates being paid by Government
Bond Funds continue to erode the Company's principal asset, cash equivalents.

          Management is continuing to search for a suitable merger partner that
can utilize our public vehicle. There is no assurance that a suitable partner
will be found in the near future, although management continues to review
business plans of companies seeking such a combination.

LIQUIDITY AND CAPITAL RESOURCES

                    All assets are invested in a liquid U.S. Government
securities fund. The Company's working capital and cash position at September
30, 1996  is approximately $200,000.  Because the regulatory and accounting
expenses for maintaining the corporate structure exceeds the low interest yield
on the Company's cash deposits, liquidity can be expected to diminish.





                                      7
<PAGE>   8


                          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





                                      8
<PAGE>   9



                                   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, duly authorized at Hauppauge, New York on the 15th day of February,
1997.



                                     UPWARD TECHNOLOGY CORPORATION




                                    BY:  /s/ Albert M. Zlotnick
                                       -------------------------------
                                         Albert M. Zlotnick, President
                                         and Chief Executive Officer




                                    BY:  /s/ Irving I. Lassoff
                                       -------------------------------
                                         Irving I. Lassoff, Secretary,
                                         Treasurer and Principal Financial
                                         Officer





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