UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-Q

    [X]           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                  SECURITIES ACT OF 1934
For the quarterly period ended September 30, 1994

                                       OR

                  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  0-11043


                              ORION FINANCIAL, LTD.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

          Colorado                                       84-0858679
 ------------------------------                 ------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)


80 N. Hoyt Street, Lakewood, Colorado                              80226
---------------------------------------                           --------
(Address of principal executive offices)                         (Zip Code)

Registrant's telephone number, including area code:   (303) 238-0937


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by section 13 or 15(d)  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 [ ] NO [X]

As of October 15,  1996,  Registrant  had  4,641,522  shares of its no par value
common stock issued and outstanding.


                                                                   9 Total Pages


<PAGE>


                              ORION FINANCIAL, LTD.

               FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1994


                                      INDEX


SECTION                                                                     PAGE

PART I - FINANCIAL INFORMATION*

Balance Sheets September 30, 1994 & June 30, 1994 ...........................  3

Statement of Operations - For the three months ended September 30,
         1994 & 1993 ........................................................  4

Statements of Cash Flow - For the three months ended September 30, 1994
          and 1993 ..........................................................  5

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

Management's Discussion and Analysis ........................................  7

PART II - OTHER INFORMATION

Signatures ..................................................................  8


*The  accompanying  financial  statements  are  not  covered  by an  Independent
Certified Accountant's Report.


                                        2


<PAGE>

<TABLE>
<CAPTION>

                              Orion Financial, Ltd.
                                 Balance Sheets

                                     Assets

                                                                    Year Ended
                                                    September 30,     June 30,
                                                        1994            1994
<S>                                                     <C>             <C>   
                                                    ------------    -----------
Current Assets
Cash .............................................      97,835          85,882
Short term investments ...........................           0               0
                                                     ---------       ---------
         Total Current Assets ....................      97,835          85,882

Fixed Assets
Furniture & Equipment ............................      27,550          27,550
Accumulated Depreciation .........................     -25,550         -25,550
                                                     ---------       ---------
         Net Fixed Assets ........................       2,000           2,000

Other Assets
Restricted Cash ..................................           0          50,000
Advance to Affiliate .............................      54,705          25,000
                                                     ---------       ---------
Total Assets .....................................     154,540         162,882
                                                     =========       =========

                              Liabilities & Equity

Current Liabilities
Accounts Payable .................................           0               0
Accrued Expenses .................................           0               0
                                                     ---------       ---------
         Total Current Liabilities ...............           0               0

Equity ...........................................     371,322         371,322
Additional Paid-In Capital .......................   4,639,182       4,639,182
Accumulated Deficit ..............................  -4,855,964      -4,847,622
                                                     ---------       ---------
                                                       154,540         162,882
                                                     ---------       ---------
Total Liabilities & Equity .......................     154,540         162,882
                                                     =========       =========
</TABLE>

                                        3

<PAGE>

<TABLE>
<CAPTION>

                              Orion Financial, Ltd.
                             Statement of Operation
                           For the Three Months Ended


                                                 9/30/94       9/30/93
                                               -----------    ----------

<S>                                                  <C>          <C>  

Interest income ..............................     4,470         5,032      
                                                           
Accounting & Legal Expenses ..................    (8,419)            0      
Compensation Expense .........................    (4,000)            0      
Miscellaneous Expenses .......................      (392)         (500)
Depreciation .................................         0       (10,000)
                                               ---------     ---------      
Net income (Loss) ............................    (8,341)       (5,468)     
                                               =========     =========      
Net income (Loss) per Share .................. $    0.00     $    0.00      
                                               =========     =========      
                                                            
Weighted Average Shares Outstanding........... 4,641,522     4,641,522      
                                               =========     =========      
</TABLE>                                       


                                        4


<PAGE>

<TABLE>
<CAPTION>
                              Orion Financial, Ltd.
                             Statement of Cash Flows

                                                                                 Three Months Ended
                                                                                   September 30,
                                                                                --------------------
                                                                                1994            1995
                                                                                ----            ----

<S>                                                                            <C>              <C>  
Cash Flow from operating activities:

         Net income (loss) .............................................      (8,341)          (5,468)
         Adjustments to reconcile net loss to net                                   
           cash provided (used) by operating activities:                            
Depreciation ...........................................................           0           10,000
                                                                                    
Changes in assets and liabilities:                                                  
Restricted Cash ........................................................      50,000                0         
Investment in Partnership ..............................................     (29,705)               0         
                                                                                    
Accounts Payable .......................................................           0                 
Accrued Liabilities ....................................................           0                 
                                                                             -------          -------         
         Net cash provided (used) by operating activities ..............      11,954            4,532         
                                                                                    
Increase (decrease) in cash and cash equivalents .......................      11,954            4,532

Cash and cash equivalents, beginning of period .........................       85,882         125,717
                                                                              -------         -------
Cash and cash equivalents, end of period ...............................       97,835         130,249
                                                                              -------         -------
</TABLE>


                                       5
<PAGE>

                              ORION FINANCIAL, LTD.
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.   GENERAL:

Orion  Financial,  Ltd.  (the  "Company"),  has  elected to  substantially  omit
footnotes to the Financial  Statements  for the three months ended September 30,
1994,  since there have been no material  changes to the information  previously
reported by the Company in its annual report filed Form 10-K, for the year ended
June 30, 1994.

2.   UNAUDITED  INFORMATION:

The  information  furnished  herein was taken from the books and  records of the
Company without audit.  However, such information reflects all adjustments which
are, in the opinion of management, necessary to property reflect the results for
the interim  periods  presented.  The  information  presented is not necessarily
indicative of the results from operations expected for the full fiscal year.




                                       6
<PAGE>


                              ORION FINANCIAL, LTD.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


LIQUIDITY AND CAPITAL  RESOURCES

Orion Financial,  Ltd (the "Company") had working capital at September 30, 1994,
of approximately $98,000, which should be sufficient for the Company to fund its
obligations  for the next 18 to 24 months  provided  the Company  does not enter
into a business  combination that provides the Company with business operations.
The Company's  minimal cash position limits the Company in its future  direction
because  it does  not  have  the  ability  to  raise  additional  funds  through
borrowings or equity offerings given its lack of business  operations.  The long
term  survivability of the Company depends on whether or not the Company is able
to enter into a  business  combination  that  would  provide  the  Company  with
successful business operations.

The Company has no material commitments for capital expenditures.

RESULTS OF OPERATIONS

The  Company  had no  significant  operations  during the fiscal  year.  Revenue
consists solely of interest  income on the remaining cash on hand.  Expenses are
generally  related to the payment of professional fees in the preparation of the
annual reports on Form 10-K and minimal compensation to the Company's President.

The  Company is  continually  reviewing  business  combination  proposals  in an
ongoing  effort to combine  the  Company an  organization  which has  successful
operations.


                                       7
<PAGE>

                                   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.


                                            Orion Financial, Ltd.


Dated April 16, 1997                         /s/ Dean H. Boedeker
                                            ---------------------------------
                                            Dean H. Boedeker
                                            President and Principal Financial
                                            Officer