U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

[X]  QUARTERLY  REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES  EXCHANGE ACT
     OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996

[ ]  TRANSITION REPORT UNDER 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 small business issuer 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)

                                 (303) 238-0937
                             ------------------------
                           (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 past 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]


The number of shares  outstanding  of the Issuer's  Common  Stock,  no par value
common stock, as of April 15, 1997, was 4,641,522.

Transitional small business disclosure format:

                                 Yes [ ] No [X]


                                                                   8 Total Pages
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<PAGE>


                              ORION FINANCIAL, LTD.

              FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1996



                                      INDEX
                                      -----


SECTION                                                                     PAGE
-------                                                                     ----

PART I - FINANCIAL INFORMATION*

Balance Sheets - September 30, 1996 & June 30, 1996                            3

Statement of Operations - For the three months ended 
     September 30, 1996 & 1995                                                 4

Statements of Cash Flow - For the three months ended 
     September 30, 1996 and 1995                                               5

Notes to the Financial Statements                                              6

Management's Discussion and Analysis or Plan of Operation                      7

PART II - OTHER INFORMATION

Signatures                                                                     8





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

                                        2

<PAGE>

<TABLE>
<CAPTION>
                              Orion Financial, Ltd.
                                 Balance Sheets

                          Assets                              September 30,
                                                            1996 (unaudited)    June 30, 1996
                                                            ----------------    -------------

<S>                                                         <C>                  <C>        
Current Assets
Cash ....................................................   $    23,361          $    27,188
Short term investments ..................................       194,888              194,888
                                                            -----------          -----------
      Total Current Assets ..............................       218,249              222,076
Total Assets ............................................   $   218,249          $   222,076
                                                            ===========          ===========
                   Liabilities & Equity
Current Liabilities
Accounts Payable & Accrued Expenses .....................   $         0          $       176
                                                            -----------          -----------
Equity
Common Stock ............................................       371,322              371,322
Additional Paid in Capital ..............................     4,639,182            4,639,182
Accumulated Deficit .....................................    (4,792,255)          (4,788,604)
                                                            -----------          -----------
      Total Equity ......................................       218,249              221,900
Total Liabilities & Equity ..............................   $   218,249          $   222,076
                                                            ===========          ===========
</TABLE>


                                        3

<PAGE>

<TABLE>
<CAPTION>

                              Orion Financial, Ltd.
                             Statement of Operations
                                   (Unaudited)
                                                                     Three Months Ended
                                                                        September 30,
                                                             -----------------------------------
                                                                 1996                  1995
                                                             -------------         -------------
<S>                                                          <C>                   <C>          
Interest Income ..........................................   $         282         $         485

Accounting & Legal Expenses ..............................               0               (11,460)
Compensation Expenses ....................................          (3,000)               (3,000)
Miscellaneous Expenses ...................................            (934)                 (842)
                                                             -------------         -------------
Net Income (Loss) ........................................   $      (3,652)        $     (14,817)
                                                             =============         =============
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
                                   (Unaudited)
                                                                              Three Months Ended
                                                                                 September 30,
                                                                      -----------------------------------
                                                                         1996                    1995
                                                                      -----------            ------------
<S>                                                                        <C>                    <C>     
Cash Flow from operating activities:
      Net income (loss) ............................................       (3,651)                (14,817)
      Adjustments to reconcile net loss to net cash
           provided (used) by operating activities:
Changes in assets and liabilities:
Accounts Payable ...................................................         (176)                (11,146)
Accrued Liabilities ................................................            0                  (8,095)
                                                                      -----------            ------------
      Net cash provided (used) by operating activities .............       (3,827)                (34,058)
Increase (decrease) in cash and cash equivalents ...................       (3,827)                (34,058)
Cash and cash equivalents, beginning of period .....................  $   222,076            $    265,715
                                                                      ===========            ============
Cash and cash equivalents, end of period ...........................  $   218,249            $    231,657
                                                                      ===========            ============
</TABLE>

                                        5

<PAGE>


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


     1.    GENERAL:

      Orion Financial,  Ltd. (the "Company"),  has elected to substantially omit
      all  footnotes  to the  Financial  Statements  for the three  months ended
      September  30,  1996,  since  there have been no  material  changes to the
      information  previously reported by the Company in its annual report filed
      on Form 10-K, for the year ended June 30, 1996.

     2.    UNAUDITED INFORMATION:

      The information 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  in  order  to make  the
      financial  statements not  misleading.  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 OR
                               PLAN OF OPERATIONS


LIQUIDITY AND CAPITAL RESOURCES

Orion Financial, Ltd. (the "Company") had working capital at September 30, 1996,
of  approximately  $218,000,  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  quarter.  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
filings pursuant to the Securities Exchange Act of 1934, as amended, and minimal
compensation to the Company's President.

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

                                        7

<PAGE>


                                   SIGNATURES


In  accordance  with  the  requirements  of the  Securities  Exchange  Act,  the
registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.


                                       Orion Financial, Ltd.



Dated April 21, 1997                   /s/ Dean H. Boedeker
      ---------------------------      -----------------------------------------
                                       Dean H. Boedeker
                                       President and Principal Financial Officer

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