Washington, D.C. 20549

                            FORM 10-Q
(Mark One)
/X/ Quarterly report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the quarterly period ended September 30, 1997 or

/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Act of 1934

For the transition period from               to 

Commission file number 333-6410

                     CORAL DEVELOPMENT CORP.
                                                                  
     (Exact Name of Registrant as Specified in its Charter)

Delaware                                11-3349762
                                                                  
(State or other jurisdiction of         (I.R.S. Employer
Incorporation or Organization)            Identification Number)

           240 Clarkson Ave  Brooklyn, New York 11226
                                                                  
(Address of Principal Executive Office)           (Zip Code)

                          (718)469-3132
                                                                  
      (Registrant's Telephone Number, Including Area Code)

                                                                  
      (Former Name, Former Address and Former Fiscal Year,
                  If Changed Since Last Report)

     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities and Exchange Act of 1934 during the preceding twelve
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 ninety days.
Yes / X /  No /  /

  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                 DURING THE PRECEDING FIVE YEARS

     Indicate by check mark 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.  403,000

                              10Q-1













                     CORAL DEVELOPMENT CORP.

                      FINANCIAL STATEMENTS

                       SEPTEMBER 30, 1997






                            I N D E X




                                                            Page



ACCOUNTANTS' REVIEW REPORT                                    1


BALANCE SHEETS                                                2


STATEMENT OF STOCKHOLDERS' EQUITY                             3


STATEMENTS OF OPERATIONS                                      4


STATEMENTS OF CASH FLOWS                                      5


NOTES TO THE FINANCIAL STATEMENTS                            6-11






                   ACCOUNTANTS' REVIEW REPORT




To the Board of Directors and Stockholders
CORAL DEVELOPMENT CORP.
Brooklyn, New York  

We have reviewed the balance sheet of CORAL DEVELOPMENT CORP. (A
Development Stage Enterprise) as at September 30, 1997, and the
related statements of operations, stockholders' equity and cash
flows for the three month period ended September 30, 1997, in
accordance with standards established by the American Institute of
Certified Public Accountants.

A review of interim financial information consists principally of
obtaining an understanding of the system for the preparation of
interim financial information, applying analytical review
procedures to financial data, and making inquiries of persons
responsible for financial and accounting matters.  It is
substantially less in scope than an examination in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications
that should be made to the financial statements for them to be in
conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted
auditing standards, the balance sheet as of June 30, 1997, and the
related statement of operations, stockholders' equity and cash
flows for the period then ended (not presented herein); and in our
report dated August 15, 1997, we expressed an unqualified opinion
on those financial statements.  In our opinion, the information set
forth in the accompanying balance sheet as of June 30, 1997 is
fairly stated in all material respects in relation to the
balance sheet from which it has been derived.



                                   GREENBERG & COMPANY, LLC

Springfield, New Jersey
October 29, 1997



                                                     Page 1 of 11

                        CORAL DEVELOPMENT CORP.
                      (A WHOLLY OWNED SUBSIDIARY)
                   (A DEVELOPMENT STAGE ENTERPRISE)
                            BALANCE SHEETS

                                      Sept. 30, 1997
                                        (Unaudited)    June 30, 1997


                              A S S E T S


Current assets-Cash                      $ 2,295          $ 3,515
Deferred registration costs               26,007           25,907
Organization Expense                         300              300



TOTAL ASSETS                             $28,602          $29,722


                                   
L I A B I L I T I E S  A N D  S T O C K H O L D E R S'  E Q U I T Y


TOTAL LIABILITIES                        $   -0-          $   -0-


STOCKHOLDERS' EQUITY
  Common Stock Par Value $.001
    Authorized:   20,000,000
    Shares Issued and Outstanding:
    403,000 Shares                           403              403
  Additional Paid-In Capital              29,897           29,897
  (Deficit) Accumulated during the                         
    development stage                     (1,698)            (578)    
    Total Stockholders' Equity           $28,602          $29,722


TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY                   $28,602          $29,722
  












Subject to the comments contained in the Accountants' Review Report.

                                                          Page 2 of 11
                     CORAL DEVELOPMENT CORP.
                   (A WHOLLY OWNED SUBSIDIARY)
                 (A DEVELOPMENT STAGE ENTERPRISE)
                 STATEMENT OF STOCKHOLDERS' EQUITY
       FOR THE PERIOD NOVEMBER 19, 1996(INCEPTION) TO SEPTEMBER 30, 1997

                                

                                                   (Deficit)
                             Common               Accumulated Total
                             Stock    Additional  During the  Share-
                     # of   $.001 par   Paid in   Development holders'
                    Shares    Value    Capital      Stage     Equity 

Initial investment  403,000   $403      $29,897    $   -0-    $30,300
in capital stock

BALANCE AT
DECEMBER 16, 1996   403,000    403       29,897        -0-     30,300 

Net (Loss) for the
period                                                (578)      (578)

BALANCE AT
JUNE 30, 1997
(Audited)           403,000    403       29,897       (578)    29,722

Net (Loss) for the
three months ended
September 30, 1997                                  (1,120)    (1,120)


BALANCE AT
SEPTEMBER 30, 1997 
(Unaudited)         403,000   $403      $29,897   $ (1,698)   $28,602


















Subject to the comments contained in the Accountants' Review Report.


                                                      Page 3 of 11
                       CORAL DEVELOPMENT CORP.
                    (A WHOLLY OWNED SUBSIDIARY)
                  (A DEVELOPMENT STAGE ENTERPRISE)
                      STATEMENTS OF OPERATIONS
     FOR THE PERIOD NOVEMBER 19, 1996(INCEPTION) TO SEPTEMBER 30, 1997

                                                       
                                                            Period from
                                    For the Three         November 19, 1996
                                     Months Ended          (Inception) to 
                                  September 30, 1997        June 30, 1997  


General and Administrative
  Expenses                           $(1,120)                $  (578)

Net (Loss) for the Period            $(1,120)                $  (578)

Net (Loss) per Share                 $(0.000)                $ (0.00)

Weighted Average Common
  Shares Outstanding                 403,000                 403,000

Cumulative Amounts from 
  Inception:

  General and Administrative
   Expenses                          $ 1,698              
  Net (Loss)                         $(1,698)

























Subject to the comments contained in the Accountants' Review Report.

                                                          Page 4 of 11
                       CORAL DEVELOPMENT CORP.
                    (A WHOLLY OWNED SUBSIDIARY)
                  (A DEVELOPMENT STAGE ENTERPRISE)
                      STATEMENTS OF CASH FLOWS



                                              Period From        Cumulative
                           For the Three     November 19, 1997     Amounts
                           Months Ended        (inception) to        From
                          September 30, 1997   June 30, 1997      Inception
CASH FLOWS FROM
  OPERATING ACTIVITIES:

Net (Loss)                    $(1,120)            $(578)         $(1,698)

Changes in Assets
  (Increase) in
  Organization Expense            -0-              (300)            (300)

  Net Cash (Used In) 
   Operating Activities        (1,120)             (878)          (1,998)

CASH FLOWS FROM INVESTING
  ACTIVITIES                      -0-               -0-              -0-

CASH FLOWS FROM FINANCING
  ACTIVITIES              
  Common Stock Issuance           -0-            30,300           30,300
  (Increase) in Deferred
    Registration Costs           (100)          (25,907)         (26,007)
  Net Cash Provided By
    (Used In) Financing
     Activities                  (100)            4,393            4,293

Net Increase (Decrease)
  In Cash                      (1,220)            3,515            2,295

Cash, Beginning of
  Period                        3,515               -0-              -0-

CASH END OF PERIOD             $2,295            $3,515           $2,295











Subject to the comments contained in the Accountants' Review Report.


                                                            Page 5 of 11
                     CORAL DEVELOPMENT CORP.
                   (A WHOLLY OWNED SUBSIDIARY)
                 (A DEVELOPMENT STAGE ENTERPRISE)
                 NOTES TO THE FINANCIAL STATEMENTS
           FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                           (Unaudited)


NOTE 1:   ORGANIZATION AND NATURE OF OPERATIONS

          Coral Development Corp. (CDC) is a Delaware corporation. 
          CDC is in the development stage and has not begun any
          formal operations.  CDC's office is located in New York. 
          The principal purpose of CDC is to find and merge with an
          operating company.   The Company's fiscal year end is
          June 30.
 
          On December 10, 1996, Modern Technology Corp. (Modern),
          the parent company of Coral Development Corp., purchased
          403,000 shares of the Company for $30,300.  The shares of
          the Company were registered on June 6, 1997 with the SEC. 
          The intention of Modern is to distribute those shares to
          Modern's shareholders in the form of a dividend.

NOTE 2:   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          ACCOUNTING POLICIES

          Coral Development Corp.'s accounting policies conform to
          generally accepted accounting principles.  Significant
          policies followed are described below.
          
          ESTIMATES IN FINANCIAL STATEMENTS

          The preparation of the financial statements in conformity
          with generally accepted accounting principles requires
          management to make estimates and assumptions that affect
          the reported amounts of assets and liabilities and
          disclosure of contingent assets and liabilities at the
          date of the financial statements and the reported amounts
          of revenues and expenses during the reporting period. 
          Actual results could differ from those estimates.  















Subject to the comments contained in the Accountants' Review Report.
                                                                           
                                                          Page 6 of 11

                     CORAL DEVELOPMENT CORP.
                   (A WHOLLY OWNED SUBSIDIARY)
                 (A DEVELOPMENT STAGE ENTERPRISE)
                NOTES TO THE FINANCIAL STATEMENTS
          FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                           (Unaudited)
                           (Continued)



NOTE 3:   INCOME TAXES

          The Company follows Statement of Financial Accounting
          Standards No. 109, "Accounting for Income Taxes."  FAS
          109 is an asset and liability approach that requires the
          recognition of deferred tax assets and liabilities for
          the expected future tax consequences of events that have
          been recognized in the Company's financial statements or
          tax returns.  The Company has net operating loss carry
          forwards of approximately $1,698 available to reduce any
          future income taxes.  The tax benefit of these losses,
          approximately $600, has been offset by a valuation
          allowance due to the uncertainty of its realization.



NOTE 4:   DEFERRED REGISTRATION COSTS

          As of September 30, 1997, the Company has incurred
          deferred registration costs of $26,007 relating to
          expenses incurred in connection with the Proposed
          Distribution (see Note 1).  Upon consummation of this
          Proposed Distribution, the deferred registration costs
          will be charged to equity.  Should the Proposed
          Distribution prove to be unsuccessful, these deferred
          costs, as well as additional expenses to be incurred,
          will be charged to operations.




















                                                     Page 7 of 11

                     CORAL DEVELOPMENT CORP.
                   (A WHOLLY OWNED SUBSIDIARY)
                 (A DEVELOPMENT STAGE ENTERPRISE)
                NOTES TO THE FINANCIAL STATEMENTS
           FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997
                           (Unaudited)
                           (Continued)


NOTE 5:   INTERIM FINANCIAL REPORTING

          The unaudited financial statements of the Company for the
          period July 1, 1997 to September 30, 1997 have been
          prepared by management from the books and records of the
          Company, and reflect, in the opinion of management, all
          adjustments necessary for a fair presentation of the
          financial position and operations of the Company as of
          the period indicated herein, and are of a normal
          recurring nature.








































                                                    Page 8 of 11 
                 Part 1.  Financial Information

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

          Coral Development Corp. ("The Registrant") was
incorporated in November 1996 and formed by Modern Technology Corp.
("MTC") who presently owns all 403,000 outstanding shares.  MTC has
distributed the 403,000 shares (in escrow) to its shareholders as
a dividend, on a pro-rata basis, at the rate of one share for each
fifty shares of MTC.

          The Registrant proposes to combine with an existing
privately held company.  A combination may be structured as a
merger, consolidation, exchange of Registrant's common stock for
stock or assets or any other form which will result in the combined
enterprises being a publicly held corporation.  If the Company is
unable to consummate a suitable combination within 18 months from
the effective date of its Registration Statement (June 6, 1997)
(under Rule 419) then the securities will be released from escrow
and returned promptly to MTC and its Board of Directors will
probably recommend its liquidation and dissolution.  The management
of the Registrant is presently actively seeking a possible merger
candidate although no assurance can be given that a merger will be
successfully completed within the 18 month period referred to
above.  

          For the three months ended September 30, 1997, the
Registrant generated a net loss of $1,120.  For the period from
inception (November 19, 1996) to June 30, 1997, the Registrant
generated a net loss of $578.  At September 30, 1997, the
Registrant has total assets of $28,602, consisting of cash of
$2,295, deferred registration costs of $26,007 and organization
expense of $300.  There were no liabilities and stockholders'
equity of $28,602.  

          No salaries have been paid to the officers and directors
of the Registrant since inception.


                   Part 2.  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 Materially Important Events.  None.


Item 6.   Exhibits and Reports on Form 8-K.  None.




                           SIGNATURES


          Pursuant to the requirements of the Securities Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.


                     CORAL DEVELOPMENT CORP.


                    By: Arthur J. Seidenfeld                   
                 President, Chief Executive and
                     Chief Financial Officer
                        November 12, 1997