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, 1998

/ / 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 Avenue, Brooklyn NY 11226
                                                                  
(Address of Principal Executive Office)           (Zip Code)

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

     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 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, 1998








                            I N D E X





                                                            Page


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT             1


BALANCE SHEETS                                                2


STATEMENT OF STOCKHOLDER'S EQUITY                             3


STATEMENTS OF OPERATIONS                                      4


STATEMENTS OF CASH FLOWS                                      5


NOTES TO THE FINANCIAL STATEMENTS                            6-7














        REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT


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

We have reviewed the balance sheets of CORAL DEVELOPMENT CORP. (A
Development Stage Enterprise) as of September 30, 1998 and the
related statements of operations, stockholder's equity and cash
flows for the three month periods ended September 30, 1998 and
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, 1998, and the
related statements of operations, shareholders' equity and cash
flows for the year then ended (not presented herein); and in our
report dated August 6, 1998, 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, 1998 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
November 2, 1998



                                                    Page 1 of 7
                        CORAL DEVELOPMENT CORP.
                      (A WHOLLY OWNED SUBSIDIARY)
                   (A DEVELOPMENT STAGE ENTERPRISE)
                            BALANCE SHEETS


                                           Sept 30, 1998  June 30,
                                            (Unaudited)     1998  

                                ASSETS


ASSETS

  Current assets - cash                      $   514      $ 1,299
  Deferred registration costs                 26,007       26,007
  Organization expense                           300          300


TOTAL ASSETS                                 $26,821      $27,606


                 LIABILITIES AND STOCKHOLDERS' EQUITY


Due to parent company                        $12,451        6,701
  Total Liabilities                           12,451        6,701

STOCKHOLDER'S EQUITY 
  Common stock par value $.001
    Authorized: 20,000,000 shares
    Shares Issued and Outstanding:
    403,000 Shares                               403          403
  Additional paid in capital                  29,897       29,897
  (Deficit) accumulated during the
    development stage                        (15,930)      (9,395)
  Total Stockholders' Equity                  14,370       20,905


TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY   $26,821      $27,606














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


                                                          Page 2 of 7
                          CORAL DEVELOPMENT CORP.
                        (A WHOLLY OWNED SUBSIDIARY)
                     (A DEVELOPMENT STAGE ENTERPRISE)
                     STATEMENT OF STOCKHOLDER'S EQUITY
    FOR THE PERIOD NOVEMBER 19, 1996 (INCEPTION) TO SEPTEMBER 30, 1998


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


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

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 year ended
June 30, 1998                                            (8,817)    (8,817)

BALANCE AT
JUNE 30, 1998
(Audited)              403,000      403     29,897       (9,395)    20,905

Net (Loss) for the
three months ended
September 30, 1998                                       (6,535)    (6,535)


BALANCE AT
SEPTEMBER 30, 1998
(Unaudited)            403,000     $403    $29,897     $(15,930)   $14,370











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


                                                       Page 3 of 7
                          CORAL DEVELOPMENT CORP.
                        (A WHOLLY OWNED SUBSIDIARY)
                     (A DEVELOPMENT STAGE ENTERPRISE)
                         STATEMENTS OF OPERATIONS
    FOR THE PERIOD NOVEMBER 19, 1996 (INCEPTION) TO SEPTEMBER 30, 1998
                                 (UNAUDITED)

                                                              Period from
                              For the Three   For the Three   Nov. 19, 1996
                              Months Ended    Months Ended   (inception) to
                              Sept 30, 1998   Sept 30, 1997   Sept 30, 1998
                                                

General and administrative
  expenses                     $(6,535)          $(1,120)       $(15,930)


Net (Loss) for the period      $(6,535)          $(1,120)       $(15,930)


Net (Loss) per share           $ (0.02)          $ (0.00)       $ (0.04)


Weighted average common
 shares outstanding            403,000           403,000        403,000







       



















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


                                                                Page 4 of 7
                            CORAL DEVELOPMENT CORP.
                          (A WHOLLY OWNED SUBSIDIARY)
                       (A DEVELOPMENT STAGE ENTERPRISE)
                           STATEMENTS OF CASH FLOWS
                                 (UNAUDITED)
                                                                Cumulative
                                   For the Three For the Three    Amounts
                                   Months Ended  Months Ended      From
                                   Sept 30, 1998 Sept 30, 1997  Inception 


CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss)                             $(6,535)     $(1,120)     $(15,930)
Changes In Assets
 (Increase) in Organization Expense        -0-          -0-          (300)

 Net Cash (Used In) Operating 
    Activities                          (6,535)      (1,120)      (16,230)

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


CASH FLOWS FROM FINANCING ACTIVITIES
 Loan from Parent Company                5,750          -0-        12,451
 Common Stock Issuance                     -0-          -0-        30,300
 (Increase) in Deferred Registration
   Costs                                   -0-         (100)      (26,007)
 Net Cash Provided By (Used In) 
   Financing Activities                  5,750         (100)       16,744

Net Increase (Decrease) in Cash           (785)      (1,220)          514

Cash, Beginning of Period                1,299        3,515           -0-


CASH, END OF PERIOD                    $   514      $ 2,295      $    514
 

Supplemental Disclosures of Cash Flow Information:

  Cash paid during the period for:
     Taxes                             $   -0-      $   -0-      $   -0-
     Interest                          $   -0-      $   -0-      $   -0-











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


                                                                 Page 5 of 7
                        CORAL DEVELOPMENT CORP.
                      (A WHOLLY OWNED SUBSIDIARY)
                   (A DEVELOPMENT STAGE ENTERPRISE)
                   NOTES TO THE FINANCIAL STATEMENTS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
                              (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 Securities and
          Exchange Commission.  The intention of Modern is to distribute
          those shares to Modern's stockholders 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.

NOTE 3:   INCOME TAXES

          The Company follows Statement of Financial Accounting
          Standards No. 109 (FAS 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 $16,000 available to reduce any future income
          taxes.  The tax benefit of these losses, approximately $5,600,
          has been offset by a valuation allowance due to the
          uncertainty of its realization.


                                                 Page 6 of 7
                        CORAL DEVELOPMENT CORP.
                      (A WHOLLY OWNED SUBSIDIARY)
                   (A DEVELOPMENT STAGE ENTERPRISE)
                   NOTES TO THE FINANCIAL STATEMENTS
             FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998
                              (UNAUDITED)


NOTE 4:   DEFERRED REGISTRATION COSTS

          As of September 30, 1998, 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.

NOTE 5:   INTERIM FINANCIAL REPORTING

          The unaudited financial statements of the Company for the
          period July 1, 1998 to September 30, 1998 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 7 of 7
                    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.

          On July 22, 1998 the Registrant signed an Agreement and Plan
of Reorganization with Omnicomm Systems, Inc. (Omnicomm).  The agreement
calls for Omnicomm to be merged into the Registrant.  Omnicomm is a
privately held company engaged in the computer software industry.  The
transaction is contingent upon receiving shareholder approval from both 
companies and also subject to the conditions of Rule 419 of the
Securities Act of 1933 and approval by the Securities and Exchange
Commission of a post-effective amendment to the registration statement.

          Subsequent to September 30, 1998, MTC and Coral determined
that they would be unable to meet the time limitations imposed by Rule
419.  However, it is the intention of all parties to the Agreement to
continue with the merger of Coral and Omnicomm and for Coral to
distribute its (Coral's) shares to its shareholders as a dividend
following an effective Form 10SB to be filed under the Securities
Exchange Act of 1934, which is expected to be filed in early December
1998.

          For the three months ended September 30, 1998, the Registrant
generated a net loss of $6,535.  For the year ended June 30, 1998, the
Registrant generated a net loss of $8,817.  At September 30, 1998 the
Registrant had total assets of $26,821, consisting of cash of $514,
deferred registration costs of $26,007 and organization expense of $300. 
There were liabilities of $12,451 and stockholders' equity of $14,370.

          No salaries have been paid to the officers and directors of
the Registrant since inception.
<PAGE>
                      Part 2.  Other Information

Item 1.   Legal Proceedings.  None.

Item 2.   Changes in Securities.  None.

Item 3.   Defaults upon Senion 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 Seidenfeld
                    President, Chief Executive and
                        Chief Financial Officer
                           November 12, 1998