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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                               ------------------


                                   FORM 10-QSB
                               ------------------


           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                      For the quarter ended March 31, 1998

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934
                        Commission file number 33-30365-C
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                        EMERALD CAPITAL INVESTMENTS, INC.
           (Name of Small Business Issuer as specified in its charter)

                 Delaware                               36-3693936
            ------------------                         ------------
      (State or other jurisdiction of                (I.R.S. employer
       incorporation or organization                  identification No.)



              330 East Main Street, Suite 206 Barrington, IL 60010
            ---------------------------------------------------------
                    (Address of principal executive offices)


         Registrant's telephone no., including area code: (847) 382-1100


                                         N/A
                                        -----
        Former name, former address, and former fiscal year, if changed
                               since last report.


    Securities registered pursuant to Section 12(b) of the Exchange Act: None

    Securities registered pursuant to Section 12(g) of the Exchange Act: None



Check  whether  the Issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the Exchange  Act 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
 .

Common Stock  outstanding at May 11, 1998 - 6,608,698  shares of $.001 par value
Common Stock.

                    DOCUMENTS INCORPORATED BY REFERENCE: NONE

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<PAGE>



                                   FORM 10-QSB

                       FINANCIAL STATEMENTS AND SCHEDULES
                        EMERALD CAPITAL INVESTMENTS, INC.


                      For the Quarter ended March 31, 1998


     The following financial statements and schedules of the registrant are
                              submitted herewith:


                         PART I - FINANCIAL INFORMATION

                                                                       Page of
                                                                   Form 10-QSB

Item 1.  Financial Statements:

            Balance Sheet--March 31, 1998                                3

            Statements of Operations--for the three months
            ended March 31, 1998 and March 31, 1997                      4

            Statements of Cash Flows--for the three months
            ended March 31, 1998 and March 31, 1997                      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

                                                                        Page

Item 1.           Legal Proceedings                                      10
Item 2.           Changes in the Securities                              10
Item 3.           Defaults Upon Senior Securities                        10
Item 4.           Results of Votes of Security Holders                   10
Item 5.           Other Information                                      10
Item 6(a).        Exhibits                                               10
Item 6(b).        Reports on Form 8-K                                    10



                                        2

<PAGE>




                        EMERALD CAPITAL INVESTMENTS, INC.
                          (A Development Stage Company)

                                  Balance Sheet

                                 March 31, 1998
                                   (Unaudited)


<TABLE>
<CAPTION>

<S>                                                                                           <C> 

Assets
Current assets - cash                                                                             $7,273
                                                                                         ====================

Liabilities and Stockholders' Equity
Current liabilities
Stockholders' equity:                                                                                 $0
    Common Stock - $.001 par value.
           100,000,000 shares authorized
           6,608,698 shares issued and outstanding, respectively                                   6,609
    Additional paid-in capital                                                                 2,607,856
    Retained deficit                                                                          (2,607,192)
                                                                                         --------------------

             Total stockholders' equity:                                                           7,273
                                                                                         --------------------
                   Total liabilities and stockholders' equity:                                    $7,273
                                                                                         ====================

</TABLE>







See accompanying Notes to Financial Statements.



                                        3

<PAGE>



                        EMERALD CAPITAL INVESTMENTS, INC.
                          (A Development Stage Company)

                             Statement of Cash Flows

                                 March 31, 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                       Three Months Ended
                                                                            March 31
                                                                                                        Cumulative
                                                                    1998                 1997             Amounts
                                                                    ----                 ----             -------
<S>                                                                <C>                  <C>               <C> 

Cash flows from operating activities:
      Net loss                                                        -                 (2,515)           (24,062)
      Decrease in accounts receivable                                 -                    -               30,000
      Decrease in accounts payable                                 (8,000)                 -               (6,665)
                                                               ---------------       -------------     --------------
                     Net cash used in  
                     operating activities                             -                 (2,515)              (727)
                                                               ---------------       -------------     ---------------
Cash flows from investing activities                                  -                    -                   -
Cash flows from financing activities                                8,000                  -                8,000
                                                               ---------------       -------------     ---------------
      Net (decrease) increase in cash                                 -                 (2,515)             7,273
Cash, beginning of period                                           7,273                  -                  -
                                                               ---------------       -------------     ---------------
Cash, end of period                                            $    7,273            $  10,222         $    7,273
                                                               ===============       =============     ===============

</TABLE>




See accompanying Notes to Financial Statements.

                                        4

<PAGE>



                        EMERALD CAPITAL INVESTMENTS, INC.
                          (A Development Stage Company)

                             Statement of Operations

                                 March 31, 1998
                                   (Unaudited)




<TABLE>
<CAPTION>
                                                                    Three Months Ended
                                                                         March 31
                                                                                                       Cumulative
                                                              1998                    1997               Amounts
                                                              ----                    ----               -------
<S>                                                           <C>                     <C>                 <C>

Revenue                                                        -                        -
Selling, general and administrativ                             -                      2,515               24,062
                                                          -------------           -------------        -------------
         Loss from continuing operations                       -                     (2,515)             (24,062)
         Net loss                                              -                     (2,515)             (24,062)
                                                          ==============          =============        =============
         Net loss per share                                  $(.00)                   $(.00)               $(.00)
                                                          ==============          =============        =============
Weighted average number of shares
outstanding                                                 6,608,698               6,608,698            6,608,698
                                                          ==============          ==============       =============

</TABLE>











See accompanying notes to financial statements.


                                        5

<PAGE>



                        EMERALD CAPITAL INVESTMENTS, INC.
                          (A Development Stage Company)

                         Notes for Financial Statements


(1)  The unaudited financial  statements include the accounts of Emerald Capital
     Investments,  Inc.,  and  include  all  adjustments  (consisting  of normal
     recurring  items)  which are, in the opinion of  management,  necessary  to
     present fairly the financial  position as of March 31, 1998 and the results
     of  operations  for the three  months  ended March 31, 1998 and 1997,  cash
     flows for the three  months  ended March 31,  1998 and 1997 and  cumulative
     amounts since  inception of the  development  stage through March 31, 1998.
     The results of operations for the three months ended March 31, 1998 are not
     necessarily indicative of the results to be expected for the entire year.


(2)  Income (loss) per common share is based on the weighted  average  number of
     shares outstanding during the period.







                                        6

<PAGE>



                                     ITEM 2

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

General

         The Company  currently has no  operations.  Prior to December 29, 1995,
the  Company  had been  involved in the  business  of  recycling  used tires and
designing,  manufacturing, and marketing shredding equipment. The Company's tire
recycling and shredding  equipment  operations were unsuccessful and the Company
generated  significant  losses  during 1994 and 1995.  During 1995,  the Company
funded its  operations  with loans from a commercial  bank from  management  and
other  individuals.  By November 1995, the Board of Directors had concluded that
the Company did not have the capital, or the ability to obtain capital necessary
to continue its current  operations.  The Company's Board of Directors initiated
efforts to sell the Company's WRTI and CTR  operations.  The Company was able to
interest one of its directors and several other  individuals in purchasing  WRTI
and CTR.

         Effective December 29, 1995, the Company sold all of its shares of WRTI
and CTR for  $30,000  and the payment and or  assumption  of  liabilities.  As a
result of such sale, the Company's total liabilities,  on a consolidated  basis,
decreased from $1,758,308 to $6,665.

         On May 7, 1998,  the  Company  entered  into an  Agreement  and Plan of
Merger to acquire American Polymer Corporation,  a Utah Corporation.  The Merger
will be a reverse  merger whereby  following the Merger,  the  shareholders  and
management  of  American  Polymer  will  be  the  controlling  shareholders  and
Management of the Company. The Merger is subject to several conditions and there
can be no assurance that it will be completed.

Financial Condition

          Total assets at March 31, 1998 were $7,273,  all of which was cash. At
March 31, 1998, the Company had no liabilities.  The Company intends to use such
cash to pay for  various  filing  fees and  professional  fees  relating  to its
reporting  obligations  and to fund the costs  which may arise from  seeking new
business opportunities.

         It is likely  that the Company  will be  required  to raise  additional
capital in order to attract any potential  acquisition  partner but there can be
no assurance that the Company will be able to raise any additional  capital.  It
is also likely that any future  acquisition will be made through the issuance of
shares of the  Company's  common  stock which will result in the dilution of the
percentage ownership of the current shareholders.

Results of Operations

     The  Company  has  generated  no  revenues  since the sale of the  WRTI/CTR
operations  and assets.  The Company will not generate  any  revenues,  if ever,
until and  unless it  merges  with an  operating  company  or raises  additional
capital for its own  operations.  There can be no assurance  that either of such
events will happen.


                                        7

<PAGE>



         The  Company had no income  loss for the three  months  ended March 31,
1998 compared to $2,515 for the three months ended March 31, 1997.

Plan of Operation

         Commencing  in the  fourth  quarter  of  1995,  the  Company's  Plan of
Operation was essentially the plan to sell its WRTI and CTR operation. Effective
December 29, 1995 these  operations  were sold.  The  Company's  current plan of
operation  is to  acquire  another  operating  company.  It is  likely  that any
acquisition will be a "reverse merger"  acquisition whereby the Company acquires
a  larger  company  by  issuing  shares  of the  Company's  common  stock to the
shareholders of the larger company.  Although the Company would be the surviving
or parent  company from a corporate  law  standpoint,  the  shareholders  of the
larger  company  would be the  controlling  shareholders  of the Company and the
larger  company  would be  treated as the  survivor  or parent  company  from an
accounting  point of view.  It can be expected that any company which may desire
to be acquired by the Company will do so as a method of  potentially  becoming a
public company more quickly and less expensively than if such company  undertook
its own public offering.

         The Company has entered in to a Merger  Agreement to acquire by merger,
American Polymer Corporation,  a small specialty chemical company. The Merger is
subject to numerous  conditions,  including a requirement that the Company raise
additional capital. There can be no assurance that the Merger will be effected.
A general description of the Merger is as follows:

Overview of the Merger

         The Merger  Agreement  provides  that,  subject to the  approval of the
Merger Agreement by the  shareholders of both the Company and American  Polymer,
the  satisfaction  or waiver of certain  other  conditions,  the Merger  will be
effected and Emerald Merger Sub, a wholly-owned  subsidiary of the Company, will
be  merged  with  and  into  American  Polymer,  which  will  be  the  Surviving
Corporation and which will be a wholly-owned subsidiary of the Company. American
Polymer will continue to conduct its current business.

         The Company will, prior to the Merger,  effect a 1-for-10 reverse split
of its issued and outstanding  shares of common stock. The 6,608,698 shares will
be reduced to approximately 660,869 shares as the result of the reverse split.

         At the  effective  time  ("Effective  Time") of the Merger,  all of the
issued and outstanding shares of American Polymer will be converted into a total
of  9,243,476  shares  (calculated  after  the  1-for-10  reverse  split) of the
Company's common stock. Further more, all outstanding options to purchase shares
of American  Polymer  will be converted  into options to purchase  shares of the
Company on the same conversion basis and ratio as each share of American Polymer
is converted into shares of the Company.

Reasons for the Merger

         The Company is currently an inactive  company whose business plan is to
seek a suitable merger partner.  The Company's  reason for  participating in the
Merger is to enable it to  commence  active  business  operations  in a business
which  management  believes (1) has potential for  long-term  growth;  (2) has a
proven

                                        8

<PAGE>



product in place;  (3) has experienced  management in place; and (4) is involved
in an industry which holds interest for product users,  government  agencies and
investors.

         American   Polymer  has  informed  the  Company  that  its  reason  for
participating in the Merger is (1) to obtain additional working capital;  (2) to
have potential access to public markets for its shareholders  thereby  providing
liquidity for their investment; (3) to facilitate future capital raising efforts
to the extent necessary, (4) to enable it to provide incentives to employees and
product  distributors with stock options;  and (5) to reduce ownership  dilution
which may result if American  Polymer  were to have  undertaken  its own initial
public offering.

Share Ownership Following Merger

         If the  Merger is  completed,  the  following  shares of the  Company's
Common Stock will be issued and outstanding:

<TABLE>
<CAPTION>

                                                     Maximum Offering           Minimum Offering
<S>                                                      <C>                      <C>

Current Shareholders                                       660,869                   660,869
Offering Investors                                       1,500,000                 1,200,000
American Polymer Shareholders                            9,243,476                 9,243,476
Placement Agent Fee Shares                                 150,000                   120,000
--------------------------                           -----------------         -------------------
Total                                                   11,554,345                11,254,345

</TABLE>


Accounting Treatment

         It is  expected  that the Merger  will be  treated as a reverse  merger
using the purchase method of accounting.  However, since the Company is a public
shell with minimum activity, no good will be recorded.

Federal Tax Consequences

         The Merger is intended  to qualify as a  reorganization  under  Section
368(a)(1)(A)  of the  Internal  Revenue  Code of  1986,  as  amended,  and if so
qualified,  will not result in the recognition of any gain or loss by either the
Company,  American Polymer,  or the shareholders of either.  Neither the Company
nor  American  Polymer has applied for a tax ruling with  respect to the Merger,
nor has  either  obtained  an opinion of  counsel  with  respect to the  Merger;
therefore,  no  assurances  can be given that the  expected  tax result  will be
achieved in the Merger.

Appointment of New Officers and Directors

         Following  the  consummation  and  closing of the  Merger,  the current
officers  and  directors of the  Company,  except for Douglas P.  Morris,  shall
resign and the officers and directors of American  Polymer shall be appointed as
the officers and directors of the Company.  Mr. Morris will remain a director of
The  Company and will be  appointed  The  Company's  Vice  President  of Capital
Markets.


                                        9

<PAGE>



Change of Name and Possible Change of Domicile

         The Company's name will be changed from "Emerald  Capital  Investments,
Inc.", to some other name chosen by American Polymer  management,  in connection
with the Merger.  In an effort to reduce state corporate  franchise  taxes,  the
Company  and  American  Polymer  may  provide  for the  change of The  Company's
domicile from the State of Delaware to the State of Utah in a change of domicile
merger.

                           PART II - OTHER INFORMATION

Item 1.  Legal  Proceedings.   To  the  best  knowledge  of  the  Company's
         management,  the  Company  is not a party to any legal  proceeding  or
         litigation.


Item 2.  Changes in the Rights of the Company's Security Holders. None.

Item 3.  Defaults by the Company on its Senior Securities.  None.

Item 4.  Submission of Matters to Vote of Security  Holders.  No matter was
         submitted to a vote of the Company's  security holders for the quarter
         ended March 31, 1998.

Item 5.  Other Information.

Item 6(a). Exhibits.  Agreement and Plan of Merger

Item 6(b). Reports on Form 8-K.  None filed.


                                    SIGNATURE

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


Dated: May 13, 1998             EMERALD CAPITAL INVESTMENTS, INC.



                                By:  /s/ Frank H. Ross, III
                                     Frank H. Ross, III
                                     President/Principal Executive Officer



                                By   /s/ Douglas P. Morris
                                     Douglas P. Morris
                                     Principal Financial Office



                                       10