<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarter Ended   July 31, 2000         Commission file number     0-5653
                  -----------------                              --------------


                             BALA CYNWYD CORPORATION
--------------------------------------------------------------------------------


             NEW JERSEY                                      22-1436237
--------------------------------------------------------------------------------
  (State or other jurisdiction of                         (I.R.S. Employer
   incorporation or organization)                        Identification No.)


  301 CITY AVENUE                       BALA CYNWYD, PA                 19004
--------------------------------------------------------------------------------
(Address of principal executive offices)                              (Zip Code)



Registrant's telephone number, including area code          610-667-8225
                                                   -----------------------------


--------------------------------------------------------------------------------
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 Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.

                                                  X   Yes        No
                                               -------    -------


Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the close of the period covered by this report.


Class: COMMON, PAR VALUE $.05 PER SHARE
       --------------------------------
OUTSTANDING at July 31, 2000  1,021,314


<PAGE>

                             BALA CYNWYD CORPORATION
                             =======================

                   QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                                  JULY 31, 2000
--------------------------------------------------------------------------------



                                      INDEX


Part I - Financial Information (unaudited):
           Condensed balance sheet as of
              July 31, 2000 and January 31, 2000                              2

           Condensed statement of operations for the
              three-month and six-month periods ended
              July 31, 2000 and 1999                                          3

           Condensed statement of cash flows
              for the six-month periods ended
              July 31, 2000 and 1999                                          4

           Notes to condensed financial statements                            5

           Report of independent accountants                                  6

           Management's discussion and analysis of the
              financial condition and results of operations                   7


Part II - Other Information

           Item 1.  Legal Proceedings                                         8
           Item 2.  Changes in Securities                                     8
           Item 3.  Defaults Upon Senior Securities                           8
           Item 4.  Submission of Matters to a Vote of Security Holders       8
           Item 5.  Other Information                                         8
           Item 6.  Exhibits and Reports of Form 8-K                          8

Signature                                                                     9



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<PAGE>


                             BALA CYNWYD CORPORATION
                             =======================

                             CONDENSED BALANCE SHEET
                                   (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                                              JULY 31,            JANUARY 31,
                                                                               2000                  2000
                                                                             ---------            ---------
<S>                                                                          <C>                  <C>
                                                      ASSETS

Cash and cash equivalents                                                    $     530            $ 458,670
Note receivable from shareholder                                               460,000                -
                                                                             ---------            ---------

                                                                             $ 460,530            $ 458,670
                                                                             =========            =========

                                       LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Due to shareholder                                                         $   1,927            $   1,927
  Due to affiliates                                                              3,862                3,862
  Accrued expenses                                                               5,152                5,152
  Income taxes payable                                                           1,439                2,332
                                                                             ---------            ---------

                                                                                12,380               13,273
                                                                             ---------            ---------

Preferred stock, cumulative convertible, $.05 par
  value; 500,000 shares authorized, 2,600
  shares issued                                                                    130                  130
Common stock, $.05 par value; 2,000,000 shares
     authorized, 1,054,419 shares issued                                        52,721               52,721
Additional paid-in capital                                                     462,327              462,327
Accumulated deficit                                                            (47,462)             (50,215)
                                                                             ---------            ---------

                                                                               420,269              464,963

Less treasury stock, at cost:
  Preferred stock (2,600 shares)                                                (5,000)              (5,000)
  Common stock (33,105 shares)                                                 (14,566)             (14,566)
                                                                             ---------            ---------

           Total shareholders' equity                                          448,150              445,397
                                                                             ---------            ---------

                                                                             $ 460,530            $ 458,670
                                                                             =========            =========

</TABLE>
See accompanying notes to condensed financial statements.

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<PAGE>



                             BALA CYNWYD CORPORATION
                             =======================

                        CONDENSED STATEMENT OF OPERATIONS
                                   (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                           JULY 31,                           JULY 31,
                                                  2000                  1999             2000           1999
                                                 ------              --------           -------       --------
<S>                                              <C>                  <C>               <C>            <C>
Revenue, interest income                         $6,754               $ 4,637           $12,340        $10,067


General and administrative expenses                (713)               18,764             9,587         21,832
                                                 ------              --------           -------       --------


Net income (loss)                                $7,467              ($14,127)          $ 2,753       ($11,765)
                                                 ======              ========           =======       ========


Net income (loss) per share,
  basic and diluted                            $    .01              ($   .01)          $    -        ($   .01)
                                                 ======              ========           =======       ========


Weighted average number
  of outstanding shares for
  basic and diluted                           1,021,314             1,021,314         1,021,314      1,021,314
                                              =========             =========         =========      =========
</TABLE>



See accompanying notes to condensed financial statements.

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<PAGE>

                             BALA CYNWYD CORPORATION
                             =======================

                        CONDENSED STATEMENT OF CASH FLOWS
                                   (unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>


                                                                                    SIX MONTHS ENDED
                                                                                        JULY 31,
                                                                                  2000              1999
                                                                                --------          --------
<S>                                                                            <C>               <C>

                                            INCREASE (DECREASE) IN CASH

Cash flows from operating activities:
  Net income (loss)                                                            $   2,753         ($ 11,765)
  Adjustments to reconcile net income (loss) to net
       cash provided by (used in) operating activities:
     Decrease in operating liabilities:
       Accrued expenses                                                            -                (8,328)
       Income taxes payable                                                         (893)           (2,789)
                                                                               ---------         ---------

           Net cash provided by (used in) operating activities                     1,860           (22,882)
                                                                               ---------         ---------

Cash flows from investing activities:
  Loan to shareholder                                                           (460,000)             -
                                                                               ---------         ---------

           Net cash (used in) investing activities                              (460,000)             -
                                                                               ---------         ---------


Net decrease in cash and cash equivalents                                       (458,140)          (22,882)


Cash and cash equivalents at beginning of period                                 458,670           478,096
                                                                               ---------         ---------


Cash and cash equivalents at end of period                                     $     530          $455,214
                                                                               =========          ========
</TABLE>

See accompanying notes to condensed financial statements.

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<PAGE>



                             BALA CYNWYD CORPORATION
                             =======================

                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (unaudited)
--------------------------------------------------------------------------------


1. In the opinion of management, the accompanying unaudited condensed financial
   statements contain all adjustments necessary to present fairly the financial
   position as of July 31, 2000 and the results of operations for the
   three-month and six-month periods ended July 31, 2000 and 1999 and cash flows
   for the six-month periods ended July 31, 2000 and 1999. The results of
   operations for the three-month and six-month periods ended July 31, 2000 are
   not necessarily indicative of the results to be expected for the full year.

2. Margolis & Company P.C., the Company's auditors, has performed a limited
   review of the financial information included herein. Their report on such
   review accompanies this filing.

3. Note receivable from shareholder is due on demand and bears interest at the
   prime rate. The effective rate was 9.5% at July 31, 2000.


-5-

<PAGE>



                        REPORT OF INDEPENDENT ACCOUNTANTS


To the Board of Directors
Bala Cynwyd Corporation
Bala Cynwyd, PA

We have reviewed the accompanying condensed balance sheet of Bala Cynwyd
Corporation as of July 31, 2000 and the related condensed statements of
operations and cash flows for the three-month and six-month periods ended July
31, 2000 and 1999. These financial statements are the responsibility of the
Company's management.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted 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 reviews, we are not aware of any material modifications that should
be made to the accompanying condensed 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 January 31, 2000 and the related statements
of operations, shareholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated May 31, 2000, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed balance sheet as of January
31, 2000 is fairly stated, in all material respects, in relation to the balance
sheet from which it has been derived.


                                              Certified Public Accountants


Bala Cynwyd, Pennsylvania
November 13, 2000

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<PAGE>


                             BALA CYNWYD CORPORATION

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                                   (unaudited)
--------------------------------------------------------------------------------


General
-------

In May, 1989, the Company suspended all operations, except for necessary
administrative matters, and ceased to be an operating company. As such, for the
six months ended July 31, 2000 and 1999, the Company had no revenues from
operations. Given the virtual suspension of the Company's operations, except for
necessary administrative matters, the Company's officers have waived further
compensation.


Results of Operations
---------------------

During the six months ended July 31, 2000, the Company earned interest of
$12,340 as compared to $10,067 of interest earned in the six months ended July
31, 1999, an increase of $2,273. During the six months ended July 31, 2000, the
Company incurred general and administrative expenses of $9,587, a decrease of
$12,245 as compared with the six months ended July 31, 1999 expenses of $21,832.


Liquidity and Capital Resources
-------------------------------

During the six months ended July 31, 2000, the Company satisfied its working
capital needs from cash on hand at the beginning of the year and cash generated
from interest income during the period. The Company's cash position decreased
from $458,670 at January 31, 2000 to $530 at July 31, 2000. The decrease is
attributable to a loan of $460,000 to its majority shareholder for investment
purposes. The loan is due as demand and will earn interest at the prime rate of
9.5% per annum. As of July 31, 2000, the Company had working capital of
$448,150. This working capital is expected to provide the Company with
sufficient capital while it seeks a merger, acquisition or other arrangement by
and between the Company and a viable operating entity, although there is no
assurance that this will occur.



-7-

<PAGE>



                             BALA CYNWYD CORPORATION
                             =======================


Part II - 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 Information
                      None

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




-8-

<PAGE>



                             BALA CYNWYD CORPORATION
                             =======================

                                    SIGNATURE
--------------------------------------------------------------------------------


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.


                                             BALA CYNWYD CORPORATION



                                             /s/ Albert M. Zlotnick
                                             -----------------------------------
                                             Albert M. Zlotnick, President and
                                               Chief Executive Officer



Date: November 13, 2000


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