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, 1999

                                       or

[ ]      Transition report under Section 13 or 15 (d) of the Securities Exchange
         Act of 1934 For the transition period from to



Commission file number     1-14025
                           --------


                           CAPITA RESEARCH GROUP, INC.
                           ---------------------------
             (Exact name of Registrant as specified in its charter)


       Nevada                                                    88-072350
 ----------------------                                 -----------------------
(State of incorporation)                               (IRS Employer ID Number)

591 Skippack Pike, Blue Bell, PA 19422                            19422
--------------------------------------                            -----
(Address of principal executive offices)                       (Zip Code)


                                 (215) 619-7777
               ------------------------------------------------
               (Issuer'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 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 X    NO
                                     ---     ---


The  number  of  shares  outstanding  of the  registrant's  common  stock  as of
September 30, 1999 was 20,295,946.
<PAGE>

<TABLE>
<CAPTION>

                   CAPITA RESEARCH GROUP, INC. AND SUBSIDIARY
         BALANCE SHEETS AS OF DECEMBER 31, 1998 AND SEPTEMBER 30, 1999
                           (DEVELOPMENT STAGE COMPANY)

ASSETS



                                                                       September 30,     December 31,
                     CURRRENT ASSETS                                        1999            1998
                     ---------------                                   ------------      -----------

<S>                                                                    <C>               <C>
Cash                                                                   $   159,596       $ 19,301
Accounts receivable                                                         13,750          1,000
Interest receivable                                                         16,053           --
Prepaid expenses                                                            22,538          9,508
                                                                       ------------      -----------

                     Total current assets                                  211,937         29,809
                                                                       ------------      -----------

EQUIPMENT, NET                                                             153,873         92,511
                                                                       ------------      -----------
                      OTHER ASSETS
                      ------------


Notes and other receivables                                                 34,435         15,534
                                                                       ------------      -----------
Deposits                                                                      --            3,560
                                                                       ------------      -----------
                     Total other assets                                     34,435         19,094
                                                                       ------------      -----------
                                                                       $   400,245       $141,414
                                                                       ------------      -----------

                    LIABILITIES AND STOCKHOLDER'S DEFICIENCY

CURRENT LIABILITIES
-------------------

Accounts payable and accrued expenses                                  $   147,626       $186,052
Current portion of obligations capital leases                               22,639         14,261

Loan Payable                                                               300,000           --
Due to Stockholders                                                           --          100,000
                                                                       ------------      -----------
                    Total current liabilities                              470,265        300,333
                                                                       ------------      -----------
Long-term obligations under capital leases,                                 25,377          9,614
   net of current portion                                              ------------      -----------

              STOCK HOLDER'S DEFICIENCY
              -------------------------

Common Stock,  Capita Research Group, Inc,
$0.001 par value,  100,000,000 shares
authorized; Issued and outstanding,
20,295,946 shares September 30, 1999,
13,562,900 shares, December 31, 1998                                        20,296         13,563

Additional paid-in capital                                               3,857,663      2,181,114

Deficit accumulated during development stage                            (3,135,787)    (2,363,210)
                                                                       ------------      -----------
                                                                           742,171       (168,533)
Stock subscription receivable                                             (837,568)          --
                                                                       ------------      -----------
                                Total stockholders' deficiency             (95,397)      (168,533)
                                                                       ------------      -----------
                                                                       $   400,245       $141,414
                                                                       ------------      -----------
</TABLE>

                             See Accompanying notes


                                       2
<PAGE>







                   CAPITA RESEARCH GROUP, INC. AND SUBSIDIARY

                  STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
                                      ENDED
                           SEPTEMBER 30, 1999 and 1998
                           (DEVELOPMENT STAGE COMPANY)

                                                 Three Months Ended
                                                     September 30
                                                1999           1998
                                           ------------    ------------

REVENUES                                   $     22,750   $      47,500

COST OF SALES                                    67,091          41,988
                                           ------------    ------------

GROSS PROFIT LOSS                               (44,341)          5,512
                                           ------------    ------------

  OPERATING EXPENSES
   Selling                                        5,155           9,898
   Technical                                     45,389           9,787
   Research                                      13,932
   Administrative                                41,899          42,747
   Other general & administrative               194,292         127,328
                                           ------------    ------------

         TOTAL OPERATING EXPENSES               300,667         189,760
                                           ------------    ------------
OTHER INCOME (EXPENSE)
   Interest Income                               12,533            --
   Interest expense                              (1,118)         (2,654)
                                           ------------    ------------
            Total other Income (expense)         11,415          (2,654)
                                           ------------    ------------
LOSS BEFORE INCOME TAXES                       (333,593)       (186,902)
                                           ------------    ------------
Provision for Income Taxes                         --              --
                                           ------------    ------------
NET LOSS                                   $   (333,593) $     (186,902)


NET LOSS PER SHARE, BASIC AND DILUTED           $(0,02)    $      (0.01)
                                           ------------    ------------
WEIGHTED AVERAGE SHARES OUTSTANDING          19,821,545      12,717,610
                                           ------------    ------------

                             See Accompanying notes


                                       3
<PAGE>






                   CAPITA RESEARCH GROUP, INC. AND SUBSIDIARY
               STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED
                           SEPTEMBER 30, 1999 and 1998
                           (DEVELOPMENT STAGE COMPANY)

                                                Nine Months Ended
                                                   September 30
                                              1999           1998
                                         ------------    ------------

REVENUES                                 $     55,000    $     85,500


COST OF SALES                                 126,063          88,202
                                         ------------    ------------

GROSS PROFIT LOSS                             (71,063)         (2,702)
                                         ------------    ------------

OPERATING EXPENSES
  Selling                                      18,716          37,400
  Technical                                    89,940         151,045
  Research                                     33,836           --
  Administrative                              142,312         370,673
  Other general & administrative              420,583         388,490
                                         ------------    ------------
TOTAL OPERAT1NG EXPENSES                      705,387         947,608
                                         ------------    ------------

OTHER INCOME (EXPENSE)
   Interest Income                             16,546            --
   Interest expense                           (12,673)         (8,854)
                                         ------------    ------------
Total other Income (expense)                    3,873          (8,854)
                                         ------------    ------------

LOSS BEFORE INCOME TAXES                     (772,577)       (959,164)

Provision for Income Taxes                       --              --
                                         ------------    ------------
NET LOSS                                 $   (772,577)   $   (959,164

NET LOSS PER SHARE, BASIC AND  DILUTED          (0.05)          (0.09)
                                         ------------    ------------
WEIGHTED AVERAGE SHARES OUTSTANDING        16,244,218      10,675,763
                                         ------------    ------------


                             See Accompanying notes


                                       4
<PAGE>

<TABLE>
<CAPTION>

                         CAPITA RESEARCH GROUP, INC. AND
                                   SUBSIDIARY
               STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED
                           SEPTEMBER 30, 1999 and 1998
                           (DEVELOPMENT STAGE COMPANY)
                                                                1999          1998
                                                             ---------    ---------

<S>                                                         <C>          <C>
OPERATING ACTIVITIES
Net loss                                                     $(772,577)   $(772,262)
Adjustments to reconcile net loss to
 net cash used in operating activities:

             Common stock Issued for salaries, rent
              consulting and fixed assets                      271,488      331,170

             Depreciation                                       55,164       10,149

             Amortization                                         --         19,638



Changes In Operating assets and liabilities:
     (Increase) decrease In:

           Accounts receivable                                 (12,750)     (10,027)
           Interest receivable                                 (16,053)        --
           Other assets                                          3,560       (2,707)
           Prepaid expenses                                    (13,030)        --

  Increase (decrease) In:
                  Accounts payable and accrued expenses        (10,060)      (7,491)
                                                             ---------    ---------

                  Net cash used In operating activities       (494,257)    (431,530)
                                                             ---------    ---------

INVESTING ACTIVITIES
  Purchase of equipment                                        (81,695)     (22,355)
  Advances to (payment from) stockholder                       (18,901)      (8,966)
                                                             ---------    ---------
                  Net cash used in investing activities       (100,596)     (31,321)
                                                             ---------    ---------
FINANCING ACTIVITIES
  Proceeds from issuance of common stock                       445,858      456,890
  Proceeds (repayment) of stockholder loans                    300,000         --
  Repayment of capital lease obligations                       (10,710)        --
                                                             ---------    ---------

            Net cash used in Investing activities              735,148      456,890
                                                             ---------    ---------

NET INCREASE (DECREASE) IN CASH                                140,295       (5,961)

CASH, BEGINNING                                                 19,301       15,190
                                                             ---------    ---------
CASH, ENDING                                                 $ 159,596    $   9,229
                                                             ---------    ---------
SUPPLMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

3,350,273 shares of common stock were
 sold to Officers and Directors In
 exchange for a subscription note receivable             $     837,568    $    --
                                                             ---------    ---------

Conversion of notes and Accounts payable to common stack $     128,366    $ 176,825
                                                             ---------    ---------

Capital lease obligations Incurred relateds to the
acquisition of equipment                                 $      34,831         --
                                                             ---------    ---------
</TABLE>

                                       5
<PAGE>

                   Notes to Consolidated Financial Statements


         The accompanying  consolidated  financial statements of Capita Research
Group,  Inc. and its subsidiary  reflect all adjustments and disclosures,  which
are, in the opinion of management,  necessary for a fair presentation of interim
results. The financial information has been prepared in accordance with Capita's
customary accounting practices and has not been audited.

1.               Certain   information  and  note  disclosures   required  under
              generally  accepted  accounting  principles have been condensed or
              omitted  pursuant to the Securities and Exchange  Commission (SEC)
              rules and regulations.  The preparation of financial statements in
              conformity with generally accepted accounting  principles requires
              management to make certain  estimates and assumptions  that affect
              the amounts reported in the financial  statements and accompanying
              notes.  Actual  results could differ from those  estimates.  These
              interim  financial  statements  should be read in conjunction with
              Management's  Discussion  and Analysis of Financial  Condition and
              Results  of  Operations  and the  financial  statements  and notes
              thereto  included  in  Capita's  Form  10K-SB  for the year  ended
              December 31, 1998.

2.            Results of operations for the three-month  and nine-month  periods
              ended  September 30, 1999, are not  necessarily  indicative of the
              results to be expected for the full year.


3.               On March 10, 1999 the Company  entered into an  agreement  with
              Quaker Capital Markets Group, Inc. ("Quaker"),  to render advisory
              services  to the  Company  in its  attempt  to  raise a  currently
              estimated  $7,500,000 in equity capital. In connection  therewith,
              the Company paid Quaker  $10,000 in cash,  $15,000 in common stock
              and agreed to pay a percentage of capital raised. In addition,  as
              of August 14,  1999,  an agreement  for a  short-term  note in the
              amount of $400,000 had been  executed  with an investor,  with the
              first  three  installments  totaling  $300,000  being  received by
              September 30, 1999. The Company received the fourth installment of
              $100,000 on October 18, 1999. This loan is convertible into common
              stock at a price of $0.25 per share.  In  addition  the lender was
              granted  warrants to purchase  300,000 shares of common stock at a
              price of $0.25 per share.  This loan was obtained in order to meet
              the  working  capital  needs of Capita as it seeks out  additional
              equity financing.
<PAGE>

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

Results of Operations for the Three Months Ended September 30, 1999 and 1998
----------------------------------------------------------------------------

All statements  contained  herein that are not  historical  facts are based upon
current expectations. These statements are forward-looking in nature and involve
a number of risks and uncertainties. Actual results may differ materially. Among
the  factors  that  could  cause  actual  results to differ  materially  are the
following:  the availability of sufficient  capital to finance Capita's business
plans,  the market  acceptance  of Capita's  services and  competitive  factors.
Capita  wishes  to  caution  readers  not to place  undue  reliance  on any such
forward-looking  statements,  which  statements are made pursuant to the Private
Litigation Reform Act of 1995 and as a result, are pertinent only as of the date
made.

Capita is,  and has been a  development  stage  company  during the  three-month
periods ended September 30, 1999 and 1998. As a development stage company it has
been  testing and further  developing  its  Engagement  Index System sm (EI sm),
which has been licensed  exclusively to Capita by the National  Aeronautics  and
Space  Administration  (NASA). The system measures  electrical activity using an
electroencephalogram  (EEG)  reading  from the human  brain and  processing  the
results  through the computer using an algorithm  developed by NASA to correlate
those results with the level of  "involvement" by the test subject with measured
activity.

Capita  is  using  this EI sm  System  to  measure  and  research  communication
effectiveness.  Its  objective is to become the leading  commercial  provider of
customized, high performance technology systems and services, including analysis
and technical support,  for the real-time,  objective  measurement of engagement
(attentiveness) for use in multiple markets.

As a development stage company it has limited marketing activity with sales of $
22,750 and  $47,500  for the three  months  ended  September  30, 1999 and 1998,
respectively.  The sales in both  periods  were to "early  adopters" of Capita's
technology  to measure the  effectiveness  of  advertising  material.  The gross
profit  (loss) on these sales  increased to a $44,341 loss in 1999 from a $5,521
gain in 1998.  This was due to lower  sales and the  addition  of certain  fixed
costs  included  in  cost  of  sales,  primarily  due  to  an  increase  in  the
depreciation of testing equipment that was acquired since 1998.

The operating  costs of $300,667 in 1999 compared to $189,760 in 1998  increased
due to use of outside advertising and research consultants, increasing staff and
expenditures for expanded  technical  development of the product,  the Company's
research effort, its legal protection of intellectual  property,  its raising of
equity capital and its development of infrastructure.

                                       6
<PAGE>



Results of Operations for the Nine Months Ended September 30, 1999 and 1998
---------------------------------------------------------------------------

Capita is,  and has been a  development  stage  company  during  the  nine-month
periods ended  September 30, 1999 and 1998. As a development  stage company,  it
has had limited  marketing  activity  with sales of  $55,000and  $85,500 for the
nine-months  ended  September 30, 1999 and 1998  respectively.  The gross profit
(loss) on these sales  increased to a $71,063 loss in 1999 from a $2,702 loss in
1998.  This was due to the  addition  of certain  fixed  costs in cost of sales,
primarily an increase in the depreciation of testing equipment that was acquired
since 1998.

The  operating  costs of  $705,387  in 1999  were  significantly  less  than the
operating  costs  incurred  for the nine  months  ended  September  30,  1998 of
$947,608.  The  decrease of $235,692 was due  primarily to several  expenditures
incurred in 1998,  which did not  reoccur in 1999,  which were offset in part by
higher operating costs in 1999. These expenses included:  approximately $105,000
of 1998 expense  which was  attributable  to legal,  accounting  and other costs
relating to the reverse  acquisition  into Royal  American and the filing of the
Form 10-SB/A with the SEC and the $100,000 of 1998 product development  services
performed by an outside contractor.



Liquidity and Capital Resources at September 30, 1999
-----------------------------------------------------

With losses expected to continue in the foreseeable future,  Capita's ability to
sustain  operations  is  dependent  on its  ability  to raise  added  investment
capital.  The Company has taken the following  steps during the nine month ended
September 30, 1999, to improve its liquidity and capital resources:

1.       During the nine month ended  September  30, 1999 Capita  received  cash
         proceeds of $445,858 from the sale of common stock.

2.       The Company  converted  $100,000 of notes payable and $ 28,367 of other
         payables into its common stock.

3.       The  Company  issued  $271,488  of  common  stock in  consideration  of
         services rendered, inculding rent, equipment purchases, ect.

4.       In March 1999,  Capita  entered into an agreement  with Quaker  Capital
         Markets  Group,  Inc.  ("Quaker")  in its  attempt to raise a currently
         estimated $7,500,000.  In connection therewith, the Company paid Quaker
         $10,000  in cash,  $15,000  in common  stock  and  agreed to pay them a
         percentage of capital raised.

5.       In August 1999,  the Company  entered into a agreement with an investor
         for  $400,000 in  short-term  notes,  which can be  converted to common
         stock. The Company prior to September 30, 1999 received the first three
         installments  totaling  $300,000  and the Company  received  the fourth
         installment of $100,000 in October 1999. This loan was obtained to meet
         the working  capital needs of Capita as it seeks out additional  equity
         financing.

                                       7
<PAGE>

     At September  30, 1999,  the  financial  condition of the Company  remained
impaired  with the  working  capital  shortfall  being  met  primarily  from the
proceeds of the issuance of common stock and a short-term  working capital loan.
The above  transactions net of the operating loss had the effect of reducing the
total  stockholders'  deficiency  by $ 73,136  to a  deficiency  of $ 95,397  at
September 30, 1999.


                                       8
<PAGE>




SIGNATURES

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.


                           CAPITA RESEARCH GROUP, INC.
                                   Registrant
Dated: November 12, 1999

                                   /s/David B. Hunter
                                   ------------------
                                   David B. Hunter
                                   President and
                             Chief Executive Officer

                                       9