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 quarterly period ended March 31, 1998.


    [ ] Transition report pursuant to Section 13 or 15 (d) of the Securities
                             Exchange Act of 1934.

       For the transition period from ______________ to ________________


                         Commission File Number: 0-5367


                         D-LANZ DEVELOPMENT GROUP, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


          DELAWARE                                     11-1717709
       -------------------------------------------------------------------
       (State or other jurisdiction                  (I.R.S.Employer
       incorporation or organization                Identification No.)


                     400 GROVE STREET GLEN ROCK, NEW JERSEY
                   -------------------------------------------
                    (Address of principal executive offices)


                                  201-457-1221
                           ---------------------------
                           (Issuer's telephone number)



                                (Not Applicable)
              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


     Check whether the issuer

     (1) filed all  reports  required  to be filed by Section 13 or 15(d) of the
Exchange  Act  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 [ ]

     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest practicable date:

     10,000,000 common shares as of March 31, 1998

 

     Transitional Small Business Disclosure Format Yes [  ]  No [X]

<PAGE>
                                     PART I
                              FINANCIAL INFORMATION

     Item 1. Financial Statements

     The  condensed  financial  statements  for the periods  ended March 31,
 1998 included  herein have been  prepared by D-Lanz Development Group, Inc.,
(the "Company")  without  audit,  pursuant  to  the  rules  and  regulations  of
the Securities  and  Exchange  Commission  (the  "Commission").  In the  opinion
of management,  the statements include all adjustments  necessary to present
fairly the  financial  position of the Company as of March 31, 1998,  and the
results of operations  and cash flows for the three month  periods  ended March 
31, 1997 and 1998.

                                        2

<PAGE>
<TABLE>
<CAPTION>

                           D-LANZ DEVELOPMENT GROUP, INC.
                           (A Development Stage Company)
                                   BALANCE SHEET
                               Assets
                                                      December 31,       March 31,
                                                          1997           1998        
                                                                     
Current assets
<S>                                                             <C>             <C> 
  Cash                                                          $934            $551


Other assets
  License fees                                                 252,500        252,500 
  Total other assets                                           252,500        252,500 
Total assets                                                   $253,434       $253,051 
                        Liabilities and Stockholders' Equity
Current liabilities
   Officer loan payable                                                         $500


Capital stock
  Preferred stock-authorized 50,000,000 shares
$.001 par value. At December 31, 1997 and March 31,
1998 the number of shares outstanding was -0-
  Common stock-authorized 100,000,000 shares, par
value of $.001. At  December 31, 1996 and  1997,
there were 1,551,394 and 10,000,000 shares                            
outstanding.                                                          
                                                              $10,000         $10,000
  Additional paid in capital                                  246,051         246,051
  Deficit accumulated during development stage                (2,617)         (3,500)
Total stockholders' equity                                    253,434         252,551 
Total liabilities and stockholders' equity                    $253,434        $253,051 






                    See accompanying notes to financial statements.

</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                          D-LANZ DEVELOPMENT GROUP, INC.
                                          (A Development Stage Company)
                                             STATEMENT OF OPERATIONS


                          For the year    For the year    For the three     For the three
                         ended December  ended December    months ended     months ended
                            31, 1996        31, 1997        March 31,         March 31,
                                                               1997             1998
<S>                                 <C>         <C>           <C>              <C>
Income                              $-0-        $-0-          $-0-            $-0-
                                                                  

Less costs of goods sold             -0-         -0-           -0-             -0-
                                                                   

Gross profit                         -0-         -0-           -0-             -0-
                                                                   

Operations:
  General                            -0-       1,066           -0-               883
and
administrative
  Amortization                       -0-         -0-           -0-             -0-  
Total expense                        -0-       1,066           -0-               883

Profit (loss) from
operations and
 before Corporate
income tax expense                   -0-         -0-           -0-             (883)

Corporate income tax                 -0-         -0-           -0-              -0- 
                                                               

Net profit or (Loss)               $-0-     $(1,066)          $-0-             $(883)

Net income per share                $-0-          $-0-        $-0-              $(-0-)
Total number of shares        10,000,000    10,000,000      10,000,000        10,000,000
outstanding






                                 See accompanying notes to financial statements.

</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                                                   D-LANZ DEVELOPMENT GROUP, INC.
                                                    (A Development Stage Company)
                                                       STATEMENT OF CASH FLOWS
                                                                                                                For the period from
                                                                                                                   reorganization
                                             For the year      For the year    For the three   For the three    (December 31, 1990)
                                            ended December    ended December   months ended     months ended             to
                                               31, 1996          31, 1997        March 31,       March 31,           March 31,
                                                                                   1997             1998                1998
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                              <C>                 <C>           <C>           <C>                  <C>     
  Net profit (loss)                              $-0-                $(1,066)      $-0-          $(883)               $(1,949)
  Depreciation and amortization                   -0-                     -0-       -0-             -0-                    -0-

TOTAL CASH FLOWS FROM OPERATING ACTIVITIES        -0-                 (1,066)       -0-           (883)                (1,949)

CASH FLOWS FROM FINANCING ACTIVITIES
  Officer loan payable                                                                              500                    500
  Sale of shares of common stock                                        2,000                                            2,000
  Commitments and contingencies                   -0-                   -0-         -0-            -0-                         -0-  
TOTAL CASH FLOWS FROM FINANCING ACTIVITIES        -0-                   2,000       -0-             500                  2,500

NET INCREASE (DECREASE) IN CASH                   -0-                    934        -0-           (383)                   551 
CASH BALANCE BEGINNING OF PERIOD                  -0-                     -0-       -0-            934                     -0-
CASH BALANCE END OF PERIOD                       $-0-                   $934       $-0-           $551                   $551 







                                           See accompanying notes to financial statements.

</TABLE>
<PAGE>
<TABLE>

                                         D-LANZ DEVELOPMENT GROUP, INC.
                                          (A Development Stage Company)
                                        STATEMENT OF STOCKHOLDERS' EQUITY
                                                                    Additional        Deficit accumulated
      Date        Preferred  Preferred    Common    Common          paid            during development stage
                    Stock      Stock      Stock       Stock        in capital                          Total
<S>                  <C>       <C>      <C>             <C>         <C>              <C>               <C>
12-31-1991           -0-       $-0-     1,551,394       $1,551      $(1,551)         $-0-

12-31-1992           -0-       $-0-     1,551,394       $1,551      $(1,551)         $-0-

12-31-1993           -0-       $-0-     1,551,394       $1,551      $(1,551)         $-0-

12-31-1994           -0-       $-0-     1,551,394       $1,551      $(1,551)         $-0-

12-31-1995           -0-       $-0-     1,551,394       $1,551      $(1,551)         $-0-

12-31-1996           -0-       $-0-     1,551,394       $1,551      $(1,551)         $-0-


 9 -30-1997(1)                            2,000,000      2,000       2,000
  9-30-1997(2)                            6,448,606      6,449     246,051                                252,500
12-31-1997                   Net                                                     (1,066)             (1,066)
                                loss                                      
                                                                
 12-31-1997          -0-       $-0-      10,000,000     10,000     246,051                  $(2,617)      253,434

Unaudited
  3-31-1998         Net loss                                                                   (883)        (883)
  3-31-1998          -0-       $-0-      10,000,000     10,000     246,051                  $(3,500)     $252,551


(1) Sale of shares pursuant to Regulation D at $.001 per share.
(2) Issuance of shares for acquisition of License Rights valued at $.04 per share.








                                 See accompanying notes to financial statements.

</TABLE>
<PAGE>


1. BASIS OF PRESENTATION

     The  accompanying  unaudited  financial  statements  of D-lanz  Development
Group, Inc., (the "Company"),  reflect all adjustments which are, in the opinion
of  management,  necessary  to a fair  statement  of the  results of the interim
periods  presented.  All such adjustments are of a normal recurring nature.  The
financial  statements  should be read in conjunction with the notes to financial
statements  contained in the Company's  Annual Report on Form 10KSB for the year
ended December 31, 1997.

2. NET INCOME PER SHARE

     Primary  earnings  per share  are  based on the  total  number of shares of
common stock  outstanding  on March 31, 1998. On that date,  the total number of
shares of common stock outstanding was 10,000,000.

3. ACCOUNTING FOR INCOME TAXES

     The Company  follows  Statement of Financial  Accounting  Standards  (SFAS)
No.109,  "Accounting  for Income  Taxes," which  requires an asset and liability
approach of accounting for income taxes. Deferred tax assets and liabilities are
computed  annually for  differences  between  financial  statement basis and tax
basis  of  assets,   liabilities  and  available  general  business  tax  credit
carry-forwards.  A valuation  allowance is established  when necessary to reduce
deferred tax assets to the amount expected to be realized.

4. MARKETABLE SECURITIES

     The Company adopted Financial Accounting Standards Board ("FASB") Statement
No. 115,  "Accounting  for Certain  Investments in Debt and Equity  Securities",
which  requires  that  investments  in  equity   securities  that  have  readily
determinable  fair values and  investments  in debt  securities be classified in
three categories: held-to-maturity, trading and available-for-sale. Based on the
nature of the assets held by the Company and Management's  investment  strategy,
the Company's investments have been classified as available-for-sale. Management
determines  the  appropriate  classification  of debt  securities at the time of
purchase and reevaluates such designation as of each balance sheet date.

     Securities classified as  available-for-sale  are carried at estimated fair
value, as determined by quoted market prices,  with unrealized gains and losses,
net of tax, reported in a separate  component of stockholders'  equity. At March
31, 1998,  the Company had no  investments  that were  classified  as trading or
held-to-maturity as defined by the Statement.

 

     The following is a summary of cash, cash equivalents and available-for-sale
securities by balance sheet classification at March 31, 1998:
<TABLE>
<CAPTION>


                                                     Gross             Gross                     Estimated
                                                     Unrealized        Unrealized                Fair
         `                          Cost             Gains             Gains                     Value
                                    ------           -------------     -------------             -------------
<S>                                 <C>              <C>               <C>                       <C> 
Cash                                $551                                                         $551
Total cash and
  cash equivalents                  $551                                                         $551                      
</TABLE>

<PAGE>


Item 2. Management's Discussion and Analysis or Plan of Operation

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                for the nine months ended March 31, 1996 and 1997
                 -------------------------------------------------

     Except for the description of historical facts contained herein,  this Form
10Q-SB  contains  certain  forward  looking  statements  that involve  risks and
uncertainties as detailed herein and from time to time in the Company's  filings
with the Securities and Exchange  Commission and elsewhere.  Such statements are
based on  management's  current  expectations  and are  subject  to a number  of
factors and uncertainties  which could cause actual results to differ materially
from those described in the forward-looking  statements.  These factors include,
among others, the Company's  fluctuations in sales and operating results,  risks
associated  with  international  operations  and  regulatory,   competitive  and
contractual risks and product development.
 
     Results of operations  for the nine months ended March 31, 1997 as compared
to the nine months ended March 31, 1996.
- ---------------------------------------------------------------------------


     Revenues  were $0 for the three  months ended March 31, 1998 as compared to
$0 for the three months ended March 31, 1997.  Costs of goods sold for the three
months  ended March 31,  1998,  were $0 as  compared to $0 for the three  months
ended March 31, 1997  representing a cost of goods sold percentage of 0% for the
three  months  ended March 31, 1998 as compared to 0% for the three months ended
March 31, 1997.  The cost of goods sold  percentage  during the first quarter of
fiscal 1998 remains  approximately  consistent  with the  percentage  during the
first quarter of fiscal 1997.

    General and  administrative  costs for the three months ended March 31, 1998
were  $0,  an  increase of 0% over  expenses of $0  for the three months  ended
March 31,  1997.

     Liquidity  and capital  resources  as of the end of the three  months ended
March 31, 1998.
- ----------------------------------------------------------------------------


     The  Company's  cash  balance  was  $2,000  and  working   capital  was
$2,000 as at March 31, 1998.

     The Company's  primary  short-term needs for capital,  which are subject to
change,  are for  development  of its  manufacturing  to adequately  deliver new
products and an increase in inventory levels to fill large anticipated orders.

     Income tax: As of March 31, 1998, the Company has a tax loss  carry-forward
of $1,551.  The Company's  ability to utilize its tax credit  carry-forwards  in
future years will be subject to an annual limitation  pursuant to the "Change in
Ownership  Rules"  under  Section 382 of the Internal  Revenue Code of 1986,  as
amended.  However,  any annual  limitation  is not  expected  to have a material
adverse   effect  on  the   Company's   ability  to   utilize   its  tax  credit
carry-forwards.

     The Company  currently plans to expend  approximately  $2.0 million for the
expansion  and   development  of  its   manufacturing,   marketing  and  general
administrative  capabilities in connection with the fulfillment of the Company's
marketing program and the anticipated launch of the Company's products currently
under  development.  Additionally,  the Company  utilizes  cash  generated  from
operating activities to meet its capital requirements.

     The  Company  expects its capital  requirements  to increase  over the next
several years as it commences new research and development  efforts,  undertakes
new product development,  increases sales and administration  infrastructure and
embarks on developing in-house  manufacturing  capabilities and facilities.  The
Company's  future  liquidity  and capital  funding  requirements  will depend on
numerous  factors,  including the extent to which the Company's  products  under
development are successfully developed and gain market acceptance, the timing of
regulatory  actions regarding the Company's  potential  products,  the costs and
timing of expansion of sales, marketing and manufacturing activities, facilities
expansion  needs,  procurement  and  enforcement  of  patents  important  to the
Company's business, results of clinical investigations and competition.

     The Company  believes that its available cash and cash from operations will
be  sufficient  to satisfy  its  funding  needs for at least the next 36 months.
Thereafter,  if cash generated from  operations is  insufficient  to satisfy the
Company's working capital and capital expenditure requirements,  the Company may
be required to sell additional  equity or debt  securities or obtain  additional
credit facilities.  There can be no assurance that such financing,  if required,
will be available on satisfactory terms, if at all.

<PAGE>





                                     PART II

                                OTHER INFORMATION

Item 1. Legal Proceedings.
No legal proceedings are pending against the Company.

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.




<PAGE>




                                   SIGNATURES

      In accordance  with the  requirements  of the  Securities  Exchange Act of
1934,  the  registrant  caused  this  report to be  signed on its  behalf by the
undersigned thereunto duly authorized.


                                                  D-LANZ DEVELOPMENT GROUP, INC.


                                 /s/Roger Fidler
                                Mr. Roger Fidler,
                                    President


Dated:            July 14, 1998


<PAGE>