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, 1999
                                   --------------

[ ] 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 33-58694
                           --------

                             FBR CAPITAL CORPORATION
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

            Nevada                                             13-3465289
-------------------------------                        -------------------------
(State or other jurisdiction of                            (I.R.S. Employer
incorporation of organization)                            Identification No.)

               20 East University, Suite 304, Tempe, Arizona 85281
               ---------------------------------------------------
                    (Address of principal executive offices)

                                 (602) 967-5800
                           ---------------------------
                           (Issuer's telephone number)

           14988 North 78th Way, Suite 203, Scottsdale, Arizona 85260
           ----------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

     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 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: At May 12, 1999, the issuer
had outstanding 13,177,826 shares of Common Stock, par value $.005 per share.

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

                            Page 1 of 10 Total Pages
                              Exhibit Index - None
<PAGE>
PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                             FBR CAPITAL CORPORATION

                                 BALANCE SHEETS

                                                       MARCH 31       JUNE 30
ASSETS                                                  1999            1998
                                                     -----------    -----------
                                                     (Unaudited)
CURRENT ASSETS:
  Cash and cash equivalents                          $   262,207    $    15,223
  Investment in U.S. Government Treasury Bills                --        275,670
  Investment in common stock of Parlux Fragrances,
    Inc                                                    1,827         53,541
  Other current assets                                     3,563          4,536
                                                     -----------    -----------

TOTAL ASSETS                                         $   267,597    $   348,970
                                                     ===========    ===========

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Accounts payable                                   $     7,776    $     4,691
  Accrued expenses                                        11,645          9,449
  Convertible notes payable                               19,500         19,500
                                                     -----------    -----------

      Total current liabilities                           38,921         33,640
                                                     -----------    -----------

SERIES A REDEEMABLE PREFERRED STOCK:
  $.01 par value;
    529 shares authorized;
    no shares and 2 shares issued and outstanding,
    respectively; at liquidation value of $5,600
    per share                                                 --         11,200
                                                     -----------    -----------

STOCKHOLDERS' EQUITY (DEFICIT):
  Preferred stock, $.01 par value;
    10,000,000 shares authorized;
    no shares outstanding except 2 shares issued
    as Series A Redeemable Preferred Stock                    --             --
  Common stock, $.005 par value;
    16,777,667 shares authorized;
    4,648,205 shares issued and outstanding               23,241         23,241
  Additional paid-in capital                           9,337,192      9,337,192
  Accumulated deficit                                 (9,120,753)    (8,834,150)
  Accumulated other comprehensive loss                   (11,004)      (222,153)
                                                     -----------    -----------

      Total stockholders' equity                         228,676        304,130
                                                     -----------    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           $   267,597    $   348,970
                                                     ===========    ===========

      The accompanying notes are an integral part of these balance sheets.

                                       -2-

<PAGE>
                             FBR CAPITAL CORPORATION

                            STATEMENTS OF OPERATIONS
                    NINE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)

                                                         1999           1998
                                                     -----------    -----------

Operating expenses                                   $   (77,254)   $  (100,532)
                                                     -----------    -----------

      Loss from operations                               (77,254)      (100,532)
                                                     -----------    -----------

Other income (expense):
  Interest expense                                        (2,196)        (2,196)
  Interest income                                          9,106         13,581
  Other income                                                --          1,304
  Realized loss on disposal of Parlux
    common stock                                        (216,259)            --
                                                     -----------    -----------

       Other income (expense), net                      (209,349)        12,689
                                                     -----------    -----------

  Net loss                                              (286,603)       (87,843)

Other comprehensive loss:
  Unrealized loss on investment:
    Unrealized holding loss arising
      during period                                         (790)       (14,712)
                                                     -----------    -----------

   Comprehensive loss                                $  (287,393)   $  (102,555)
                                                     ===========    ===========

Loss per common share and common share equivalents   $      (.06)   $      (.02)
                                                     ===========    ===========

Weighted average common share and common share
 equivalents outstanding                               4,648,205      4,648,205
                                                     ===========    ===========

        The accompanying notes are an integral part of these statements.

                                       -3-
<PAGE>
                             FBR CAPITAL CORPORATION

                            STATEMENTS OF OPERATIONS
                   THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)

                                                        1999           1998
                                                     -----------    -----------

Operating expenses                                   $   (25,047)   $   (27,605)
                                                     -----------    -----------

     Loss from operations                                (25,047)       (27,605)
                                                     -----------    -----------

Other income (expense):
  Interest expense                                          (721)          (721)
  Interest income                                          2,879          4,053
  Realized loss on disposal of Parlux common stock       (84,403)            --
                                                     -----------    -----------

    Other income (expense), net                          (82,245)         3,332
                                                     -----------    -----------

  Net loss                                              (107,292)       (24,273)

Other comprehensive income (loss): 
  Unrealized gain (loss) on investment: 
  Unrealized holding gain (loss) arising 
    during period                                            325          8,924
                                                     -----------    -----------

   Comprehensive loss                                $  (106,967)   $   (15,349)
                                                     ===========    ===========

Loss per common share and common share equivalents   $      (.02)   $        --
                                                     ===========    ===========

Weighted average common share and common share
 equivalents outstanding                               4,648,205      4,648,205
                                                     ===========    ===========

        The accompanying notes are an integral part of these statements.

                                       -4-
<PAGE>
                             FBR CAPITAL CORPORATION

                            STATEMENTS OF CASH FLOWS
                    NINE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)

                                                               1999        1998
                                                          ---------    --------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                               $(286,603)   $(87,843)
                                                          ---------    --------
   Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
      Realized loss on disposal of Parlux common stock      251,663          --
      (Increase) decrease in:
        Other current assets                                    973         235
      Increase (decrease) in:
        Accounts payable and accrued expenses                 5,281       3,111
                                                          ---------    --------
              Total adjustments                             257,917       3,346
                                                          ---------    --------

              Net cash used in operations activities        (28,686)    (84,497)
                                                          ---------    --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from sale of U.S. Government Treasury Bills     275,670      86,751
                                                          ---------    --------

NET INCREASE IN CASH AND CASH EQUIVALENTS                   246,984       2,254

CASH AND CASH EQUIVALENTS, beginning of period               15,223      10,238
                                                          ---------    --------

CASH AND CASH EQUIVALENTS, end of period                  $ 262,207    $ 12,492
                                                          =========    ========

        The accompanying notes are an integral part of these statements.

                                       -5-
<PAGE>
                             FBR CAPITAL CORPORATION
                          NOTES TO FINANCIAL STATEMENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

The accompanying  financial  statements of FBR Capital Corporation ("FBR" or the
"Company") have been prepared in accordance with generally  accepted  accounting
principles ("GAAP"), pursuant to the rules and regulations of the Securities and
Exchange Commission, and are unaudited. Accordingly, they do not include all the
information and footnotes required by GAAP for complete financial statements. In
the opinion of management,  all adjustments (which include only normal recurring
adjustments)  necessary for a fair  presentation  of the results for the interim
periods presented have been made. The results for the nine-month and three-month
periods ended March 31, 1999 may not be indicative of the results for the entire
year.  These  financial  statements  should  be read  in  conjunction  with  the
Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 1998.

CASH AND CASH EQUIVALENTS AND INVESTMENTS

The Company's  policy is to invest cash in excess of operating  requirements  in
income-producing  investments.  Temporary cash investments are all highly liquid
investments  with  maturity  of three  months  or less  when  purchased  and are
considered to be cash  equivalents  for cash flow  purposes.  Investments in the
common  stock of  Parlux  Fragrances,  Inc.  ("Parlux  Common  Stock")  and U.S.
Government  Treasury  Bills are accounted for in  accordance  with  Statement of
Financial  Accounting  Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities."

Investment in Parlux Common Stock is classified as "available for sale." Changes
in the market value are  reflected in the  stockholders'  equity  section of the
Company's  balance  sheet under the  caption  "Accumulated  Other  Comprehensive
Loss," in accordance with Statement of Financial  Accounting  Standards No. 130,
"Reporting Comprehensive Income."

PREFERRED STOCK EXCHANGE

During the quarter ended March 31, 1999, the Company  exchanged  1,326 shares of
Parlux Common Stock for the remaining two issued and  outstanding  shares of the
Company's Preferred Stock.

EARNINGS (LOSS) PER COMMON SHARE

Earnings  (loss) per common share is computed by dividing  net income  (loss) by
the  weighted  average  number of  common  share and  common  share  equivalents
outstanding during the period.  Primary and fully diluted earnings per share are
considered to be the same in all periods. The impact of outstanding warrants and
stock options were not included in the calculation of net loss per share in 1999
and 1998 as their inclusion would have an anti-dilutive effect on those results.

                                      -6-
<PAGE>
                             FBR CAPITAL CORPORATION
                          NOTES TO FINANCIAL STATEMENTS

INCOME TAXES

The Company has a net operating loss carryforward of approximately $6,900,000 at
March 31, 1999. No federal tax benefit has been recorded due to the  uncertainty
of the Company's ability to realize benefits by generating taxable income in the
future.  These  carryforwards  expire through fiscal year 2013. Due to a greater
than 50% change in the  ownership  of the  Company,  as defined in the  Internal
Revenue Code,  resulting from various  equity  offerings,  certain  restrictions
exist as to the use of net operating loss carryforwards to offset future taxable
income.

Although the Company has significant net operating loss carryforwards  available
to offset future  taxable  income,  due to the  uncertainty  as to the Company's
future  earnings,  a full  valuation  allowance  has been provided to offset all
deferred  tax  assets.  No income  taxes  have been  provided  for either of the
interim periods based on the Company's ability to utilize its net operating loss
to offset taxable income, if any, during the periods.

RECENTLY ISSUED ACCOUNTING STANDARD

During 1998, the Company adopted Financial  Accounting Standards Board Statement
No. 130,  REPORTING  COMPREHENSIVE  INCOME (SFAS No. 130). SFAS No. 130 requires
the reporting of comprehensive income in addition to net income from operations.
Comprehensive  income is a more inclusive financial  reporting  methodology that
includes disclosures of certain financial  information that historically has not
been recognized in the calculation of net income.

SUBSEQUENT EVENT

Effective April 15, 1999, the Company acquired 90.17% (8,398,834  shares) of the
outstanding  capital stock of Vitrix Incorporated  ("Vitrix"),  a privately held
Arizona  corporation  (the  "Acquisition").  The  Acquisition was consummated in
accordance with the terms of an Exchange Agreement, dated April 15, 1999, by and
among  FBR,  Vitrix  and  certain  of the  Vitrix  shareholders  who  agreed  to
participate in the Acquisition (the "Exchange Agreement").

Under the terms of the Exchange Agreement,  upon consummation of the Acquisition
each  outstanding  share of Vitrix common stock (held by a participating  Vitrix
shareholder)  was  converted  into the right to receive a  combination  of .9224
shares of FBR common  stock ("FBR Common  Stock") and 1.0736  shares of Series B
Convertible  Preferred Stock of FBR ("Preferred Stock"). Each share of Preferred
Stock is  automatically  convertible  into one share of FBR Common Stock at such
time as FBR has the  authorized  capital to issue  such  shares.  The  aggregate
consideration  paid in the Acquisition was 7,747,084  shares of FBR common stock
and  9,016,988  shares of Preferred  Stock  (collectively,  the  "Shares").  The
Exchange  Agreement also provided for the assumption of outstanding  options and
warrants to purchase an aggregate of 1,122,000  shares of Vitrix  common  stock,
which will be converted  into options and warrants to purchase FBR Common Stock,
subject to adjustment for the appropriate exchange ratio.

                                      -7-
<PAGE>
                             FBR CAPITAL CORPORATION
                          NOTES TO FINANCIAL STATEMENTS

SUBSEQUENT EVENT (CONTINUED)

Giving  effect  to  the  issuance  of  the  Shares,  the  participating   Vitrix
shareholders  own  approximately  78.3% of the outstanding  shares of FBR Common
Stock (assuming conversion of the Preferred Stock into FBR Common Stock) and the
current FBR shareholders own the remaining 21.7% of the outstanding FBR shares.

ITEM 2. MANAGEMENT'S DISCUSSIONS AND ANALYSIS OR PLAN OF OPERATION

PLAN OF OPERATIONS

On April 15, 1999, the Company  entered into an Exchange  Agreement with Vitrix.
As a result of the merger,  Vitrix  became a 90.17  percent-owned  subsidiary of
FBR.

On June 28,  1996,  the Company sold to Parlux,  pursuant to the Asset  Purchase
Agreement dated January 31, 1996, between the Company and Parlux,  substantially
all of the assets,  properties and rights owned by the Company for cash,  shares
of common stock and other consideration (the "Asset Sale").

The Company has not conducted any operations since the Asset Sale.  Accordingly,
the  results of its  operations  prior to the Asset Sale are not  material.  The
reasons for and terms of the Asset Sale and the  discontinuance of the Company's
business were previously reported in the Company's Proxy Statement,  dated April
22, 1996 and Form 10-KSB for the fiscal year ended June 30, 1996.

Since the Asset Sale in June 1996, the Company's operations have been limited to
the  conduct  of  administrative   activities,   including  paying  indebtedness
remaining after the Asset Sale,  acquiring  outstanding notes,  settling a claim
for prior  services,  preparing and filing federal and state tax returns and SEC
filings,  undertaking and completing an exchange offer for preferred  shares and
other general corporate activities.

In  connection  with the Asset Sale in June 1996,  all  employees of the Company
were  terminated  and the Company has no employees.  The Company's two executive
officers  provided  certain  services to the Company on a part-time  contingency
basis.  In connection  with the  Acquisition,  the two  executive  officers have
resigned as of the effective date of the acquisition.

                                      -8-
<PAGE>
                             FBR CAPITAL CORPORATION
                          NOTES TO FINANCIAL STATEMENTS

FORWARD-LOOKING STATEMENTS

The  statements  contained in this Quarterly  Report on Form 10-QSB,  including,
without  limitation,  information  appearing under Part 1, Item 2, "Management's
Discussion and Analysis or Plan of Operation",  are  forward-looking  statements
within the meaning of Section 27A of the  Securities Act of 1933 and Section 21E
of the  Securities  Exchange  Act of 1934.  Factors  set forth in the  Company's
Annual Report on Form 10-KSB for the fiscal year ended June 30, 1998, under Item
1,  "Business"  and Item 6  "Management's  Discussion  and Analysis of Financial
Condition  and Results of  Operations"  together  with other factors that appear
with the  forward-looking  statements,  or in the Company's other Securities and
Exchange  Commission filings could affect the Company's actual results and could
cause the Company's actual results to differ  materially from those expressed in
any  forward-looking  statements  made by, or on behalf of, the  Company in this
Quarterly Report on Form 10-QSB.

                                      -9-
<PAGE>
                                   SIGNATURES


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

                                       FBR CAPITAL CORPORATION


Dated: May 13, 1999
                                       By  /s/ Philip R. Shumway
                                           -----------------------------
                                           Philip R. Shumway
                                           President and Chief Executive Officer