<PAGE>   1


                       SECURITIES AND EXCHANGE COMMISSION
                                Washington, D.C.

                                   FORM 10-QSB

(Mark One)

  X   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
-----
Exchange Act of 1934

For the period ended September 30, 1998.

                                       or

_____ Transition Report Pursuant to Section 13 OR 15 (D) of the Securities
Exchange Act of 1934

For the transition period from ______________  to  _____________ .

Commission File No. 0-9614

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


           DELAWARE                                     88-0160741
--------------------------------------------------------------------------------
 (State or other jurisdiction of                (IRS Employer I.D. Number)
incorporation or organization)                

c/o Number One Corporation 50 Washington Street. Norwalk CT       06854
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                        (Zip Code)

Registrant's telephone number, including area code: (203) 854-6711
                                                    --------------
(Former name, former address and former fiscal year, if changed
since last report. ) - N/A

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 (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
                                -----    -----

There were 10,905,549 shares of the Registrant's common stock outstanding as of
October 30, 1998.


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                               CADEMA CORPORATION
                                   FORM 10-QSB

                                      INDEX

PART 1.  FINANCIAL INFORMATION

         Item 1 - Financial Statements                              3
          Balance Sheets - September 30, 1998 and
          December 31, 1997

         Statements of Operations - Nine months ended               4
          September 30, 1998 and September 30, 1997

         Statements of Operations - Three months                    5
          ended September 30, 1998 and September 30, 1997

         Statements of Cash Flows - Nine months ended               6
          September 30, 1998 and September 30, 1997

         Notes to Financial Statements                              7

         Item 2 - Management's Discussion and Analysis of           9
          Financial Condition and Results of Operations

PART II. OTHER INFORMATION

         Signatures                                                11

         Exhibit

     The accompanying condensed financial statements have been prepared by the
Company, without audit, and reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results of operations,
financial position, and statements of cash flows for the interim periods. The
statements have been prepared in accordance with the rules and regulations of
the Securities and Exchange Commission, but omit certain information and
footnote disclosures necessary to present the statements in accordance with
generally accepted accounting principles.

     These condensed financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's Annual Report
on Form 10-KSB for the year ended December 31, 1997. Management believes that
the disclosures are adequate to make the information presented herein not
misleading.


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                       CADEMA CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                           ---------------------------
<TABLE>
<CAPTION>

        ASSETS                                  SEPTEMBER 30, 1998    DECEMBER 31,1997
        ------                                  ------------------    ----------------

<S>                                               <C>                   <C>        
CURRENT ASSETS:

Cash and cash equivalents                         $    25,480           $    48,682
Trading securities (Cost $757,934 in                  270,508               499,148
1998 and $761,446 in 1997)
  (Note 2)
Accounts receivable                                        --                    --
Other current assets                                      420                 1,050
                                                  -----------           -----------

    TOTAL CURRENT ASSET                               296,408               548,880

NOTE RECEIVABLE less allowance for bad
  debt of $242,250 in 1998 and 1997                   102,750               102,750
                                                  -----------           -----------

    TOTAL ASSETS                                  $   399,158           $   651,630
                                                  ===========           ===========

Liabilities and Stockholders' Equity
------------------------------------

CURRENT LIABILITIES:

Accounts Payable                                  $        --                    -- 
Accrued liabilities                                        --                13,000
                                                  -----------           -----------

    TOTAL CURRENT LIABILITIES                              --                13,000

Accrued dividends on preferred stock                  976,242               848,906
Minority Interest in Subsidiary (Note 3)                7,296                 7,296
                                                  -----------           -----------

    TOTAL LIABILITIES                                 983,538               869,202
                                                  -----------           -----------


STOCKHOLDERS' EQUITY
Series A 8% Cumulative Convertible
  Preferred Stock, par value $.01 per                   4,851                 4,851
  share authorized 5,000,000 shares;
  issued 485,123 shares in 1998 and 1997
Series B 8% Cumulative Convertible
  Preferred Stock, par value, $.01 per                     --                    --
  share, authorized, 150,000 shares,
  none issued
Common Stock, par value, $.01 per share;
  authorized 50,000,000 shares, issued                109,356               109,356
  10,935,549 shares in 1998 and 1997
Additional paid-in capital                          7,765,904             7,765,904
Accumulated deficit                                (8,368,121)           (8,001,313)
Less: Treasury stock at cost
  Common shares                                       (75,000)              (75,000)
  Preferred shares                                    (21,370)              (21,370)
                                                  -----------           -----------

    TOTAL STOCKHOLDERS' EQUITY                       (584,380)             (217,572)
                                                  -----------           -----------
    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                         $   399,158           $   651,630
                                                  ===========           ===========
</TABLE>


     The accompanying notes to the consolidated financial statements are an
                       integral part of these statements.


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<PAGE>   4


                        CADEMA CORPORATION AND SUBSIDIARY
                        ---------------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                     FOR THE NINE MONTHS ENDED SEPTEMBER 30
                     --------------------------------------
<TABLE>
<CAPTION>

                                                        1998                   1997          
                                                        ----                   ----          
<S>                                                 <C>                   <C>         
REVENUE (NOTE 2)                                    $        --           $        -- 
COST OF GOODS SOLD                                           --                    -- 
                                                    -----------           ----------- 
     GROSS PROFIT                                            --                    -- 

OPERATING EXPENSES:
     General and administrative                          23,863                22,594
                                                    -----------           ----------- 
       Total operating expenses                          23,863                22,594
                                                    -----------           ----------- 
       Loss from operations                             (23,863)              (22,594)

OTHER INCOME (EXPENSE):
     Trading securities
     Transactions (Note 2)
      Realized gains (losses)                           (29,256)               75,339
      Change in unrealized losses                      (187,721)             (191,965)
     Dividend income                                      1,368                 2,458
                                                    -----------           ----------- 
       Total other income (expense)                    (215,609)             (114,168)
                                                    -----------           ----------- 
INCOME (LOSS) FROM OPERATIONS BEFORE TAXES             (239,472)             (136,762)

PROVISION FOR INCOME TAXES                                   --                    -- 

NET INCOME (LOSS)                                      (239,472)             (136,762)

PREFERRED DIVIDENDS EARNED                              127,336               127,336
                                                    -----------           ----------- 
NET (LOSS) APPLICABLE TO                               
     COMMON STOCKHOLDERS (Note 2)                      (366,808)             (264,098)
                                                    ===========           ===========

WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING (Note 2)                            10,905,549            10,905,549

LOSS PER COMMON SHARE
     BASIC AND DILUTED                                     (.03)                 (.02)
                                                    ===========           ===========
</TABLE>


           The accompanying notes to consolidated financial statements
                    are an integral part of these statements


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<PAGE>   5


                        CADEMA CORPORATION AND SUBSIDIARY
                        ---------------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                     FOR THE THREE MONTHS ENDED SEPTEMBER 30
                     ---------------------------------------


<TABLE>
<CAPTION>

                                                     1998                    1997
                                                     ----                    ----

<S>                                             <C>                    <C>          
REVENUE (Note 2)                                $         --           $         -- 
COST OF GOODS SOLD                                        --                     -- 
                                                ------------           ------------ 

     GROSS PROFIT                                         --                     -- 

OPERATING EXPENSES:
     General and administrative                        6,523                  9,612
                                                ------------           ------------ 
          Total operating expenses                     6,523                  9,612
                                                ------------           ------------ 
          Loss from operations                        (6,523)                (9,612)

OTHER INCOME (EXPENSE):
     Trading securities
     Transactions (Notes 2)
       Realized gains (losses)                       (13,024)                    -- 
       Change in unrealized losses                   (90,957)                15,587
     Dividend income                                     408                    934
                                                ------------           ------------ 
          Total other income (expense)               103,573                 16,521
                                                ============           ============ 

INCOME (LOSS) FROM OPERATIONS                       (110,096)                 6,909

PROVISION FOR INCOME TAXES                                --                     -- 
                                                ------------           ------------ 

NET INCOME (LOSS)                                   (110,096)                 6,909

PREFERRED DIVIDENDS EARNED                            42,445                 42,445
                                                ------------           ------------ 

NET LOSS APPLICABLE TO
     COMMON STOCKHOLDERS (Note 2)               $   (152,541)          $    (35,536)
                                                ============           ============ 

WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING (Note 2)                         10,905,549             10,905,549

LOSS PER COMMON AND SHARE
     BASIC AND DILUTED                          $       (.01)          $       (.00)
                                                ============           ============ 

</TABLE>


           The accompanying notes to consolidated financial statements
                    are an integral part of these statements


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<PAGE>   6



                        CADEMA CORPORATION AND SUBSIDIARY
                        ---------------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
       FOR EACH OF THE NINE MONTHS IN THE PERIOD ENDED SEPTEMBER 30, 1998
       ------------------------------------------------------------------

<TABLE>
<CAPTION>


CASH FLOWS FROM OPERATING ACTIVITIES                            1998                1997        
                                                                ----                ----        
<S>                                                          <C>                 <C>       
Net income (loss) from operations                            $(239,472)          $(136,762)
Adjustments to reconcile net income
  (loss) to net cash provided by (used in) operating
  activities
   Realized loss (gain) on sale of trading
    securities                                                  29,256             (75,339)
   Unrealized loss (gain) in value
    of trading securities                                      187,721             191,965
   Decrease (Increase) in other receivables and
    current assets                                                 630                 768
   Elimination of joint venture investment                          --                  -- 
    (Decrease) increase in accounts payable and
     accrued liabilities                                       (13,000)            (13,000)
                                                             ---------           --------- 
      Net cash provided by (used in) continuing
       operating activities                                    (34,865)            (32,368)
                                                             ---------           --------- 

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of marketable securities                            (57,787)           (282,652)
  Proceeds from sale of marketable securities                   69,450             375,256
                                                             ---------           --------- 
    Net cash provided by (used in) investing
      activities                                                11,663              92,604
                                                             ---------           --------- 
CASH FLOWS FROM FINANCING ACTIVITIES:
  Treasury Stock Purchase                                           --                  --
                                                             ---------           ---------
    Net cash (used in)                                        
     financing activities
                                                                    --                  --
                                                             ---------           --------- 
Net increase (decrease) in cash and
  cash equivalents                                             (23,202)             60,236
Cash and cash equivalents -
   Beginning of Period                                          48,682               7,317
                                                             ---------           --------- 
Cash and cash equivalents -
   End of Period                                             $  25,480           $  67,553
                                                             =========           ========= 
SUPPLEMENTAL DISCLOSURES OF NON-CASH
INVESTING AND FINANCING ACTIVITIES
    Preferred Stock Dividends Earned                         $ 127,336           $ 127,336
                                                             =========           ========= 
</TABLE>



     The accompanying notes to the consolidated financial statements are an
                       integral part of these statements.


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<PAGE>   7


                               CADEMA CORPORATION
                               ------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
               NINE MONTHS IN THE PERIOD ENDED SEPTEMBER 30, 1998
               --------------------------------------------------

(1)  NATURE OF BUSINESS AND CURRENT OPERATING ENVIRONMENT:

     The principal business of Cadema Corporation (the "Company") is the
     financing and operating of business enterprises with the potential to
     generate profits and cash flow. Currently the Company is exploring possible
     acquisitions and mergers throughout the United States and abroad, as it has
     done in the past, seeking to enter into new operating businesses and to use
     the Company's liquid assets in connection therewith. As part of this
     strategy, the Company entered into a joint venture agreement with Global
     Environmental, Inc. in December 1993. The Company did not generate any
     revenues from operations in 1998 or 1997, and is currently pursuing
     additional contracts.

     While the principal business of the Company is the financing and operating
     of business enterprises with the potential to generate profits and cash
     flow, it still intends to invest in and sell marketable securities as
     outlined in a plan approved by stockholders in 1988.

     The Company intends to continue to invest in trading securities, including
     but not limited to stocks, bonds, options and warrants.

     The Company now holds and currently expects to invest primarily in the
     stock of smaller, lesser known and often more speculative companies, which
     while entailing above-average risk, offer the potential of above-average
     reward.

     There are significant risk factors affecting the Company, including
     potential operating losses it may incur from operating ventures, the
     volatility of market values of its investment securities portfolio, and the
     possible need for additional capital. These and other factors may adversely
     affect the Company's future operations.

(2)  SIGNIFICANT ACCOUNTING POLICIES

     CASH AND CASH EQUIVALENTS

     For purposes of the Consolidated Balance Sheet and Statements of Cash
     Flows, the Company considers its short-term investments purchased with a
     maturity of three (3) months or less to be cash equivalents.

     REVENUES

     Revenues are the result of contract revenues recognized utilizing the
     percentage of completion method of accounting. Contract revenues are the
     total of contract costs, which include all direct material and labor costs
     and those indirect costs related to contract performance, and provisions
     for estimated gain or loss on the contracts. The provisions for estimated
     gain or loss on the contracts are adjusted during the period in which the
     Company first becomes aware of the need for a change.


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<PAGE>   8


(2)  SIGNIFICANT ACCOUNTING POLICIES: (CONT.)

     REVENUES (CONT.)

     Total estimated costs are periodically revised, if necessary, to reflect
     changes to the original contracts and changes to total estimated contract
     costs based on deviations of actual cost to date from original estimates
     and anticipated future deviations from such original estimates. Selling,
     General and Administrative costs are charged to expense as incurred.

     TRADING SECURITIES

     Effective January 1, 1994 the Company adopted Statement of Financial
     Accounting Standards (SFAS) ("Statement") No. 115, "Accounting for Certain
     Investments in Debt and Equity Securities." The Company's adoption of the
     Statement requires its marketable securities to be classified as "trading"
     and accounted for at fair market value, with unrealized gains and losses
     reported as a component of net income (loss).

     Realized gains and losses are determined on a first-in, first-out basis.

     NET INCOME (LOSS) PER SHARE BASIC AND DILUTED

     Net income (loss) per share is calculated in accordance with SFAS No. 128.
     Basic earnings per share is calculated using net income less preferred
     stock dividend, divided by the weighted average number of shares of common
     stock outstanding during the period, stock options outstanding are not
     included. Diluted earning per share extends this calculation to include the
     dilutive effect of preferred stock, options and warrants. Currently all
     Cadema preferred stock, options and warrants have an anti-dilutive effect,
     which by rule excludes them, and result in the two per share definitions
     being equal for this period.

(3)  JOINT VENTURE:

     On December 31, 1993 the Company entered into a Joint Venture Agreement
     with Global Environmental, Corp., a New York corporation, to create the
     Joint Venture entity Global Environmental Offshore Company ("Global" or
     "Joint Venture"). The Joint Venture Company engages in contracting for the
     design and installation of Air Pollution Control equipment and facilities
     in areas located outside the United States. Under the terms of the Joint
     Venture Agreement, the Company contributed $350,000 and received 51%
     control of the Joint Venture.

     Under the Joint Venture Agreement, Global Environmental, Corp. has the
     right to acquire the Company's interest in the Joint Venture for, at the
     Company's option, 875,000 shares of Global stock or the greater of $350,000
     or the Company's existing capital account. The Company has the option to
     convert its Joint Venture interest into 875,000 shares of Global
     Environmental, Corp.'s common stock.


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<PAGE>   9


(3)  JOINT VENTURE: (CONT.)

     The financial statements of the Joint Venture are consolidated with the
     Company's results in the accompanying financial statements of this report.
     The portion of the Joint Venture's income that is not applicable to the
     Company is recorded as Minority Interest on the Statement of Operations.
     That income along with Global Environmental Corp.'s capital contribution to
     the Joint Venture is recorded under the caption "Minority Interest in
     Subsidiary" on the Balance Sheet.

     Notes payable issued by Global Environmental Corp. to the Joint Venture are
     carried on the Balance Sheet as Notes Receivable and were due on December
     31, 1996. Negotiations are in process for the refinancing of the note. As
     collection of the note in 1998 is not likely, the note has been classified
     as long-term.

     Negotiations are in process for the refinancing of this note receivable.
     Global Environmental Corp. does not have funds available to repay the Note
     in cash and has offered to exchange its stock for the Note. The Company has
     established a 70% reserve against the carrying value of the Note in
     recognition of the potential costs involved in liquidating any noncash
     settlement of this Note. Although the Company believes such 70% reserve to
     be adequate, the reserve is an estimate based on information presently
     available. The Company's estimate could change, which would result in a
     change in the reserve in the future.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
     OF OPERATION

     The principal business of Cadema Corporation (the Company) is the financing
     and operating of business enterprises with the potential to generate
     profits and cash flow. Currently the Company's sole operating subsidiary,
     Global Environmental Offshore Company, engages in contracting for the
     design and installation of Air Pollution Control equipment and facilities
     for international markets. The Company continues to explore possible
     acquisitions and mergers as it has done in the past, seeking to enter into
     new operating situations with it can utilize its liquid assets.

     While the principal business of the Company is the financing and operating
     of business enterprises with the potential to generate profits and cash
     flow, it still intends to invest in and sell marketable securities as
     outlined in a plan approved by stockholders in 1988.


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<PAGE>   10


RESULTS OF OPERATIONS

There were no revenues in the first nine months of 1998, as the Company's
operating subsidiary Global Environmental Offshore Company had no revenue
activity. In 1997, the operating activity of Global Environment Offshore Company
produced no revenues in the same period.

Operating expenses for the first nine months of 1998 were $23,863 and
represented administrative expenses of the parent Company. These expenses
exceeded 1997 first half operating expense of $22,594.

Other income in the first nine months totaled a loss of $215,609 as compared to
a 1997 loss of $114,168. This contrast is due to a larger losses on the
company's Investment Portfolio in 1997 as compared to the same period of 1998.

The net loss applicable to common stock for the first nine months, after an
accrual for a Preferred Stock dividend, was $366,808 or $.03 per share. For the
same period of the prior year, a better performance by the Company's Investment
Portfolio resulted loss of $264,098 or $.02 per share was recognized.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and working capital decreased by $239,472 to $296,408 in the first
half of 1998 due primarily to the performance of the Company's marketable
securities portfolio.

The Company believes it has sufficient working capital to meet its liquidity
needs over the next twelve months.

PART II


ITEMS 1 THRU 5:     Not Applicable                               
                                                                 
ITEM 6:             Exhibits - Exhibit 27 Financial Data Schedule
                    


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                                   SIGNATURES

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

                               CADEMA CORPORATION

Dated: October 30, 1998 By:       By: /s/ Roger D. Bensen
                                     -------------------------------- 
                                          ROGER D. BENSEN
                                          Chairman of the Board and
                                          Chief Executive Officer



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