UNITED STATES
                       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 quarter 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 No. 1-11996

                              IMMUNE RESPONSE, INC.
             ------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

Colorado                                                              84-0950197
-------------------------------                               ------------------
(State or other jurisdiction of                                    (IRS Employer
incorporation or organization)                               Identification No.)


                            7315 East Peakview Avenue
                            Englewood, Colorado 80111
              ---------------------------------------------------
              (Address of principal executive offices) (Zip code)


                                 (303) 796-8139
               ---------------------------------------------------
               (Registrant'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  preceding 12 months,  and (2) has been subject to such filing  requirements
for the past 90 days.     Yes ( X )   No (   )


Number of shares of common stock outstanding at May 5, 1998: 2,949,700

<PAGE>

                              IMMUNE RESPONSE, INC.


Part 1.  FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS

     The accompanying interim unaudited condensed financial statements have been
prepared in accordance  with the  instructions to Form 10-QSB and do not include
all the  information  and footnotes  required by generally  accepted  accounting
principles for complete financial statements. In the opinion of management,  all
adjustments  (consisting of normal recurring  adjustments)  considered necessary
for a fair presentation have been included,  and the disclosures are adequate to
make the information  presented not misleading.  Operating results for the three
months ended March 31, 1998 are not  necessarily  indicative of the results that
may be expected for the year ended December 31, 1998. These statements should be
read in conjunction with the financial  statements and notes thereto included in
the Annual 10-KSB Report (filed with the Securities and Exchange Commission) for
the year ended December 31, 1997.


                                       F-1
<PAGE>

                              IMMUNE RESPONSE, INC.
                          (A Development Stage Company)
                                  Balance Sheet
                                 March 31, 1998
                                   (Unaudited)


ASSETS
Current assets
    Cash and cash equivalents ..................................      $  14,563
    Investment - available for sale securities
         (cost of $3,958) ......................................          9,400
                                                                      ---------

                                                                      $  23,963
                                                                      =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
    Accounts payable - related entity ..........................      $   3,429
    Accounts payable - other ...................................          2,431
    Interest payable - related entity ..........................         22,453
                                                                      ---------
                                                                         28,313

Stockholders' equity (deficit)
    Common stock, $.0001 par value; 25,000,000
       shares authorized; 3,124,700 shares
       issued; 2,949,700 shares outstanding ....................            312
    Additional paid-in capital .................................        908,841
    Unrealized gain on available for sale securities ...........          5,442
    Deficit accumulated during the
       development stage .......................................       (918,945)
    Less:  treasury stock, at cost
       (175,000 shares) ........................................           --
                                                                      ---------
                                                                         (4,350)

                                                                      $  23,963
                                                                      =========

The accompanying notes are a part of this statement.

                                       F-2
<PAGE>

                              IMMUNE RESPONSE, INC.
                          (A Development Stage Company)
                            Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                FOR THE
                                                                                PERIOD
                                                                                 FROM
                                                                               INCEPTION
                                                   FOR THE THREE MONTHS        (MAY 14,
                                                      ENDED MARCH 31,          1984) TO
                                                    1998           1997      MAR. 31, 1998
                                                    ----           ----      -------------
<S>                                             <C>            <C>            <C>
Revenue
    Interest income .........................   $       133    $     1,392    $   125,402
    Laboratory test income ..................          --             --           50,187
    Revenue from sale of marketing
        rights to related entity ............          --             --            7,004
    Miscellaneous income ....................          --             --           12,697
    Gain on sale of stock ...................          --             --          192,189
    Debt forgiveness income .................          --             --           35,147
                                                -----------    -----------    -----------
                                                        133          1,392        422,626
Expenses
    Write-off of deferred warrant
        registration costs ..................          --             --           29,422
    Loss on sale of laboratory ..............          --             --           74,710
    Realized loss on investment .............          --             --          178,668
    Laboratory supplies .....................          --             --           55,244
    Consulting fees to related entities .....          --             --           37,500
    Interest ................................          --            1,070        138,306
    Abandoned license agreement costs .......          --             --           50,000
    Research and development ................          --             --           28,680
    Rent ....................................          --             --           79,232
    Services for stock ......................          --             --            7,597
    Salary ..................................          --             --          275,287
    Depreciation and amortization ...........          --             --           34,848
    Bad debt expense ........................          --              158         17,971
    General and administrative ..............         3,580         13,880        334,196
                                                -----------    -----------    -----------
                                                      3,580         15,108      1,341,571
                                                -----------    -----------    -----------

        Net (loss) ..........................   $    (3,447)   $   (13,716)   $  (918,945)
                                                ===========    ===========    ===========

        Net (loss) per common share .........   $     (.001)   $     (.005)   $      (.37)
                                                ===========    ===========    ===========

Weighted average number of
    common shares ...........................     2,949,700      2,949,700      2,451,242
                                                ===========    ===========    ===========
</TABLE>

                                       F-3
<PAGE>

                              IMMUNE RESPONSE, INC.
                          (A Development Stage Company)
                            Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                FOR THE
                                                                                PERIOD
                                                                                 FROM
                                                                               INCEPTION
                                                   FOR THE THREE MONTHS        (MAY 14,
                                                      ENDED MARCH 31,          1984) TO
                                                    1998           1997      MAR. 31, 1998
                                                    ----           ----      -------------
<S>                                             <C>            <C>            <C>
Cash flows from operating activities:
    Net (loss) ..............................   $    (3,447)   $   (13,716)   $  (918,945)
      Adjustments to reconcile net income
        (loss) to net cash provided
        by operating activities:
      Depreciation ..........................          --             --           34,848
      Abandoned license agreement costs .....          --             --           50,000
      Services for stock ....................          --             --            7,597
      Bad debt expense ......................          --             --           10,887
      Realized net gain on investments ......          --             --          (13,519)
      Write-off of deferred warrant
        registration costs ..................          --             --           29,422
      Changes in assets and liabilities:
      (Increase) in notes
         receivable .........................          --             --         (287,102)
      (Increase) in interest
         receivable .........................          --             (158)          --
      Increase in accounts payable
        to related entity ...................           202             81          3,429
      Increase (decrease) in accounts
         payable to directors ...............          --             (400)          --
      Increase in interest payable to
         related entity .....................          --            1,070         22,453
      Increase (decrease) in accounts
         payable to others ..................         1,983          2,967          2,431
                                                -----------    -----------    -----------

      Net cash (used) by
         operating activities ...............        (1,262)       (10,156)    (1,063,793)
                                                -----------    -----------    -----------

Cash flows from investing activities:
    Proceeds from sale of
      investment in MacGregor ...............          --             --          298,070
    Purchase of certificate of deposit ......          --             --          (75,278)
    Redemption of certificates of deposit ...          --             --           75,278
    Capital expenditures ....................          --             --          (92,094)
    Disposal of laboratory assets ...........          --             --           57,246
    Purchase of license agreement ...........          --             --          (50,000)
    Acquisition of investment -
         related entity .....................          --             --           (7,000)
                                                -----------    -----------    -----------
      Net cash provided by
         investing activities ...............          --             --          206,222
                                                -----------    -----------    -----------
</TABLE>
                                                                     (Continued)
                                       F-4
<PAGE>

                              IMMUNE RESPONSE, INC.
                          (A Development Stage Company)
                        Statements of Cash Flows (Page 2)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                FOR THE
                                                                                PERIOD
                                                                                 FROM
                                                                               INCEPTION
                                                   FOR THE THREE MONTHS        (MAY 14,
                                                      ENDED MARCH 31,          1984) TO
                                                    1998           1997      MAR. 31, 1998
                                                    ----           ----      -------------
<S>                                             <C>            <C>            <C>
Cash flows from financing activities:
    Proceeds from issuance of note
      payable to bank .......................   $      --      $      --      $    50,000
    Proceeds from issuance of notes
      payable to related entities
      and others ............................          --             --          144,964
    Payments to retire notes payable
      to bank ...............................                                     (50,000)
    Payments to retire notes payable
      to others .............................          --             --          (68,864)
    Payments to retire notes payable
      to related entity .....................          --          (75,000)       (76,100)
    (Increase) in deferred warrant
      registration costs ....................          --             --          (29,422)
    Proceeds from issuance of common
      stock .................................          --             --          901,556
                                                -----------    -----------    -----------
      Net cash provided  (used) by
         financing activities ...............          --          (75,000)       872,134
                                                -----------    -----------    -----------
Net increase (decrease) in cash
    and cash equivalents ....................        (1,262)       (85,156)        14,563

Cash and cash equivalents at
    beginning of period .....................        15,825        146,004           --
                                                -----------    -----------    -----------
Cash and cash equivalents at
    end of period ...........................   $    14,563    $    60,848    $    14,563
                                                ===========    ===========    ===========

Supplemental cash flow information:
    Interest received .......................   $       133    $     1,075    $    80,681
                                                ===========    ===========    ===========
    Interest paid ...........................   $      --      $      --      $    76,731
                                                ===========    ===========    ===========

Non-cash financing activities:
    Common stock issued for services ........   $      --      $      --      $     7,605
                                                ===========    ===========    ===========
    Investment in common stock of
      related entity received in
      exchange for marketing rights .........   $      --      $      --      $     7,000
                                                ===========    ===========    ===========
    Exchange of note receivable for
      investment in SAC .....................   $      --      $      --      $   281,506
                                                ===========    ===========    ===========
</TABLE>
                                       F-5
<PAGE>

                              IMMUNE RESPONSE, INC.


Item 2:  Management's Discussion and Analysis of Financial Condition
         and Results of Operations.


     LIQUIDITY, CAPITAL RESOURCES AND RESULTS OF OPERATIONS 

     The Company  experienced a net loss from operations of $3,447 which relates
principally  to its small  amount of interest  income of $133 during the quarter
not being sufficient to cover its minimum basic operating expenses.  The Company
expects this trend to continue for the balance of 1998 as  management  continues
to  investigate  potential  business  mergers  and/or  acquisitions.   This  net
operating  loss of $3,447  compares to a loss of $13,716  for the quarter  ended
March 31, 1997.


PART II. OTHER INFORMATION

Item 1:  Legal Proceedings
                None

Item 2:  Changes in Securities
                None

Item 3:  Defaults upon Senior Securities
                None

Item 4:  Submission of Matters to a Vote of Security Holders
                None

Item 5:  Other Information
                None

Item 6:  Exhibits and Reports on Form 8-K

         (a)   Exhibit  27 -  Financial  Data  Schedule  (for SEC use  only)

         (b)   During the quarter  ended March 31,  1998,  the Company  filed no
               reports on Form 8-K.




                                       F-6
<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.


                                       IMMUNE RESPONSE, INC.
                                       (Registrant)



                                        By: /S/ JOSEPH W. HOVORKA
                                            --------------------------------
                                            Joseph W. Hovorka, President and
                                            Chief Financial Officer


Date:  May 13, 1998





                                       F-7