FORM 10-QSB


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)


                 for the quarterly period ending: March 31, 1998


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                           Telco Communications, Inc.

             to become known as Innovest Capital Sources Corporation

                        formerly Cody Capital Corporation
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    Colorado                                  33-1933 3-D             84-1073083
(Incorporation)                           (Commission Number)       (IRS Number)


4 Normandy Drive, Kenner LA                 (504) 466-7004                 70065
(Address of principal executive offices)   Telephone number           (Zip Code)

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Securities registered pursuant to Section 12(b) of the Act:     None

Securities registered pursuant to Section 12(g) of the Act:     None


Yes[] No[x] (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.)

Not[X] (Indicate by check mark whether if disclosure of delinquent filers
(ss.229.405) is not and will not to the best of Registrant's knowledge be
contained herein, in definitive proxy or information statements incorporated
herein by reference or any amendment hereto.)

As of March 31, 1998, the aggregate number of shares held by non-affiliates was
approximately 2,930,726 shares. Due to the limited market for the Company
securities, no estimate is being supplied herewith of the market value for such
securities.

As of March 31, 1998, the number of shares outstanding of the Registrant's
Common Stock was 50,000,000.

                                     Page 1

<PAGE>


                          PART I: FINANCIAL INFORMATION
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                          Item 1. Financial Statements

     As of March 31, 1998, Management reports the financial information per
attachment hereto.

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

     The Issuer has no current business, and has had no operations in the last
two fiscal years. The Issuer has no capital resource and no liquidity. The
Company has been in the development stage since April 12, 1996, the date the
Trustee of the Bankruptcy estate sold the corporate shell. The company has
seeking new business opportunities, including business combinations,
associations, joint ventures, merger and/or acquisition programs to achieve
profitability for the shareholders. Theses factors raise issues about the
company's ability to continue as a going concern. The issuer will require
additional funds or forbearance from consultants to satisfy its cash
requirements for the beyond the next twelve months. As reflected in the
comparison of the Issuer's financial statements for the years ended December 31,
1997, with those of year end 1996, the shareholders equity has deceased from
zero to a negative 168,675, by reason of an accumulated deficit which increased
in the last fiscal year.

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                           PART II: OTHER INFORMATION
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                            Item 1. Legal Proceedings

                                      None

                          Item 2. Change in Securities

                                      None

                     Item 3. Defaults Upon Senior Securities

                                      None

            Item 4. Submission of Matters to Vote of Security Holders

                                      None

                            Item 5. Other Information

     During the Quarter covered by this Report, the Company had and has no
current business, and has had no operations since its emergence from Bankruptcy
in 1996. During the period from April 1996 until the end of the current quarter
Management has been engaged in the search for new business opportunities without
material results. The Issuer continues to seek new business opportunities,
including business combinations, associations, joint venture, merger and/or
acquisition programs to achieve profitability for shareholders. The Issuer is in
the process of changing its name to Innovest Capital Sources Corporation and
amending its articles to change the par value to "no par".

                    Item 6. Exhibits and Reports on Form 8-K

     No reports on Form 8-K were made during the period covered by this
Quarterly Report.



                                     Page 2

<PAGE>


                                   SIGNATURES


     Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-QSB Report for the Quarter ended March 31, 1998, has been signed below
by the following person on behalf of the Registrant and in the capacity and on
the date indicated.


Dated: March 31, 1998


                           Telco Communications, Inc.

                        formerly Cody Capital Corporation


                                       by





/s/                                                 /s/
---------------------------                         ----------------------------
Miller L. Mays III                                  Karl E. Rodriguez
President/Director                                  Secretary/Treasurer

                                     Page 3

<PAGE>


                                   Attachment

                         Un-Audited Financial Statements

                                 March 31, 1998










                                     Page 4

<PAGE>


                      INNOVEST CAPITAL SOURCES CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                                 MARCH 31, 1998




                                                                  March 31,
                                                                    1998
                                                              ----------------

                                     ASSETS

Intangible asset - value in excess of amounts
    alocable to identifiable assets                           $       1,000
Impairment of intangible asset                                       (1,000)
Deferred tax asset                                                    --
                                                              --------------

          Total assets                                        $       --
                                                              ==============


                      LIABILITIES AND STOCKHOLDERS' EQUITY


Accrued professional fees                                     $      32,025
Accrued intrest expense                                               2,240
Note payable                                                        134,410
                                                              --------------

          Total liabilities                                         168,675
                                                              --------------

Common stock, no par, 50,000,000 shares authorized,
    issued and outstanding                                            1,000
Deficit accumulated during the development stage                   (169,675)
                                                              --------------

          Total shareholders' equity                               (168,675)
                                                              --------------

          Total liabilities and shareholders' equity          $       --
                                                              ==============



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

<PAGE>


                      INNOVEST CAPITAL SOURCES CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF OPERATIONS
                       FOR THE PERIOD ENDED MARCH 31, 1998
                           AND CUMULATIVE TOTALS SINCE
                                DATE OF INCEPTION



<TABLE>
<CAPTION>

                                                                         Cumulative
                                                                           Totals
                                                                           Since
                                                   March 31,              Date of
                                                     1998                Inception
                                             --------------------   ------------------
<S>                                          <C>                    <C>       
    Revenues                                 $                -0-   $             -0-
                                             --------------------   ------------------

    Expenses
       Interest expense                                       -0-             (2,240)
       Professional fees                                      -0-           (166,435)
       Impairment of intangible asset                         -0-             (1,000)
                                             --------------------   ------------------

    Income before income taxes                                -0-           (169,675)
                                                               
    Income taxes                                              -0-               --
                                             --------------------   ------------------

    Net Loss                                 $                -0-   $       (169,675)
                                             ====================   ==================


    Net loss per share                       $                -0-   $        (.00339)
                                             ====================   ==================


    Weighted average number of
    common shares outstanding                         50,000,000          50,000,000
                                             ====================   ==================
</TABLE>



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

<PAGE>


                      INNOVEST CAPITAL SOURCES CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                        STATEMENT OF SHAREHOLDERS' EQUITY
                         FROM INCEPTION (APRIL 12, 1996)
                                TO MARCH 31 1998




                                                                     
                                                                       Deficit  
                                                                     Accumulated
                                               Common Stock           During the
                                          -----------------------    Development
                                           Shares        Amount         Stage
                                          ----------   ----------   ------------
Stock issued and outstanding
      on April 12, 1996, the date
      the corporate shell was separated
      from the bankruptcy estate          50,000,000   $    1,000         --

Net loss                                        --           --     $   (1,000)
                                          ----------   ----------   ----------

Balances at December 31, 1996             50,000,000        1,000       (1,000)

Net loss                                        --           --       (168,675)
                                          ----------   ----------   ----------

Balances at December 31, 1997             50,000,000        1,000     (169,675)

Balances at March 31, 1998                50,000,000        1,000     (169,675)
                                          ==========   ==========   ==========









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


<PAGE>


                      INNOVEST CAPITAL SOURCES CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOWS
                       FOR THE PERIOD ENDED MARCH 31, 1998
                           AND CUMULATIVE TOTALS SINCE
                                DATE OF INCEPTION




                                                                   Cumulative
                                                                     Totals
                                                                     Since
                                                       March 31,    Date of
                                                         1998      Inception
                                                      ----------  ------------

Cash flows provided by operating activities           $   --      $    --

Cash flows provided by investing activities               --           --

Cash flows provided by financing activities               --           --
                                                      ---------    -----------

Net increase in cash                                      --           --

Cash at beginning of period                           $   --      $    --
                                                      ---------    -----------

Cash at end of period                                 $   --      $    --
                                                      =========    ===========


Reconciliation of net loss to net cash flows
   provided by operating activities:
      Net loss                                        $   --        $(169,675)
      Adjustments to reconcile net loss to cash       
              provided by operating activities
                    Accrued interest expense              --            2,240
                    Accrued rofessional fees              --          166,435
                    Impairment of intangible asset        --            1,000
                                                      ---------    -----------

Cash flows provided by operating activities           $   --      $    --
                                                      =========    ===========







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

<PAGE>


INNOVEST CAPITAL SOURCES CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENT
PERIOD ENDED MARCH 31, 1997




1. BASIS OF PRESENTATION

Innovest  Capital Sources  Corporation  ("the Company") was incorporated as Cody
Capital Corporation,  a Colorado  corporation,  on December 9, 1987. The Company
completed a public  offering in 1988.  In 1989,  Telco of Baton Rouge,  Inc. was
acquired and merged into Cody Capital  Corporation,  and the Company changed its
name to Telco Communications, Inc.

In 1994,  the Company  filed for  Chapter  11-bankruptcy  protection,  which was
subsequently  converted  to  Chapter  7 status  by the  Bankruptcy  Court  ("the
Court").  As a result a Trustee  was  placed in  control  of the  affairs of the
company.  On March 26, 1997, upon motion by the Trustee,  the Court ordered that
the corporate shell be sold to Miller L. Mays III ("Mays"). Prior to the sale to
Mays, three former  convertible  debenture  holders  converted their holdings to
common stock,  which resulted in the issuance of an additional  275,000  shares,
and brought the total number of outstanding shares to 2, 930,226.  Mays acquired
a majority  ownership interest in the Company by purchasing from the trustee all
the authorized but unissued common shares (47,069,774 shares) for $1,000.  Under
the  direction of the Court,  all assets,  liabilities  and business  operations
remained in the bankruptcy estate, and all prior shareholders of record remained
shareholders  subsequent to the sale. The corporate shell was separated from the
bankruptcy estate immediately following the sale. The sale occurred on April 12,
1996, which is the date of inception for the Company under audit.

On January 15, 1997, the corporate name was changed to Innovest  Capital Sources
Corporation.

The Company recognizes income and expenses on the accrual basis of accounting.

The Company  considers all highly liquid  investments  with  maturities of three
months or less to be cash equivalents.

The fair value of the Company's financial instruments which consist primarily of
accrued professional fees and a note payable approximate the carrying amounts as
reported in the balance sheet.  Management does not believe the carrying amounts
are impaired.

Management uses estimates and assumptions in preparing  financial  statements in
accordance with generally accepted  accounting  principles.  Those estimates and
assumptions  affect  the  reported  amounts  of  assets  and  liabilities,   the
disclosure of contingent  assets and  liabilities,  and the reported  amounts of
revenues and expenses.  Actual  results could vary from the estimates  that were
used.

The office of the  Company is located in Kenner,  Louisiana.  The Company has no
employees  or  facilities.  The records are  maintained  by the  President at no
expense to the Company

The  Company  has not  generated  revenues  from  operations  nor is  there  any
assurance  of  significant  revenues in the  future.  Affiliated  entities  have
offered  to loan  the  company  the  necessary  funds to  cover  any  cash  flow
requirements  for the next  twelve  months.  The  Company is  actively  pursuing
various  other   funding   options,   including   equity   offerings,   business
combinations,  corporate alliances, or a combination of these methods. There can
be no assurance that the Company will successfully  complete the transition from
a development stage company to profitability.


<PAGE>

2. INCOME TAXES

Deferred  income taxes are reported for temporary  differences  between items of
income or expense  reported in the financial  statements  and those reported for
income tax purposes.  The expense entitled "impairment of intangible asset" is a
permanent book/tax difference, and thus will not result in a current or deferred
tax benefit or asset.  At December  31,  1997,  the Company had  available a net
operating loss  carryforward  of  approximately  $168,675,  which will expire in
2013.  Any future  deferred  tax asset will be offset by a  valuation  allowance
until such time as the Company  demonstrates future  profitability.  At December
31, 1997, the principal component of the deferred tax asset is as follows:

         Net operating loss carryforward             $  57,350
         Valuation allowance                           (57,350)
                                                     ----------

         Net Deferred tax asset                      $    --

3. COMMON STOCK

The Corporation is authorized to issue 50,000,000  shares of one class of common
stock. The Articles of Incorporation  were amended on August 31, 1997, to change
the par value from $.001 per share to no par. All references in the accompanying
financial  statements  and notes to the per share  amounts have been restated to
reflect the change in par value.

4. SUBSEQUENT EVENTS AND RELATED PARTIES

In June 1996,  the Company  filed a Form 8-K with the  Securities  and  Exchange
Commission   relative  to  agreements   reached  with  mortgage  market,   Inc.,
Surgimetrics USA and Telco Holding Corporation.  Subsequently, a final agreement
among the parties could not be reached and the agreements were terminated.

On or about June 23, 1997, a written "offer to purchase" the Company was entered
into with Solar  Energy  Limited.  On or about  October  1,  1997,  a "letter of
intent" was entered into to effectuate an acquisition  and merger of the Company
and Solar Energy Limited. In February 1998,  management  determined that a final
agreement could not be reached and the agreement was terminated.

In  November  1997,  Intrepid  International  S.A.  ("Intrepid"),  a  Panamanian
corporation,  acquired  84.60%  of  the  outstanding  stock  of the  Company  by
acquiring 42,300,000 shares of the Company's outstanding common stock from Mays.
This resulted in a change of control of the company.

In 1997, the Company  retained  Intrepid for its investment  banking,  legal and
financial services.  The services to be performed include public and shareholder
relations,   audit   coordination,   certificate   and  transfer   coordination,
coordination  of  relationships  with  market  makers and broker  dealers in the
securities of the Company and various other consulting  services.  Additionally,
Intrepid will assist in the preparation and coordination of annual quarterly and
current  filings as may be required  pursuant to the Securities and Exchange Act
of 1934 and  Regulations of the Securities and Exchange  Commission  promulgated
pursuant to the 1934 Act. As of April 10,  1998,  the fees  incurred by Intrepid
totaled $164,366 for services rendered subsequent to June 19, 1997.

On October 15, 1997, the Company issued a note in the amount of $134,410 with 8%
interest,  due October 15, 1998, to Intrepid for professional  services incurred
through  October 15,  1997.  The note is  convertible  into common  stock of the
Company at a conversion price of $0.0336 per share.