UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                 FORM 10-QSB

(Mark One)
    [X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES 
            EXCHANGE ACT OF 1934

                          For the quarterly period ended December 31, 1997
                                                         ------------------
    [ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                          For the transition period from _______ to________

                          Commission file number          0-5186
                                                ---------------------------


                            OCG TECHNOLOGY, INC. 
      ---------------------------------------------------------------
     (Exact name of small business issuer as specified in its charter)


               


           DELAWARE                                  13-2643655
- -------------------------------            --------------------------------
(State or other jurisdiction of            (IRS Employer Identification No.)
incorporation or organization)              


             450 West 31st Street, New York, New York 10001
             ----------------------------------------------       
                (Address of principal executive offices)


                            (212) 967-3079
                      -------------------------
                     (Issuer's telephone number)


   -------------------------------------------------------------------------
  (Former name, address and former fiscal year, if changed since last report)


Check whether the issuer (1) filed all reports required to be filed by Section 
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter 
period that the registrant was required to file such reports), and (2) has 
been subject to such filing requirements for the past 90 days. [X] Yes   [ ] No


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

           Class                       Shares Outstanding at February 11, 1998
- ----------------------------           ---------------------------------------
Common Stock ($.01 par value)                     26,643,259 Shares






                  OCG TECHNOLOGY, INC. AND SUBSIDIARIES

                                 INDEX


PART I. - FINANCIAL  INFORMATION                             PAGE NUMBER
- --------------------------------                             -----------

Consolidated Condensed Balance Sheets
December 31, 1997 and June 30, 1997                              1

Consolidated Condensed Statements of Loss for the 
Three Months and Six Months Ended December 31, 1997 and 1996     2

Consolidated Condensed Statements of Cash Flow for 
the Three Months Ended December 31, 1997 and 1996                3

Notes to Consolidated Condensed Financial Statements             4

Management's Discussion and Analysis of
Financial Condition and Results of Operations                    5


PART II - OTHER INFORMATION
- ---------------------------

Item 6.   Exhibits and Reports on Form 8-K                        7





                    OCG TECHNOLOGY, INC. AND SUBSIDIARIES
                    CONSOLIDATED CONDENSED BALANCE SHEETS


                                                  DECEMBER 31, 1997      JUNE 30, 1997
                                                     (UNAUDITED)           (AUDITED)
                                               -----------------  -----------------
Current Assets:                                                   
     Cash                                          $   810,660       $   167,996
     Receivables, trade                                 78,675            87,963
     Demand notes receivable                           148,750           123,500
     Other current assets                                4,513             8,825
                                                   -----------       -----------
              Total current assets                   1,042,598           388,284

Property and equipment, 
     net of accumulated depreciation of
         $405,968          $353,122                    147,942           194,835

Proprietary technology, net of 
       accumulated amortization of
      ($2,199,313)      ($1,879,863)                 1,054,971         1,314,647

Other assets                                           252,143           117,139
                                                   -----------       -----------
     Total assets                                  $ 2,497,653       $ 2,014,905
                                                   ===========       ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable and accrued expenses             $93,108          $166,944
     Note Payable - related party                       11,344            11,344
     Due to Officer (non-interest bearing)              15,121            15,121
                                                   -----------       -----------
          Total current liabilities                    119,573           193,409
                                                   -----------       -----------

Shareholders' equity: (Note 4)
     Preferred stock $.10 par value, Series E           10,000            10,000
     Common stock $.01 par value                       278,559           245,152
     Additional paid-in capital                     22,870,021        21,521,150
     Deficit                                       (20,477,499)      (19,863,306)
     Subscription receivable                          (240,500)          (29,000)
                                                   -----------       -----------
                                                     2,440,580         1,883,996

     Less treasury stock, at cost                      (62,500)          (62,500)
                                                   -----------       -----------
          Total shareholders' equity                 2,378,080         1,821,496
                                                   -----------       -----------
Total liabilities and shareholders' equity         $ 2,497,653       $ 2,014,905
                                                   ===========       ===========


     See accompanying notes to consolidated condensed financial statements

                                        1



                    OCG TECHNOLOGY, INC. AND SUBSIDIARIES
        						CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                         						(UNAUDITED)


                      					        THREE MONTHS                 SIX MONTHS
                                ENDED DECEMBER 31,			       ENDED DECEMBER 31,

                          				  1997     		  1996 	        1997          1996

                                                        
Revenue:
	Sales				                   $  193,075  $  226,915    $  401,674 	 $  393,443
                             ----------  ----------    ----------   ----------

Costs and expenses:
	Cost of sales				               58,646		    94,560		     123,141 		   161,490

	Marketing, general and
		administrative			             421,446     382,496		     892,796 	    823,561

	Interest - net				                 187		      -		            (70)		      -
                             ----------  ----------    ----------   ----------
Total Expenses					             480,279     477,056 		  1,015,867      985,051
                             ----------  ----------    ----------   ----------
Net Income (Loss)					        ($287,204)	 ($250,141)    ($614,193)		 ($591,608)
                             ==========  ==========    ==========   ==========

Weighted average number of
	shares outstanding
	during period				           25,154,389	 21,694,476 	  24,834,832   21,694,476
                             ==========  ==========    ==========   ==========


Loss per	Common Share				        ($0.01)     ($0.01)		     ($0.02)      ($0.03)
                             ==========  ==========    ==========   ==========





	See accompanying notes to consolidated condensed financial statements



						                                   2







                   					OCG TECHNOLOGY, INC. AND SUBSIDIARIES
                         					STATEMENTS OF CASH FLOWS
                             					(UNAUDITED)


                                       										SIX MONTHS ENDED DECEMBER 31,

                                                    			   1997		       1996
                                                             
Cash flows from operating activities:                -----------   -----------
	Net income (loss)									                          $ (614,193)   $ (591,608)
	Adjustments to reconcile net income (loss)          -----------   -----------
			to net cash used in operating activities:
		Depreciation and amortization								                 372,998		     370,167
		Issuance of stock and warrants for services								    47,800		      16,000
		Amortization of unearned compensation								               0		       6,876
  Amortization of Black Scholes valuation                 4,075             0

	Changes in assets and liabilities
		(Increase) decrease in receivables								              9,288		     (25,812)
		(Increase) decrease in demand notes								           (25,250		           0
		(Increase) decrease in other current assets								     4,312		       2,050
		(Increase) decrease in property and equipment								  (5,953)		    (80,114)
		(Increase) decrease in Proprietary Technology								 (59,770)	 	  (108,702)
		(Increase) decrease in other assets less 
             Black Scholes value								                (34,207)		     (1,481)
		(Decrease) in accounts payable and 
             accrued expenses							                    (73,836)		     (5,497)
                                                     -----------   -----------  
			Total adjustments							                             239,457	      173,487
                                                     -----------   -----------
			Net cash used in operating activities							        (374,736)		   (418,121)
                                                     -----------   -----------
Cash flows from financing activities:

	Increase (decrease) in due to shareholders									          0        22,000
	(Increase) decrease in subscription receivable								(211,500)            0
	Proceeds from issuance of common stock									      1,228,900	  	   494,455
                                                     -----------   -----------
			Net cash changes from financing activities         1,017,400 		    516,455
                                                     -----------   -----------
Net increase (decrease) in cash										               642,664		      98,334

Cash, beginning of period										                     167,996    	  318,088
                                                     -----------   -----------
Cash, end of period										                        $  810,660 	  $  416,422
                                                     ===========   ===========


	See accompanying notes to consolidated condensed financial statements



							                            3


                  NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                  (UNAUDITED)

1.     In the opinion of the Company, the accompanying unaudited consolidated 
condensed financial statements contain all adjustments (consisting of only 
normal recurring adjustments) necessary to present fairly the financial 
position as of December 31, 1997 and the results of operations for the three 
and six months ended December 31, 1997 and 1996 and the statements of cash 
flows for the six months ended December 31, 1997 and 1996. The June 30, 1997 
balance sheet has been derived from the Company's audited financial 
statements.

     The results of operations for the six months ended December 31, 1997 are 
not necessarily indicative of the results to be expected for the full year. 

     While the Company believes that the disclosures presented are adequate to 
make the information not misleading, it is suggested that these condensed 
financial statements be read in conjunction with the financial statements and 
the notes thereto included in the Company's latest annual report on Form 
10-KSB.

     The accompanying consolidated financial statements have been prepared on 
a going concern basis which contemplates continuity of operations and 
realization of assets and liquidation of liabilities in the ordinary course of 
business. Because of significant operating losses, the Company's ability to 
continue as a going concern is dependent upon its ability to obtain sufficient 
additional financing and, ultimately, upon future profitable operations. The 
financial statements do not include any adjustments relating to the 
recoverability and classification of recorded asset amounts or the amounts and 
classification of liabilities that might be necessary should the Company be 
unable to continue in existence.

2.     Earnings per share is computed using the weighted average number of 
shares outstanding during the periods. The effect of warrants outstanding 
would be anti-dilutive.

3.     Unearned compensation decreased as a result of amortizing the cost 
arising from the issuance of shares of the Company's common stock for 
services.

4.     Other assets increased  due primarily to the value assigned under a 
Black Scholes calculation to warrants issued for marketing and corporate 
services to be rendered. This value will be amortized over the life of the 
services rendered.

5.     Capital Changes:

       During the six months ended December 31, 1997, for services rendered in 
accord with the terms of a consulting agreement, warrants were issued to 
purchase a total of 60,000 shares of the Company's common stock at exercise 
prices ranging between $0.49 to $0.77 per share with exercise dates of said 
warrants expiring between July 1 to December 1, 2000. The Company reflected a 
total expense of $6,000 for the three month periods ended September 30, 1997 
and December 31, 1997. 

     During the three month periods ended September 30,1997 and December 31, 
1997, pursuant to the terms of an agreement for public relations services to 
be rendered to the Company, the Company issued in each period 1,500 shares of 
its common stock for services rendered to date. The Company reflected an 
expense of $1,500 in its Statement of Operations for each three month period.
     During the six months ended December 31, 1997, for services rendered in 
accord with the terms of a consulting agreement, the Company issued 10,000 
warrants to acquire 10,000 shares of the Company's common stock at an exercise 
price of $1.00 per share which expire October 31, 2001. On the date of issue 
the quoted market price of the Company's common stock was less than the per 
share exercise price of the warrants. These warrants have been valued under a 
Black Scholes calculation.

     During the three months ended December 31, 1997 warrants were exercised 
to purchase 1,225,000 shares of the Company's common stock for  $389,250 in 
demand notes and the shares were issued. The demand notes were issued by 
several individuals including four Officers /Directors to the Company, are 
collateralized by common stock of the Company owned by these individuals and 
bear interest at the prime rate. Subsequent to December 31, 1997 demand notes 
totalling $148,750 were paid.

During the three months ended December 31, 1997 the Company issued 50,000 
shares of the Company's common stock for marketing services rendered and to be 
rendered. The Company  recorded a prepaid asset for $32,800 (based on the 
market price at date of issue) which will be amortized over the term of the 
estimated service benefit.

On December 26, 1997 , 850,000 shares of the Company's common stock were sold 
for $297,500 ($0.35 per share) in a private placement, which was exempt from 
registration under Section 4(6) of the Securities Act of 1933, to individuals, 
all of whom were "accredited investors".

During the three months ended December 31, 1997 the Company's Board of 
Directors approved the issuance of 447,000 warrants to acquire 447,000 shares 
of the Company's common stock at an exercise price of $0.75 which expire 
October 24, 1999. These warrants were issued to employees of the Company. On 
the date of issue the quoted market price of the Company's common stock was 
less than the per share exercise price of the warrants.

During the three months ended December 31,1997, pursuant to the terms of two 
agreements with financial planning and public relations consultants, the 
Company issued 350,000 warrants to acquire 100,000 shares and 250,000 shares 
of the Company's common stock at an exercise price of $0.90 and $0.70, 
respectively which expire November 1, 1999 and December 15, 1999, 
respectively. On the date of issue the quoted market price of the Company's 
common stock was less than the per share exercise price of the warrants. These 
warrants have been valued under a Black Scholes calculation.

During the three months ended December 31, 1997 the Company issued 220,000 
warrants to acquire 220,000 shares of the Company's common stock at an 
exercise price of $0.72 which expire November 1, 2000. These warrants were 
issued to an Officer at the time of his employment.  On the date of issue the 
quoted market price of the Company's common stock was less than the per share 
exercise price of the warrants.

6.   Material Subsequent Event

     On February 11, 1998,  1,212,715 shares of the Company's common stock 
were sold for $542,150 ($0.45 per share) pursuant to a private placement, 
which was exempt from registration under Section 4(6) of the Securities Act of 
1933, to individuals, all of whom were "accredited investors". Due to the 
impact of this transaction on the Company's financial position, this 
transaction was deemed to be material and accordingly the sale of 1,212,715 
shares for $542,150 has been reflected retroactively in the December 31, 1997
financial statements in cash and stockholders' equity. The total private 
placement is for 2,500,000 shares.  The Company intends to complete the 
private placement which could generate additional equity in the amount of 
$582,850.




                      OCG TECHNOLOGY, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

           A SUMMARY OF INCREASES (DECREASES) IN THE ITEMS INCLUDED IN
               THE CONSOLIDATED STATEMENTS OF LOSS IS SHOWN BELOW:


                            Results of Operations
                            ---------------------

Total revenues decreased $33,840 and increased $8,231 for the three and six 
months ended December 31, 1997 as compared to the same periods for 1996 
primarily as a result of changes in revenues of Mooney-Edwards Enterprises, 
Inc. ("MIS"), a subsidiary of the Company.  Cost of sales decreased by $35,914 
and $38,349  for the three and six months ended December 31, 1997 as compared 
to the same periods for 1996.  The sales of OCG Technology, Inc. ("OCGT"), 
Prime Care Systems, Inc. ("PSI") and MIS were $0, $10,150 and $391,036 
respectively, for the six months ended December 31, 1997.

Marketing, general and administrative expenses increased $43,167 and $74,048 
for the three and six months ended December 31, 1997 as compared to the same 
periods for 1996. OCGT's expense increased in the three and six months ended 
December 31, 1997, due to increased corporate and professional fees, as 
compared to the same periods in 1996. PSI expenses increased due to increased 
salaries and amortization of capitalized costs of the Windows version of the 
PrimeCare Patient Management System  in the three and six  months ended 
December 31, 1997 as compared to the same periods in 1996.

Liquidity and Capital Resources
- -------------------------------
At December 31, 1997 the Company had a current ratio of 8.72 to 1 compared to 
2.07 to 1 as of December 31, 1996. Although the net loss from operations for 
the six months ended December 31, 1997 was $614,910 most of the loss resulted 
from non-cash charges of $425,792, which accounted for 69% of the total loss 
from operations. The Company has experienced recurring losses from operations 
and has been unable to provide sufficient working capital from operations and 
has relied significantly on the sale of equity interests in the Company, and 
the exercise of warrants and loans from shareholders to fund its operations. 
The Company's auditors have included an explanatory paragraph regarding the 
ability of the Company to continue as a "going concern".          

Cash on hand and accounts receivable were $889,335 at December 31, 1997.  The 
Company also has $389,250 of demand notes due principally from officers and 
directors related to their exercise of warrants; $148,750 of these notes were 
paid in cash to the Company subsequent to December 31, 1997.  In addition, the 
Company has Cardiointegraph equipment, in the final stages of manufacture, 
which will be available to lease on a fee for service basis. In the past, the 
Company's principal means of overcoming its cash shortfalls from operations 
was from the sale of the Company's common stock.  During the six months ended 
December 31, 1997, the Company  raised $1,228,900 (inclusive of  the February 
11,1998 sale - see Notes to the Consolidated Financial Statements - Material 
Subsequent Event) through the sale of equity interests and the exercise of 
warrants. Of this amount, $389,250 was from the exercise of warrants and 
$839,650 was from the sale of stock (equity interests). The Company intends to 
complete the current private placement and raise an additional $582,850 
through the sale of stock which will provide additional working capital. 
Although, in the past, the Company has been able to provide working capital 
through the sale of equity interests in the Company and through the exercise 
of warrants, there can be no assurances that the Company will succeed in its 
efforts. 

As of May 16, 1994, PrimeCare Systems, Inc. ("PSI") was acquired by the 
Company.  PSI owns all right, title and interest in the PrimeCare(TM) Patient 
Management System (the "PrimeCare(TM) System"), which is protected by 
copyrights.  The PrimeCare(TM) System comprises a patient-centered integrated 
medical interview, encounter documentation, patient education and physician 
reference materials, and chart creation system which, in turn, provides an 
uncomplicated, standardized mechanism for collecting and documenting all 
relevant clinical encounter data at minimal cost and time. The PrimeCare(TM) 
System  also provides a data base and means for clinical and outcomes research 
as well as a means for utilization review and quality assurance audits. The 
Company has completed development of the Windows 95/NT version the 
PrimeCare(TM) System and has also completed an interface which enables the 
PrimeCare(TM) System to communicate with other systems used in medical 
facilities. This provides a method for these systems to transfer information 
to the System, such as patient demographics and appointment scheduling. The 
Company has completed the interface capabilities to enable the PrimeCare(TM) 
System to transfer information (such as billing information including E&M 
codes, ICD-9 codes and CPT codes) to these other systems. The Company is in 
the process of developing a means to determine the proper E&M Coding. The 
Company has ceased supporting its DOS version of the PrimeCare(TM) System. The 
medical content of the System is also continually updated. On September 15, 
1995, the Company entered into an agreement with the Mount Sinai School of 
Medicine ("MSSM") which provides for the MSSM to assume the task of updating 
and enhancing the medical content of the System.
 
The Company markets the PrimeCare(TM) System as a service, on a pay for use 
basis, with a charge of $2.00 per patient visit. This charge per patient 
visitt has been increased from $1.50. This marketing method eliminates a 
significant financial commitment to purchase the software, plus monthly 
maintenance charges for updates, and ties the cost directly to use.  The 
financial benefits derived by the physician from use of the PrimeCare(TM) 
System exceed $2.00 cost per patient visit.  The Company has enhanced its 
software to enable the System to interface with any compatible medical billing 
software.  According to the American Medical Association, there are over 
650,000 physicians in the U.S., creating a very large potential market for the 
System. The Company estimates that as many as 250,000 of these physicians 
could use the System routinely. It is estimated that the average number of 
patient visits per month for a primary care physician is between 500 and 600. 
Assuming 500 patient visits per month at $2.00 per visit, each 100 physicians 
using the System could generate revenues of $100,000 per month for the 
Company. However, no assurances can be given that a significant number of 
physicians will contract for and use the PrimeCare(TM) System.

The Company has commenced marketing the Windows 95/NT version of  the 
PrimeCare(TM) System. 
The marketing of the PrimeCare(TM) System was initiated  in the northwest 
Florida area through Medical Information Systems ("MIS").  Installations were 
limited to two sites to enable both PSI and MIS to review and evaluate the 
procedures established for installation and training. This initial commercial 
marketing of the PrimeCare(TM) System has been very successful. In the first 
medical practice in which the PrimeCare(TM) System was installed efficiency  
radically improved. The number of patients seen during normal office hours 
increased two patients per hour through use of the PrimeCare(TM) System . At 
the same time, the documentation of the patient record and the quality of care 
greatly improved. This was substantiated during a periodic review of the 
medical records of this medical practice, conducted by a large nationally 
known managed health care plan (the "Plan"), an insurance carrier with whom 
the physician has contracted. The Plan's reviewer evaluated the medical 
records maintained by this medical practice and gave a score of 100, based on 
a scale of 0 to 100. The reviewer's comments stated: "There has been a recent 
improved documentation product called PrimeCare that will greatly improve the 
quality of care and continuity of care for the patients." A copy of this 
report is attached hereto and marked Exhibit 2. 

Marketing and sales plans have now been completed regarding a full product 
roll-out. The marketing of the PrimeCare(TM) System will be done primarily 
through the following business models:

          (a)  direct sales to large at-risk healthcare entities
          (b)   recruitment of value added resellers and authorized dealers
          (c)   private labeling opportunities

Several value added  resellers, who currently sell, install, and service 
medical office and billing systems to medical facilities,  market the 
PrimeCare(TM) System. Additional staff has been hired in these business areas.

     In addition, the PrimeCare(TM) System will shortly be introduced into 
several additional venues for evaluation purposes.  These prestigious sites 
have been chosen due to:

          (a) a high managed care component of the patient mix
          (b) high Medicare/Medicaid service area
          (c) good cross section of multi-speciality medical professionals.

     OCG will be meeting with the following company profiles during the 
ensuing months to begin discussions relating to alliance/partnering 
opportunities:

          (a) data communication and networking companies
          (b) physician practice management system vendors
          (c) physician clinical patient record system vendors 
          (d) database management companies

However, no assurances can be given that the Company's marketing plan will 
succeed.

In the past, the Company sold its Cardiointegraph ("CIG"), a proprietary heart 
diagnostic instrument for the early detection of coronary heart disease, 
through medical distributors, a sales and marketing method employed by other 
medical equipment manufacturers.  Although Cardiointegraphs were sold for ten 
consecutive fiscal years and the end user purchasers (i.e., physicians and 
corporate and governmental medical departments) appear to find the unit 
useful, the CIG business segment has been unable to generate sufficient 
revenues to fund its operations or to operate at a profit.  The Company 
believes that lack of universal reimbursement for the CIG has hindered its 
attempt to sell the CIG. 

The Company believes that marketing the CIG technology as a service, with a 
minimal fee charged to the physician per CIG generated, may free the physician 
from the general reluctance of physicians to purchase medical diagnostic equipme
nt not reimbursed by Medicare.

The Company licensed its CIG technology to Compumed, Inc. ("CMPD") to enable 
CMPD to offer the CIG as a service to subscribers to CMPD's service which 
interprets electrocardiographic (EKG) signals transmitted telephonically to 
CMPD's central computer.  During March  1994,  CMPD commenced offering the CIG 
service to CMPD's customers. To date, the Company has not received significant 
revenues from CMPD for the service. The Company is totally dependant upon CMPD 
for the marketing effort to CMPD's customers. Based on the experience to date, 
the Company does not believe that the service will be marketed successfully by 
CMPD. 

The Company believes that it could provide sufficient working capital from 
operations through marketing the Window 95/NT version of the PrimeCare(TM) 
System and expanding the operations of MIS.

Currently, the Company has no lines of credit and has no material commitments 
for capital expenditures outstanding.


                           PART II - OTHER INFORMATION

Item 6.     Exhibits and Reports on Form 8-K

          (a)  Exhibits

                Exhibit 27. - Financial Data Schedule

          (b)  Reports on Form 8-K

                No Reports on Form 8-K were filed during the quarter for which 
this report is filed.



                                 SIGNATURES


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



                                            OCG TECHNOLOGY, INC.



                                       BY   /s/Edward C. Levine    
                                            -------------------
                                            EDWARD C. LEVINE, 
                                            PRESIDENT




                                       BY   /s/Erich W. Augustin     
                                            --------------------
                                            ERICH W. AUGUSTIN, 
                                            EXECUTIVE VICE PRESIDENT
                                           (PRINCIPAL FINANCIAL OFFICER)

DATED: February 12, 1998