SECURITIES AND EXCHANGE COMMISSION

                   Washington, D.C.  20549


                          FORM 10-Q


     QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
               SECURITIES EXCHANGE ACT OF 1934

For Quarter Ended                             December 31, 2000

Commission file number                        33-56574


                        DIASENSOR.COM
    (Exact name of registrant as specified in its charter)



Pennsylvania                                        25-1605848
(State or other jurisdiction                       (IRS Employer
of incorporation or organization)                 Identification no.)


  2275 Swallow Hill Road, Bldg. 2500; Pittsburgh, PA 15220
 (Address of principal executive offices)           (Zip Code)

                       (412) 279-9740
     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 (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

     As of December 31, 2000, 22,980,051 shares of
Diasensor.com, Inc. common stock, par value $.01 were
outstanding.


<PAGE>1

                               DIASENSOR.COM,INC.
                         (A Development Stage Company)

                          Consolidated Balance Sheets

                                                  December 31,   September 30,
               ASSETS                                 2000          2000
                                                   (Unaudited)      (Note A)
                                                   -----------    -----------
Current assets
  Cash and cash equivalents                        $   130,158    $   113,098
  Prepaid expenses                                      17,611            -
                                                   -----------    -----------
               Total current assets                    147,769        113,098

Property and equipment - at cost
  Furniture and fixtures                                42,750         42,750
                                                   -----------    -----------
                                                        42,750         42,750
  Less accumulated depreciation                         35,893         34,438
                                                   -----------    -----------
                                                         6,857          8,312
                                                   -----------    -----------

Other Assets
  Due from Subsidiaries of BICO                            -           19,838
  Investment in unconsolidated subsidiaries (note E) 1,316,474      1,141,112
  Security Deposit                                      17,250         17,250
                                                   -----------     ----------
                                                     1,333,724      1,178,200
                                                   -----------     ----------
               TOTAL ASSETS                        $ 1,488,350    $ 1,299,610
                                                   ===========     ==========

               LIABILITIES and STOCKHOLDERS' EQUITY (DEFICIENCY)

Current liabilities
  Due to BICO                                      $ 2,410,185    $ 1,725,920
  Accrued payroll and withholdings                      76,063         91,840
                                                   -----------    -----------
               Total current liabilities             2,486,248      1,817,760


Stockholders' equity (deficiency)
  Preferred stock, 1,000,000 shares authorized,
  none issued
  Common stock, 40,000,000 shares of
  $.01 par value authorized; issued and outstanding
  22,980,051 at Dec. 31, 2000 and Sep. 30, 2000        229,801        229,801
  Additional paid-in capital                        26,892,071     26,892,071
  Warrants                                          18,684,017     18,684,017
  Deficit accumulated during the development stage (46,803,787)   (46,324,039)
                                                   -----------    -----------
                                                      (997,898)      (518,150)
         TOTAL LIABILITIES AND                     -----------    -----------
             STOCKHOLDERS' EQUITY (DEFICIENCY)     $ 1,488,350   $  1,299,610
                                                   ===========    ===========
[FN]
The accompanying notes are an integral part of this statement.
<PAGE>2
                           DIASENSOR.COM,INC.
                     (A Development Stage Company)

                  Consolidated Statement of Operations
                              (Unaudited)
<TABLE>
<CAPTION>

                                      For the                 For the               From July 5, 1989
                                      three months ended      three months ended    (inception) through
                                      December 31, 2000       December 31, 1999     December 31, 2000
                                     --------------------     ------------------    -----------------
<S>                                  <C>                      <C>                  <C>
Research and development expenses        $       -               $       -            $  10,556,405

General and administrative expenses            448,331                 371,665           15,831,384

Provision for (recovery of) doubtful accounts    -                    (364,909)               -

Warrant extensions                               -                       -               18,184,986

Technology and patent rights acquired            -                       -                2,650,000

Interest expense                                 _                       -                   10,529

Other income                                   (15,525)                  -                 (649,289)

Loss on unconsolidated subsidiaries             46,942                   -                  152,367

Other expense                                    -                       -                   37,405
                                           --------------          -------------        --------------
  Net loss                               $    (479,748)          $      (6,756)       $ (46,773,787)
                                           ==============          ==============       ==============
Net loss per common share                $       (0.02)          $       (0.00)       $       (2.37)
                                           ==============          ==============       ==============

The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>3
<TABLE>
                             DIASENSOR.COM,INC.
                     (A Development Stage Company)

                  Consolidated Statement of Cash Flows
                              (Unaudited)
<CAPTION>
                                                              For the               For the           From July 5, 1989
                                                          three months ended    three months ended    (Inception) through
                                                          December 31, 2000     December 31, 1999     December 31, 2000
                                                          ------------------    ------------------    ------------------
<S>                                                       <C>                   <C>                  <C>
Cash flows from operating activities:
   Net loss                                               $     (479,748)       $   (6,756)           $  (46,773,787)
   Adjustments to reconcile net loss to net
     cash used by operating activities:
        Depreciation                                               1,455             1,526                    83,189
        Amorization                                               70,431               -                     224,678
        Provision for (recovery of) doubtful accounts                -            (364,909)                      -
        Impairment loss                                              -                 -                      14,367
        Loss on unconsolidated subsidiaries                       46,943               -                     152,368
        Stock issued in exchange for services                        -                 -                     138,950
        Stock issued for License and Marketing Agreement             -                 -                      80,000
        Warrants issued for services                                 -               1,103                   458,716
        Warrant extensions                                           -                 -                  18,184,986
        Inventory Deposit - BICO                                     -                 -                  (1,000,000)
        (Increase) decrease in prepaid expenses                  (17,611)              130                   (17,611)
        Increase in payable due to BICO                          684,265            37,394                12,947,579
        Decrease in receivable due from BICO subsidiaries         19,838               -                         -
        Increase in accounts payable                                 -               8,204                       -
        Increase (decrease) in accrued payroll & withholdings    (15,777)              -                      76,063
        (Increase) in other assets                                   -                 -                     (17,250)
                                                          ------------------    ------------------    ----------------
         Net cash provided by (used in) operating activities     309,796          (323,308)              (15,447,752)

 Cash flows from investing activities:

   Disposal of property and equipment                                -                 -                     175,000
   Purchase of property and equipment                                -                 -                    (279,413)
   Investment - MicroIslet                                      (100,000)              -                  (1,000,000)
   Investment - Diabecore                                       (192,736)              -                    (693,520)
   (Increase) in Notes Receivable-related parties                    -                 -                    (125,000)
   (Increase) in Interest Receivable-related parties                 -                 -                     (13,538)
                                                          ------------------    ------------------   -----------------
      Net cash used in investing activities                     (292,736)              -                  (1,936,471)

 Cash flows from financing activities:

   Advances to BICO                                                  -                (985)               (7,498,369)
   Repayment of advances to BICO                                     -             328,500                 9,166,099
   Proceeds from issuance of common stock                            -                 -                  10,971,834
   Proceeds from issuance of common stock to BICO                    -                 -                   4,200,000
   Proceeds from warrants exercised                                  -                 -                     118,066
   Purchase of treasury stock                                        -                 -                     (35,000)
   Proceeds from Regulation S                                        -                 -                     288,751
   Proceeds from issuance of notes payable                           -                 -                     303,000
                                                          ------------------    ------------------   -----------------
      Net cash provided (used) by financing activities               -             327,515                17,514,381
                                                          ------------------    ------------------   -----------------
      Net increase (decrease) in cash & cash equivalents          17,060             4,207                   130,158
      Cash and cash equivalents at beginning of period           113,098             6,525                       -
                                                          ------------------    ------------------   -----------------

      Cash and cash equivalents at end of period          $        130,158      $   10,732           $       130,158
                                                          ==================    ==================   ==================

The accompanying notes are an integral part of this statement.
</TABLE>



                    DIASENSOR.COM, INC.

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - Basis of Presentation

     The accompanying financial statements of Diasensor.com,
Inc.  (the "Company") have been prepared in accordance  with
generally   accepted  accounting  principles   for   interim
financial information, and with the instructions to Form 10-
Q  and Rule 10-01 Regulation S-X.  Accordingly, they do  not
include  all  of 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   accruals)
considered  necessary  for  a fair  presentation  have  been
included.   For further information, refer to the  financial
statements  and  footnotes included in the Company's  annual
report on Form 10-K for the fiscal year ended September  30,
2000.

NOTE B - Organization

      The  Company  was incorporated on July 5,  1989  as  a
wholly  owned subsidiary of BICO, Inc. (parent).  BICO  owns
52%  of  the stock of the Company as of December  31,  2000.
Diasensor.com is currently developing a noninvasive  glucose
sensor  (Sensor).   The  sensor  would  use  electromagnetic
technology  to measure blood without requiring the  user  to
take a blood sample.

NOTE C - Net Loss Per Common Share

      Net  loss  per common share is based on  the  weighted
average  number of outstanding common shares, which amounted
to  22,980,051 and 22,980,051 for the periods ended December
31,  2000 and December 31, 1999, respectively. The loss  per
share  does not include common stock equivalents  since  the
effect would be anti-dilutive.

     From July 5, 1989 (inception) to June 30, 2000, net loss
per  common share is based on the weighted average number  of
common  shares  outstanding and the number of  common  shares
issuable  on  the  exercise of 1,708,000 warrants  issued  in
1992;  reduced by 488,000 common shares that were assumed  to
have  been  purchased with the proceeds from the exercise  of
the  warrants  at an assumed price of $3.50 per  share.   The
inclusion  of the warrants in the loss per share  calculation
is  required  by  the  rules of the Securities  and  Exchange
Commission  relative  to the initial registration  statement,
which included the Company's financial statements through the
period  ended  March  31,  1993.  The registration  statement
became  effective July 19, 1993.  The weighted average number
of  common  shares including the effect of the conversion  of
the  warrants amounted to 19,755,604 for the period from July
5, 1989 (inception) to December 31, 2000.

NOTE D - Legal Proceedings

     In April, 1998, the Company and its affiliates were
served with subpoenas requesting documents in connection
with an investigation by the U.S. Attorneys' office for the
District Court for the Western District of Pennsylvania.  We
continue to submit various scientific, financial and
contractual documents in response to their requests.

NOTE E - Investments in Unconsolidated Subsidiaries

     In November, 2000, the Company invested an additional
$100,000 in MicroIslet, Inc., an unconsolidated subsidiary
interest initially acquired during the fiscal year ended
September 30, 2000.  This additional investment increased
the Company's ownership percentage in Microislet, Inc. to
15%. MicroIslet is a California company which has licensed
several diabetes research technologies from Duke University
with a specific focus on optimizing microencapsulated islets
for transplantation.

     Also in November, 2000, the Company invested an
additional $192,736 in Diabecore Medical, Inc., an
unconsolidated subsidiary interest initially acquired during
the fiscal year ended September 30, 2000.  This additional
investment increased the Company's ownership percentage in
Diabecore Medical, Inc. to approximately 20.8%.  Diabecore
Medical, Inc. is a Toronto-based company working to develop
a new insulin for the treatment of diabetes.  The Company's
ownership of Diabecore Medical, Inc. is expected to advance
to 35% at completion of funding through July 2001.

Both investments are being reported on the equity basis  and
differences in the investment and the underlying net  assets
of  the  unconsolidated subsidiaries are being amortized  as
goodwill over a 5-year period.  The company's investment  in
the  underlying assets and the unamortized goodwill of  each
unconsolidated subsidiary as of September 30,  2000  are  as
follows:

  Unconsolidated        Investment in     Unamortized
    Subsidiary         Underlying Net       Goodwill       Total
                           Assets

MicroIslet, Inc.        $  50,731         $  688,509     $  739,240
Diabecore Medical,Inc.     50,615            526,619        577,234
                          -------          ---------      ---------
Total                   $ 101,346         $1,215,128     $1,316,474
                          =======          =========      =========


NOTE F - Subsequent Events

     In January and February 2001, the Company made additional
investments of $250,000 in MicroIslet, Inc. and $146,755 in
Diabecore Medical, Inc.  These additional investments
increased the Company's ownership percentage to approximately
17.5% and 27.0% in MicroIslet and Diabecore, respectively.

Management's Discussion and Analysis of Financial Condition
and Cash Flows


Liquidity and Capital Resources

      During the three months ended December 31, 2000  funds
were  transferred to Diasensor from BICO to provide  working
capital.  These funds were used in operating activities  and
for  investments  in unconsolidated subsidiaries.   The  net
effect of these cash transactions was to increase cash  from
$113,098 at September 30, 2000, to $130,158 at December  31,
2000.

      Prepaid expenses increased from zero to $17,611 during
the   quarter   ended  December  31,  2000.   The   increase
represents  insurance  premiums  paid  in  advance  of   the
coverage period.

      Amounts due from subsidiaries of BICO were $19,838  at
September 30, 2000, representing rental payments due to  the
Company for office space used by subsidiaries of BICO.   All
outstanding  amounts  were paid by the  subsidiaries  as  of
December 31, 2000, decreasing this other asset to zero.

     The  Company's  investments  in  MicroIslet,  Inc.  and
Diabecore, Inc. increased during the quarter ended  December
31, 2000.  As a result, these other assets were $739,240 and
$577,234, respectively, as of December 31, 2000, as compared
to  $726,066  and  $416,046, respectively at  September  30,
2000.

     Amounts  due  to  BICO from the Company increased  from
$1,725,920  as  of  September 30, 2000 to $2,410,185  as  of
December  31,  2000.  This increase is due  to  intercompany
transfers from BICO to the Company for working capital.

Results of Operations

      There were no research and development expenses during
the three-month periods ended December 31, 2000 and 1999 due
to the agreed-upon suspension of charges by BICO pursuant to
the  research and development agreement between the  Company
and its parent.

      General  and  Administrative expenses  increased  from
$371,665 for the three month period ended December 31,  1999
to  $448,331  for the three month period ended December  31,
2000.   The  increase was primarily due to  an  increase  in
salaries  and administrative staff, administrative  overhead
and amortization of goodwill associated with the investments
in unconsolidated subsidiaries.

     Other income during the quarter increased from zero for
the  three-month period ended December 31, 1999  to  $15,525
for  the  three-month period ended December 31, 2000.   This
increase  was due to an increase in rental income, which  is
charged to BICO and its subsidiaries for their share of  our
office space.

      During  the three months ended December 31,  1999,  we
recognized  $364,909 in recovery of doubtful  accounts  when
BICO  repaid amounts due.  Those amounts had been part of  a
fiscal  1998  charge  to a provision for  doubtful  accounts
because BICO's financial position at that time indicated  we
might  not  receive the money back from  BICO.   No  similar
recovery  was recognized during the first quarter of  fiscal
year  2001 because all amounts due from BICO had been repaid
as of September 30, 2000.


                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.        Reports on Form 8-K
               None.

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 on this 15th day of February 2001.


                              DIASENSOR.COM, INC.

                              By /s/ Fred E. Cooper
                                     Fred E. Cooper
                                     President and Director
                                     (principal executive officer,
                                     principal financial officer
                                     and principal accounting
                                     officer)


                              By /s/ Michael P. Thompson
                                     Michael P. Thompson
                                     Chief Financial Officer
                                     (principal financial officer
                                     and principal accounting
                                     officer)