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, 1998

Commission file number             33-56574


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



Pennsylvania                                25-1605848
(State of 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, 1998, 22,980,051 shares of Diasense,
Inc. common stock, par value $.01 were outstanding.

<PAGE>1

                                 DIASENSE, INC.
                         (A Development Stage Company)

                          Consolidated Balance Sheets

                                                  December 31,  September 30,
               ASSETS                                 1998          1998
                                                   (Unaudited)      (Note)
                                                   -----------    -----------
Current assets
  Cash and cash equivalents                        $     6,285    $    41,811
  Prepaid expenses                                       3,802          5,792
  Due from BICO (notes A and E)                          -              -
                                                   -----------    -----------
               Total current assets                     10,087         47,603

Property and equipment - at cost(notes A,C, and J)
  Building and improvements                            222,296        222,296
  Furniture and fixtures                                42,750         42,750
                                                   -----------    -----------
                                                       265,046        265,046
  Less accumulated depreciation                         72,915         69,553
                                                  ------------    -----------
                                                       192,131        195,493
                                                   -----------    -----------

Other Assets
  Due from BICO (notes A and E)                      2,167,773      2,197,433
  Due from Petrol Rem                                    2,000          -
  Notes Receivable-related parties (note E)            125,000        125,000
  Interest Receivable-related parties (note E)          11,870          9,272
  Allowance for doubtful account (note E)           (2,282,479)    (2,282,479)
                                                   -----------     ----------
                                                        24,164         49,226
                                                   -----------     ----------
               TOTAL ASSETS                        $   226,382    $   292,322
                                                   ===========     ==========

               LIABILITIES and STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable                                 $    71,042    $    23,606
  Accrued payroll and withholdings                     104,898         68,721
                                                   -----------    -----------
               Total current liabilities               175,940         92,327

Committments and Contingencies (notes B and F)

Stockholders' equity
  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, 1998 and 22,980,051 at
  Sep. 30, 1998                                        229,801        229,801
  Additional paid-in capital                        26,892,071     26,892,071
  Warrants                                          17,953,223     17,953,223
  Deficit accumulated during the
  development stage                                (45,024,653)   (44,875,100)
                                                   -----------    -----------
                                                        50,442        199,995
               TOTAL LIABILITIES AND               -----------    -----------
                  STOCKHOLDERS' EQUITY             $   226,382    $   292,322
                                                   ===========    ===========
[FN]
The accompanying notes are an integral part of this financial statement.
<PAGE>2
                             DIASENSE, 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, 1998       December 31, 1997     December 31, 1998
                                     --------------------     ------------------    -----------------
<S>                                  <C>                      <C>                  <C>
Research and development expenses    $        -               $       -            $  10,556,405

General and administrative expenses         162,784                 168,212           14,363,328

Warrant extensions                            -                      25,000           17,912,908

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

Interest expense                              _                       -                   10,529

Other income                                (13,231)                (21,783)            (535,922)

Other expense                                -                        -                   37,405
                                      --------------          -------------        --------------
  Net loss                            $    (149,553)          $    (171,429)       $ (44,994,653)
                                      ==============          ==============       ==============
Net loss per common share             $       (0.01)          $       (0.01)       $       (2.39)
                                     ===============          ==============       ==============

See notes to the financial statements.
</TABLE>
<PAGE>3
<TABLE>
                             DIASENSE, 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, 1998       December 31, 1997      December 31, 1998
                                                     ------------------      ------------------     ----------------
<S>                                                  <C>                     <C>                    <C>
Cash flows from operating activities:
Net loss                                             $      (149,553)        $       (171,429)      $    (44,994,653)
   Adjustments to reconcile net loss to net
     cash used by operating activities:
        Depreciation                                           3,362                    3,396                 72,915
        Stock in exchange for services                         -                        -                    138,950
        Stock issued for License and Marketing Agreement       -                        -                     80,000
        Warrant extensions                                     -                       25,000             17,912,908
        Inventory Deposit - BICO                               -                        -                 (1,000,000)
        (Increase) decrease in prepaid expenses                1,990                   5,758                  (3,802)
        Increase in payable due to BICO                        -                        -                 10,500,000
        Increase (decrease) in accounts payable               47,436                  (1,120)                 71,042
        Increase (decrease) in accrued liabilites             36,177                     (30)                104,898
                                                     ------------------      ------------------     ------------------
             Net cash used in operating activities           (60,588)               (138,425)            (17,117,742)

 Cash flows from investing activities:
   Purchase of property and equipment                          -                        -                   (279,413)
   Increase in Notes Receivable                                -                    (125,000)               (125,000)
   Increase in Interest Receivable                             2,598                  (1,558)                 (6,674)
                                                     ------------------      ------------------     ------------------
      Net cash used in investing activities                    2,598                (126,558)               (411,087)

Cash flows from financing activities:
   Advances to BICO                                       (1,022,704)             (1,649,070)             (7,986,230)
   Repayment of advances to BICO                              52,364               1,127,089               6,385,043
   Proceeds from issuance of common stock                      -                       -                  10,971,834
   Proceeds from issuance of common stock to BICO              -                       3,500               4,200,000
   Proceeds from warrants exercised                            -                        -                    118,066
   Proceeds from treasury stock                                -                        -                    (35,000)
   Proceeds from Regulation S                                  -                        -                    288,751
   Proceeds from issuance of notes payable                     -                        -                    303,000
                                                     ------------------      ------------------     ------------------
      Net cash provided by financing activities             (970,340)               (518,481)             14,245,464
                                                     ------------------      ------------------     ------------------
      Net increase (decrease) in cash & equivalents          (35,526)               (783,464)             (3,283,365)
      Cash and cash equivalents at beg. of period             41,811               1,871,070                  -
                                                     ------------------      ------------------     ------------------

      Cash and cash equivalents at end of period     $         6,285         $     1,087,606        $     (3,283,365)
                                                     ==================      ==================     ==================

See notes to the financial statements.
</TABLE>



                       DIASENSE, INC.

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - Basis of Presentation

     The accompanying financial statements of Diasense, 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-O 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,
1998.

NOTE B - Organization

      The  Company  was incorporated on July 5,  1989  as  a
wholly  owned  subsidiary  of  Biocontrol  Technology,  Inc.
(BICO).   BICO  owns 52% of the stock of the Company  as  of
December   31,  1998.   Diasense 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 22,979,134 for the periods ended December
31,  1998 and December 31, 1997, respectively. The loss  per
share  does not include common stock equivalents  since  the
effect would be anti-dilutive.

      From July 5, 1989 (inception) to December 31, 1998, 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 18,811,244 for the period from July
5, 1989 (inception) to December 31, 1998.

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


Liquidity and Capital Resources

      Cash decreased from $41,811 at September 30, 1998,  to
$6,285  at  December 31, 1998.  This decrease was  primarily
attributable to the Company's $60,588 net cash flow used  by
operations and $1,022,704 net advances to BICO.

Results of Operations

           There  were no research and development  expenses
during  the three month period ended December 31,  1998  and
1997  due  to  the  agreed-upon suspension  of  billings  by
Diasense  and BICO pursuant to the Research and  Development
Agreement.

      General  and Administrative expenses decreased  during
the  first quarter from $168,212 for the three month  period
ended  December  31, 1997 to $162,784 for  the  three  month
period  ended December 31, 1998. The decrease was  primarily
due to reductions in administrative overhead .

      Other  income during the first quarter decreased  from
$21,783  for the three month period ended December 31,  1997
to  $13,231  for the three month period ended  December  31,
1998.   This  decrease was due to the Company  having  lower
cash  reserves to invest for the period ending December  31,
1998 than during the period ending December 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
          On January 20, 1999 Diasense, Inc. changed its
          name to Diasensor.com.

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, 1999.


                              DIASENSE, INC.

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