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                  March 31, 2001

Commission file number             33-56574


                       DIASENSE, INC.
   (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 March 31, 2001, 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

                                                    March 31,    September 30,
               ASSETS                                 2001           2000
                                                   (Unaudited)     (Note A)
                                                   -----------    -----------
Current assets
  Cash and cash equivalents                        $         -    $   113,098
  Prepaid expenses                                      12,157              -
                                                   -----------    -----------
               Total current assets                     12,157        113,098

Property and equipment - at cost
  Furniture and fixtures                                42,750         42,750
                                                  ------------    -----------
                                                        42,750         42,750
  Less accumulated depreciation                         37,305         34,438
                                                  ------------    -----------
                                                         5,445          8,312
                                                   -----------    -----------

Other Assets
  Due from Subsidiaries of BICO                          4,312         19,838
  Investment in unconsolidated subsidiaries (Note E) 1,795,421      1,141,112
  Security Deposit                                      17,250         17,250
                                                   -----------     ----------
                                                     1,816,983      1,178,200
                                                   -----------     ----------
               TOTAL ASSETS                        $ 1,834,585    $ 1,299,610
                                                   ===========     ==========

               LIABILITIES and STOCKHOLDERS' EQUITY (DEFICIENCY)

Current liabilities
  Accounts payable                                 $       311    $         -
  Due to BICO                                        3,209,020      1,725,920
  Accrued payroll and withholdings                      46,267         91,840
                                                   -----------    -----------
               Total current liabilities             3,255,598      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
  Mar. 31, 2001 and Sep. 30, 2000                      229,801        229,801
  Additional paid-in capital                        29,960,946     29,960,946
  Warrants                                          15,320,832     15,320,832
  Deficit accumulated during the  development stage(46,932,592)   (46,029,729)
                                                    -----------    -----------
                                                    (1,421,013)      (518,150)
                                                    -----------    -----------
TOTAL LIABILITIES AND
  STOCKHOLDERS'EQUITY (DEFICIENCY)                 $ 1,834,585    $ 1,299,610
                                                    ===========    ===========
[FN]

The accompanying notes are an integral part of this statement.


                             DIASENSE, INC.
                     (A Development Stage Company)

<TABLE>
                  Consolidated Statement of Operations
                              (Unaudited)
<CAPTION>
                                            For the six months ended         For the three months ended   From July 5, 1989
                                                    March 31,                          March 31,         (inception) through
                                              2001             2000            2001            2000         March 31, 2001
                                            -------------------------        --------------------------  -------------------
</CAPTION>
<S>                                      <C>              <C>              <C>              <C>            <C>
Research and development expenses         $       -       $      -       $        -        $      -       $ 10,556,405

General and administrative expenses            639,522       900,015          263,529         532,133       15,868,328

Provision for(recovery of)doubtful accounts       -       (1,458,809)             -        (1,093,900)            -

Warrant extensions                                -              -                -               -         17,890,676

Technology and patent rights acquired           11,010         9,459            9,102           5,675        2,661,010

Interest expense                                 1,006           -              1,006             -             11,535

Loss on unconsolidated subsidiaries            117,636           -             70,694             -            223,061

Amortization of Goodwill                       164,739        20,833           94,309          20,833          318,986

Other expense                                     -              -                -               -             37,405

Other income                                   (31,050)		 -            (15,525)            -           (664,814)
                                            --------------------------	    --------------------------   -------------------
         Net Income (loss)                $   (902,863)   $  528,502    $    (423,115)    $   535,259    $ (46,902,592)
                                            ===========    ===========      ===========    ===========   ===================
Net income (loss) per common share        $      (0.04)   $     0.02    $       (0.02)    $      0.02    $       (2.36)
                                            ===========    ===========      ===========    ===========   ===================

See notes to the financial statements.
</TABLE>

<TABLE>
                            DIASENSE, INC.
                     (A Development Stage Company)

                   Consolidated Statement of Cash Flows
                              (Unaudited)


<CAPTION>

                                                       For the six months ended   For the three months ended  From July 5,1989
                                                         March 31,      March 31    March 31,       March 31, (Inception) through
                                                          2001            2000       2001             2000      March 31, 2001
                                                       ------------------------   --------------------------  ----------------
 <S>                                               <C>             <C>            <C>           <C>           <C>
 Cash flows from operating activities:
  Net Income (loss)                                 $   (902,863)   $  528,502     $  (423,115)  $  535,259    $   (46,902,592)
  Adjustments to reconcile net loss to net
   cash provided by (used in) operating activites:
    Depreciation                                           2,867         3,053           1,412        1,527             84,601
    Amortization                                         164,739        20,833          94,309       20,833            318,986
    Provision for (recovery of) doubtful accounts           -       (1,458,809)           -      (1,093,900)              -
    Impairment loss                                         -             -               -            -                14,367
    Loss on unsonsolidated subsidiaries                  117,636          -             70,692         -               223,061
    Stock issued in exchange for services                   -             -               -            -               138,950
    Stock issued for License and Marketing Agreement        -             -               -            -                80,000
    Warrants issued for services                            -            1,104            -            -               458,716
    Warrent extensions                                      -             -               -            -            17,890,676
    Inventory deposit-BICO                                  -             -               -            -            (1,000,000)
    (Increase)decrease in prepaid expenses               (12,157)       (2,508)          5,454       (2,638)           (12,157)
    Increase in payable due to BICO                    1,483,100       472,535         798,835      435,141         13,746,414
    Decrease(increase) in receivable due from
    BICO subsidiaries                                     15,526          -             (4,312)        -                (4,312)
    Increase in accounts payable                             311        12,500             311        4,296                311
    Increase (decrease) in accrued payroll and
    withholdings                                         (45,573)          625         (29,796)         625             46,267
    (Increase) in other assets                              -             (250)           -            (250)           (17,250)
                                                     -------------   -----------    ------------  ------------  ----------------
    Net cash provided by (used in) operating activities  823,586      (422,415)        513,790      (99,107)       (14,933,962)

Cash flows from investing activities:
 Disposal of property and equipment                         -             -               -            -               175,000
 Purchase of property and equipment                         -             -               -            -              (279,413)
 Investment - MicroIslet, Inc.                          (450,000)     (500,000)       (350,000)    (500,000)        (1,350,000)
 Investment - Diabecore                                 (486,684)     (500,784)       (293,948)    (500,784)          (987,468)
 (Increase) in notes receivable - related parties           -             -               -	       -              (125,000)
 (Increase) in interest receivable - related parties        -             -               -            -               (13,538)
                                                     ------------    -----------    ------------  ------------  ----------------
    Net cash used in investing activities               (936,684)   (1,000,784)       (643,948)  (1,000,784)        (2,580,419)

Cash flows from financing activities:
 Advances to BICO                                           -         (437,405)           -        (436,420)        (7,498,369)
 Repayment of advances to BICO                              -        1,858,820            -       1,530,320          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
 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                -        1,421,415            -       1,093,900         17,514,381
                                                     ------------    -----------    ------------  ------------  ----------------
   Net decrease in cash and cash equivalents            (113,098)       (1,784)      (130,158)       (5,991)              -
   Cash and cash equivalents at beginning of period      113,098         6,525        130,158        10,732               -
                                                     ------------    -----------    ------------  ------------  ----------------
   Cash and cash equivalents at end of period       $       -       $    4,741     $     -       $    4,741    $          -
                                                     ============    ===========    ============  ============  ================

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"), formerly Diasensor.com,  Inc.,  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, 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  March  31,  2001.
Diasense  is  currently  developing  a  noninvasive  glucose
sensor  (sensor).   The  sensor  would  use  electromagnetic
technology to measure the concentration of glucose in  human
tissue 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 for the periods ended March 31, 2001 and March
31,  2000. The loss per share does not include common  stock
equivalents since the effect would be anti-dilutive.

     From  July  5, 1989 (inception) to March 31,  2001,  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 19,850,883 for the period from July
5, 1989 (inception) to March 31, 2001.


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

     During the six months ended March 31, 2001, the Company
invested an additional $450,000 in MicroIslet, Inc., an
unconsolidated subsidiary interest initially acquired during
2000.  With this additional investment, the Company has
invested $1,350,000 in MicroIslet and its ownership is
approximately 18.5%.  Diasense has an option to purchase an
additional 1.5% interest in MicroIslet and holds a seat on
the board of directors of this unconsolidated subsidiary.
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.

     During the six months ended March 31, 2001, the Company
invested an additional $486,684 in Diabecore Medical,  Inc.,
an  unconsolidated  subsidiary interest  initially  acquired
during  fiscal year 2000.  With this additional  investment,
the  Company  has  invested $987,472 in Diabecore  and  owns
approximately 28.2% of this unconsolidated subsidiary.   The
Company also owns warrants to purchase additional shares  of
Diabecore, which, if exercised, will increase the  company's
ownership  to  35%. The Company holds a seat on the board of
directors   of  Diabecore.   Diabecore  is  a  Toronto-based
company  working to develop a new insulin for the  treatment
of diabetes.

These investments are being reported on the equity basis and
differences between 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 March 31, 2001 and September
30, 2000 are as follows:

                 Investment in
Unconsolidated  Underlying Net Assets  Unamortized
  Subsidiary                            Goodwill                 Total
                Mar.31,   Sep.30,    Mar.31,    Sep.30,    Mar.31,     Sep.30,
                 2001      2000       2001       2000       2001        2000

MicroIslet,   $ 78,992   $ 89,657 $  908,472  $  635,409 $  987,464  $  725,066
  Inc.

Diabecore      129,148     37,003    678,810     379,043    807,957     416,046
Medical, Inc.
               -------    -------   --------   ----------  ---------   --------
Total         $208,140   $126,660 $1,587,281  $1,014,452 $1,795,421  $1,141,112

NOTE F - Subsequent Events

In May 2001, the Company made an additional investment of
$150,000 in MicroIslet, Inc.  This investment increased
Diasense's ownership percentage to 20%.


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


Liquidity and Capital Resources

     During  the six months ended March 31, 2001 funds  were
transferred  to  Diasense  from  BICO  to  provide   working
capital.  These funds were used in operating activities  and
for  investments in unconsolidated subsidiaries.  In January
2001,  BICO  adopted  a centralized cash  management  policy
whereby  funds are transferred to Diasense on a daily  basis
to  meet Diasense's actual cash needs.  As a result of  this
change  in  policy, Diasense had a cash balance of  zero  at
March  31,  2001.  The net effect of these cash transactions
was to decrease cash from $113,098 at September 30, 2000, to
zero at March 31, 2001.

      Prepaid expenses increased from zero to $12,157 during
the   six   months  ended  March  31,  2001.   The  increase
represents  insurance  premiums  paid  in  advance  of   the
coverage period.

      Amounts  due from subsidiaries of BICO were $4,312  at
March   31,   2001  and  $19,838  at  September  30,   2000,
representing  rental  payments due to  Diasense  for  office
space used by subsidiaries of BICO.  The decrease during the
first  six  months  of fiscal 2001 was  due  to  outstanding
amounts paid by the subsidiaries in December 2000.

     Diasense  made  additional investments  in  MicroIslet,
Inc.  and Diabecore, Inc. during the six months ended  March
31,  2001.   As  a result, these other assets  increased  to
$1,795,421  as of March 31, 2001, as compared to  $1,141,112
at September 30, 2000.

     Amounts  due  to  BICO  from  Diasense  increased  from
$1,725,920  as  of  September 30, 2000 to $3,209,020  as  of
March  31,  2001.   This  increase is  due  to  intercompany
transfers  from  BICO  to Diasense for working  capital  and
investment activities.


Results of Operations

     There  were no research and development expenses during
the  six-month period ended March 31, 2001 and 2000  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  second quarter from $532,133 for the three-month period
ended  March 31, 2000 to $263,529 for the three-month period
ended March 31, 2001 and decreased from $900,015 for the six-
month  period ended March 31, 2000 to $640,528 for the  six-
month  period  ended  March 31,  2001.    The  decrease  was
primarily  due  to  a decrease in consulting  and  marketing
expenses, reduced salaries and administrative overhead.

     Diasense   recovered  $1,093,900  and   $1,458,809   in
doubtful  accounts  during  the  three-month  and  six-month
periods ended March 31, 2000, respectively as compared  with
no similar recovery during the current year's periods.  This
recovery  was  due  to  BICO's  repayments  of  intercompany
transfers,  which  had  been  fully  reserved  as   doubtful
accounts  as  a result of BICO's financial condition  during
the  prior years.  No similar recovery was recognized during
the first six months of fiscal year 2001 because all amounts
due from BICO had been repaid as of September 30, 2000.

     Diasense    recognized   losses   from   unconsolidated
subsidiaries of $70,694 and $117,636 during the  three-month
and  six-month  periods ended March 31, 2001,  respectively.
These  amounts  represent  the  portion  of  the  losses  of
Diabecore  Medical  and  MicroIslet  that  was  absorbed  by
Diasense.   Diasense's share of the losses is determined  by
applying   its  ownership  percentage  to  the  total   loss
incurred.  There were no similar losses in the previous year
because  Diasense  just  started  investing  in  these   two
companies  in fiscal 2000 and their operations were  minimal
at March 31, 2000.

     Amortization of Goodwill increased from $20,833 for the
three-month  and six-month periods ended March 31,  2000  to
$94,309  and  $164,739 for the same periods in  the  current
year.   This expense represents the amortization of goodwill
recognized  in  connection  with Diasense's  investments  in
Diabecore Medical and MicroIslet.  Amortization expense  was
lower in the prior year because the investments in Diabecore
and  MicroIslet  just  began during the  second  quarter  of
fiscal 2000.

     Other  income during the second quarter increased  from
zero  for  the three-month period ended March  31,  2000  to
$15,525 for the three-month period ended March 31, 2001  and
increased from zero for the six-month period ended March 31,
2000  to  $31,050 for the six-month period ended  March  31,
2001.   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.


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
               The registrant changed its corporate name from
               Diasensor.com, Inc. to Diasense, Inc.

Item 6.        Reports on Form 8-K

A report on form 8-K filed March 13, 2001 for the event
dated March 13, 2001.  The items listed were Item 5, Other
Events.

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 May 2001.


                              DIASENSE, INC.

                              By /s/ Fred E. Cooper
                                     Fred E. Cooper
                                     President and Director
                                     (Principal Executive Officer)

                              By /s/ Michael P. Thompson
                                     Michael P. Thompson
                                     (Principal Financial
                                      Officer and Principal Accounting
                                      Officer)