U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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 year ended November 30, 1999

[  ] Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from       to

Commission file number  0-14401


                            SANDATA, INC.
     (Exact Name of Small Business Issuer as Specified in Its Charter)


         Delaware                                        11-2841799
(State or Other Jurisdiction of                        (IRS Employer
Incorporation or Organization)                       Identification No.)

                   26 Harbor Park Drive, Port Washington, NY 11050
                    (Address of Principal Executive Offices)

                                      516-484-9060
                   (Issuer's Telephone Number, Including Area Code)

                  (Former Name, Former 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.

Yes X    No

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                         DURING THE PRECEDING FIVE YEARS

         Check  whether  the  registrant  has filed all  documents  and  reports
required  to be filed by Section 12, 13 or 15(d) of the  Exchange  Act after the
distribution of securities under a plan confirmed by a court.

Yes      No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

         The  number of shares  outstanding  of  each of  the  issuer's  classes
of common equity, as of January 12, 2000 was 2,481,478 shares.

         Transitional Small Business Disclosure Format  (check one):

Yes      No  X


<PAGE>




                                     INDEX

                                                                          Page

PART I   -   FINANCIAL INFORMATION

Item 1   -   FINANCIAL STATEMENTS:

             CONSOLIDATED CONDENSED BALANCE SHEETS                          3
             as of November 30, 1999 (unaudited) and May 31, 1999

             UNAUDITED CONSOLIDATED CONDENSED STATEMENTS                    5
             OF OPERATIONS for the three and six months
             ended November 30, 1999 and November 30, 1998

             UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS      6
             for the three and six months
             ended November 30, 1999 and November 30, 1998

             NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS           7

Item 2   -   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION      10

PART II  -   OTHER INFORMATION                                              13

Item 1   -   LEGAL PROCEEDINGS                                              13

Item 2   -   CHANGES IN SECURITIES                                          13

Item 3   -   DEFAULTS UPON SENIOR SECURITIES                                13

Item 4   -   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS            13

Item 5   -   OTHER INFORMATION                                              13

Item 6   -   EXHIBITS AND REPORTS ON FORM 8-K                               13



<PAGE>

<TABLE>




                                          SANDATA, INC. AND SUBSIDIARIES

                                       CONSOLIDATED CONDENSED BALANCE SHEETS


<S>                                                                                <C>                        <C>

                                                                                     UNAUDITED                   AUDITED

                                                                                    November 30,                 May 31,
                                                                                        1999                       1999

ASSETS:
CURRENT ASSETS
         Cash and cash equivalents                                                  $  727,520                $ 1,533,576
         Accounts receivable, net of allowance for doubtful accounts
            of $471,000 and $533,000, respectively                                   2,403,501                  2,034,248
         Receivables from affiliates                                                   635,361                    924,426
         Other receivables                                                                ---                   1,100,000
         Inventories                                                                    54,940                     29,307
         Prepaid expenses and other current assets                                     393,518                    485,455
                                                                                   -----------                -----------

TOTAL CURRENT ASSETS                                                                 4,214,840                  6,107,012

FIXED ASSETS, NET                                                                    8,178,139                  7,169,002

OTHER ASSETS
         Notes receivable                                                              135,892                    169,608
         Cash surrender value of officer's life insurance,
            security deposits and other                                                787,450                    775,557
                                                                                   -----------                -----------

TOTAL ASSETS                                                                       $13,316,321                $14,221,179
                                                                                   ===========                ===========



                             See notes to consolidated condensed financial statements

</TABLE>

<PAGE>
<TABLE>


                                             SANDATA, INC. AND SUBSIDIARIES

                                          CONSOLIDATED CONDENSED BALANCE SHEETS


<S>                                                                                 <C>                       <C>


                                                                                     UNAUDITED                    AUDITED
                                                                                    November 30,                  May 31,
                                                                                       1999                        1999


LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES
         Accounts payable and accrued expenses                                      $ 1,834,956               $ 3,022,395
         Current portion of long-term debt                                                  ---                 2,500,000
         Deferred/unearned revenue                                                          400                    13,633
         Deferred income                                                                353,214                   335,385
                                                                                    -----------               -----------
TOTAL CURRENT LIABILITIES                                                             2,188,570                 5,871,413

LONG TERM DEBT                                                                        2,700,000                       ---
DEFERRED INCOME                                                                         346,327                   324,096
DEFERRED INCOME TAXES                                                                   535,000                   535,000
                                                                                    -----------               -----------

TOTAL LIABILITIES                                                                     5,769,897                 6,730,509
                                                                                    -----------               -----------

SHAREHOLDERS' EQUITY
         Common stock                                                                     2,481                     2,481
         Additional paid in capital                                                   5,772,079                 5,772,079
         Retained earnings                                                            3,291,523                 3,235,769
         Notes receivable-officers                                                   (1,519,659)               (1,519,659)
                                                                                    -----------               -----------
TOTAL SHAREHOLDERS' EQUITY                                                            7,546,424                 7,490,670
                                                                                    -----------               -----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                          $13,316,321               $14,221,179
                                                                                    ===========               ===========



                                 See notes to consolidated condensed financial statements
</TABLE>
<PAGE>

<TABLE>

                                      SANDATA, INC. AND SUBSIDIARIES

                           UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS


<S>                                                         <C>                 <C>                <C>                  <C>
                                                                   THREE MONTHS ENDED                       SIX MONTHS ENDED
                                                                      NOVEMBER 30,                             NOVEMBER 30,
                                                                 1999                1998               1999               1998
                                                                 ----                ----               ----               ----
REVENUES:
       Service fees                                          $4,432,021          $3,335,050          $8,506,145          $6,558,560
       Other income                                              98,604              44,386             186,620             297,714
       Interest income                                           39,929              39,086              80,258              63,484
                                                             ----------          ----------          ----------          ----------
                                                              4,570,554           3,418,522           8,773,023           6,919,758
                                                             ----------          ----------          ----------          ----------

COSTS AND EXPENSES:
       Service Fees:
              Operating                                       2,876,549           1,968,735           5,470,287           4,086,563
              Selling, general and administrative               970,951             857,058           1,909,310           1,749,881
              Depreciation and amortization                     614,172             499,191           1,186,875             938,551
              Interest expense                                   63,932              10,815             112,052              16,545
                                                             ----------          ----------          ----------          ----------

TOTAL COSTS AND EXPENSES                                      4,525,604           3,335,799           8,678,524           6,791,540
                                                             ----------          ----------          ----------          ----------

Earnings from operations before income taxes                     44,950              82,723              94,499             128,218

       Income tax expense                                        18,230              32,038              38,745              48,325
                                                             ----------          ----------          ----------          ----------

NET EARNINGS                                                 $   26,720          $   50,685          $   55,754          $   79,893
                                                             ==========          ==========          ==========          ==========

BASIC EARNINGS PER SHARE                                     $      .01          $      .02          $      .02          $      .04
                                                             ----------          ----------          ----------          ----------
DILUTED EARNINGS PER SHARE                                   $      .01          $      .02          $      .02          $      .04
                                                             ----------          ----------          ----------          ----------







                                   See notes to consolidated condensed financial statements

</TABLE>
<PAGE>
<TABLE>

                                                   SANDATA, INC. AND SUBSIDIARIES

                                 UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
<S>                                                                                     <C>                     <C>
                                                                                                  SIX MONTHS ENDED
                                                                                                    NOVEMBER 30,
                                                                                            1999                     1998
Cash flows from operating activities:
Net earnings                                                                            $    55,754             $    79,893
Adjustments to reconcile net earnings to net cash
  provided by (used in) operating activities:
     Depreciation and amortization                                                        1,186,875                 938,551
     (Gain) on disposal of fixed assets                                                    (219,973)                    ---
       Decrease (increase) in allowance for doubtful accounts receivable                    (61,831)                 18,492
     (Decrease) in deferred income                                                          (13,233)                (97,589)
     Increase in deferred revenue                                                            40,060                  40,154
     Decrease (increase) in operating assets                                                880,705                (249,422)
     (Decrease) in operating liabilities                                                 (1,187,439)               (496,569)
                                                                                         ----------              ----------
Net cash  provided by operating activities                                                  680,918                 233,510
                                                                                         ----------              ----------

Cash flows from investing activities:
     Purchases of fixed assets                                                           (3,091,039)             (2,394,082)
     Decreases in receivables from affiliates                                               289,065                 128,439
     Proceeds from sale/leaseback transaction                                             1,115,000                     ---
                                                                                         ----------              ----------

Net cash (used in) investing activities                                                  (1,686,974)             (2,265,643)
                                                                                         ----------              ----------

Cash flows from financing activities:
     Proceeds from stock transactions                                                           ---                   1,609
     Principal payments on term loan                                                            ---                 (22,296)
     Proceeds from line of credit                                                         1,800,000               1,800,000
     Principal payments on line of credit                                                (1,600,000)               (250,000)
                                                                                         ----------              ----------

Net cash provided by financing activities                                                   200,000               1,529,313
                                                                                         ----------              ----------

     (Decrease) in cash and cash equivalents                                               (806,056)               (502,820)
     Cash and cash equivalents at beginning of period                                     1,533,576               1,794,947
                                                                                         ----------              ----------
     Cash and cash equivalents at end of period                                          $  727,520              $1,292,127
                                                                                         ==========              ==========



                            See notes to consolidated condensed financial statements


</TABLE>
<PAGE>




                        SANDATA, INC. AND SUBSIDIARIES


             NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS



1.       CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

The  Consolidated   Condensed  Balance  Sheet  as  of  November  30,  1999,  the
Consolidated  Condensed  Statements  of  Operations  for the three and six month
periods  ended  November  30,  1999  and  1998  and the  Consolidated  Condensed
Statement of Cash Flows for the three and six month periods  ended  November 30,
1999 and 1998  have  been  prepared  by  Sandata,  Inc.  and  Subsidiaries  (the
"Company")  without audit. In the opinion of Management,  all adjustments (which
include  only normal,  recurring  adjustments)  necessary to present  fairly the
financial  position as of November 30, 1999 and for all periods  presented  have
been made.

For  information  concerning  the  Company's  significant  accounting  policies,
reference  is made to the  Company's  Annual  Report on Form 10-KSB for the year
ended May 31, 1999. Results of Operations for the period ended November 30, 1999
are not necessarily  indicative of the operating  results  expected for the full
year.

2.       RELATED PARTY TRANSACTIONS

The Company entered into an agreement in November, 1996 with an affiliate of the
Company's  Chairman,  the Nassau County Industrial  Development Agency ("NCIDA")
and a bank (the  "Agreement").  In connection with the Agreement,  the affiliate
assumed  all of the  Company's  obligations  under a lease  with the  NCIDA  and
entered into a sublease with the Company for its facility.  The Company conveyed
to the affiliate  the right to become owner of the facility  upon  expiration of
the lease. In addition,  pursuant to a sublease, the Company has assumed certain
obligations  owed by the  affiliate to the NCIDA under the lease.  The affiliate
has indemnified the Company with respect to certain obligations  relative to the
lease and the  Agreement.  The  Company  made  rent  payments  for its  facility
amounting to $170,266  and $340,456 for the three and six months ended  November
30, 1999 as compared to $162,090 and $324,180 for the three and six months ended
November 30, 1998.

The  Company  makes  various  lease  payments  to  affiliates  of the  Company's
Chairman. The payments for equipment rental amounted to $98,407 and $196,723 for
the three and six months  ended  November  30,  1999 as  compared to $97,232 and
$190,714 for the three and six months ended November 30, 1998.

The Company  derives  revenue from National  Medical  Health Card Systems,  Inc.
("Health Card"), a company  affiliated with the Company's Chairman of the Board,
for data base and operating system support,  hardware  leasing,  maintenance and
related  administrative  services.  The  revenues  generated  from  Health  Card
amounted to $482,986 and  $927,150  for the three and six months ended  November
30, 1999 as compared to $382,185 and $703,251 for the three and six months ended
November 30, 1998.

As of June 1, 1998,  Health Card hired 11  employees  of the Company in order to
provide  development,   enhancement,   modification  and  maintenance  services,
previously   provided  by  the  Company.   The  Company  was  paid  $208,000  in
consideration  of  the  Company's   waiving  certain  rights  relative  to  such
employees.  In addition, the Company leases certain computer equipment to Health
Card at a monthly  cost of $2,000 in addition to computer  hardware for its data
processing center at a monthly cost of $31,000 pursuant to a verbal agreement.

Medical Arts Office  Services,  Inc.  ("MAOS"),  a company  which the  Company's
Chairman  of the  Board is the  sole  shareholder,  provided  the  Company  with
accounting, bookkeeping and paralegal services. The payments made by the Company
to MAOS  amounted to $74,097  and  $133,131  for the three and six months  ended
November  30, 1999 as compared  to $59,595  and  $109,357  for the three and six
months ended November 30, 1998.

3.       NET EARNINGS PER COMMON SHARE

In 1997, the Financial Accounting Standards Board issued Standard No. 128 ("SFAS
No. 128"),  "Earnings per Share".  SFAS No. 128 replaced  calculation of primary
and fully diluted  earnings per share with basic and diluted earnings per share.
Basic earnings per share has been computed using the weighted  average number of
shares of common stock outstanding. Diluted earnings per share has been computed
using the basic weighted  average shares of common stock issued plus outstanding
stock options, in accordance with Staff Accounting Bulletin No. 98.

Basic earnings per share are based on the  weighted-average  number of shares of
common  stock  outstanding,  which  were  2,481,476  at  November  30,  1999 and
2,264,995  at November  30,  1998.  Diluted  earnings per share are based on the
weighted-average  number of shares of common  stock  adjusted for the effects of
assumed exercise of options and warrants under the treasury stock method,  which
were as follows:  2,481,476 at November  30, 1999 and  2,268,453 at November 30,
1998.

Options  to  purchase  1,099,698  shares of common  stock  were  outstanding  at
November 30, 1999 and were not included in the  computation of diluted  earnings
per share because the exercise price of the options was greater than the average
market price of the common stock for the respective period.

4.        SALE/LEASEBACK TRANSACTION

In October  1999,  the Company  consummated  a  Sale/Leaseback  of certain fixed
assets  (principally  computer  hardware,  software  and  equipment).  The fixed
assets,  which  had a net book  value of  approximately  $895,000  were sold for
$1,115,000.  The  resulting  gain of  approximately  $220,000  was  recorded  as
deferred  income and is being  recognized  over the life of the lease,  which is
thirty-six  (36) months.  Approximately  $12,000 of deferred gain was recognized
for the three  months  ended  November 30,  1999.  An  unaffiliated  third party
purchased the residual rights in such lease.

5.       STOCKHOLDERS' EQUITY

The Company has stock options  outstanding under three stock option plans. As of
November 30, 1999, there were 2,536 options outstanding under an incentive stock
option plan adopted in October 1984 and  subsequently  amended.  Options granted
under this plan were granted at exercise  prices not less than fair market value
on the date of grant.  Options  outstanding  under this plan expire in 2001.  No
additional options may be granted under this plan.

As of November 30, 1999, there were 590,500 incentive options  outstanding under
a stock option plan adopted in January 1995,  which  provides for both incentive
and nonqualified stock options and reserves 1,000,000 shares of common stock for
grant  under the plan.  The plan  requires  that  options be granted at exercise
prices not less than the fair market value at the date of grant, over a ten-year
period.  All options  outstanding  under this plan are currently  exercisable at
prices  ranging  from  $1.41 to $2.61 per share over a period of five years from
date of grant.

On July 14, 1998, Messrs. Bert E. Brodsky, Hugh Freund, Gary Stoller and Paul J.
Konigsberg,  officers and  directors of the Company,  Gerald  Shapiro,  a former
director  of the  Company  and Carol  Freund,  the spouse of Hugh  Freund and an
employee of Sandsport Data Services,  Inc.  ("Sandsport'),  the Company's wholly
owned subsidiary, exercised their respective options and warrants to purchase an
aggregate  of 921,334  shares of common  stock at exercise  prices  ranging from
$1.38 to $2.61 per share for an aggregate cost of  $1,608,861.  Payment for such
shares was made to the Company in the amount of $921  representing the par value
of the shares, and a portion in the form of non-recourse promissory notes due in
July 2001,  with  interest at eight and  one-half  percent  (8-1/2%)  per annum,
payable annually, and secured by the number of shares exercised.

In October 1998,  the Board of Directors  approved an amendment to the Company's
Certificate of Incorporation to increase the number of authorized  common shares
from 3,000,000 to 6,000,000.

In October 1998, the Company  adopted a stock option plan,  reserving  1,000,000
shares of common stock for grant under the plan. Stock options granted under the
plan may be either  incentive or  non-statutory.  As of November  30,  1999,  an
aggregate of 412,662  incentive  stock options were granted under the plan at an
exercise price of $3.00 and vest over a three-year period.  Additionally,  as of
November 30, 1999, an aggregate of 20,000 shares of non-statutory  stock options
were granted to certain  directors of the Company at an exercise price of $3.00.
These options vest immediately and are exercisable over a five-year period.



Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION



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

Results of Operations

Revenues  were  $4,570,554  and  $8,773,023  for the three and six months  ended
November 30, 1999 as compared to $3,418,522 and $6,919,758 for the three and six
months  ended   November  30,  1998,   increasing   $1,152,032   and  $1,853,265
respectively.

Service fee revenues were $4,432,021 and $8,506,145 for the three and six months
ended  November 30, 1999 as compared to $3,335,050  and $6,558,560 for the three
and six months ended  November 30, 1998,  increasing  $1,096,971  and $1,947,585
respectively.   The  increases  are   attributable  to  revenues   derived  from
SanTrax(R), SandataNET(R) and Health Card.

Other income was $98,604 and 186,620 for the three and six months ended November
30, 1999 as compared to $44,386 and  $297,714 for the three and six months ended
November 30, 1998, increasing $54,218 and decreasing $111,094 respectively.  The
decrease is  attributable  to an amount received in the prior period from Health
Card in connection with its hiring employees of the Company offset by a increase
in income recognized on sales/leaseback transactions.

Expenses Related to Services

Operating  expenses were  $2,876,549 and $5,470,287 for the three and six months
ended  November 30, 1999 as compared to $1,968,735  and $4,086,563 for the three
and six months  ended  November  30, 1998,  increasing  $907,814 and  $1,383,724
respectively.  Costs associated with SanTrax and other product lines,  including
payroll and related  expenses and equipment  rental  payments,  were the primary
factors for the increases in operating expenses.

Selling,  general and  administrative  expenses were $970,951 and $1,909,310 for
the three and six months ended  November  30, 1999,  as compared to $857,058 and
$1,749,881  for the three and six months ended November 30, 1998, an increase of
$113,893  and  $159,429  respectively.  The  increases  were  primarily  due  to
increases in consulting,  payroll and commission  expenses  relative to expanded
efforts to increase  sales in the  SanTrax and  SandataNET  product  lines,  and
certain royalties payable to MCI Communications Corporation.

Depreciation  and  amortization  expenses were $614,172 and  $1,186,875  for the
three and six months  ended  November  30,  1999 as  compared  to  $499,191  and
$938,551  for the three and six months ended  November 30, 1998,  an increase of
$114,981 and $248,324 respectively. The increases were primarily attributable to
fixed asset additions,  including computer hardware and software  capitalization
costs, in connection with ongoing computer system upgrades.

Interest  expenses  were $63,932 and $112,052 for the three and six months ended
November  30,  1999 as  compared  to $10,815  and  $16,545 for the three and six
months ended November 30, 1998, an increase of $53,117 and $95,507 respectively.
This increase was a result of increased  borrowings  on the Company's  revolving
credit agreement.

Income Tax Expenses

Income tax expenses  were $18,230 and $38,745 for the three and six months ended
November  30,  1999 as  compared  to $32,038  and  $48,325 for the three and six
months ended November 30, 1998, a decrease of $13,808 and $9,580 respectively.

 Liquidity and Capital Resources

The Company's  working  capital increased as of November 30, 1999 to $2,026,270,
as compared with $235,599 at May31, 1999.

For the six months ended November 30, 1999, the Company has spent  approximately
$3,091,000 in fixed asset additions,  including  computer  hardware and software
capitalization   costs  in  connection  with  revenue  growth  and  new  product
development.  The Company expects the current levels of capital  expenditures to
continue.

On July 14, 1998 Messrs. Bert E. Brodsky,  Hugh Freund, Gary Stoller and Paul J.
Konigsberg,  officers and  directors of the Company,  Gerald  Shapiro,  a former
director  of the  Company,  and Carol  Freund,  the spouse of Hugh Freund and an
employee of Sandsport Data Services,  Inc.  ("Sandsport"),  the Company's wholly
owned subsidiary, exercised their respective options and warrants to purchase an
aggregate  of 921,334  shares of common  stock at exercise  prices  ranging from
$1.38 to $2.61 per share for an aggregate cost of  $1,608,861.  Payment for such
shares was made to the Company in the amount of $921  representing the par value
of the shares, and a portion in the form of non-recourse promissory notes due in
July 2001,  with  interest at eight and  one-half  percent  (8-1/2%)  per annum,
payable annually, and secured by the number of shares exercised.

On April 18, 1997, the Company's  wholly owned  subsidiary,  Sandsport,  entered
into a revolving  credit  agreement  (the "Credit  Agreement")  with a bank (the
"Bank") which allows Sandsport to borrow and re-borrow amounts up to $3,000,000.
Interest  accrues on amounts  outstanding  under the Credit  Agreement at a rate
equal to the London Interbank Offered Rate plus 2% and will be paid quarterly in
arrears or, at Sandsport's option, interest may accrue at the Bank's prime rate.
The Credit Agreement required Sandsport to pay a commitment fee in the amount of
$30,000 and a fee equal to 1/4% per annum  payable on the unused  average  daily
balance of amounts under the Credit Agreement. In addition, there are other fees
and charges imposed based upon  Sandsport's  failure to maintain certain minimum
balances.  The  Credit  Agreement  will  expire on March 1,  2000.  The Bank has
approved an increase in the Credit Agreement to $4,500,000 and extended the term
an  additional  three  years.  The  Company  recorded  the  debt as a long  term
liability at November 30, 1999 as a result of the Bank  extending  the repayment
date of the Credit  Agreement.  The  indebtedness  under the Credit Agreement is
guaranteed by the Company and Sandsport's sister subsidiaries (the "Group"). The
collateral for the facility is a first lien on all equipment owned by members of
the Group,  as well as a collateral  assignment of $2,000,000 of life  insurance
payable on the life of the  Company's  Chairman.  All of the Group's  assets are
pledged  to the  Bank as  collateral  for  the  amounts  due  under  the  Credit
Agreement. The Group's guaranty to the Bank was modified to conform covenants to
comply with those in the Credit Agreement.

In addition, pursuant to the Credit Agreement, the Group is required to maintain
certain  levels of net worth and meet  certain  financial  ratios in addition to
various other  affirmative and negative  covenants.  The Group has, in the past,
failed to meet these net worth and  financial  ratios,  and the Bank has granted
the Group  waivers.  As of November 30,  1999,  the  outstanding  balance on the
Credit Agreement with the Bank was $2,700,000.

As of June 1, 1998,  Health Card hired 11  employees  of the Company in order to
provide  development,   enhancement,   modification  and  maintenance  services,
previously   provided  by  the  Company.   The  Company  was  paid  $208,000  in
consideration  of  the  Company's   waiving  certain  rights  relative  to  such
employees.  In addition, the Company leases certain computer equipment to Health
Card at a monthly  cost of $2,000 in addition to computer  hardware for its data
processing center at a monthly cost of $31,000 pursuant to a verbal agreement.

The Company believes the results of its continued operations,  together with the
available credit line should be adequate to fund presently  foreseeable  working
capital requirements.

Year 2000

The Company is Year 2000  compliant  as a result of its  conversion  from a Data
General  computer  platform to a Hewlett  Packard Unix System and the upgrade of
the application software.



<PAGE>



                           SANDATA, INC. AND SUBSIDIARIES


                            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  - EXHIBITS AND REPORTS ON FORM 8-K:

None

Exhibit 27 - Financial Data Schedule (Electronic Filing Only)




<PAGE>


                              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.



                                        SANDATA, INC.
                                        (Registrant)



Date: January 5, 2000                   By:  /s/ Bert E. Brodsky

                                             Bert E. Brodsky
                                             Chairman of the Board,
                                             President, Chief Executive Officer,
                                             and Chief Financial Officer




<PAGE>





                                                       January 13, 2000



Securities and Exchange Commission
450 5th Street, N.W.
Washington, D.C.  20549


                                          Re:   Sandata, Inc., File No. 0-14401

Dear Sir or Madam,

Transmitted  herewith  through  the EDGAR  system is Form 10-QSB for the quarter
ending November 30, 1999 for Sandata, Inc.If you have any questions or comments,
please contact me at (516)484-4400, extension 303.

                                           Very truly yours,



                                           Barbara E. Dale
                                           Paralegal