U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   FORM 10-QSB

(Mark One)

[x] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
1934 for the quarterly period ended June 30, 2000.

[ ]  Transition  report  pursuant to Section 13 or 15(d) of the Exchange act for
the transition period from to

Commission File Number:             0-20316
Avitar, Inc.

(Exact name of small business issuer as specified in its charter)

        Delaware                                     06-1174053
  -----------------------------                 ----------------------
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                   Identification No.)

65 Dan Road, Canton, Massachusetts                02021
-----------------------------------               -----
(Address of principal executive offices)         (Zip Code)

                                 (781) 821-2440
                                  -------------
                          (Issuer's telephone number)

(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. [x]Yes [ ]No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

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

                            COMMON STOCK: 29,335,260
                              AS OF AUGUST 11, 2000

Transitional Small Business Disclosure Format
(Check One):               [  ] Yes         ;        [x] No




<PAGE>



                        Page 1 of 19 pages Exhibit Index
                              is on page 17 hereof.

                                TABLE OF CONTENTS

                                                                         Page

PART I:   FINANCIAL INFORMATION                                          3

Item 1    Consolidated Financial Statements

          Balance Sheet                                                  4
          Statements of Operations                                       5
          Statement of Stockholders' Equity                              6
          Statements of Cash Flows                                       7
          Notes to Consolidated Financial Statements                     8


Item 2    Management's Discussion and Analysis or Plan of Operation      11



PART II:  OTHER INFORMATION                                              14

Item 2    Changes in Securities and Use of Proceeds                      15

Item 4    Submission of Matters to a Vote of Security Holders            15

Item 6    Exhibits and Reports on Form 8-K                               15


SIGNATURES                                                               16


EXHIBIT INDEX                                                            17



<PAGE>


                          PART I FINANCIAL INFORMATION


<PAGE>



Item 1.     FINANCIAL STATEMENTS

                         Avitar, Inc. and Subsidiaries
                           Consolidated Balance Sheet
                                 June 30, 2000
                                  (Unaudited)
--------------------------------------------------------------------------------
                                     ASSETS
                                     ------
CURRENT ASSETS:
 Cash and cash equivalents                                           $  526,355
 Accounts receivable, net                                             1,037,697
 Inventories                                                            401,788
 Prepaid expenses and other current assets                               90,645
                                                                     -----------
    Total current assets                                              2,056,485

PROPERTY AND EQUIPMENT, net                                             367,279
GOODWILL, net                                                         2,535,257
OTHER ASSETS                                                            283,085
                                                                    ------------
    Total                                                           $ 5,242,106
                                                                    ============
                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------
CURRENT LIABILITIES:
 Notes payable                                                       $  246,960
 Accounts payable                                                       981,713
 Accrued expenses                                                       646,826
 Current portion of long-term debt                                      101,508
                                                                     -----------
   Total current liabilities                                          1,977,007

LONG TERM DEBT, LESS CURRENT PORTION                                     92,765
                                                                     -----------
   Total liabilities                                                  2,069,772
                                                                     -----------
COMMITMENTS

STOCKHOLDERS' EQUITY:
  Series A, B and C convertible preferred stock, $.01
   par value; authorized 5,000,000 shares; 2,054,936
   shares issued and outstanding                                         20,549

  Common Stock, $.01 par value; authorized 75,000,000 shares;
   29,332,260 shares issued and outstanding                             293,323

  Additional paid-in capital                                         30,048,720
  Accumulated deficit                                               (26,789,395)
                                                                    ------------
                                                                      3,573,197
  Less preferred stock subscription receivable                         (400,863)
                                                                    ------------
   Total stockholders' equity                                         3,172,334
                                                                    ------------
   Total                                                           $  5,242,106
                                                                    ============



See accompanying notes to consolidated financial statements.


<PAGE>



                         Avitar, Inc. and Subsidiaries
                     Consolidated Statements of Operations
                                  (Unaudited)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                          THREE MONTHS ENDED JUNE 30,         NINE MONTHS ENDED JUNE 30,
                                          ---------------------------         --------------------------
                                             2000           1999               2000            1999
                                           ---------      ----------          ---------       -----------
<S>                                     <C>              <C>               <C>              <C>
SALES                                   $  1,306,039     $  621,105        $  2,926,248     $  1,586,621
OPERATING EXPENSES
 Cost of sales                             1,016,864        501,181           2,361,840        1,334,407
 Selling, general and
   administrative expenses                 1,471,762        661,287           3,955,885        1,430,386
 Research and development expenses           449,943        214,818           1,093,151          497,534
 Amortization of goodwill                     70,423              0             211,271                0
                                          -----------     ----------          ----------       ---------
   Total operating expenses                3,008,992      1,377,286           7,622,147        3,262,327
                                          -----------     ----------          ----------       ---------
LOSS FROM OPERATIONS                      (1,702,953)       756,181          (4,695,899)      (1,675,706)
                                          -----------     ----------         -----------      -----------
OTHER INCOME (EXPENSE)
 Interest income                               6,710         26,430              15,109           26,430
 Interest expense and financing costs        (13,940)        (27,659)           (56,365)        (117,800)
 Other income, net                             8,319          11,978             35,835           66,744
                                          -----------     -----------        -----------       -----------
   Total other income (expense)                1,089          10,749             (5,421)         (24,626)
                                          -----------     -----------        -----------       -----------
NET LOSS                               $  (1,701,864)    $  (745,432)     $  (4,701,320)   $  (1,700,332)
                                          ===========     ===========        ============     ============
BASIC AND DILUTED NET LOSS
 PER SHARE (Note 6)                         $  (0.06)       $  (0.05)          $  (0.19)        $  (0.12)
                                          ===========     ===========        ============     ============
WEIGHTED AVERAGE
  NUMBER OF COMMON SHARES OUTSTANDING     28,850,406      21,089,191         26,667,432       19,064,941
</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>


                          Avitar, Inc. and Subsidiaries
                 Consolidated Statement of Stockholders' Equity
                         Nine Months Ended June 30, 2000
                                   (Unaudited)
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                     Preferred Stock                        Common Stock
                                                                     ---------------                        ------------
                                                                Shares           Amount               Shares              Amount
--------------------------------------------------  -----------------------------------------------------------------------------

<S>                  <C> <C>                                  <C>                <C>                <C>                  <C>
Balance at September 30, 1999                                 1,720,095          $17,201            24,498,642           $244,987

Exercise of warrants and stock options                                                               3,623,118             36,231

Sales of Series C preferred stock                               445,334            4,453
Conversion of Series B preferred stock into
 common stock                                                  (121,050)          (1,211)            1,210,500             12,105

Collection of preferred stock
subscription receivable

Payment of preferred stock dividend                              10,557              106

Value of warrants issued in connection with
with Series C preferred stock

     Net loss
                                                         ----------------  ---------------  ------------------   ------------------
alance at June 30, 2000                                       2,054,936          $20,549            29,332,260           $293,323
                                                         ================  ===============  ==================   ==================
</TABLE>


(Continued)


<PAGE>
                          Avitar, Inc. and Subsidiaries
                 Consolidated Statement of Stockholders' Equity
                         Nine Months Ended June 30, 2000
                                   (Unaudited)
                                  (Continued)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                                                                               Preferred
                                                                           Common Stock            Stock
                                                        Additional          Accumulated     Subscription
                                                   paid-in capital              deficit       Receivable
-------------------------------------------------- ------------------------------------------------------

<S>                  <C> <C>                        <C>                 <C>                    <C>
Balance at September 30, 1999                       $24,450,661         ($21,718,147)          ($456,468)

Exercise of warrants and stock options                2,618,744                                  (44,395)

Sales of Series C preferred stock                     2,620,387

Conversion of Series B preferred stock into
 common stock                                           (10,894)

Collection of preferred stock
subscription receivable                                                                          100,000

Payment of preferred stock dividend                     327,184             (327,290)

Value of warrants issued in connection with
with Series C preferred stock                            42,638              (42,638)

     Net loss                                                             (4,701,320)
                                                   -------------  -------------------  ------------------

Balance at June 30, 2000                            $30,048,720         ($26,789,395)          ($400,863)
                                                   =============  ===================  ==================
</TABLE>


See accompanying notes to consolidated financial statements.


<PAGE>
                         Avitar, Inc. and Subsidiaries
                Condensed Consolidated Statements of Cash Flows
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                      NINE MONTHS ENDED JUNE 30,
                                                         2000              1999
                                                     -----------     --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                  <C>             <C>
  Net loss                                           (4,701,320)     $  (1,700,332)
  Adjustments to reconcile net loss to
    net cash used in operating activities:
      Depreciation and amortization                     130,631             97,020
      Amortization of goodwill                          211,271                  0
      Provision for losses on accounts receivable        55,000                  0
      Non-cash charges for services                           0             18,746
      Changes in operating assets and liabilities:
        Accounts receivable                            (633,838)           (73,635)
        Inventories, prepaid expenses and other
         current assets                                 115,756           (133,268)
        Other assets                                     82,986               (952)
        Accounts payable and accrued expenses           153,961           (298,753)
                                                      ----------         ----------
          Net cash used in operating activities      (4,585,553)        (2,091,174)
                                                      ----------         ----------
CASH FLOWS FROM INVESTING ACTIVITIES:

  Purchases of property and equipment                  (183,690)           (51,383)
                                                      ----------         ----------
          Net cash used in investing activities        (183,690)           (51,383)
                                                      ----------         ----------
CASH FLOWS FROM FINANCING ACTIVITIES:

  Sales of preferred stock and warrants               2,624,840          2,658,300
  Exercise of warrants and stock options              2,610,580            789,991
  Repayment of notes payable and long term debt        (320,580)           (83,690)
  Collection of preferred stock subscription
    receivable                                          100,000                  0
                                                      ----------         ----------
           Net cash provided by financing activities  5,014,840          3,364,601
                                                      ----------         ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS               245,597          1,222,044

CASH AND CASH EQUIVALENTS, beginning of the period      280,758             12,483
                                                     ----------       ------------
CASH AND CASH EQUIVALENTS, end of the period         $  526,355       $  1,234,527
                                                     ==========       ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
  Cash paid during period:
     Income taxes                                      $  2,303             $2,456
     Interest                                         $  55,835         $  117,280
</TABLE>



See accompanying notes to consolidated financial statements.


<PAGE>







                          AVITAR, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

1.       BASIS OF PRESENTATION

          Avitar,  Inc.  ("Avitar" or the "Company"),  through its  wholly-owned
     subsidiary,  Avitar  Technologies  Inc.  ("ATI")  develops,   manufactures,
     markets and sells  diagnostic  test  products and  proprietary  hydrophilic
     polyurethane foam disposables fabricated for medical,  diagnostics,  dental
     and  consumer  use.  In  Fiscal  Year  1999,  the  Company   completed  the
     development and began marketing  OralScreen(TM),  innovative  point of care
     oral fluid  drugs of abuse tests that use the  Company's  foam as the means
     for collecting the oral fluid sample.  During this fiscal year, the Company
     has added  significant new tests and enhancements to its OralScreen line of
     products.

          On July 9, 1999,  the  Company  completed  its  acquisition  of United
     States Drug Testing  Laboratories,  Inc.  ('USDTL"),  which became a wholly
     owned  subsidiary  of Avitar.  USDTL  operates a certified  laboratory  and
     provides  specialized drug testing services primarily utilizing hair as the
     sample.

          The accompanying consolidated financial statements of the Company have
     been prepared in accordance with generally accepted  accounting  principles
     for interim  financial  information,  the  instructions  to Form 10-QSB and
     Regulation S-B (including Item 310(b)  thereof).  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
     the  Company's  management,  all  adjustments  (consisting  only of  normal
     recurring accruals)  considered necessary for a fair presentation have been
     included.  Operating  results  for the three and six months  ended June 30,
     2000 are not necessarily indicative of the results that may be expected for
     the  full  fiscal  year  ending   September  30,  2000.  The   accompanying
     consolidated  financial  statements  should be read in conjunction with the
     audited  financial  statements  of the  Company  for the fiscal  year ended
     September 30, 1999.

2.       INVENTORIES

     At June 30, 2000, inventories consist of the following:

       Raw Materials                                           $164,445
       Work-in-Process                                           75,877
       Finished Goods                                           161,466
                                                              ---------
                Total                                          $401,788
                                                               ========



<PAGE>
3.       MAJOR CUSTOMERS

     Customers in excess of 10% of total sales are:

              Three Months Ended June 30,           Nine Months Ended June 30,
              ----------------------------------   ---------------------------
                    2000             1999    `           2000           1999
              --------------    -----------------  -------------   ------------

  Customer A  $299,298                    *            $552,644             *
  Customer B       **               $280,491                 **       $556,318

  Customer C       **                127,764                 **        230,799
  Customer D       **                 67,676                 **        255,708



* Customer was not in excess of 10% of total sales in 1999.
**Customer  was not in  excess of 10% of total sales in 2000.

4.       PREFERRED STOCK AND WARRANTS

     During the nine months ended June 30, 2000, the Company sold 445,334 shares
     of Series C  convertible  preferred  stock and  received  net  proceeds  of
     approximately  $2,625,000.  In  connection  with the sale of the  preferred
     stock, the Company issued to the holders of the preferred stock warrants to
     purchase  445,334 shares of the Company's  common stock at exercise  prices
     based on the fair market  value of the common stock on the date of purchase
     ranging from $2.45 to $6.05 per share and expire in three years.  The value
     of  the  warrants  issued  amounted  to  approximately   $42,600.   On  the
     anniversary  dates  of  their  investment,  the  holders  of the  Series  C
     convertible preferred stock may convert their investment into shares of the
     Company's  common stock based on the average closing price of the Company's
     common stock for the five trading days immediately prior to the date of the
     conversion.  The holders of the Series C  convertible  preferred  stock are
     entitled to receive royalty  payments which are based on 5% of the revenues
     received by the Company for disease  testing  products  that are  developed
     pursuant  to an  oral  fluid  disease  testing  development  program  to be
     undertaken by the Company.

     For  the  nine  months  ended  June  30,  2000,  holders  of the  Series  B
     convertible  preferred  stock  converted  121,050 shares of their preferred
     stock into 1,210,500 shares of the Company's common stock.  Preferred stock
     dividends related to the Series B convertible preferred stock


<PAGE>



     for the nine months ended June 30, 2000  amounted to  $244,960.  As of June
     30, 2000, the total amount of unpaid and undeclared dividends was $196,797.

5.  EXERCISE OF WARRANTS

     During the  nine-month  period  ended June 30, 2000,  the Company  received
     $2,654,975  (cash of  $2,610,583  and note  receivable  of  $44,395  with a
     maturity  date of August 31, 2000) from the  exercise of stock  options and
     warrants to purchase 3,623,118 shares of the Company's common stock.

6.  EARNINGS PER SHARE

         The  following  data show the amounts  used in  computing  earnings per
share:
<TABLE>
<CAPTION>

                                  Three Months Ended June 30,        Nine Months  Ended June 30,

                                    2000                 1999           2000               1999
                                ------------         ----------      ------------      -----------
<S>                             <C>                  <C>             <C>               <C>
 Net loss                       $(1,701,864)         $(745,432)      $(4,701,320)      $(1,700,332)
 Less:
  Preferred stock dividends         (91,023)          (135,643)       (  244,960)         (182,312)
  Accreted dividends                      -           (182,517)                -          (335,392)
  Value of warrants issued in
    connection with Series C
    preferred stock sales                 -                  -       (    42,638)                 -
                                ------------          ---------      ------------       ------------

 Loss available to common
  stockholders  used in basic
  and diluted EPS               $(1,792,887)       $(1,063,592)     $(4,988,918)       $(2,218,036)
                                ============        ===========      ===========       ============
 Weighted average number of
   common shares outstanding     28,850,406          21,089,191       26,667,432         19,064,941
                                ============        ===========      ===========       ============
</TABLE>



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

         The following  discussion  and analysis  should be read in  conjunction
with the  Company's  consolidated  financial  statements  and the notes  thereto
appearing elsewhere in this report.

RESULTS OF OPERATIONS

Revenues

         Sales for the three  months ended June 30, 2000  increased  $684,934 or
approximately 110 %, to $1,306,039 from $621,105 for the corresponding period of
the prior  year.  For the nine  months  ended  June 30,  2000,  sales  increased
$1,339,627, or approximately 84%, to $2,926,248 from $1,586,621.  The change for
the three and nine months ended June 30, 2000 primarily  reflect the increase in
sales of its  OralScreen(TM)  and wound dressing products and the sales of USDTL
of $311,516 and $879,966, respectively.

Operating Expenses

         Cost  of  sales  for  the  three   months  ended  June  30,  2000  were
approximately  78% of sales  which  compares to the cost of sales of 81% for the
three months ended June 30, 1999.  For the nine months ended June 30, 2000,  the
cost of sales were 81%  compared  to 84% of sales for the same  period of Fiscal
1999.  The changes for the quarter and nine months ended June 30, 2000  resulted
mainly from  improved  sales volume  described  above;  offset in part by higher
initial costs associated with the start-up production of wound dressing products
for a


<PAGE>



new customer and the costs related to some changes performed for certain lots of
the OralScreen products.

          Selling,  general and  administrative  expenses  for the three  months
ended June 30, 2000 increased  $810,475,  or  approximately  123%, to $1,471,762
from  $661,287  for the  corresponding  period of the prior  year.  For the nine
months  ended  June 30,  2000,  selling,  general  and  administrative  expenses
increased  $2,525,499,  or approximately 177%, to $3,955,885 from $1,430,386 for
the nine months ended June 30, 1999. The increases for the three and nine months
ended June 30, 2000  reflected the expanded  sales,  marketing,  laboratory  and
product  certification and administrative  efforts associated with the Company's
OralScreen and HairScreen  products and the selling,  general and administrative
expenses of USDTL of $155,529 and $407,636, respectively.

          Expenses for research and  development for the three months ended June
30, 2000 amounted to $449,943 compared to $214,818 for the corresponding  period
of the prior  year.  For the nine  months  ended  June 30,  2000,  expenses  for
research and  development  were  $1,093,151  versus $497,534 for the nine months
ended June 30,  1999.  The changes for the three and nine months  ended June 30,
2000 were  primarily  attributable  to the  increased  research and  development
activities related to the Company's  OralScreen  products and oral fluid disease
testing applications.

          For the three months and nine months ended June 30, 2000, amortization
of goodwill  resulting  from the Company's  acquisition of USDTL was $70,423 and
$211,271,   respectively.  No  amortization  of  goodwill  occurred  during  the
corresponding periods of Fiscal 1999.

     Other Income and Expense

         Interest  income  for the three and nine  months  ended  June 30,  2000
amounted to $6,710 and  $15,109,  respectively,  compared to interest  income of
$26,430 for the three and nine months ended June 30, 1999.  The change  resulted
primarily from the decrease in interest earned on cash management accounts.

         Interest  expense and financing costs were $13,940 for the three months
ended June 30, 2000 compared to $27,659  incurred  during the three months ended
June 30, 1999.  For the nine months ended June 30,  2000,  interest  expense and
financing costs  decreased  $61,435 to $56,365 from $117,800 for the same period
in the prior year.  These  decreases were mainly the result of reduced  interest
expense on bank advances and loans from related parties.

          For the three  months ended June 30,  2000,  other income  amounted to
$8,319 as compared to other  income of $11,978 for the three  months  ended June
30,  1999.  Other  income for the nine  months  ended June 30,  2000 was $35,835
versus $66,744 for the corresponding period of the prior year. The decreases for
the three and nine  months  ended  June 30,  2000 were  mainly a result of lower
rental income from the lease of excess square feet in the Company's facility.

<PAGE>




Net Loss

         Primarily as a result of the factors described above, the Company had a
net loss of $1,701,864, $ .06 per basic and diluted share, for the quarter ended
June 30, 2000, as compared to net loss of $745,432,  $ .05 per basic and diluted
share,  for the quarter ended June 30, 1999.  For the nine months ended June 30,
2000,  the  Company  has a net loss of  $4,701,320,  $.19 per basic and  diluted
share,  versus a net loss of $1,700,332,  $.12 per basic and diluted share,  for
the nine months ended June 30, 1999.

FINANCIAL CONDITION AND LIQUIDITY

         At June 30,  2000 and  September  30,  1999 the  Company  had  working
capital  (deficit) of $79,478 and  ($738,755),  respectively,  and cash and cash
equivalents of $526,355 and $280,758,  respectively.  Net cash used in operating
activities  during the nine months  ended June 30, 2000  amounted to  $4,585,553
resulting  primarily  from a net loss of $4,701,320  and an increase in accounts
receivable of $633,838;  partially  offset by depreciation  and  amortization of
$130,631,  amortization  of goodwill  of  $211,271,  a  provision  for losses on
accounts receivable of $55,000, a decrease in prepaid expenses and other current
assets of  $115,756,  a decrease  in other  assets of $82,986 and an increase in
accounts  payable  and  accrued  expenses  of  $153,961.  Net cash  provided  by
financing  and investing  activities  during the nine months ended June 30, 2000
amounted to $4,831,150 which included  proceeds from the sale of preferred stock
and warrants (including the collection of subscription receivable) of $2,724,840
and  proceeds  from the exercise of stock  options and  warrants of  $2,610,580;
offset in part by the  repayment of notes payable and long term debt of $320,580
and purchases of property and equipment of $183,690.

         Since  October 1999,  the Company  received  proceeds of  approximately
$2,625,000  from the sale of 445,334  shares of Series C  Convertible  Preferred
Stock and of warrants to purchase  445,334 shares of the Company's  common stock
at exercise prices of $2.45 -$6.05 per share for a period of three years. During
the same period the Company received proceeds of approximately  $2,655,000 (cash
of $2,611,000 and note  receivable of $44,000 with a maturity date of August 31,
2000) from the  exercise  of stock  options and  warrants to purchase  3,623,118
shares of the  Company's  common stock.  By the end of August 2000,  the Company
expects proceeds of approximately  $1,000,000 from the exercise of the remaining
warrants  issued in connection  with the Series B convertible  preferred  stock.
Currently,  all such  warrants  are in the money.  In the  future,  the  Company
intends  to raise  up to  $10,000,000  from the  sales  of  equity  and/or  debt
securities.  The Company  plans to use the proceeds  from these  financings  and
warrant  exercises to provide the working capital and capital  equipment funding
to operate the Company, to expand the Company's business, to further develop and
enhance the OralScreen and HairScreen drug screening systems,  to fund strategic
acquisitions and to pursue the development of oral fluid diagnostic  testing for
diseases.  However,  there can be no  assurance  that these  financings  will be
achieved or that the remaining warrants will be exercised.

         For the balance of fiscal year 2000,  the Company's  cash  requirements
are expected to include primarily the funding of operating  losses,  the payment
of outstanding accounts payable,


<PAGE>



the repayment of certain notes payable, the funding of operating capital to grow
the  Company's  drugs of abuse  testing  products,  the initial  funding for the
development  of oral fluid  diagnostic  testing  products  for  diseases and the
exploration  and funding of  acquisitions  that  accelerate the expansion of the
Company.

         Operating  revenues of the Company  (exclusive  of revenues from USDTL)
grew  approximately  29%  during the first  nine  months of Fiscal  2000 and are
expected to grow at a more rapid pace during the remainder of Fiscal 2000 as the
Company  expands its shipments of new and enhanced  OralScreen(TM)  products and
grows the  business  of USDTL.  Based on current  sales,  expense  and cash flow
projections,  the Company believes that the current level of cash and short-term
investments  on hand and, most  importantly,  a portion of the  anticipated  net
proceeds  from  the  financing  mentioned  above  would  be  sufficient  to fund
operations until the Company achieves  profitability.  There can be no assurance
that the Company will consummate the above- mentioned financing,  or that all of
the  proceeds  expected  from the  financing  or exercise  of  warrants  will be
obtained.  Once  the  Company  achieves  profitability,   the  longer-term  cash
requirements  of the  Company to fund  operating  activities,  purchase  capital
equipment, expand the existing business and develop new products are expected to
be met by the  anticipated  cash  flow from  operations  and  proceeds  from the
financing and warrant exercises described above.  However,  because there can be
no  assurances  that sales  will  materialize  as  forecasted,  management  will
continue to closely monitor and attempt to control costs at the Company and will
continue to actively seek additional capital as necessary.

Year 2000 Impact

         Many currently  installed  computer  systems and software  products are
coded to accept or  recognize  only two digit  entries  in the date code  field.
These  systems and software  products  will need to accept four digit entries to
distinguish  21st century dates from 20th century dates.  As a result,  computer
systems  and/or  software used by many companies and  governmental  agencies may
need to be upgraded to comply  with such Year 2000  requirements  or risk system
failure or miscalculations causing disruptions of normal business activities.

         The  Company has  completed  its review  concerning  the ability of its
internal  information  systems,  including its internal  accounting  systems, to
handle date  information  and function  appropriately  from and after January 1,
2000.  The  final  step to  become  Year  2000  compliant,  which  involves  the
implementation  of new  software  at USDTL,  is  underway  and is expected to be
complete by September 30, 2000.


<PAGE>
                           PART IIOTHER INFORMATION

ITEM 2.                    CHANGE IN SECURITIES AND USE OF PROCEEDS

During the quarter ended June 30, 2000, the Company issued  1,160,893  shares of
common stock in  connection  with the exercise of warrants for which it received
proceeds of $786,794.  The exemption  for  registration  of these  securities is
based upon Section 4(2) of the Securities Act.


ITEM 4            SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
------            ---------------------------------------------------
        At the  Annual  meeting  held on June 14,  2000,  the  entire  Board of
Directors was  re-elected  and the  selection of BDO Seidman LLP as  independent
auditors was ratified. All the Board members received at least 23,768,616 votes,
while 26,614 votes were against or withheld and there were 2,150 abstentions and
broker non-votes. The ratification of auditors received 23,719,015 votes, 21,145
votes against or withheld and 55,070 abstentions and broker non-votes.

ITEM 6.                    EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:


Exhibit No.     Document

27.4            Financial Data Schedule

(b)             Reports on Form 8-K:

         None

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                  AVITAR, INC.
                                 (Registrant)


Dated:  August 14, 2000           /S/ Peter P. Phildius
                                  ---------------------
                                  Peter P. Phildius
                                  Chairman and Chief
                                  Executive Officer
                                  (Principal Executive Officer)



Dated:  August 14, 2000           /S/ J.C. Leatherman, Jr.
                                  ------------------------
                                  J.C. Leatherman, Jr.
                                  Chief Financial Officer
                                  (Principal Accounting and
                                  Financial Officer)

                                                   EXHIBIT INDEX

Exhibit No.            Document                                       Page
-----------            --------
27.4                   Financial Data Schedule                         18