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 March 31, 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: 28,764,367
                               AS OF MAY 12, 2000

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


<PAGE>

                                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 6  Exhibits and Reports on Form 8-K                               15

SIGNATURES                                                                16

EXHIBIT INDEX                                                             17
<PAGE>

PART I   FINANCIAL INFORMATION

Item 1.     FINANCIAL STATEMENTS

                          Avitar, Inc. and Subsidiaries
                           Consolidated Balance Sheet
                                 March 31, 2000
                                   (Unaudited)

   ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                          $1,488,213
Accounts receivable, net                                              716,685
Inventories                                                           425,358
Prepaid expenses and other current assets                             107,202
                                                                  ------------
Total current assets                                                2,737,458

PROPERTY AND EQUIPMENT, net                                           345,350
GOODWILL, net                                                       2,605,681
 OTHER ASSETS                                                         293,665
                                                                  ------------
        Total                                                      $5,982,154
                                                                  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
Notes payable                                                        $335,699
Accounts payable                                                      756,358
Accrued expenses                                                      486,570
Current portion of long-term debt                                     109,317
                                                                  ------------
Total current liabilities                                           1,687,944

LONG TERM DEBT, LESS CURRENT PORTION                                  115,248

                                                                  ------------
Total liabilities                                                   1,803,192
                                                                  ------------

  COMMITMENTS

STOCKHOLDERS' EQUITY:
Series A, B and C convertible preferred stock,
 $.01 par value; authorized 5,000,000 shares;
 2,063,348 shares issued and outstanding                               20,634
Common Stock, $.01 par value; authorized 75,000,000 shares;
 28,032,187 shares issued and outstanding                             280,322
Additional paid-in capital                                         29,190,675
Accumulated deficit                                               (24,956,201)
                                                                  ------------
                                                                    4,535,430
Less preferred stock subscription receivable                         (356,468)
                                                                  ------------
Total stockholders' equity                                          4,178,962
                                                                  ------------
        Total                                                      $5,982,154
                                                                  ============




See accompanying notes to consolidated financial statements.

<PAGE>

                          Avitar, Inc. and Subsidiaries
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                        THREE MONTHS ENDED MARCH 31,       SIX MONTHS ENDED MARCH 31,
                                                      ------------------------------      ----------------------------
                                                           2000           1999              2000               1999
                                                      ------------------------------      ----------------------------

<S>                                                      <C>             <C>             <C>                <C>
        SALES                                            $812,545        $481,419        $1,620,209         $965,516
                                                      ------------       ---------       -----------        ---------
OPERATING EXPENSES
Cost of sales                                             719,526         364,957         1,344,976          833,226
Selling, general and administrative expenses            1,492,196         428,359         2,484,123          769,099
Research and development expenses                         316,999         157,986           643,208          282,716
Amortization of goodwill                                   70,424              --           140,848               --
                                                      ------------    ------------     -------------     ------------
Total operating expenses                                2,599,145         951,302         4,613,155        1,885,041
                                                      ------------    ------------     -------------     ------------

INCOME (LOSS) FROM OPERATIONS                          (1,786,600)       -469,883        (2,992,946)        -919,525
                                                      ------------    ------------     -------------     ------------

OTHER INCOME (EXPENSE)
Interest income                                             1,669               0             8,399                0
Interest expense and financing costs                      (13,693)        -48,278           (42,425)         (90,141)
Other income, net                                           9,516          30,756            27,516           54,766
                                                      ------------                     -------------    -------------
Total other income (expense)                               (2,508)        -17,522            (6,510)         (35,375)
                                                      ------------    ------------     -------------    -------------

NET LOSS                                              $(1,789,108)      $(487,405)      $(2,999,456)       $(954,900)
                                                      ============    ============     =============    =============

BASIC AND DILUTED NET LOSS PER SHARE (Note 6)              $(0.08)         ($0.03)           $(0.13)          $(0.06)
                                                      ============    ============     =============    =============

WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING                    26,423,839      18,558,353        25,581,927       18,028,977
                                                      ============    ============     =============    =============
</TABLE>



See accompanying notes to consolidated financial statements.

<PAGE>

                          Avitar, Inc. and Subsidiaries
                 Consolidated Statement of Stockholders' Equity

                         Six Months Ended March 31, 2000
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                  Preferred Stock                 Common Stock
                                                                                                          Additional
                                               Shares       Amount           Shares        Amount       paid-in capital
--------------------------------------------------------------------------------------------------------------------------

<S>                  <C> <C>                <C>            <C>            <C>              <C>              <C>
Balance at September 30, 1999               1,720,095      $17,201        24,498,642       $244,987         $24,450,661

Exercise of warrants and stock options                                     2,462,225         24,622           1,843,562

Sales of Series C preferred stock             445,334        4,453                                            2,667,547

Conversion of Series B preferred stock
 into common stock                           (107,132)      (1,071)        1,071,320         10,713             (9,642)

Collection of preferred stock
subscription receivable

Payment of preferred stock dividend             5,051           51                                             195,909

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

     Net loss
                                         -------------  -----------    --------------   ------------  ------------------
Balance at March 31, 2000                   2,063,348      $20,634        28,032,187       $280,322         $29,190,675
                                         =============  ===========    ==============   ============  ==================
</TABLE>

(Continued on next page)

<PAGE>
                          Avitar, Inc. and Subsidiaries
                 Consolidated Statement of Stockholders' Equity
                                  (continued)
                         Six Months Ended March 31, 2000
                                   (Unaudited)

                                                                   Preferred
                                                                      Stock
                                                    Accumulated     Subscription
                                                      deficit       Receivable
--------------------------------------------------------------------------------

Balance at September 30, 1999                    ($21,718,147)      ($456,468)

Exercise of warrants and stock options

Sales of Series C preferred stock

Conversion of Series B preferred stock
 into common stock

Collection of preferred stock
subscription receivable                                               100,000

Payment of preferred stock dividend                  (195,960)

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

     Net loss                                     (2,999,456)
                                                --------------     ------------

Balance at March 31, 2000                        ($24,956,201)      ($356,468)
                                                ==============     ============




See accompanying notes to consolidated financial statements.

<PAGE>
                          Avitar, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited
<TABLE>
<CAPTION>
                                                                             SIX MONTHS ENDED MARCH 31,
                                                                          -------------------------------
                                                                             2000                1999
                                                                          ---------            ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                    <C>                     <C>
Net loss                                                               $(2,999,456)            $(954,900)
Adjustments to reconcile net loss to
 net cash used in operating activities:
  Depreciation and amortization                                             83,367                64,680
  Amortization of goodwill                                                 140,848                    --
  Provision for losses on accounts receivable                               55,000                    --
  Non-cash charges for services                                                 --                18,746
  Changes in operating assets and liabilities:
    Accounts receivable                                                   (312,826)              (70,772)
    Prepaid expenses and other current assets                               75,629                (9,266)
    Other assets                                                            72,406                    --
    Accounts payable and accrued expenses                                 (231,650)             (206,341)
                                                                       ------------          ------------
             Net cash used in operating activities                      (3,116,682)           (1,157,853)
                                                                       ------------          ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment                                       (114,498)              (13,936)
                                                                       ------------           ------------
             Net cash used in investing activities                        (114,498)              (13,936)
                                                                       ------------           ------------

CASH FLOWS FROM FINANCING ACTIVITIES:

Sales of preferred stock and warrants                                    2,772,000              1,278,500
Exercise of warrants and stock options                                   1,868,184                296,850
Repayment of notes payable and long term debt                             (201,549)               (80,125)

                                                                       ------------           ------------
             Net cash provided by financing activities                   4,438,635              1,495,225
                                                                       ------------           ------------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                1,207,455                323,436

CASH AND CASH EQUIVALENTS, beginning of the period                         280,758                 12,483
                                                                       ------------           ------------

CASH AND CASH EQUIVALENTS, end of the period                            $1,488,213               $335,919
                                                                       ============           ============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during period:
 Income taxes                                                                   $0                 $2,456
     Interest                                                              $63,851                $89,787
</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.  During  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.

         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 March 31,
     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 March 31, 2000, inventories consist of the following:

           Raw Materials                 $145,529
           Work-in-Process                 78,079
           Finished Goods                 201,750
                                         ---------
                    Total                $425,358
                                          ========









3.   MAJOR CUSTOMERS

     Customers in excess of 10% of total sales are:
<TABLE>
<CAPTION>

                                 Three Months Ended March 31,         Six Months Ended March 31,
                              --------------------------------        ---------------------------
                                 2000                1999              2000           1999
                              -----------       ------------         ---------     ---------

<S>                            <C>                                   <C>             <C>
         Customer A            $253,346                 *            $253,346               *
         Customer B                  **          $141,293                  **        $275,827
         Customer C                  **            72,678                  **         188,032
         Customer D                  **            77,993                  **         103,035
         Customer E                  **            61,073                  **          99,380
</TABLE>

* 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 six months ended March 31, 2000, the Company sold 445,334 shares
     of  Series  C  convertible   preferred  stock  and  received   proceeds  of
     approximately  $2,672,000.  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 Company's 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 six months ended March 31, 2000 holders of the Series B convertible
     preferred  stock  converted  107,132 shares of their  preferred  stock into
     1,071,320 shares of the Company's  common stock.  Preferred stock dividends
     related  to the  Series B  convertible  preferred  stock for the six months
     ended March 31, 2000 amounted to $264,662.  As of March 31, 2000, the total
     amount of unpaid and undeclared dividends was $237,104.

5.  EXERCISE OF WARRANTS

     During the  six-month  period  ended March 31, 2000,  the Company  received
     approximately $1,868,000 from the exercise of stock options and warrants to
     purchase 2,462,225 shares of the Company's common stock.

6.  EARNINGS PER SHARE

     The following data show the amounts used in computing earnings per share:

               Three Months Ended March 31, Six Months Ended March 31,
<TABLE>
<CAPTION>

                                        2000                1999               2000               1999
                                   -------------         -----------        ------------       ----------
<S>                                 <C>                  <C>                <C>                <C>
Net loss                            $(1,789,108)         $(487,405)         $(2,999,456)       $(954,900)
Less:
 Preferred stock dividends             (198,367)           (46,449)            (264,662)         (46,449)
 Accreted dividends                           -           (152,875)                   -         (152,875)
 Value of warrants issued in
  connection with Series C
  preferred stock sales                 (30,638)                 -              (42,638)               -
                                    ------------         ----------          -----------        ----------
Loss available to common
 stockholders  used in basic and
 diluted EPS                        $(2,018,113)         $(686,729)         $(3,306,756)     $(1,154,224)
                                    ============         ==========         ============     =============

Weighted average number of
 common shares outstanding           26,423,839         18,558,353           25,581,927       18,028,977
                                    ============        ===========         ============     =============
</TABLE>

<PAGE>

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  March 31,  2000  increased  $331,126 or
approximately  69 %, to $812,545 from $481,419 for the  corresponding  period of
the prior  year.  For the six  months  ended  March 31,  2000,  sales  increased
$654,693, or approximately 68%, to $1,620,209 from $965,516.  The change for the
three and six months  ended March 31,  2000  primarily  reflect the  increase in
sales of its  OralScreen(TM)  and wound dressing products and the sales of USDTL
of $280,517 and $568,450, respectively.

Operating Expenses

     Cost of sales for the three months ended March 31, 2000 were  approximately
89% of sales  which  compares  to the cost of sales of 76% for the three  months
ended March 31, 1999. For the six months ended March 31, 2000, the cost of sales
were 83%  compared  to 86% of sales  for the same  period of  Fiscal  1999.  The
decline for the quarter ended March 31, 2000 resulted mainly from higher initial
costs associated with the start-up  production of wound dressing  products for a
new customer and the costs related to some changes performed for certain lots of
the  OralScreen  products.  For  the  six  months  ended  March  31,  2000,  the
improvement  in the ratio of cost to sales was  primarily due to the increase in
sales described above.

     Selling,  general and  administrative  expenses  for the three months ended
March 31, 2000 increased  $1,063,837,  or approximately 248%, to $1,492,196 from
$428,359  for the  corresponding  period of the prior  year.  For the six months
ended March 31, 2000,  selling,  general and  administrative  expenses increased
$1,715,024,  or  approximately  223%,  to  $2,484,123  from $769,099 for the six
months  ended March 31,  1999.  The  increase for the three and six months ended
March 31, 2000  reflected  the  expanded  sales,  marketing  and  administrative
efforts associated with the Company's  OralScreen and HairScreen  products,  the
selling,  general and administrative expenses of USDTL of $252,107 and increases
in provision for losses on accounts receivable of $55,000.

     Expenses for research and  development for the three months ended March 31,
2000 amounted to $316,999 compared to $157,986 for the  corresponding  period of
the prior year.  For the six months ended March 31, 2000,  expenses for research
and development were $643,208 versus $282,716 for the six months ended March 31,
1999.  The change for the three and six months ended March 31,2000 was 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 six months ended March 31, 2000,  amortization  of
goodwill which resulted from the Company's  acquisition of USDTL was $70,424 and
$140,848,   respectively.  No  amortization  of  goodwill  occurred  during  the
corresponding periods of Fiscal 1999.

     Other Income and Expense

     Interest  income for the three and six months ended March 31, 2000 amounted
to $1,669 and $8,399, respectively. No interest income was recorded for the same
periods of the prior year.  The increase  resulted  primarily  from the interest
earned on cash management accounts.

     Interest  expense and  financing  costs were  $13,693 for the three  months
ended March 31, 2000 compared to $48,278  incurred during the three months ended
March 31, 1999.  For the six months ended March 31, 2000,  interest  expense and
financing costs  decreased  $47,716 to $42,425 from $90,141 for the same periods
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 March 31, 2000,  other income amounted to $9,516
as compared  to other  income of $30,756  for the three  months  ended March 31,
2000.  Other income for the six months  ended March 31, 2000 was $27,516  versus
$54,766 for the  corresponding  period of the prior year.  The  decrease for the
three and six months  ended  March 31,  2000 is mainly a result of lower  rental
income  from the lease of  excess  square  feet in the  Company's  facility  and
royalty expenses associated with the sales of OralScreen products.

     Net Loss

     Primarily as a result of the factors described above, the Company had a net
loss of  $1,789,108,  $ .08 per basic and diluted  share,  for the quarter ended
March 31, 2000, as compared to net loss of $487,405, $ .03 per basic and diluted
share,  for the quarter ended March 31, 1999. For the six months ended March 31,
2000,  the  Company  has a net loss of  $2,999,456,  $.13 per basic and  diluted
share,  versus a net loss of $954,900,  $.06 per basic and diluted share for the
six months ended March 31, 1999.

     FINANCIAL CONDITION AND LIQUIDITY

     At March 31, 2000 and  September  30, 1999 the Company had working  capital
(deficit)  of  $1,049,514  and  ($738,755),  respectively,  and  cash  and  cash
equivalents of $1,488,213 and $280,758 respectively.  Net cash used in operating
activities  during the six months  ended March 31, 2000  amounted to  $3,116,682
resulting  primarily  from a net loss of  $2,999,456,  an  increase  in accounts
receivable of $312,826 and a decrease in accounts  payable and accrued  expenses
of $231,650;  partially  offset by  depreciation  and  amortization  of $83,367,
amortization  of  goodwill  of  $140,848,a  provision  for  losses  on  accounts
receivable of $55,000,  a decrease in prepaid  expenses and other current assets
of $75,629  and a decrease  in other  assets of  $72,406.  Net cash  provided by
financing  and investing  activities  during the six months ended March 31, 2000
amounted to $4,324,137 which included  proceeds from the sale of preferred stock
and warrants (including the collection of subscription receivable) of $2,772,000
and  proceeds  from the exercise of stock  options and  warrants of  $1,868,184;
offset in part by the  repayment of notes payable and long term debt of $201,549
and purchases of property and equipment of $114,498.

     Since  October  1999,  the  Company  received   proceeds  of  approximately
$2,672,000  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  $1,868,000 from
the exercise of stock options and warrants to purchase  2,462,225  shares of the
Company's  common stock. By the end of May 2000, the Company expects proceeds of
approximately  $1,000,000  to  $1,500,000  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  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 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,  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
9% during the first half of Fiscal 2000 and are expected to grow at a more rapid
pace during the remainder of Fiscal 2000 as the Company begins  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 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 June 30, 2000.
<PAGE>


 PART II     OTHER INFORMATION

ITEM 2.      CHANGE IN SECURITIES AND USE OF PROCEEDS

     During the  quarter  ended  March 31,  2000,  the  Company  sold to private
investors  320,001 shares of Series C Convertible  Preferred  Stock and received
cash proceeds of approximately  $1,920,000.  In connection with the sale of this
preferred  stock,  the  Company  issued to the  holders of the  preferred  stock
warrants to purchase 320,001 shares of the Company's common stock at an exercise
price  of $4.50  to  $6.05  per  share  for a  period  of  three  years.  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.  In addition the
Company issued  1,962,225 shares of common stock in connection with the exercise
of warrants  for which it received  proceeds of  approximately  $1,672,280.  The
exemption for registration of these securities is based upon Section 4(2) of the
Securities Act.

ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits:

Exhibit No.             Document

27.3                    Financial Data Schedule


(b)   Reports on Form 8-K:

         None


<PAGE>

                                  EXHIBIT INDEX

===============================================================================


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

<PAGE>




                                   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:  May 15, 2000              /S/ Peter P. Phildius
                                  ---------------------
                                  Peter P. Phildius
                                  Chairman and Chief
                                  Executive Officer
                                  (Principal Executive Officer)



Dated:  May 15, 2000              /S/ J.C. Leatherman, Jr.
                                  ------------------------
                                  J.C. Leatherman, Jr.
                                  Chief Financial Officer
                                  (Principal Accounting and
                                  Financial Officer)