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, 2002.

[  ]  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 Identification No.)
incorporation or organization)

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: 44,603,647
                               AS OF MAY 10, 2002

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



                               Page 1 of 17 pages
<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                                                   15

 Item 2  Changes in Securities and Use of Proceeds                           16


 Item 6  Exhibits and Reports on Form 8-K                                    16


SIGNATURES                                                                   17
<PAGE>

                          PART I FINANCIAL INFORMATION

Item 1.     FINANCIAL STATEMENTS

                          Avitar, Inc. and Subsidiaries
                           Consolidated Balance Sheet
                                      03/31
                                   (Unaudited)
--------------------------------------------------------------------------------

ASSETS
CURRENT ASSETS:
Cash and cash equivalents                                             $930,383
Accounts receivable, net                                             1,191,623
  Inventories                                                          264,340
Prepaid expenses and other current assets                              158,787
                                                               ----------------
Total current assets                                                 2,545,133

PROPERTY AND EQUIPMENT, net                                            448,151
GOODWILL, net                                                        2,294,551
 OTHER ASSETS                                                          130,329
                                                               ----------------
 Total Assets                                                       $5,418,164
                                                               ================

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable                                                         $221,424
Accounts payable                                                     1,380,588
Accrued expenses                                                       704,103
Current portion of long-term debt                                       37,359
                                                               ----------------
Total current liabilities                                            2,343,474

LONG TERM DEBT, LESS CURRENT PORTION                                    34,594
                                                               ----------------
Total liabilities                                                    2,378,068
                                                               ----------------

  COMMITMENTS

STOCKHOLDERS' EQUITY:
Series A, B, C and D convertible preferred stock,
 $.01 par value; authorized 5,000,000 shares;
 1,729,929 shares issued and outstanding                                17,299
Common Stock, $.01 par value; authorized 100,000,000
 shares; 44,603,647 shares issued and outstanding                      446,036
Additional paid-in capital                                          42,031,932
Accumulated deficit                                                (39,394,530)
                                                               ----------------
                                                                     3,100,737
Less preferred stock subscription receivable                           (60,641)
                                                               ----------------
Total stockholders' equity                                           3,040,096
                                                               ----------------
Total Liabilities and Stockholders' Equity                          $5,418,164
                                                               ================


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,
                                                -----------------------------------------------------------------------------------
                                                        2002                 2001                    2002               2001
                                                   ---------------       -------------       -----------------     ------------
<S>                                                   <C>                  <C>                     <C>               <C>
SALES                                                 $2,231,119           $1,229,578              $5,473,533        $2,398,914
                                                   --------------        -------------       -----------------     -------------

OPERATING EXPENSES
Cost of sales                                          1,509,049              803,993               3,146,890         1,688,211
Selling, general and administrative expenses           1,599,040            1,433,364               3,107,958         2,813,363
Research and development expenses                        275,035              510,170                 667,190           944,883
Amortization of goodwill                                  77,498               73,424                 154,996           143,848
                                                   --------------       --------------          --------------     -------------

Total operating expenses                               3,460,622            2,820,951               7,077,034         5,590,305
                                                   --------------       --------------          --------------     -------------

LOSS FROM OPERATIONS                                  (1,229,503)          (1,591,373)             (1,603,501)       (3,191,391)
                                                   --------------       --------------          --------------     -------------

OTHER INCOME (EXPENSE)
Interest income                                                0                  587                       0               733
Interest expense and financing costs                     (19,218)             (15,642)                (39,793)          (25,575)
Other income (expense), net                                3,536               (1,212)                 19,703            (1,924)
                                                   --------------       --------------          --------------     -------------

Total other expense, net                                 (15,682)             (16,267)                (20,090)          (26,766)
                                                   --------------       --------------          --------------     -------------

     NET LOSS                                        $(1,245,185)         $(1,607,640)            $(1,623,591)      $(3,218,157)
                                                   ==============       ==============          ==============     =============

BASIC AND DILUTED NET LOSS PER SHARE (Note 5)             $(0.03)              ($0.09)                 ($0.04)           $(0.18)
                                                   ==============       ==============          ==============     =============

WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING                   42,638,768           32,266,751              40,706,019        31,543,808
                                                   ==============       ==============          ==============     =============
</TABLE>

          See accompanying notes to consolidated financial statements.

<PAGE>
                          Avitar, Inc. and Subsidiaries
                 Consolidated Statement of Stockholders' Equity
                         Six Months Ended March 31, 2002
                                   (Unaudited)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                            Preferred Stock                    Common Stock
                                                        Shares          Amount            Shares         Amount
-----------------------------------------------------------------     ------------    -------------    -------------
<S>                                                   <C>                <C>            <C>              <C>
Balance at September 30, 2001                         2,203,690          $22,036        36,564,342       $365,643

Issuance of common stock for services                                                       42,169            422

Sale of common stock and warrants                             0              0.0         1,909,684         19,097

Exercise of stock options and warrants                        0              0.0         2,319,734         23,197

Conversion of Series B, C and Series D
preferred stock into common stock                      (495,859)          (4,958)        3,767,718         37,677

Payment of preferred stock dividend, Series
B preferred stock                                        22,098              221                 0              0

     Net loss                                                 0                0                 0              0
----------------------------------------------------------------   --------------  ----------------  -------------

Balance at March 31, 2002                             1,729,929          $17,299        44,603,647       $446,036
----------------------------------------------------------------   --------------  ----------------  -------------
</TABLE>

<PAGE>
                          Avitar, Inc. and Subsidiaries
                 Consolidated Statement of Stockholders' Equity
                         Six Months Ended March 31, 2002
                                   (Unaudited)
                                  (continued)
<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------
                                                                                               Preferred
                                                                                                Stock
                                                         Additional         Accumulated      Subscription
                                                       paid-in capital          deficit        Receivable
-----------------------------------------------------------------------------------------  ----------------
<S>                                                      <C>                <C>                   <C>
Balance at September 30, 2001                            $39,338,443        ($37,592,117)         ($60,641)

Issuance of common stock for services                         26,478

Sale of common stock and warrants                          1,286,903                   0                 0

Exercise of stock options and warrants                     1,234,226                   0                 0

Conversion of Series B, C and Series D
preferred stock into common stock                            (32,719)                  0                 0

Payment of preferred stock dividend, Series
B preferred stock                                            178,601            (178,822)                0

     Net loss                                                      0          (1,623,591)                0
---------------------------------------------------------------------  ------------------  ----------------

Balance at March 31, 2002                                $42,031,932        ($39,394,530)         ($60,641)
---------------------------------------------------------------------  ------------------  ----------------
</TABLE>


          See accompanying notes to consolidated financial statements.


<PAGE>
                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                          SIX MONTHS ENDED MARCH 31,
                                                                   ------------------------------------
                                                                           2002                2001
                                                                   ------------------------------------
<S>                                                                   <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

     Net loss                                                         $(1,623,591)           $(3,218,157)
Adjustments to reconcile net loss to
 net cash used in operating activities:
  Depreciation and amortization                                           107,729                 74,947
  Amortization of goodwill                                                154,996                143,848
  Gain from sale of equity investment and equipment                       (18,943)                     0
  Payment of common stock for services                                     26,900                      0
  Provision for losses on accounts receivable                              12,132                (62,875)
  Changes in operating assets and liabilities:
     Accounts receivable                                                  113,003                (89,079)
     Inventories                                                         (19,982)               192,522
     Prepaid expenses and other current assets                              1,535                (21,487)
     Other assets                                                          18,227                101,256
     Accounts payable and accrued expenses                               (181,558)                65,351
     Deferred revenue                                                    (385,000)                     0
                                                                       -----------           ------------
     Net cash used in operating activities                             (1,794,552)            (2,813,674)
                                                                       -----------           ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment                                      (114,043)               (31,599)
Acquisition of BJR Security, Inc.                                               0                (50,000)
Proceeds from sale of equity investment                                    24,391                      0
Proceeds from sale of equipment                                             7,500                      0
                                                                       -----------           -------------
     Net cash used in investing activities                                (82,152)               (81,599)
                                                                       -----------           -------------

CASH FLOWS FROM FINANCING ACTIVITIES:

Sales of common stock, preferred stock and warrants                     1,306,000              3,036,297
Exercise of warrants and stock options                                  1,257,423                 17,625
Stock subscription receivable                                              35,000                 42,228
Proceeds from (repayment of) notes payable and long-term debt             (36,745)                29,010

                                                                       -----------           ------------
     Net cash provided by financing activities                          2,561,678              3,125,160
                                                                      -----------            ------------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                 684,974                229,887

CASH AND CASH EQUIVALENTS, beginning of the period                        245,409                 82,313
                                                                       -----------           -------------

CASH AND CASH EQUIVALENTS, end of the period                             $930,383               $312,200
                                                                       ===========           =============

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during period:
 Income taxes                                                              $5,308                     $0
     Interest                                                             $12,734                $21,331
</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
     subsidiaries,  Avitar Technologies Inc. ("ATI"), United States Drug Testing
     Laboratories,  Inc.  ("USDTL") and BJR Security,  Inc.  designs,  develops,
     manufactures, markets and provides diagnostic test products and services as
     well as contraband  detection and  education  services.  Avitar sells these
     products  and  services  to  large  medical  supply  companies,  employers,
     diagnostic distributors,  schools and governmental agencies.  During Fiscal
     Year 2001 and the first half of Fiscal Year 2002, the Company continued the
     development and marketing of 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.

          The accompanying consolidated financial statements of the Company have
     been prepared in accordance with generally accepted  accounting  principles
     for  interim  financial  reporting,  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 month periods ended March
     31, 2002 are not necessarily indicative of the results that may be expected
     for the full  fiscal year  ending  September  30,  2002.  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, 2001.

          The Company's consolidated financial statements have been presented on
     the basis that it is a going concern, which contemplates the realization of
     assets  and  the  satisfaction  of  liabilities  in the  normal  course  of
     business. The Company has suffered recurring losses from operations and has
     working  capital of $201,659 as of March 31, 2002.  The Company  raised net
     proceeds aggregating  approximately $5,288,000 during the fiscal year ended
     September  30, 2001 from the sale of stock and the  exercise of options and
     warrants.  During the six months ended March 31, 2002,  the Company  raised
     approximately $2,563,000 from the sale of stock and the exercise of options
     and warrants.  Based upon cash flow  projections,  the Company believes the
     anticipated  cash flow from  operations  and  proceeds  from future  equity
     financings  will be  sufficient to finance the  Company's  operating  needs
     until the operations achieve profitability. There can be no assurances that
     forecasted  results will be achieved or that  additional  financing will be
     obtained.  The financial statements do not include any adjustments relating
     to the  recoverability  and  classification of asset amounts or the amounts
     and  classification  of  liabilities  that  might be  necessary  should the
     Company be unable to continue as a going concern.





2.   INVENTORIES

     At March 31, 2002, inventories consist of the following:

         Raw Materials                                          $159,583
         Work-in-Process                                          73,140
         Finished Goods                                           31,617
                                                              ----------
                  Total                                         $264,340
                                                                ========

3.   MAJOR CUSTOMERS

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

                       Three Months Ended March 31,         Six Months Ended March 31,
                      ---------------------------------   ------------------------------
                         2002            2001                2002             2001
                      -----------    -----------          ----------        ----------

    <S>               <C>              <C>                                  <C>
    Customer A        $339,630         $184,051               *             $309,999
    Customer B             *            200,290         $1,977,910           200,290
    Customer C          250,000            *                 *               112,500
    Customer D             *               *                 *               106,310
</TABLE>



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


4.   COMMON STOCK, PREFERRED STOCK AND WARRANTS

          During the six-month period ended March 31, 2002, the Company received
     approximately $1,257,000 from the exercise of stock options and warrants to
     purchase 2,319,734 shares of the Company's common stock. In connection with
     the  exercise  of  certain  warrants,  the  Company  issued to the  holders
     warrants to purchase  1,750,070  shares of the Company's common stock at an
     exercise  price of $.68  for a term of three  years.  Also  during  the six
     months  ended March 31,  2002,  the Company  sold  1,909,684  shares of the
     Company's common stock and received  proceeds of approximately  $1,306,000.
     In connection with the sale of the common stock,  the Company issued to the
     holders of the common stock  warrants to purchase  1,909,684  shares of the
     Company's  common  stock at exercise  prices of $.68 to $1.60 per share for
     terms of three to five years.

          For the six months ended March 31, 2002 holders of the Series B, C and
     D convertible  preferred stock converted  495,859 shares of their preferred
     stock into 3,767,718 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, 2002 amounted to $178,822. As of March 31, 2001, the
     total amount of unpaid and undeclared dividends was $252,750.






5.  EARNINGS PER SHARE

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

                                                Three Months Ended March 31,         Six Months Ended March 31,
                                                ----------------------------        -----------------------------
                                                   2002               2001               2002             2001
                                               -----------       ------------       ------------     ------------
     <S>                                      <C>                <C>                <C>              <C>
     Net loss                                 $(1,245,185)       $(1,607,640)       $(1,623,591)     $(3,218,157)
     Less:
     Preferred Stock Dividends                 (   92,475)        (   90,716)        (  186,091)      (  185,760)

     Value of warrants issued in
      connection with Series C and
      Series D preferred stock sales           (     -   )        (  575,000)        (     -   )      (  575,000)

     Original discount related to
      Series D preferred stock sales           (     -   )        (  485,000)              -          (  485,000)
                                               ------------       ------------       ------------    -------------

     Loss available to common
       stockholders  used in basic and
       diluted EPS before cumulative
       accounting change                       (1,337,660)        (2,758,356)        (1,809,682)      (4,463,917)

     Cumulative effect of change in
       accounting for original discount
       related to prior years' preferred
       stock issuances                               -                  -                  -          (1,078,205)
                                              -------------       -----------         ----------      -----------


     Net loss available to common
       Stockholders used in basic and
       diluted EPS                            $(1,337,660)       $(2,758,356)       $(1,809,682)     $(5,542,122)
                                              =============      ============       ============     ============


      Weighted average number of
       common shares outstanding               42,638,768         32,266,751         40,706,019       31,543,808
                                              =============      ============       ============     ===========

</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.  This report may contain  forward-looking  statements.
For a description of risks and  uncertainties  relating to such  forward-looking
statements,  see the  Forward-Looking  Statements and  Associated  Risks section
later in this Item.


RESULTS OF OPERATIONS

Revenues

     Sales for the three months ended March 31, 2002  increased  $1,001,541,  or
approximately 81%, to $2,231,119 from $1,229,578 for the corresponding period of
the prior  year.  For the six  months  ended  March 31,  2002,  sales  increased
$3,074,619, or approximately 128%, to $5,473,533 from $2,398,914. The change for
the three and six months ended March 31, 2002 primarily reflects the increase in
sales of its ORALscreen(TM)  products which included sales to one major customer
of $200,000 and $1,978,000, respectively.

Operating Expenses

     Cost of sales for the three months ended March 31, 2002 were  approximately
68% of sales  which  compares  to the cost of sales of 65% for the three  months
ended March 31, 2001. For the six months ended March 31, 2002, the cost of sales
were 57%  compared  to 70% of sales  for the same  period of  Fiscal  2001.  The
increase in cost of sales for the three months ended March 31, 2002  reflected a
shift in the product mix to lower margin products.  However, the improvement for
the six months ended March 31, 2002 was  primarily  due to the increase in sales
described  above and the overall  shift in the product mix to the higher  margin
ORALscreen products.

     Selling,  general and  administrative  expenses  for the three months ended
March 31, 2002 increased  $165,576,  or  approximately  12%, to $1,599,040  from
$1,433,364  for the  corresponding  period of the prior year. For the six months
ended March 31, 2002,  selling,  general and  administrative  expenses increased
$294,595 or approximately  10%, to $3,107,958 from $2,813,363 for the six months
ended March 31, 2001.  The increase for the three and six months ended March 31,
2002  reflected  the  expanded  sales,   marketing  and  administrative  efforts
associated  with the Company's  OralScreen and HairScreen  products and expenses
from BJR of approximately $40,000 and $104,000, respectively.

     Expenses for research and  development for the three months ended March 31,
2002 amounted to $275,035 compared to $510,170 for the  corresponding  period of
the prior year.  For the six months ended March 31, 2002,  expenses for research
and development were $667,190 versus $944,883 for the six months ended March 31,
2001.  The change for the three and six months ended March 31,2002 was primarily
attributable  to the decrease in  development  fees and expenses paid to outside
entities  for  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, 2002,  amortization  of
goodwill  which  resulted  from the Company's  acquisition  of BJR and USDTL was
$77,498  and   $154,996,   respectively,   compared  to  $73,424  and  $143,848,
respectively,  for the three and six ended March 31, 2001.  The change  reflects
the goodwill amortization related to acquisition of BJR on March 1, 2001.

Other Income and Expense

     No interest  income was earned for the three and six months ended March 31,
2002  compared  to $587 and $733,  respectively  for the same  periods of Fiscal
2001. The decrease  resulted  primarily from the reduced interest earned on cash
management accounts.

     Interest  expense and  financing  costs were  $19,218 for the three  months
ended March 31, 2002 compared to $15,642  incurred during the three months ended
March 31, 2001.  For the six months ended March 31, 2002,  interest  expense and
financing  costs were  $39,793  versus  $25,575 for the same period in the prior
year.  The change for the three and six months  ended March 31,  2002  primarily
reflects  increased  interest  expense on bank advances  related to financing of
accounts receivable and loans from private parties.

     For the three months ended March 31, 2002,  other income amounted to $3,536
as  compared  to other  expense of $1,212 for the three  months  ended March 31,
2001.  Other income for the six months  ended March 31, 2002 was $19,703  versus
other  expense of $1,924 for the  corresponding  period of the prior  year.  The
change for the three  months ended March 31, 2002 is mainly a result of the gain
from the sale of an item of equipment.  For the six months ended March 31, 2002,
the change also  reflects  the gain from the sale of a small  equity  investment
held by the Company in addition to the equipment sale gain.

Net Loss

     Primarily as a result of the factors described above, the Company had a net
loss of  $1,245,185,  $ .03 per basic and diluted  share,  for the quarter ended
March 31,  2002,  as compared to a net loss of  $1,607,640,  $ .09 per basic and
diluted  share,  for the quarter ended March 31, 2001.  For the six months ended
March 31,  2002,  the Company had a net loss of  $1,623,591,  $.04 per basic and
diluted  share,  versus a net loss of  $3,218,157,  $.18 per basic  and  diluted
share, for the six months ended March 31, 2001.

FINANCIAL CONDITION AND LIQUIDITY

     At March 31, 2002 and  September  30, 2001 the Company had working  capital
(deficiency)  of  $201,659  and  ($958,293),  respectively,  and  cash  and cash
equivalents of $930,383 and $245,409,  respectively.  Net cash used in operating
activities  during the six months  ended March 31, 2002  amounted to  $1,794,552
resulting  primarily from a net loss of  $1,623,591,  a gain from the sale on an
equity  investment  and  equipment  of $18,943,  an increase in  inventories  of
$19,982,  a decrease in accounts  payable and accrued expenses of $181,558 and a
decrease in deferred income of $385,000;  partially  offset by depreciation  and
amortization  of $107,729,  amortization  of goodwill of $154,996,  a payment of
common stock for services of $26,900, an increase in the provision for losses on
accounts receivable of $12,132, a decrease in accounts receivable of $113,003, a
decrease in prepaid  expenses and other current  assets of $1,535 and a decrease
in other  assets of  $18,227.  Net cash  provided  by  financing  and  investing
activities  during the six months  ended March 31, 2002  amounted to  $2,479,526
which included  proceeds from the sale of an equity  investment and equipment of
$31,891,  proceeds  from the sale of common  stock and  warrants of  $1,306,000,
proceeds  from the exercise of warrants and stock options of  $1,257,423,  and a
decrease in stock  subscription  receivable  of  $35,000;  offset in part by the
repayment  of notes  payable  and long term debt of  $36,745  and  purchases  of
property and equipment of $114,043.

     Since  October  2001,  the  Company  received   proceeds  of  approximately
$1,306,000 from the sale of 1,909,684  shares of the Company's  common stock and
warrants to purchase  1,909,684 shares of the Company's common stock at exercise
prices of $.68 -$1.60 per share for a period of three to five years. Also during
this period, the Company received approximately  $1,257,000 from the exercise of
stock options and warrants to purchase  2,319,734 shares of the Company's common
stock. In connection with the exercise of certain  warrants,  the Company issued
to the holders  warrants to purchase  1,750,070  shares of the Company's  common
stock at an exercise price of $.68 for a term of three years.  The Company plans
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  to provide  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 and to pursue the  development  of in-vitro  oral fluid
diagnostic  testing  products.  However,  there can be no  assurance  that these
financings will be achieved.

     For the balance of fiscal year 2002,  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 and services, and the continued funding for the development of in-vitro
oral fluid diagnostic testing products.

     Operating  revenues of the Company grew  significantly in the first half of
Fiscal 2002 and are expected to grow during the  remainder of Fiscal 2002 as the
Company expands its shipments of new and enhanced  ORALscreen products and grows
the  business of USDTL and BJR.  Based on current  sales,  expense and cash flow
projections,  the  Company  believes  that  the  current  level of cash and cash
equivalents  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 any or
all of the net  proceeds  sought  thereby  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  financings  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 and
will continue to actively seek the needed additional capital.

     As a result of the Company's  recurring  losses from operations and working
capital  deficit,  the report of its independent  certified  public  accountants
relating to the financial  statements  for Fiscal 2001  contains an  explanatory
paragraph stating substantial doubt about the Company's ability to continue as a
going concern. Such report states that the ultimate outcome of this matter could
not be determined as the date of such report  (November 20, 2001). The Company's
plans to address  the  situation  are  presented  above.  However,  there are no
assurances that these endeavors will be successful or sufficient.


FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISKS

     Except for the historical  information  contained  herein,  the matters set
forth herein are "forward-looking  statements" within the meaning of Section 27A
of the  Securities Act of 1933,  Section 21E of the  Securities  Exchange Act of
1934 and the Private  Securities  Litigation  Reform Act of 1995. We intend that
such forward-looking statements be subject to the safe harbors created thereby.

     Such   forward-looking   statements   involve  known  and  unknown   risks,
uncertainties and other factors which may cause our actual results,  performance
or achievements to be materially different from any future results,  performance
or achievement  expressed or implied by such  forward-looking  statements.  Such
factors include, but are not limited to the following: product demand and market
acceptance  risks,  the  effect of  economic  conditions,  results of pending or
future  litigation,  the impact of  competitive  products and  pricing,  product
development  and  commercialization,   technological  difficulties,   government
regulatory  environment  and  actions,  trade  environment,  capacity and supply
constraints or difficulties,  the result of financing efforts,  actual purchases
under agreements and the effect of the Company's accounting policies.




                            PART II OTHER INFORMATION


ITEM 2.           CHANGES IN SECURITIES

     During the  quarter  ended  March 31,  2002,  the  Company  sold to private
investors  935,294  shares  of the  Company's  common  stock and  received  cash
proceeds of approximately  $645,000.  In connection with the sale of this common
stock,  the  Company  issued to the  holders of the  common  stock  warrants  to
purchase  935,294  shares of the Company's  common stock at an exercise price of
$.85 per share for a term of five years.  Also during this quarter,  the Company
issued to private investors  1,750,070 shares of the Company's common stock upon
the  exercise of their  warrants  and received  cash  proceeds of  approximately
$1,190,000.  In  connection  with the  exercise of these  warrants,  the Company
issued to the holders  warrants to purchase  1,750,070  shares of the  Company's
common  stock at an  exercise  price of $.68 per  share  for  three  years.  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:

         None


(b)      Reports on Form 8-K:

         None

<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 14, 2002            /S/ Peter P. Phildius
                                -----------------------------------
                                Peter P. Phildius
                                Chairman and Chief
                                Executive Officer
                                (Principal Executive Officer)



Dated:  May 14, 2002            /S/ J.C. Leatherman, Jr.
                                ---------------------------
                                 J.C. Leatherman, Jr.
                                 Chief Financial Officer
                                 (Principal Accounting and
                                 Financial Officer)