<PAGE>
                                        
                                  Form 10-Q SB

                       SECURITIES AND EXCHANGE COMMISSION

                            Washington,  D. C.  20549
(Mark One)
  (X)      QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

     For the quarterly period ended   September 30,1997

                                       OR

  ( )      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

         For the transition period from              to


                    Commission File Number           0-20947
                                        
                             On-Site Sourcing, Inc.
              (Exact name of registrant as specified in its charter)
                                        
       DELAWARE                           54-1648470
       (State or other jurisdiction of    (IRS Employer Identification Number)
       incorporation or organization)

              1111 N. 19th  Street, Suite 600, Arlington, VA 22209
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code  (703) 276-1123
                                        
Indicate by check mark whether the registrant (1) has filed all reports required
to  be  filed  by Section 13 or 15 (d) of the Securities Exchange Act  of  1934,
during  the  preceding 12 months (or for such shorter period that the registrant
was  required  to file such reports), and (2) has been subject  to  such  filing
requirements for the past 90 days.
Yes   X    No

Indicate  the  number of shares outstanding of each of the issuer's  classes  of
common stock as of September 30, 1997.

        Common Stock 0.01 par value                     Number of Shares
        No Class                                             4,794,021
        Preferred Stock 0.01 par value
        No Class                                                  None
                                        
<PAGE>
                              On-Site Sourcing,Inc.

                                      Index






Part I.   Financial Information.                                    Page No.

     Item 1.  Financial Statements

     Balance sheets -
       September 30, 1997 and December 31, 1996                            3

     Statements of Earnings -
      Nine and three months ended September 30, 1997 and 1996              4

     Statements of Stockholders Equity
      Nine and three months ended September 30, 1997 and 1996              5

     Statements of Cash Flows -
       Nine and three months ended September 30, 1997 and 1996             6

     Condensed notes to financial statements                            7-11

     Item 2.  Managements Discussion and Analysis of Financial
             Condition and Results of Operations.                      11-13


Part II.  Other Information

     Item 701(f)  Form SR Amended                                         14



     Signatures                                                           15




                                        
<PAGE>
                             ON-SITE SOURCING, INC.
                                 BALANCE SHEETS
<TABLE>
<CAPTION>


                                           September 30,        December 31,
                                           1997                 1996
ASSETS                                     (Unaudited)
                                           -----------          ----------
<S>                                        <C>                  <C>
CURRENT ASSETS
Cash and cash equivalents                  $2,152,973           $1,894,722
Accounts receivable, net                    4,077,390            2,697,248
Prepaid supplies                              377,619              188,770
Prepaid expenses                              132,232               85,967
                                              -------               ------
Total current assets                        6,740,214            4,866,707

Property and equipment, net                 3,672,171            3,573,127
Note receivable officer                        25,000               25,000
Other assets                                   79,496               73,211
                                               ------               ------
                                          $10,516,881           $8,538,045
                                          -----------           ----------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable trade                       $754,971             $552,017
Accrued and other liabilities               1,166,860              289,199
Current portion of long-term debt             333,272              182,153
Deferred taxes                                303,028               60,154
                                              -------               ------
Total current liabilities                   2,558,131            1,083,523

Long-term debt net of current portion         945,426              990,683
Deferred rent                                  77,994               76,129
Deferred taxes                                 22,400               14,846

Commitments and contingencies

STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 20,000,000
shares authorized 4,794,021, shares issued
and outstanding                                47,940               47,940

Preferred stock,$.01 par value, 1,000,000
Shares authorized, no shares issued and
outstanding                                                              -
Subscription receivable                       (50,400)             (50,400)
Additional paid in capital                  6,351,911            6,351,911
Common stock options outstanding               66,000               16,500
Retained Earnings                             497,479                6,913
                                              -------                -----
                                            6,912,930            6,372,864
                                            ---------            ---------
                                          $10,516,881           $8,538,045
</TABLE>


                                        
                        See notes to financial statements

                                        
<PAGE>
                             ON-SITE SOURCING, INC.
                             STATEMENTS OF EARNINGS
<TABLE>
<CAPTION>

                         Nine Months Ended             Three Months Ended
                         September 30,                 September 30,
                         1997              1996        1997           1996
                         (Unaudited)                   (Unaudited)
                         -----------       ---------   -----------    ---------
<S>                      <C>               <C>         <C>            <C>
Revenue                 $13,894,768       $6,368,487  $5,168,454     $2,641,926
Costs and expenses
Cost of sales            10,067,691        4,616,899   3,800,858      1,822,890
                         ----------        ---------   ---------      ---------
Gross Margin              3,827,077       1,7751,588   1,367,596      819,036

Selling expense           1,630,957          663,143     582,546      354,273
Administrative expense    1,306,318          653,757     498,184      267,172
                          ---------        ---------   ---------      -------
                          2,937,275        1,316,900   1,080,730      621,445
                          ---------        ---------   ---------      -------
Earnings from operations    889,802          434,688     286,866      197,591

Other income (expense)
Other income                 68,161           62,394      43,338       40,921
Other expense, primarily
interest                   (103,347)         (64,138)    (30,626)     (14,596)
                           ---------         --------     -------     --------
                            (35,186)          (1,744)     12,712       26,325
                           ---------         --------     -------     --------
Earnings before income
taxes                       854,616          432,944     299,578      223,916
Income tax expense          364,050           96,900     130,950       68,400
                            -------          -------     -------      -------
Net Earnings               $490,566         $336,044    $168,628     $155,516
                            -------          -------     -------      -------

Net earnings per
common share                  $0.10            $0.10       $0.03        $0.03

Weighted number of common
shares and common share
equivalents outstanding
during the period          5,067,490       3,402,181    5,067,490   4,821,361
                           ---------       ---------    ---------   ---------
                                        
                                        
                                        
                                        
                                        
                                        
                        See notes to financial statements
</TABLE>
                                        

<PAGE>

                             ON-SITE SOURCING, INC.
                  CONDENSED STATEMENTS OF STOCKHOLDERS EQUITY
                                   (Unaudited)
<TABLE>                                                 

<CAPTION>
                                                           Common
                                                Additional Stock
                              Common    Common  Paid in    Options
                              Shares    Stock   Capital    Outstanding Subtotal
                              ------    ------  ---------- ----------- --------
<S>                           <C>       <C>     <C>        <C>         <C>
Balance at December 31, 1996  4,794,021 $47,940 $6,351,911 $16,500     $6,416,351
Stock options issued                                        49,500         49,500
Net earnings                  
                              --------- ------  ---------- ----------- ---------

Balance at September 30,1997  4,794,021 $47,940 $6,351,911 $66,000     $6,465,851
                              ---------  ------  --------- -----------  ---------

</TABLE>
<TABLE>
<CAPTION>


                                         Subscriptions   Retained
                              Subtotal   Receivable      Earnings  Total
                              --------   -------------   --------  ---------
<S>                           <C>        <C>             <C>       <C>
Balance at December 31, 1996 $6,416,351  $(50,400)       $ 6,913  $6,372,864

Stock options issued             49,500                               49,500
Net earnings                                              490,566    490,566
                              ---------  -------------   --------- ----------
Balance at September 30, 1997 $6,465,851 $(50,400)       $497,479  $6,912,930
                              ---------- -------------   --------- ----------
</TABLE>
<TABLE>
<CAPTION>


                                                Additional Stock
                              Common    Common  Paid in    Options
                              Shares    Stock   Capital    Outstanding Subtotal
                              ------    ------  ---------- ----------- --------
<S>                         <C>       <C>     <C>        <C>         <C>
Balance at December 31,1995  2,187,000 $21,870   $488,140              $ 510,010

Sale of common stock         2,600,355  26,004  5,866,361              5,892,365
Receivable Shareholder-
Payments received                                                             -
Net earnings                                                                  -
                             --------- -------  --------- ----------- ----------
Balance at September 30,1996 4,787,355 $47,874 $6,354,501          -  $6,402,375
                             --------- -------  --------- ----------- ----------
</TABLE>
<TABLE>
<CAPTION>


                                        
                                                         Retained
                                           Subscriptions (Deficit)
                              Subtotal     Receivable    Earnings   Total
<S>                          <C>          <C>           <C>        <C>
Balance at December 31, 1995 $  510,010  $               $238,327) $  271,683
Sale of common stock          5,892,365                             5,892,365
Receivable Shareholder                    (115,000)                  (115,000)
Payments received                           64,600                     64,600
Net earnings                                     -        336,044     336,044
                              ---------   --------       --------   ---------

Balance at September 30,1996 $6,402,375  $ (50,400)      $ 97,717  $6,449,692

                                        
                                        
                                        
                                        
                        See notes to financial statements
</TABLE>
                                        
                                        
<PAGE>
                             ON-SITE SOURCING, INC.
                            STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
                                        
                                      Nine months ended     Three months ended
                                      September 30,         September 30,
                                      1997      1996        1997       1996
                                      --------- ----------  ---------  ---------
<S>                                   <C>       <C>         <C>        <C>
Cash flows from operating activities
Net earnings                          $ 490,566  $ 336,044  $ 168,628  $ 155,516
Adjustments to reconcile net earnings
to net cash(used in) provided by
operations
Depreciation                            536,766    158,358    193,040     73,613
Gain on disposition of equipment         (1,030)    (1,413)      (248)   (1,413)
Compensation expense - stock options     49,500          -     16,500         -
Changes in assets and liabilities
(Increase) decrease in accounts
receivable, net                      (1,380,142)(1,326,866)   801,445   727,527)
(Increase) decrease in prepaid
supplies                               (188,849)  (158,838)   106,991   (91,834)
(Increase) decrease in prepaid
expenses                                (46,265)         -    (15,434)         -
(Increase) decrease in other assets      (6,285)    24,549    (36,483)    50,116
Increase (decrease) in accounts
payable                                 202,954     57,134   (436,596)  (81,475)
Increase (decrease) in accrued
liabilities-trade                       877,661    119,821    830,290    21,374)
Increase (decrease) in deferred rent      1,865     15,146         (1)     3,184
Increase in deferred taxes              250,428     93,400     17,328     64,900
                                        -------     ------     ------     ------
Total Adjustments                       296,603 (1,018,709) 1,476,832  (731,810)
                                        ------- ----------- ---------  ---------   
Net cash provided by (used in)
operations                              787,169   (682,665) 1,645,460  (576,294)
                                        -------   --------- ---------  ---------
Cash flows from investing activities
Capital expenditures                   (634,780)(1,370,556)   (25,310) (842,715)
                                       --------  ----------   -------- ---------
Net cash used in investing activities  (634,780)(1,370,556)   (25,310) (842,715)
                                       --------- ----------   -------- ---------
Cash flows from financing activities
Proceeds from sale of common stock
and exercise of warrants                      -  5,841,965          -  5,441,663
Proceeds of long-term debt agreements 1,150,455    751,870     50,455    500,511
Net payments on short term debt
agreement                                     -   (283,847)         -  (533,847)
Payments under long-term debt
agreements                           (1,044,593)  (250,000)  (531,327) (207,675)                        
Net borrowings(payments)  
under line of credit                          -   (260,000)         -  (390,000)
Deferred offering costs                       -          -          -    341,084
                                      ---------   --------    -------   --------
Net cash provided by (used in)
financing                               105,862  5,799,988   (480,872) 5,151,736
                                        -------  ---------    -------  ---------

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS                    258,251  3,746,767  1,139,278  3,732,727
Cash and cash equivalents, beginning  1,894,722     38,116  1,013,695     52,156
                                      ---------  ---------  ---------  ---------
Cash and cash equivalents, ending    $2,152,973 $3,784,883 $2,152,973 $3,784,883
                                      ---------  ---------  ---------  ---------

                                        
                                        
                                        
                                        
                                        
                        See notes to financial statements
</TABLE>

                                        



<PAGE>
On-Site Sourcing, Inc.

Condensed Notes to Financial Statements
(unaudited)


September 30, 1997


NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


 The  accompanying unaudited condensed financial statements have  been  prepared
 pursuant to the rules and regulations of the Securities and Exchange
 Commission.  Certain information and note disclosures normally included in  the
 annual  financial  statements prepared in accordance  with  generally  accepted
 accounting  principles have been condensed or omitted pursuant to  those  rules
 and  regulations, although the Company believes that the disclosures  made  are
 adequate to make the information presented not misleading.
 
 In  the  opinion of management, the accompanying condensed financial statements
 reflect all necessary adjustments and reclassifications that are necessary  for
 fair  presentation  for  the periods presented.  It  is  suggested  that  these
 condensed  financial  statements  be read in  conjunction  with  the  financial
 statements  and the notes filed in the Companys Annual Report on Form  10K-SB.
 The  results of operations for the nine and three month periods ended September
 30,  1997 are not necessarily indicative of the results to be expected for  the
 full year.
 
 
 Revenue Recognition
 
 Revenue  from facilities management is recognized based on monthly  fixed  fees
 and,  in  certain  cases,  variable per copy fees, as contained  in  facilities
 management  agreements.  Revenue  from reprographic  and  imaging  services  is
 recognized  on  a  per  copy or image basis upon completion  of  the  services.
 Revenue  from  the sale of refurbished copiers is recognized when  the  copiers
 are shipped and transfer of title occurs.
 
 Property and Equipment
 
 Property and equipment consists of copy center equipment, office furniture  and
 fixtures,  and delivery equipment.  Depreciation is provided for in  sufficient
 amounts  to  relate  the  cost of depreciable assets to operations  over  their
 estimated  service  lives,  ranging from two to ten years.  The  straight  line
 method is followed for financial reporting purposes.   Accelerated methods  are
 used for tax purposes.
 
 Software development
 
 The  Company  capitalizes certain computer software costs, which are  amortized
 utilizing  the straight-line method over the estimated economic  lives  of  the
 projects  not  to exceed one year.   All other software development  costs  are
 expensed as incurred.
 


<PAGE>
On-Site Sourcing, Inc.

Condensed Notes to Financial Statements Continued
(unaudited)


September 30, 1997

 Income Taxes
 
 The  provision  for  income taxes presented in the statements  of  earnings  is
 based  upon  the  estimated effective tax rate for the  year,  and  is  largely
 determined  by  managements  estimate as of  the  interim  date  of  projected
 taxable income for the entire fiscal year.
 
 Earnings per Common Share
 
 The  Companys common stock was split 100-for-one and 18-for-one in March  1995
 and  February  1996,  respectively.  All earnings  per  share  amounts  in  the
 financial statements have been restated to give effect to the stock splits.
 
 Earnings  per  common share is based on the weighted average number  of  common
 shares  and,  if  dilutive, common equivalent shares  outstanding  during  each
 year.   Such  average  shares include the weighted  average  number  of  common
 shares  outstanding (5,049,730 in 1997 and 3,402,181 in 1996) plus  the  shares
 issuable  upon  exercise  of  stock options  and  warrants  after  the  assumed
 repurchase  of  common shares with the related proceeds (122,787  in  1997  and
 99,584  in  1996).   Options and warrants granted, as well  as  certain  shares
 issued  during  the one-year period prior to the initial public  offering,  are
 treated  as  outstanding  in calculating earnings per share  for  both  periods
 presented.
 


NOTE B CREDIT FACILITIES

 During  1997, the Company entered into an agreement for a working capital  line
 of  credit  with  a financial institution for $2,500,000.  The line  of  credit
 bears  interest at the financial institutions prime rate or the 30  day  LIBOR
 rate  plus 2.25%, payable monthly.  Any remaining principal balance and accrued
 interest is due at the maturity date of April 30, 1998.  The line of credit  is
 secured  by  certain assets of the Company, including accounts  receivable  and
 certain  fixed  assets.  As of September 30, 1997 there were no  advances  made
 under the line of credit.
 
 During  1997, the Company entered into a term note with a financial institution
 to  provide $1,100,000 to refinance certain capitalized lease obligations.  The
 note  is  payable in 48 monthly installments, bears interest  at  the  rate  of
 9.02%,  and matures on April 30, 2001.   The note is collateralized by specific
 equipment  and  is subject to certain financial covenants. The balance  of  the
 term note at September 30, 1997 was $962,500.
 
 At  various times in 1996 the Company had term notes with a commercial bank  in
 the  aggregate principal of $323,500.   The notes were paid in full and retired
 in August 1996.
 

 At  September  30, 1996, the Company had available a $450,000  working  capital
 line  of  credit at the banks prime rate plus 1%.  The line of credit  matured
 on April 1, 1997.

 During 1997, the Company financed certain equipment purchases of approximately
 $50,500 with terms of 48 months and interest rates of 9%.  The balance of these
 notes at September 30, 1997 was $49,590.



 The  Company has financed certain equipment purchases under capitalized leases,
 with terms of sixty months.

 Transactions with an Officer/Shareholder
 
 During  the nine months ended September 30, 1997 and 1996, the Company recorded
 the following transaction with an officer/shareholder:

     During  the  nine  months ended September 30, 1997 and  1996,  the  Company
     incurred  approximately  $52,000  and  $203,300,  respectively,  for  legal
     services rendered by the officer/shareholder.  During the nine months ended
     September  30, 1997 and 1996, the Company recorded revenue of approximately
     $18,400 and $10,000, respectively, for reprographic services.  Included  in
     accounts  receivable as of September  30, 1997, is approximately  $600  due
     from the officer/shareholder.


 Transactions with Shareholders
     
     In  March  1996,  the Company entered into a two-year consulting  agreement
     with  its  underwriters/shareholder for financial  and  marketing  services
     totaling  $60,000  which was paid from the proceeds of the  initial  public
     offering.
 
 

<PAGE>
On-Site Sourcing, Inc.

Condensed Notes to Financial Statements Continued
(unaudited)


September 30, 1997




 Subscription receivable -- Shareholder

  The  Company  has a note receivable from an officer/director  for  $89,900  in
  connection with the exercise of stock options. The note bears interest  at  6%
  per  year  with the remaining principal and interest due April 1,  1998.   The
  balance of the note at September 30, 1997 was $50,400.
  
 Note  receivable Officer
 
  During   1996,   the   Company  entered  into  a  note   agreement   with   an
  officer/shareholder in the amount of $25,000.  The loan bears interest at  the
  prime rate of interest and is due in September 1998.
     
NOTE D COMMITMENTS

 The Company has annual rental and lease commitments with a term of one year  or
 more  for  its  offices and production facilities that expire at various  times
 through 2006. The minimum annual rent is approximately $800,000.

NOTE E INCENTIVE STOCK OPTION PLANS
 
 In  1997,  1996 and in 1995, the Company adopted incentive stock option  plans,
 under  which  pools  of 500,000, 200,000 and 510,000, shares respectively  have
 been  reserved.   The  plans are administered and terms of  option  grants  are
 established  by the Board of Directors.  Under the terms of the plans,  options
 may  be granted to the Companys employees and directors to purchase shares  of
 common  stock.   Options become exercisable ratably over a  vesting  period  as
 determined  by the Board of Directors, and expire over terms not exceeding  ten
 years from the date of grant, three months after termination of employment,  or
 one  year  after the death or permanent disability of the employee.  The  Board
 of  Directors determines the option price (not less than fair market value)  at
 the date of grant.
 
 Pursuant  to  an employment agreement, the Company had outstanding  options  to
 sell  162,000 shares of common stock to an officer/director of the  Company  at
 an  exercise  price  of $.56 per share.  The options, which were  fully  vested
 during 1994, were exercised on March 29, 1996 for $90,000.  In connection  with
 the   exercise   of   the   options,  the  Company  loaned   $89,900   to   the
 officer/director. The balance of the note on September 30, 1997 was $50,400.


<PAGE>
On-Site Sourcing, Inc.

Condensed Notes to Financial Statements Continued
(unaudited)


 September 30, 1997

 
 At  September  30, 1997, the Company had outstanding options  to  sell  126,000
 shares  of  common stock to an officer/director at an exercise price  of  $1.11
 per  share.   As of June 30, 1997, the options are fully vested.   The  options
 expire in December 2000.
 
 The  Company  has  outstanding employee stock options  for  832,755  shares  of
 common stock at exercise prices ranging from $1.11 to $3.25 per share.   As  of
 September  30,  1997,  310,503  of the shares are  vested  with  the  remainder
 scheduled  to vest through December 2002.  The options expire at various  times
 through December 2002.   The Company granted a total of 60,000 options  to  its
 outside  directors  which  vest quarterly over one year.   The  fair  value  of
 options granted to outside directors are charged to expense as they vest.




   Managements Discussion and Analysis of Financial Conditions and Results of
                                   Operations
                                        

On-Site  Sourcing,  Inc.  (On-Site  or  the  Company)  provides  reprographic,
document  management, imaging and facilities management services to  law  firms,
corporations, non-profit organizations, accounting firms, financial institutions
and  other  organizations throughout the East Coast of the  United  States.   In
order to meet the highly specialized requirements of each client, On-Site offers
a  variety  of customized reprographic and facilities management services.   The
Company provides reprographic and imaging services 24 hours-per-day, seven days-
per-week including copying, binding, labeling, collating and indexing in support
of  complex document-intensive litigation as well as higher volume production of
manuals,   brochures  and  other  materials  for  corporations  and   non-profit
organizations.   On-Site  also  provides on-premises  management  of  customers
support  services including mailroom operations, facsimile transmission, records
and supply room management and copying services.

Nine months 1997 vs. 1996

Revenue for the nine months ended September 30, 1997 increased 118% or
$7,526,281 to $13,894,768 as compared to $6,368,487, recorded for the nine
months ended September 30, 1996.  The principal reason for the increase is
increased volume of work orders fulfilled through increased sales volume in the
Arlington, VA, Philadelphia, PA, Atlanta, GA, and New York City facilities.

<PAGE>

For the nine months ended September 30, 1997, cost of sales increased $5,450,792
or 118% over the same period in 1996.   Operating margins increased 118% to
$3,827,077, a $2,075,489 increase over the same period last year, due to the
increase in revenue.  As a percentage of sales, operating margins were 28% for
the nine months ended September 30, 1997 and 1996, respectively.

Selling expense increased by $967,814 to $1,630,957 over the same period last
year. As a percentage of sales, this represents an increase from 10% for the
nine months ended September 30, 1996 to 12% in the same period in 1997,
primarily due to the addition of personnel, higher commissions associated with
increased revenue, and expansion into new markets.

Administrative expense for the three months ended June 30, 1997 increased
$652,561 to $1,306,318 over the same period last year due primarily to
professional fees, increases in administrative staffing and costs associated
with the expansion into new markets.  As a percent of sales, administrative
expense was 9% for the nine month period in 1997 as compared to 10% for the same
period last year.

Earnings from Operations

For the nine months ended September 30, 1997, earnings from operations increased
105% or $455,114 from $434,688 to $889,802.  The increase is due to increased
revenue, growth in existing markets, and continued expansion into new markets.

Other income and expenses

Other income increased  $33,442 compared to the first nine months of 1996.
Other expense, primarily interest increased $39,209 to $103,347 for the nine
month period ended September 30, 1997 due to financing major equipment
purchases.


Net earnings

For the nine months ended September 30, 1997 the Company generated net earnings
of $490,566 as compared to $336,044 for the same period last year. Earnings per
share for the nine months ended September 30, 1997 and 1996 were $.10 on
5,067,490 share versus 3,402,181 shares outstanding, respectively.  The Company
has provided for income taxes of $364,050 versus $96,900 for the nine months
ended September 30, 1997 and 1996, respectively.


Liquidity and Capital Resources at September 30, 1997 and Subsequent Activity


The Company has funded its expansion and growth by utilizing the proceeds of its
initial  public  offering  and  long  term  financing,  where  appropriate,  for
significant capital outlays.  The Company anticipates that the net proceeds from
the  initial public offering, proceeds from the overallotment options, cash flow
from  operations and credit facilities will be sufficient to meet the  Companys
expected  cash  requirements  for  the next  twelve  months.  There  can  be  no
assurances that unforeseen events may require more working capital than  the
Company has at its disposal.

The  Company  has  a  secured  a $2,500,000 line  of  credit  with  a  financial
institution.   The line of credit bears interest at the financial  institutions
prime  rate or the 30 day LIBOR rate plus 2.25%, payable monthly.  The  line  of
credit will be utilized to finance accounts receivable and other working capital
needs.    As of September 30, 1997 there were no advances under the line.    The
Company  also has a $1,100,000 term note to refinance certain capital leases  at
more  favorable interest rates.  The note is payable in 48 monthly installments,
bears  interest at the rate of 9.02%, and matures on April 30, 2001. The balance
on the note at June 30, 1997 was $962,500.

During  the  nine  months  ended  September 30, 1997  and  1996,  the  Companys
principal  uses of cash were to fund fixed asset purchases and pay off long-term
debt.

Three Months 1997 vs. 1996

The  principal  reasons  for the increase in revenue  from  operations  and  net
earnings  for the three months ended September 30, 1997 versus 1996 are outlined
in  the  discussion  of  the six month results.  There were  no  material  items
adversely impacting the Company.

Revenue for the three months ended September 30, 1997 nearly doubled, increasing
96%  to  $5,168,454 as compared to $2,641,926 for the three month  period  ended
September 30, 1996.  Cost of sales and the related operating margin were 26%  as
compared to 31% for 1996, based in part on increased staffing to support  future
growth.

Earnings  from operations were $286,866 as compared to $197,591 as a  result  of
increased  revenue  resulting  from continued expansion into  new  and  existing
markets.

The Company earned $17,363 verses $40,920 from interest on overnight investments
during  the three months ended September 30, 1997compared to the same period  in
1996.  The Company paid $30,625 in interest as compared to $14,220 over the same
period last year.

Net earnings for the three month period ended September 30, 1997 increased 8% to
$168,628  from $155,516 for the same period last year.  Earnings per  share  for
the  three  month  period ended September 30, 1997 and September  were  $.03  on
5,409,730  shares  outstanding compared to 4,821,361shares outstanding  for  the
three month period ended June 30, 1996.

<PAGE>
Part II. Other Information



Item 701(f).    Pursuant to Rule 463 of the Securities Act of 1933 the Company
has previously filed Form SR on October 19, 1996 and April 17, 1997.  Pursuant
to Reg. 228.701(f) the company provides the following information which updates
previous From SR filings.

(Form SR, Page 6 Item 11)
<TABLE>

                                   Direct or indirect      Direct or indirect
                                   Payments to             Payments to
                                   Related parties         Others
<S>                                <C>                     <C>
Construction of plant,
building and facilities                         -            $176,838

Purchase and installation
of machinery and equipment                      -           1,384,999

Repayment of indebtedness                       -           1,606,828

Working Capital                                 -             688,000

Imaging and Scanning
Technology                                      -             512,915

Expansion into New York                         -           1,062,333

Total                                           -          $5,431,913

</TABLE>




<PAGE>


SIGNATURES

Pursuant  to  the  requirements of the Securities  Exchange  Act  of  1934,  the
Registrant  has  duly  caused this report to be signed  on  its  behalf  by  the
undersigned hereunto duly authorized.

                                  On-Site Sourcing, Inc.





Date:     November 12, 1997

                              By:  /s/ Christopher J. Weiler
                                   Christopher  J. Weiler
                                   President and
                                   Chief Executive Officer


                              By:  /s/Joseph Sciacca
                                   Joseph Sciacca
                                   Vice President of Finance and
                                   Chief Financial Officer