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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

|(Mark One)
|----------
|          
|[X]       
|OR        
|[   ]     

Commission File Number 1-11871

COMMODORE APPLIED TECHNOLOGIES, INC.
    (Exact name of Registrant as specified in its charter)

|Delaware(State or other jurisdiction of
    incorporation or organization)        | 11-3312952
    (I.R.S. Employer
    Identification No.)
|--------------------------------------------------------------------------------- | -------------------------------------------------------
|                                                                                 
|150 East 58thStreetNew York, New York
    (Address of principal executive office) | 10155(Zip Code)                                        

Registrants telephone number, including area code: (212) 308-5800

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 [   ]

The number of shares the common stock outstanding at August 4, 2000 was
32,361,822.

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COMMODORE APPLIED TECHNOLOGIES, INC.

FORM 10-Q

INDEX

|           |                                                                                                                 |  |         
|---------- | --------------------------------------------------------------------------------------------------------------- |  | --------
|           |                                                                                                                 |  | Page No.
|           |                                                                                                                 |  |         
|PART I     | FINANCIAL INFORMATION                                                                                           |  |         
|           |                                                                                                                 |  |         
|Item 1.    | Financial Statements (Unaudited)                                                                                |  |         
|           |                                                                                                                 |  |         
|           | Condensed Consolidated Balance Sheet - June 30, 2000 and December 31, 1999                                      |  |         
|           |                                                                                                                 |  |         
|           | Condensed Consolidated Statement of Operations -
    Three and Six months ended June 30, 2000 and June 30, 1999 |  |         
|           |                                                                                                                 |  |         
|           | Condensed Consolidated Statement of Cash Flows - Six months ended June 30, 2000 and June 30, 1999               |  |         
|           |                                                                                                                 |  |         
|           | Notes to Condensed Consolidated Financial Statements                                                            |  |         
|           |                                                                                                                 |  |         
|Item 2.    | Management's Discussion and Analysis of Financial
     Condition and Results of Operations                      |  |         
|           |                                                                                                                 |  |         
|PART II    | OTHER INFORMATION                                                                                               |  |         
|           |                                                                                                                 |  |         
|SIGNATURES |                                                                                                                 |  | 17      

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PART I - FINANCIAL INFORMATION

ITEM 1:Financial Statements

COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in Thousands, except per share data)

|ASSETS                                                                       |  | June 30,2000 |        | December 31,1999 |  
|---------------------------------------------------------------------------- |  | ------------ | ------ | ---------------- | -
|                                                                             |  |              |        |                  |  
|                                                                             |  | (unaudited)  |        |                  |  
|Current Assets:                                                              |  |              |        |                  |  
|Cash and cash equivalents                                                    |  | $            | 1,133  |                  | $
|Accounts receivable, net                                                     |  |              | 3,115  |                  |  
|Notes and advances to related parties                                        |  |              | 310    |                  |  
|Restricted cash and equivalents                                              |  |              | 22     |                  |  
|Prepaid assets and other current receivables                                 |  |              | 500    |                  |  
|                                                                             |  |              |        |                  |  
|Total Current Assets                                                         |  |              | 5,080  |                  |  
|Investments and advances                                                     |  |              | 325    |                  |  
|Property and equipment, net                                                  |  |              | 2,143  |                  |  
|Other assets                                                                 |  |              |        |                  |  
|Patents and completed technology, net of
    accumulated amortization        |  |              |        |                  |  
|of $547 and $478, respectively                                               |  |              | 929    |                  |  
|Goodwill, net of accumulated amortization
    of $959 and $831, respectively |  |              | 6,713  |                  |  
|                                                                             |  |              |        |                  |  
|Total Assets                                                                 |  | $            | 15,190 |                  | $
|                                                                             |  |              |        |                  |  

See notes to condensed consolidated financial statements.

1

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COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET
(Dollars in Thousands, except per share data)

|LIABILITIES AND 
    STOCKHOLDERS' EQUITY  |  | June 30,
    2000 |         | December 31, 
 1999 |  
|------------------------------------------ |  | ----------------- | ------- | ------------------- | -
|                                           |  |                   |         |                     |  
|                                           |  | (unaudited)       |         |                     |  
|                                           |  |                   |         |                     |  
|Current Liabilities:                       |  |                   |         |                     |  
|Accounts payable                           |  | $                 | 1,289   |                     | $
|Current portion of long term debt          |  |                   | 953     |                     |  
|Line of credit                             |  |                   | 823     |                     |  
|Other accrued liabilities                  |  |                   | 1,661   |                     |  
|                                           |  |                   |         |                     |  
|Total Current Liabilities                  |  |                   | 4,726   |                     |  
|                                           |  |                   |         |                     |  
|Long term debt                             |  |                   | 162     |                     |  
|Notes payable to related parties           |  |                   | 185     |                     |  
|                                           |  |                   |         |                     |  
|Total Liabilities                          |  |                   | 5,073   |                     |  
|                                           |  |                   |         |                     |  
|Commitments and contingencies              |  |                   |        |                     |  
|                                           |  |                   |         |                     |  
|Stockholders Equity                       |  |                   |         |                     |  
|Convertible Preferred Stock, Series E & F  |  |                   |         |                     |  
|Par value $0.001 per share,                |  |                   |         |                     |  
|5% to 12% cumulative dividends,            |  |                   |         |                     |  
|601,700 and 335,000 shares authorized,     |  |                   |         |                     |  
|issued and outstanding as of June 30,      |  |                   |         |                     |  
|2000 and December 31, 1999, respectively.  |  |                   |         |                     |  
|The shares had an aggregate liquidation    |  |                   |         |                     |  
|value of $7,022,000 and $4,355,000 at      |  |                   |         |                     |  
|June 30, 2000 and December 31, 1999        |  |                   |         |                     |  
|respectively                               |  |                   |        |                     |  
|Common Stock, par value $0.001 per share,  |  |                   |         |                     |  
|100,000,000 shares authorized, 32,319,542  |  |                   |         |                     |  
|and 30,962,938 issued and outstanding,     |  |                   |         |                     |  
|at June 30, 2000 and December 31, 1999,    |  |                   |         |                     |  
|respectively                               |  |                   | 32      |                     |  
|Additional paid-in capital                 |  |                   | 59,209  |                     |  
|Accumulated deficit                        |  |                   | (49,124 | )                   |  
|                                           |  |                   |         |                     |  
|Total Stockholders Equity                 |  |                   | 10,117  |                     |  
|                                           |  |                   |         |                     |  
|Total Liabilities and Stockholders Equity |  | $                 | 15,190  |                     | $
|                                           |  |                   |         |                     |  

See notes to condensed consolidated financial statements.

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COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited - Dollars in Thousands, except per share data)

|                                                      |  | Three months ended |        | Six months ended |  
|----------------------------------------------------- |  | ------------------ | ------ | ---------------- | -
|                                                      |  | June 30,           |        | June 30,         |  
|                                                      |  | 2000               |        | 1999             |  
|                                                      |  |                    |        |                  |  
|                                                      |  |                    |        |                  |  
|Contract revenues                                     |  | $                  | 4,538  |                  | $
|Costs and expenses:                                   |  |                    |        |                  |  
|Cost of sales                                         |  |                    | 3,927  |                  |  
|Research and development                              |  |                    | 354    |                  |  
|General and administrative                            |  |                    | 1,065  |                  |  
|Depreciation and amortization                         |  |                    | 217    |                  |  
|                                                      |  |                    |        |                  |  
|                                                      |  |                    |        |                  |  
|Total costs and expenses                              |  |                    | 5,563  |                  |  
|                                                      |  |                    |        |                  |  
|Loss from operations                                  |  |                    | (1,025 | )                |  
|                                                      |  |                    |        |                  |  
|Other income (expense):                               |  |                    |        |                  |  
|Interest income                                       |  |                    | 23     |                  |  
|Interest expense                                      |  |                    | (55    | )                |  
|                                                      |  |                    |        |                  |  
|                                                      |  |                    |        |                  |  
|Net other income (expense)                            |  |                    | (32    | )                |  
|                                                      |  |                    |        |                  |  
|                                                      |  |                    |        |                  |  
|Loss before income taxes                              |  |                    | (1,057 | )                |  
|Income taxes                                          |  |                    |       |                  |  
|                                                      |  |                    |        |                  |  
|                                                      |  |                    |        |                  |  
|Net loss                                              |  | $                  | (1,057 | )                | $
|                                                      |  |                    |        |                  |  
|Loss per share                                        |  | $                  | (0.03  | )                | $
|                                                      |  |                    |        |                  |  
|Number of weighted average shares outstanding (000s) |  |                    | 31,911 |                  |  
|                                                      |  |                    |        |                  |  



See notes to condensed consolidated financial statements.

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COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited - Dollars in Thousands, except per share data)

|                                                        |  | Six months ended |       
|------------------------------------------------------- |  | ---------------- | ------
|                                                        |  | June 30,         |       
|                                                        |  | 2000             |       
|                                                        |  |                  |       
|Cash flows from operating activities:                   |  |                  |       
|Net loss                                                |  | $                | (1,876
|Adjustments to reconcile net loss to net cash used in   |  |                  |       
|operating activities:                                   |  |                  |       
|Depreciation and amortization                           |  |                  | 380   
|Changes in assets and liabilities, net of acquisitions: |  |                  |       
|Accounts receivable                                     |  |                  | 437   
|Prepaid assets                                          |  |                  | (134  
|Other
    assets                                        |  |                  | (1    
|Accounts payable                                        |  |                  | (503  
|Payables to related parties                             |  |                  |      
|Other liabilities                                       |  |                  | (594  
|                                                        |  |                  |       
|Net cash provided/(used) in operating activities        |  |                  | (2,291
|                                                        |  |                  |       
|Cash flows from investing activities:                   |  |                  |       
|Purchase of equipment                                   |  |                  | (82   
|Acquisition of patents                                  |  |                  | (37   
|Advances to related parties                             |  |                  | (45   
|Other investments                                       |  |                  | (325  
|                                                        |  |                  |       
|Net cash provided/(used) in investing activities        |  |                  | (489  
|                                                        |  |                  |       
|Cash flows from financing activities:                   |  |                  |       
|Increase in (repayment of) line of credit               |  |                  | (125  
|Decrease in notes and loans payable                     |  |                  | 199   
|Preferred stock dividends                               |  |                  | (295  
|Proceeds from sale of preferred stock and warrants      |  |                  | 1,770 
|Proceeds from sale of common stock                      |  |                  | 567   
|                                                        |  |                  |       
|Net cash provided/(used) in financing activities        |  |                  | 2,116 
|                                                        |  |                  |       
|Increase (decrease) in cash                             |  |                  | (664  
|Cash, beginning of period                               |  |                  | 1,797 
|                                                        |  |                  |       
|Cash, end of period                                     |  | $                | 1,133 
|                                                        |  |                  |       

See notes to condensed consolidated financial statements.

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COMMODORE APPLIED TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2000

Note A - Basis of Presentation

The accompanying unaudited condensed consolidated financial statements for Commodore Applied Technologies, Inc. and subsidiaries (the Company or Applied) have been prepared in accordance
with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The financial statement information was derived from unaudited financial statements unless indicated
otherwise. 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 management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the
three and six month periods ended June 30, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Companys audited financial statements included in the Companys annual report on Form
10-K/A for the year ended December 31, 1999.

Certain prior-year amounts have been reclassified to conform to the current year presentation.

For the years ended December 31, 1999, 1998, and 1997, Applied incurred losses of $3,985,000, $13,353,000 and $15,694,000, respectively and $1,876,000 for the six months ended June 30, 2000. Applied has also
experienced net cash outflows from operating activities of $2,888,000, $9,155,000 and $8,220,000 for the years ended December 31, 1999, 1998 and 1997, respectively and $2,291,000 for the six months ended June 30, 2000. Applieds continuation as a
company is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis, to obtain additional financing as may be required, and ultimately to attain profitability. Potential sources of cash include new contracts,
external debt, the sale of new shares of company stock or alternative methods such as mergers or sale transactions. No assurances can be given, however, that Applied will be able to obtain any of these potential sources of cash.

As explained in Note B, in March 2000, Applied completed a $2.0 million financing through a private placement. Net proceeds to the Company were $1.77 million.

Anticipated losses on contracts are provided for by a charge to income during the period such losses are identified. Changes in job performance, job conditions, estimated profitability (including those arising
from contract penalty provisions) and final contract settlements may result in revisions to cost and income and are recognized in the period in which the revisions are determined. Allowances for anticipated losses totaled $118,000 at December 31, 1999 and
June 30, 2000.

The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The investment in
Teledyne-Commodore, LLC, a 50% owned joint venture with Teledyne Environmental, Inc., has been accounted for under the equity method as the Company does not have a controlling interest in the venture. This investment is carried at $0 at December 31, 1999
and $325,000 at June 30, 2000. The Company will continue to monitor the carrying value of its investment. The LLC repaid advances totaling $143,000 in the first quarter of

5

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2000. The Company had previously charged off these advances. This recovery was recorded as an offset to Research and Development Costs.

Equity in losses of unconsolidated subsidiary for the six months ended June 30, 2000 and June 30, 1999 was $0. The LLC joint venture reported the following results for the first six months of 2000:

(Unaudited)Revenues
   $
   6,362,000Net Income
   
   375,000Total Assets
   
   6,281,000Members Capital
   
   1,589,000


These results are based on the LLC being successful in negotiating certain change orders with the Department of Army. Due to the uncertainty of collection of the change orders, Applied has not
recorded its interest in this reported net income for the six months ending June 30, 2000.

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note B - Stockholders Equity

The certificate of Incorporation was amended in 1999, increasing authorized shares of common stock from 75,000,000 to 100,000,000.

Convertible Preferred Stock

In March 2000, Applied completed $2 million in financing through private placement.  The
Company issued 266,700 shares of a new Series F convertible preferred stock, convertible into the Companys common stock at any time on or after September 30, 2000. On conversion the investor will receive for each converted preferred share the
greater number of Company common shares as determined by (1) the face per share ($10) plus accrued dividend divided by the average of the closing prices over a ten consecutive trading day period ending on the Trading day immediately preceding the
Conversion date or (2) $7.50 (the cash invested for each preferred share) divided by $1.93875.

The Series F convertible preferred stock has a liquidation preference of $10, per share. In addition, the Company issued warrants to purchase 363,475 shares of common stock at $1.93875 per share. These warrants
expire on March 16, 2005.

The Series F convertible preferred stock has an annual dividend rate of 12% through September 30, 2000 and 5% thereafter, paid quarterly.  Transaction costs totaled $230,000 resulting in net proceeds to the
Company of $1.77 million. The Company has paid $91,567 in dividends on this stock through June 30, 2000.

Common Stock

In March 2000, the Company settled a dispute over financing commissions, in part, by committing to issue 100,000 shares of the Companys unregistered common stock, par value $0.001. This commitment was
charged to Additional Paid in Capital as additional transaction costs upon stock issuance in April 2000.

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Note C  Segment Information

Using the guidelines set forth in SFAS No. 131, Disclosures About Segments of an Enterprise and Related Information, Applied has identified three reportable segments in
which it operates based on the services it provides. The reportable segments are as follows: Commodore Advanced Sciences (CASI), which primarily provides various engineering, legal, sampling and public relations services to Government agencies
on a cost plus basis and Solution, which is developing and constructing equipment to treat mixed and hazardous waste through a patented process using sodium and anhydrous ammonia. Common overhead costs are allocated between segments based on a record of
time spent by executives. Applied evaluates segment performance based on the segments net income (loss). Applieds foreign and export sales and assets located outside of the United States are not significant.  Summarized financial information
concern

ing Applieds reportable segments is shown in the following table.

|Three Months Ended June 30, 2000   |  |       |        |      |   |          |   |           |       |   |           |       |  
|---------------------------------- |  | ----- | ------ | ---- | - | -------- | - | --------- | ----- | - | --------- | ----- | -
|(Dollars in Thousands)             |  |       |        |      |   |          |   |           |       |   |           |       |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|                                   |  |       |        |      |   |          |   |           |       |   | Corporate |      
|                                   |  |       |        |      |   |          |   |           |       |   | Overhead  |      
|                                   |  | Total |        | CASI |   | Solution |   | and Other |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Contract Revenues                  |  | $     | 4,538  |      | $ | 4,488    |   | $         | 50    |   | $         |      |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Costs and expenses                 |  |       |        |      |   |          |   |           |       |   |           |       |  
|Cost of sales                      |  |       | 3,927  |      |   | 3,808    |   |           | 119   |   |           |      |  
|Research and development           |  |       | 354    |      |   |         |   |           | 354   |   |           |      |  
|General and administrative         |  |       | 1,065  |      |   | 416      |   |           | 20    |   |           | 629   |  
|Depreciation and amortization      |  |       | 217    |      |   | 21       |   |           | 96    |   |           | 100   |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Total costs and expenses           |  |       | 5,563  |      |   | 4,245    |   |           | 589   |   |           | 729   |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Income (loss) from operations      |  |       | (1,025 | )    |   | 243      |   |           | (539  | ) |           | (729  | )
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Interest income                    |  |       | 23     |      |   |         |   |           |      |   |           | 23    |  
|Interest expense                   |  |       | (55    | )    |   | (23      | ) |           | (32   | ) |           |      |  
|Equity in losses of                |  |       |        |      |   |          |   |           |       |   |           |       |  
|unconsolidated subsidiary          |  |       |       |      |   |         |   |           |      |   |           |      |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Net income (loss)                  |  | $     | (1,057 | )    | $ | 220      |   | $         | (571  | ) | $         | (706  | )
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Total assets                       |  | $     | 15,190 |      | $ | 2,941    |   | $         | 2,624 |   | $         | 9,625 |  
|                                   |  |       |        |      |   |          |   |           |       |   |           |       |  
|Expenditures for long-lived assets |  | $     | 50     |      | $ | 12       |   | $         | 0     |   | $         | 38    |  



7

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|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|---------------------------------- |  | ----- | ------ | ---- | - | -------- | - | --------- | ------ | - | --------- | ------ | -
|Six Months Ended June 30, 2000     |  |       |        |      |   |          |   |           |        |   |           |        |  
|(Dollars in Thousands)             |  |       |        |      |   |          |   |           |        |   |           |        |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|                                   |  |       |        |      |   |          |   |           |        |   | Corporate |       
|                                   |  |       |        |      |   |          |   |           |        |   | Overhead  |       
|                                   |  | Total |        | CASI |   | Solution |   | and Other |       
|                                   |  |       |        |      |   |          |   |           |       
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Contract Revenues                  |  | $     | 8,870  |      | $ | 8,775    |   | $         | 70     |   | $         | 25     |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Costs and expenses                 |  |       |        |      |   |          |   |           |        |   |           |        |  
|Cost of sales                      |  |       | 7,858  |      |   | 7,703    |   |           | 155    |   |           |       |  
|Research and development           |  |       | 600    |      |   |         |   |           | 743    |   |           | (143   | )
|General and administrative         |  |       | 1,845  |      |   | 696      |   |           | 19     |   |           | 1,130  |  
|Depreciation and amortization      |  |       | 379    |      |   | 41       |   |           | 138    |   |           | 200    |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Total costs and expenses           |  |       | 10,682 |      |   | 8,440    |   |           | 1,055  |   |           | 1,187  |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Income (loss) from operations      |  |       | (1,812 | )    |   | 335      |   |           | (985   | ) |           | (1,162 | )
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Interest income                    |  |       | 39     |      |   |         |   |           |       |   |           | 39     |  
|Interest expense                   |  |       | (103   | )    |   | (56      | ) |           | (47    | ) |           |       |  
|Equity in losses of                |  |       |        |      |   |          |   |           |        |   |           |        |  
|unconsolidated subsidiary          |  |       |       |      |   |         |   |           |       |   |           |       |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Net income (loss)                  |  |       | (1,876 | )    | $ | 279      |   | $         | (1,032 | ) | $         | (1,123 | )
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Total assets                       |  | $     | 15,190 |      | $ | 2,941    |   | $         | 2,624  |   | $         | 9,625  |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  
|Expenditures for long-lived assets |  | $     | 119    |      | $ | 14       |   | $         | 67     |   | $         | 38     |  
|                                   |  |       |        |      |   |          |   |           |        |   |           |        |  

8

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Three Months Ended June 30, 1999
(Dollars in Thousands)

|                                   |  |       |        |      |   |          |   |           |       |   | Corporate |      
|---------------------------------- |  | ----- | ------ | ---- | - | -------- | - | --------- | ----- | - | --------- | -----
|                                   |  |       |        |      |   |          |   |           |       |   | Overhead  |      
|                                   |  | Total |        | CASI |   | Solution |   | and Other |      
|                                   |  |       |        |      |   |          |   |           |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Contract Revenues                  |  | $     | 4,754  |      | $ | 4,754    |   | $         |      |   | $         |     
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Costs and expenses                 |  |       |        |      |   |          |   |           |       |   |           |      
|Cost of sales                      |  |       | 3,914  |      |   | 3,914    |   |           |       |   |           |      
|Research and development           |  |       | 277    |      |   |         |   |           | 277   |   |           |      
|General and administrative         |  |       | 903    |      |   | 433      |   |           | 27    |   |           | 443  
|Depreciation and amortization      |  |       | 176    |      |   | 32       |   |           | 71    |   |           | 73   
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Total costs and expenses           |  |       | 5,270  |      |   | 4,379    |   |           | 375   |   |           | 516  
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Income (loss) from operations      |  |       | (516   | )    |   | 375      |   |           | (375  | ) |           | (516 
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Interest income                    |  |       | 6      |      |   |          |   |           |       |   |           | 6    
|Interest expense                   |  |       | (15    | )    |   | (15      | ) |           |       |   |           |      
|Equity in losses of                |  |       |        |      |   |          |   |           |       |   |           |      
|unconsolidated subsidiary          |  |       |        |      |   |          |   |           |       |   |           |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Net income (loss)                  |  | $     | (525   | )    | $ | 360      |   | $         | (375  | ) | $         | (510 
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Total assets                       |  | $     | 15,476 |      | $ | 5,015    |   | $         | 2,094 |   | $         | 8,365
|                                   |  |       |        |      |   |          |   |           |       |   |           |      
|Expenditures for long-lived assets |  | $     | 322    |      | $ |         |   | $         | 322   |   | $         |     
|                                   |  |       |        |      |   |          |   |           |       |   |           |      



9

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Six Months Ended June 30, 1999 
 (Dollars in Thousands)

|                                   |  |       |        |      |   |          |   |           |       |   | Corporate |       
|---------------------------------- |  | ----- | ------ | ---- | - | -------- | - | --------- | ----- | - | --------- | ------
|                                   |  |       |        |      |   |          |   |           |       |   | Overhead  |       
|                                   |  | Total |        | CASI |   | Solution |   | and Other |      
|                                   |  |       |        |      |   |          |   |           |      
|Contract Revenues                  |  | $     | 8,550  |      | $ | 8,550    |   | $         |      |   | $         |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |       
|Costs and expenses                 |  |       |        |      |   |          |   |           |       |   |           |       
|Cost of sales                      |  |       | 7,368  |      |   | 7,368    |   |           |       |   |           |       
|Research and development           |  |       | 562    |      |   |          |   |           | 562   |   |           |       
|General and administrative         |  |       | 1,655  |      |   | 700      |   |           | 33    |   |           | 922   
|Depreciation and amortization      |  |       | 364    |      |   | 59       |   |           | 160   |   |           | 145   
|                                   |  |       |        |      |   |          |   |           |      
|Total costs and expenses           |  |       | 9,949  |      |   | 8,127    |   |           | 755   |   |           | 1,067 
|                                   |  |       |        |      |   |          |   |           |      
|Income (loss) from operations      |  |       | (1,399 | )    |   | 423      |   |           | (755  | ) |           | (1,067
|                                   |  |       |        |      |   |          |   |           |       |   |           |       
|Interest income                    |  |       | 23     |      |   |          |   |           |       |   |           | 23    
|Interest expense                   |  |       | (30    | )    |   | (30      | ) |           |       |   |           |       
|Equity in losses of                |  |       |        |      |   |          |   |           |       |   |           |       
|unconsolidated subsidiary          |  |       |        |      |   |          |   |           |       |   |           |       
|                                   |  |       |        |      |   |          |   |           |      
|Net income (loss)                  |  | $     | (1,406 | )    | $ | 393      |   | $         | (755  | ) | $         | (1,044
|                                   |  |       |        |      |   |          |   |           |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |       
|Total assets                       |  | $     | 15,476 |      | $ | 5,015    |   | $         | 2,094 |   | $         | 8,367 
|                                   |  |       |        |      |   |          |   |           |       |   |           |       
|Expenditures for long-lived assets |  | $     | 587    |      | $ |         |   | $         | 587   |   | $         |      
|                                   |  |       |        |      |   |          |   |           |       |   |           |       
|                                   |  |       |        |      |   |          |   |           |       |   |           |       

Note D - Contingencies

Applied has matters of litigation arising in the ordinary course of business which in
the opinion of management will not have a material adverse effect on its
financial condition or results of operations.

The Company previously reported notification by the Department of Labor that it was
being assessed penalties totaling $100,000 for failure to file certain
reports. The Company has settled this amount for $6,000.

In
the normal course of business, the Company has loaned monies to, borrowed
monies from and guaranteed performance bonds of affiliates.

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Note E - Proposed Acquisition

The
Company announced in May 2000 that it has entered into an agreement to acquire
81% of Dispute Resolution Management, Inc. ("DRM"), an international
consulting firm specializing in the management and settlement of complex, latent
and long-term tail insurance claims, including environmental, asbestos, products
liability and other claims, for large corporate and government clients.

The purchase price of the DRM assets and business is approximately $15 million, plus 1 million shares of
Company common stock and warrants to purchase an additional 1 million shares of
Company common stock and warrants to purchase an additional 1 million shares of common stock at $2.00 per share. The DRM stockholders, who will continue to own a 19 percent interest in the business, are entitled to receive on-going payments over a
five-year period based on a percentage of the profits generated by the existing DRM business. Consummation of this transaction is subject to a number of conditions, including a satisfactory due diligence investigation and financing.

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|ITEM 2. | Management's Discussion and Analysis of
    Financial Conditionand Results of
    Operation
|------- | -------------------------------------------------------------------------------------------

Overview

Commodore
Applied Technologies, Inc. and subsidiaries (the "Company" or "Applied"),
is engaged in the destruction and neutralization of hazardous waste from other
materials. Applied owns technologies related to the separation and destruction
of polychlorinated biphenyls (PCBs) and chlorofluorocarbons (CFCs).

Applied
is currently working on the commercialization of these technologies through
development efforts, licensing arrangements and joint ventures. Through
Commodore Advanced Sciences, Inc. ("CASI"), formerly Advanced Sciences,
Inc., a subsidiary acquired on October 1, 1996, Applied has contracts with
various government agencies and private companies in the United States and
abroad. As some government contracts are funded in one-year increments, there is
a possibility for cutbacks as these contracts constitute a major portion of CASI's
revenues, and such a reduction would materially affect the operations. However,
management believes the subsidiary's existing client relationships will allow
Applied to obtain new contracts in the future.

RESULTS OF OPERATIONS

Three and Six Months Ended June 30, 2000 Compared to Three and  Six Months Ended June 30, 1999

Revenues
were $4,538,000 and $8,870,000 for the three and six months ended June 30, 2000,
compared to $4,754,000 and $8,550,000 for the three and six months ended June
30, 1999. Such revenues were primarily from the Company's ASI subsidiary, and
consisted of engineering and scientific services performed for the United States
government under a variety of contracts, most of which provide for reimbursement
of cost plus fixed fees. Revenue under cost-reimbursement contracts is recorded
under the percentage of completion method as costs incurred and include
estimated fees in the proportion that costs to date bear to total estimated
costs. The Company has seen some increase in annualized sale volume as there was
unusually high activity on a major contract in the first six months of 2000 that
we expect to reduce to normal levels for the remainder of the year. The Company
has two major customers, each of which represent more than 10% of total revenue.
The combined revenue for these two customers was $7,681,000 or 87.5% of total
revenues for the six months ending June 30, 2000.

Cost of sales were $3,927,000 and $7,858,000 for the three and six month periods ending June 30, 2000 compared to $3,914,000 and $7,386,000 for the three and six month periods
ending June 30, 1999. These amounts reflect an increasing percentage of sales.  CASI has certain fixed price contracts that limit cost recovery to certain maximum rates. The Company has experienced increases in salaries and benefit costs (especially
health insurance) that could not be recovered, in full, under existing contracts.

For the three and six months ended June 30, 2000, the Company incurred research and development costs of $354,000 and $600,000 as compared to $277,000 and $562,000 for the three and
six months ended June 30, 1999. Excluding the one time credit of $143,000 in 2000 (See Note A to the Condensed Consolidated Financial Statements), research and development costs would have been $743,000 for the first six months of 2000. This increase over
1999 is attributable to performing the successful U.S. Environmental Protection Agency tests that
should result in a new permit for the S-10 machine in the second half of 2000.  Research and development costs include salaries, wages, and other related costs of personnel engaged in research and development activities, contract services and materials,
test equipment and rent for facilities involved in research and development activities. Research and development costs are expensed when incurred, except that those costs
related to the design or construction

12

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of an asset having an economic useful life are capitalized, and then depreciated over the estimated useful life of the asset.

General
and administrative expenses for the three and six months ended June 30, 2000
were $1,065,000 and $1,845,000 as compared to $903,000 and $1,655,000 for the
three and six months ended June 30, 1999. This difference is primarily related
to professional fees incurred in 2000 to file a registration statement with the
Securities and Exchange Commission as required by the Series F preferred stock
agreement (see "Liquidity and Capital Resources") and professional fees and
travel costs related to the negotiations and financing activities on the
proposed acquisition of Dispute Resolution Management, Inc. (see Note E to
Condensed Consolidated Financial Statements).

Interest income was $23,000 and $39,000 for the three and six months ended June 30, 2000, as compared to $6,000 and $23,000 for the three and six months ended June 30, 1999.

Interest expense for the three and six months ended June 30, 2000 was $55,000 and $103,000 as compared to $15,000 and $30,000 for the three and six months ended June 30, 1999.  This
is due to the increase in debt between periods, primarily the line of credit.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2000 and December
31, 1999, CASI had a $823,000 and $948,000 outstanding balance, respectively, on its revolving lines of credit.  In August 1998, CASI refinanced their line of credit.  The line of credit is not to exceed 75% of eligible receivable or $2,000,000 and is
due August 4, 2000 with interest payable monthly at prime plus 1.5 percent (9.25 percent as of June 30, 2000).  The credit line is collateralized by the assets of CASI and is guaranteed by Applied. This line of credit contains certain financial covenants
and restrictions including minimum ratios that CASI must satisfy. CASI was in compliance with the covenants at June 30, 2000 and December 31, 1999.  The Company expects to place this line of credit, at essentially the same terms, with a new lender in
August or September 2000.  The Company has verbal assurances from the current lender that the current line will be extended while the Company negotiates a final credit line with a new lender. These negotiations are currently ongoing.

The line of credit was amended July 15, 1999 to include a promissory note of $1,000,000 secured by substantially all the property and equipment of the Company.  The term loan is
payable at $16,667 per month plus interest.

For the
six months ended June 30, 2000, the Company incurred a net loss of $1,876,000 as
compared to a net loss of $1,406,000 for the six months ended June 30, 1999. For
the years ended December 31, 1999, 1998 and 1997, the Company incurred losses
and also experienced net cash outflows from operating activities. At June 30,
2000 the Company had working capital of $354,000 and shareholders' equity of
$10,117,000.

The
contract with one customer, representing $5,962,000, or 67.9% of the first six
months of 2000 revenues is scheduled to end on September 30, 2000. The Company
expects to be successful with its efforts to rebid this work, but at a
significantly reduced level. The Company uses many subcontractors to service
this account, and it is anticipated that much of this subcontract work will be
reduced or eliminated with the anticipated work reduction. The negative impact
on profits from this work reduction should be offset by increases in other areas
of the Company's business.

13

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In
November 1999, Applied completed $2.5 million in financing through private
placement. The Company issued 335,000 shares of a new Series E convertible
preferred stock, convertible into the Company's common stock at the market
price, after April 30, 2000 and up through April 30, 2003 at which time it
automatically converts to the Company's common stock. The Series E convertible
preferred stock has a variable rate dividend averaging 8.15% over the term of
the securities.

In March 2000, Applied
completed $2 million in financing through private placement. The Company issued
266,700 shares of a new Series F convertible preferred stock, convertible into
the Company's common stock at any time on or after September 30, 2000. On
conversion the investor will receive for each converted preferred share the
greater number of Company common shares as determined by (1) the face per share
($10) plus accrued dividend divided by the average of the closing prices over a
ten consecutive trading day period ending on the Trading day immediately
preceding the Conversion date or (2) $7.50 (the cash invested for each preferred
share) divided by $1.93875.

The Series F convertible preferred stock has a liquidation preference of $10, per share.  In addition, the Company issued warrants to purchase 363,475 shares of common stock at
$1.93875 per share.  These warrants expire on March 16, 2005.

The Series F convertible preferred stock has an annual dividend rate of 12% through September 30, 2000 and 5% thereafter, paid quarterly. 
Transaction costs totaled $230,000 resulting in net proceeds to the Company of $1.77 million.

NET OPERATING LOSS CARRYFORWARDS

The Company has net operating loss carryforwards of approximately $25,000,000.  The amount of net operating loss carryforward that can be used in any one year will be limited by the
applicable tax laws which are in effect at the time such carryforward can be utilized.  A full valuation allowance has been established to offset any benefit from the net operating loss carryforwards.  It cannot be determined when or if the Company will
be able to utilize the net operating losses.

YEAR 2000 CONSIDERATIONS

Prior to January 1, 2000, there was a great deal of concern regarding the ability of computers to adequately recognize 21stcentury dates from 20thcentury dates due to the two-digit data field used by many systems. Most reports
to date, however, are that computer systems are functioning normally and the
compliance and remediation work accomplished during the years leading up to 2000
was effective to prevent any problems. As of June 30, 2000, the Company has not
experienced and any such computer difficulty; however, computer experts have
warned that there may still be residual consequences of the change in centuries
and any such difficulties may, depending upon their pervasiveness and severity,
have a material adverse effect on the Company's business, financial condition
and results of operations. Any of the following could have a material adverse
effect on the Company's business, financial condition and results of
operations:

- a failure to fully identify all year 2000
  dependencies in the Company's system;
- a failure to fully identify all year 2000 dependencies in the systems of third parties with whom the Company does business;
- a failure of any third party with whom the Company does business to adequately address their year 2000 issues;
- the failure of any contingency plans developed to
  protest the Company's business and operations from year 2000 related
  interruptions; and;

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- delays in the implementation of new systems resulting from year 2000 problems.

FORWARD-LOOKING STATEMENTS

Certain matters discussed in this Quarterly Report are "forward-looking statements" intended to qualify for the safe harbors from liability established by Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company
"believes," "anticipates," "expects" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements.  Such statements may address future events and conditions concerning,
among other things, the Company's results of operations and financial condition; the consummation of acquisition and financing transactions and the effect thereof on the Company's business; capital expenditures; litigation; regulatory matters; and the
Company's plans an


d objectives for future operations and expansion.  Any such forward-looking statements would be subject to the risks and uncertainties that could cause actual results of operations, financial condition, acquisitions, financing transactions, operations,
expenditures, expansion and other events to differ materially from those expressed or implied in such forward-looking statements. Any such forward-looking statements would be subject to a number of assumptions regarding, among other things, future
economic, competitive and market conditions generally. Such assumptions would be based on facts and conditions as they exist at the time such statements are made as well as predictions as to future facts and conditions, the accurate prediction of which
may be difficult and involve the assessment of events beyond the Company's control.  Further, the Company's business is subject to a number of risks that would affect any such forward-looking statements.  These risks and uncertainties include, but are not
limited to, t


he ability of the Company to commercialize its technology; product demand and industry pricing; the ability of the Company to obtain patent protection for its technology; developments in environmental legislation and regulation; the ability of the
company to obtain future financing on favorable terms; and other circumstances affecting anticipated revenues and costs.  These risks and uncertainties could cause actual results of the Company to differ materially from those projected or implied by such
forward-looking statements.

|ITEM 3. | Quantitative and Qualitative Disclosures
    About Market Risk
|------- | --------------------------------------------------------------

Not applicable.

15

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PART II - OTHER INFORMATION

ITEM
1.          Legal ProceedingsThere
have been no material legal proceedings to which the Company is a party which
have not been disclosed in previous filings with the Securities and Exchange
Commission.  There are no material developments to be reported in any
previously reported legal proceedings.

ITEM
2.          Change in
Securities

In
March 2000, Applied completed $2 million in financing through private placement
of 266,700 shares of a new Series F convertible preferred stock.  In
addition, the Company issued warrants to purchase 363,475 shares of common stock
at $1.93875 per share.  (See Note B to condensed consolidated financial
statements).

ITEM
3.          Defaults among
Senior Securities

Not
applicable.

ITEM 4.          Submission
of Matters to a Vote of Security Holders

Not
applicable.

ITEM
5.          Other Events

Not
applicable

ITEM
6.          Exhibits and
Reports on Form 8-K

| | (a) | Exhibit                                                                                                                                                                                                                                                                                                                     
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | 27 Financial Data
      Schedule                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                             
| | (b) | Reports on Form 8-K                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                             
| |     | The Company filed a Current Report on Form 8-K, dated May 11, 2000, regarding:1) Shelby T. Brewer, Ph.D. joining the management team of the Company;2) An Agreement to acquire Dispute Resolution Management, Inc.; and3) Treatment of contaminated soil at the Lualualei Naval Radio Transmitting facility in Oahu, Hawaii.

16

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SIGNATURES

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



|Date: August 14, 2000 | COMMODORE APPLIED TECHNOLOGIES, INC.(Registrant)
|--------------------- | ------------------------------------------------
|                      |                                                 
|                      | By                                              
|                      |                                                 
|                      |                                                 





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