SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

   For the quarterly period ended: September 30, 1996
   Commission File No. 0-19566

                       EARTH SEARCH SCIENCES, INCORPORATED
             (Exact Name of Registrant as Specified in its Charter)

            Utah                                           87-0408225
(State or other Jurisdiction of                    (I.R.S. Employer Identi-
Incorporation or Organization)                            fication Number)


           502 North 3rd Street, #8, P.O. Box 674, McCall, Idaho 83638
          (Address of Principal Executive Offices, Including Zip Code)


Registrant's telephone number, including area code: (208) 634-7080


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 and 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 requirement for the past
                  90 days.

                                    Yes X           No



As of September 30, 1996, 67,941,993 shares of common stock were outstanding.






<PAGE>
<TABLE>

                           EARTH SEARCH SCIENCES, INC.
                                    FORM 10-Q
                                   (Unaudited)

                        QUARTER ENDED SEPTEMBER 30, 1996

                                     PART I
                              FINANCIAL INFORMATION
                                TABLE OF CONTENTS

<S>                 <C>                                                                   <C> 
Item 1.              Financial Statements                                                 Page

                     Consolidated Statement of Financial Position
                      as of September 30, 1996 and March 31, 1996.                          1

                     Consolidated Statement of Operations for the
                      Three Months and the Six Months Ended
                      September 30, 1996 and 1995.                                          2

                     Consolidated Statement of Cash Flows for the
                      Six Months Ended September 30, 1996.                                  3

                     Selected Notes to Consolidated Financial
                       Statements.                                                          4

Item 2.              Management's Discussion and Analysis of
                      Financial Condition and Results of Operations                         5

                 
                                         PART II

                             OTHER INFORMATION REQUIRED

Item 1.               Legal Proceedings                                                     6

Item 2.               Changes in Securities                                                 6

Item 3.               Defaults Upon Senior Securities                                       6

Item 4.               Submission of Matters of a Vote of
                        Security Holders                                                    6

Item 5.               Other information                                                     6

Item 6.               Exhibits and Reports on Form 8-K                                      6



</TABLE>
<PAGE>


                           EARTH SEARCH SCIENCES, INC.
                          (A Development Stage Company)

                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>

                                                  September 30,            March 31,
                                                      1996                   1996
                                                    (unaudited)


                           ASSETS
<S>                                               <C>                      <C>    

Current assets:
         Cash                                     $    46,031              $   670,325
         Prepaid expenses                                -                        -
                                                   ----------               ----------
                  Total current assets                 46,031                  670,325
                                                   ----------               ----------


Property and equipment                               1,038,308                 122,276
Deposit and their assets                                77,725                 129,776
                                                    ----------              ----------
                  Total assets                     $ 1,162,064              $  922,377
                                                    ==========              ==========



                           LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
         Convertible Notes Payable                     228,798                 444,981
         Accounts payable                              189,847                 188,818
         Accrued payroll taxes                         108,975                  34,000
         Accrued interest                              316,579                 314,277
         Customer deposit                            1,490,125                 500,000
                                                     ---------               ---------

                  Total current liabilities          2,334,324               1,482,076
                                                     ---------               ---------

Long-term liabilities:
         Shareholder loans                              99,590                  96,519
         Deferred officers' compensation               608,239                 592,560
         Minority interest                              90,928                  47,130
                                                     ---------              ----------

                  Total liabilities                    798,757               2,218,285
                                                     ---------              ----------

Commitments and contingencies
Stockholders' deficit:
   Common stock $.001 par value; 200,000,000
   shares authorized; 67,941,933 and
   66,551,663 respectively, issued                      67,942                  66,551
Additional paid-in capital                           4,758,768               4,320,920
Deficit accumulated during the development stage    (6,797,727)             (5,683,379)
                                                    ----------              ----------
                                                    (1,971,017)             (1,295,908)

   Total liabilities and stockholders' deficit     $ 1,162,064             $   922,377
                                                    ==========               ==========
</TABLE>
<PAGE>




                           EARTH SEARCH SCIENCES, INC.
                          (A Development Stage Company)

                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (unaudited)
<TABLE>
<CAPTION>


                                                     For the Three Months        For the Six Months
                                                     Ended September 30,         Ended September 30,

                                                       1996         1995          1996         1995
                                                     -------      -------        ------       -----

<S>                                               <C>            <C>            <C>            <C> 
Revenue:                                          $     -        $      -       $     -        $     -

Expenses:
         Exploration                                   91,135         15,796        121,165         41,961
         Depreciation and 
           Amortization                                 7,000          4,800         12,000          9,600
         General and
           Administrative                             423,266      1,310,964        940,647      1,435,603
                                                     --------      ---------      ---------     ----------

Loss from operations                                 (521,401)    (1,331,560)    (1,073,812)    (1,487,164)

Interest expense                                     ( 21,602)       (25,450)       (40,536)       (70,505)
                                                    ---------      ---------      ---------     ----------

Net Loss                                          $  (543,003)   $(1,357,010    $(1,114,348)   $(1,557,669)
                                                   ==========    ===========    ============    ==========

Loss Per Common Share:                            $  (.01)       $   (.03)      $    (.02)     $   (.03)
                                                   ==========     ==========     ==========     ==========


Weighed average shares
outstanding                                        67,843,027     49,995,499     67,495,445     49,995,499
                                                   ==========     ==========     ==========     ==========



</TABLE>

<PAGE>




                           EARTH SEARCH SCIENCES, INC.
                          (A Development Stage Company)

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>                                                                                 
                                                                                          For the Six Months
                                                                                          Ended September 30,
                                                                                         1996            1995
<S>                                                                                       <C>            <C>

Cash flows from operating activities:
  Net Income                                                                              $(1,114,348)   $(1,557,119)
  Adjustments to reconcile net loss to net cash
    used in operating activities:
   Common stock issued for services                                                            92,597           0
   Stock options issued                                                                        0           1,100,000
   Loss from disposal of fixed assets                                                          0                0
   Depreciation and amortization                                                               12,000          9,600
   Change in long term other assets                                                            52,051       (109,776)
   Prepaids, deposits, etc.                                                                    -                 837
   Change in liability accounts                                                             1,112,372        246,092
                                                                                            ---------       --------

Net cash provided by (used in) operating activities                                           154,672       (310,996)
                                                                                             --------      ---------

Cash flow used in investing activities:
  Capitol expenditures                                                                       (928,032)          0
                                                                                            ---------      ----------

Net cash used in investing activities                                                        (928,032)          0
                                                                                             ---------     ----------

Cash flow provided (used in) financing activities:
  Proceeds from notes payable                                                                  0             364,340
  Repayment of notes payable                                                                   0             (2,000)
  Proceed form issuance of shareholder notes payable                                           60,000           0
  Repayment of shareholder loans                                                              (56,929)       (52,000)
  Proceeds form issuance of subsidiary common stock                                           145,995           0
                                                                                             --------        --------

Net cash provided by financing activities                                                     149,066        310,340
                                                                                             --------        --------

Net decrease (increase) in cash and cash equivalents                                         (624,294)          (656)

Cash and cash equivalents at beginning of year                                                670,325         30,420
                                                                                             --------       --------

Cash and cash equivalents at end of six months                                            $    46,031    $    29,764
                                                                                           ==========     ==========

</TABLE>


<PAGE>
                           EARTH SEARCH SCIENCES, INC
                           A Development Stage Company

               SELECTED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         September 30, 1996 (unaudited)

CONDENSED FINANCIAL STATEMENTS

         The  consolidated  statement of financial  position as of September 30,
1996, and the consolidated statements of operations for the three and six months
ended  September  30, 1996 and cash flow for the six months ended  September 30,
1996, and 1995,  have been prepared by the Company without audit. In the opinion
of management, all adjustments (which include only normal recurring adjustments)
have been made that are  necessary  to present  fairly the  financial  position,
results of operation,  and cash flows at September 30, 1996.  The  statements of
loss for the three  months  and six  months  ended  September  30,  1995 and the
statement  of cash flows for the six months ended  September  30, 1995 have been
restated  to  reflect  adjustments  arising  from the  audit of the  Company's
financial  statements  for the year  ended  March  31,  1996.  Such  adjustments
resulted in  recognition  for $529,635 in  additional  expense.  These  expenses
primarily  relate  to  compensation  expense  incurred  from the  grant of stock
options to certain officers.

         Certain  information  and  footnote  disclosures  normally  included in
financial  statements  prepared in accordance with generally accepted accounting
principals have been condensed or omitted.  It is suggested that these financial
statements  be read in conjuction  with the audited  financial  statements  and
notes thereto  included in the Company's  form 10-K for the year ended March 31,
1996.  The results of operation for the six months ended  September 30, 1996 are
not necessarily  indicative of the operating results to be expected for the full
fiscal year.

NOTES PAYABLE

         The Company  historically obtained interim  working capital by issuing
promissory notes with rights of conversion. The terms of these debts instruments
are for an initial period of ninety days but renewable every ninety days for one
year, and bear interest at 12.5% to 12.99%.  Holders of the notes have the right
to convert the loan amount plus interest into restricted shares of the Company's
common stock,  subject to the terms in the promissory  notes. The Company issued
no new promissory notes during the three and six months ended September 30, 1996

CUSTOMER DEPOSITS

         The  Company  has   received   $1,490,125   in  deposits   through  its
subsidiaries  for the sale of two  airborne  hyperspectral  scanners  which  are
currently in production. These instruments are expected to be leased back to the
Company in "sale/leaseback"  transactions.  To date, the terms of the agreements
have not been formalized.  As such, the deposits have been recorded as a current
liability at September 30, 1996.

LOSS PER COMMON SHARES

         Loss per common share is based on the weighted average number of shares
outstanding during each period.

ADVANCE FROM SHAREHOLDERS

         The company has continued in existence through the use of advances from
shareholders,  primarily  an officer and  director of the Company and  Universal
Search Technology owned by that same officer and director.

<PAGE>

ISSUANCE OF COMMON STOCK

         During the three months ended  September 30, 1996,  the Company  issued
197,932 shares of its authorized but unissued  common stock.  The Company issued
22,500 shares valued at $2,400 for services  rendered and 175,432  shares valued
at $44,168 for debt and accrued interest conversions.

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MATERIAL CHANGES IN FINANCIAL CONDITION

         During the  quarter  ended  September  30,  1996,  the  Company  had no
operating  revenues.  The Company was required to obtain working capital through
deposits obtained from sale-leaseback transactions of its instruments. Aggregate
amounts  received in the second  quarter 1997 were  approximately  $490,125.  In
addition,  the Company's  operating payables and accrued  liabilities  increased
approximately $16,289.

         Management  continues to find  difficulty in raising  required  working
capital. If the company cannot raise working capital the Company will experience
a  substantial   hardship  in  reducing  its  operating   payables  and  accrued
liabilities.

RESULTS OF OPERATIONS

         The Company to better focus on commercial plans,  formed a wholly owned
subsidiary, Earth Search Resources, Inc. ("ESR") and on June 1, 1996 hired Brian
C. Savage,  formerly director of the investment  banking mining group of Nesbitt
Burns   Securities,   Inc.  in  New  York,   as   president   of  ESR  and  Vice
President-Resource  Development of the Company.  Mr. Savage's  experience in the
mining industry and his investment banking background should provide the Company
with significant assistance in developing the commercial side of the business.

         The Company  continues to focuses on  Kazakstan as a potential  mineral
active  site and is moving  forward  with its plans to  conclude a joint  remote
sensing mission with the Department of Energy,  several  national  laboratories,
several large industrial partners and the Naval Research Laboratory. The mission
was originally planned for August of 1996 but delayed at the request of the
government of Kazakstan. It has since been rescheduled for June of 1997.

         In June  officers of the Company  visited  Kazakstan to start the field
evaluation process related to the mineral concession.  In September Earth Search
signed a Memorandum  of Agreement,  non-compete  and  non-disclosure  forms with
Falconbridge  Ltd.  (a $3  billion  dollar  annual  revenue)  a  mining  company
headquartered in Ontario, Canada.

         In  September  Earth  Search,  Falconbridge,  Behre  Dolbear  and  ASIT
Corporation  spent 7 days on the  concession  in  Kazakstan  acquiring  data and
samples  that  will  allow  Earth  Search,  Falconbridge  and Behre  Dolbear  to
formulate a exploration policy for the next 5 years.

         The Company continues to build  relationships with the Kazakstani joint
stock company SEMTECH.  We have just completed a new shareholder  agreement that
spells out new distribution of equity and revenue from the mineral concession on
the  Polygon.  The Company also is in final  preparations  for  submittal  for a
complex license on the Polygon Resource  concession.  The complex license is the
critical  step  needed  to  perfect  the  Company's  interests in the mineral
concession.

         Earth  Search  recognizes  that while  Central  Asia  holds  promise of
mineral rich deposits,  there are risks  associated with operating in the former
Soviet  Union.   Accordingly   management  has  taken  steps  to  diversify  its
exploration activities to other locations worldwide.

<PAGE>

         Dr. Larry Lass,  University of Idaho teamed with Earth Search  Sciences
on a joint  proposal  to the Farm Bureau and won a contract to overfly the Snake
River  Basin  (Hell's  Canyon)  to prove the use of  hyperspectral  imagery  for
control and eradication of Noxious weed  intrusion.  The results of that mission
enable Earth Search to determine the applicability of Probe 1 technology to this
potentially lucrative agricultural market.

         On July 31, 1996, the Company signed a contract with Applied Signal and
Imaging Technology, Inc ("ASIT"), to jointly develop software packages that will
enable the  Company  to  process  the data it  collects  in near real time.  The
Company  contracted  ASIT to develop a  proprietary  software  package that will
deliver in the same time frame of our instrument Probe 1.

     The annual meeting of the shareholders of Earth Search Sciences,  Inc.,
was held on October 22,  1996.  A Quorum was present and the  following  persons
were  approved and elected as directors  for the terms  provided by the by laws:
Larry F Vance, John W Peel, Brian C Savage,  Rory J Stevens and Tami J Story and
the appointment of Price  Waterhouse LLP as the Company's  independent  Auditors
effective with the fiscal year ended March 31, 1996 was also approved.

         During the first quarter,  the Company  signed a Creative  Research and
Development  Agreement (CRADA) with the U.S. Army Cold Weather  Laboratories and
the U.S.  Navel  Research  Laboratories  to fly the Navy's HYDICE  Hyperspectral
instrument  over a site in Idaho that because of its robust  vegetation  mineral
history,  and  water  resources,  ESSI  was  closer  to  utilize  as an  outdoor
laboratory  collecting  one (1) meter  data over  mineral,  forestry,  and water
targets  that will be used by the  Company to develop  advancements  on our next
generation of commercial instruments.

         During the upcoming fiscal year, the Company, if funds are available, 
will continue NASA research and development together with the development of 
instruments that will be used in the Company's remote sensing endeavors, and the
mineral exploration and environmental fields.  The Company is looking to acquire
revenue  producing  companies  compatible with our systems approach to remote 
sensing solutions.
         
OTHER

         The  company  is in  cooperation  with an Idaho  Department  of Finance
inquiry into its transactions with Idaho based investors.  Earth Search believes
it may have misunderstood  certain state regulations in completing  transactions
with a limited number of Idaho-based investors. The company is uncertain whether
the  Idaho  Department  of  Finance  will file an action  against  Earth  Search
Sciences once the inquiry is completed.  However,  the potential exists that the
State of Idaho Department of Finance could file a complaint  seeking to prohibit
any future such  transactions  with Idaho investors  without first  completing a
registration.  The State's  options  could also  include an order to rescind the
transactions made so far.  Representatives of the Idaho Department of Finance
have raised the potential for challenging certain non-Idaho transactions and 
have expressed concern regarding certain disclosures by the Company.  The 
Company vehemently objected to such challenges and concerns, and the Company is
presently negotiating with the Department and is hopeful that this entire matter
can be resolved without adversely impacting the Company.

OUTLOOK

         The milestone  payments are current for the delivery of the first Probe
1 instrument  which is currently  scheduled  for the first half of 1997, in time
for the scheduled date of the Kazakstani mission.

<PAGE>

PART II

                           OTHER INFORMATION REQUIRED


Item 1.             Legal Proceeding                             None

Item 2.             Changes in Securities                        None
     
Item 3.             Defaults Upon Senior Securities              None

Item 4.             Submission of Matters to a Vote
                           of Security Holder                    None

Item 5.             Other Information                            None

Item 6.             Exhibits and Reports on Form 8-K             None




                                    SIGNATURE

         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.

                                         EARTH SEARCH SCIENCES, INC.



Date:  November 14, 1996                 /s/ Larry F. Vance
      -------------------                -----------------------------
                                         Larry F. Vance
                                         Chairman



<PAGE>