SECURITIES AND EXCHANGE COMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[Mark One]

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 for the quarterly period ended JUNE 30, 2000

[ ]      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:  0-25203
                                  -------

                             OMNICOMM SYSTEMS, INC.
                             ----------------------
                 (Name of small business issuer in its charter)

                  Delaware                      11-3349762
                  --------                      ----------
          (State of incorporation)       (IRS employer Ident. No.)

         3250 Mary Street, #402, Miami, FL                 33133
         ----------------------------------                -----
           (Address of principal office)                 (Zip Code)

         Registrant's telephone number: (305) 448-4700

         Indicate by check mark whether the Registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the past 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] NO [ ]

         The number of shares outstanding of each of the issuer's classes of
equity as of June 30, 2000: 6,411,885 common stock $.001 par value.

<PAGE>

                             OMNICOMM SYSTEMS, INC.

Part I - Financial Information                                             Page
                                                                           ----
Item 1.
Consolidated Balance Sheet -
         June 30, 2000 and December 31, 1999                                1

Consolidated Statements of Shareholders' Equity -
         January 1, 1999 to June 30, 2000                                   2-4

Consolidated Statements of Operations -
         Three and six months ended June 30, 2000 and 1999                  5

Consolidated Statement of Cash Flows -
         Six months ended June 30, 2000 and 1999                            6-7

Notes to Financial Statements                                               8-13


Items 2.
Managements' Discussion and Analysis of
Financial Condition and Results                                            13-15

Part II - Other Information                                                15

Item 1.   Legal Proceedings:                                               15

Item 2.   Changes in Securities: None

Item 3.   Defaults Upon Senior Securities: None

Item 4.   Submission of Matters To a Vote of
          Security Holders: None

Item 5.   Other Information                                                15-16

Item 6.   Exhibits and Reports on Form 8-K                                 16


Signatures                                                                 16

<PAGE>

                                OMNICOMM SYSTEMS, INC.
                             CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                        ASSETS

                                                          June 30,      December 31,
                                                            2000           1999
                                                         (Unaudited)
                                                         ---------------------------
<S>                                                      <C>             <C>
CURRENT ASSETS
   Cash                                                  $   214,602     $ 1,127,263
   Accounts receivable                                        35,759           8,458
   Inventory                                                   5,046          10,166
   Prepaid expenses                                           22,260               0
                                                         -----------     -----------
      Total current assets                                   277,667       1,145,887
                                                         -----------     -----------
Property and equipment, net                                  564,667         353,183
                                                         -----------     -----------
OTHER ASSETS
   Equity investment in Medical Networks EMN                 335,000               0
   Shareholder loans                                               0           3,406
   Intangible assets, net                                    119,256         169,629
   Goodwill, net                                             158,555         237,832
   Other assets                                               40,852          26,960
                                                         -----------     -----------
TOTAL ASSETS                                             $ 1,495,997     $ 1,936,897
                                                         ===========     ===========

                         LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued expenses                 $ 1,403,024     $   284,481
   Notes payable - current                                   707,500         177,500
   Sales tax payable                                             331           1,818
                                                         -----------     -----------
      Total current liabilities                            2,110,855         463,799
                                                         -----------     -----------
Notes payable - long term                                          0               0
Convertible notes                                            462,500         862,500
                                                         -----------     -----------
TOTAL LIABILITIES                                          2,573,355       1,326,299
                                                         -----------     -----------
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY (DEFICIT)
   Preferred stock - 10,000,000 shares authorized,
      4,263,500 and 4,117,500 issued and                   3,812,093       3,872,843
      outstanding, respectively at par
   Common Stock - 20,000,000 shares authorized,
      6,411,885 and 3,344,066 issued and outstanding,
      respectively, at $.001 par value                         6,433           3,344
   Additional paid in capital                              1,441,547         238,007
   Retained earnings (deficit)                            (6,043,167)     (2,652,644)
   Treasury stock                                           (293,312)              0
   Stock subscriptions receivable                               (952)       (850,952)
                                                         -----------     -----------
TOTAL SHAREHOLDERS' EQUITY                                (1,077,358)        610,598
                                                         -----------     -----------
TOTAL LIABILITIES AND SHAREHOLDERS'
   EQUITY (DEFICIT)                                      $ 1,495,997     $ 1,936,897
                                                         ===========     ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       1
<PAGE>

                             OMNICOMM SYSTEMS, INC.
            CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT)
                 FOR THE PERIOD JANUARY 1, 1999 TO JUNE 30, 2000

<TABLE>
<CAPTION>
                                                         5% Series A Convertible                                          Total
                         Common Stock         Additional     Preferred Stock       Retained                            Shareholders'
                      Number      $ 0.001      Paid In      Number                 Earnings   Subscription  Treasury      Equity
                    of Shares      Value       Capital    of Shares  $0.001 Par    (Deficit)   Receivable     Stock      (Deficit)
                    ----------  -----------  -----------  ---------  -----------  -----------   ---------   ---------   -----------
<S>                  <C>        <C>          <C>                 <C> <C>          <C>           <C>         <C>         <C>
January 1, 1998      1,002,250  $     1,002  $         0          0  $         0  $   (16,040)  $    (815)  $       0   $   (15,853)

Issuance of
common stock           199,750          200                                                          (137)                       63

Acquisition of
Education
Navigator, Inc.        141,000          141      132,213                                                                    132,354

Net (loss) for
year ended
December 31, 1998                                                                    (295,367)                             (295,367)
                    ----------  -----------  -----------  ---------  -----------  -----------   ---------   ---------   -----------
Balances at
December 31, 1998    1,343,000        1,343      132,213          0            0     (311,407)       (952)          0      (178,803)

Issuance of
common stock           250,000          250                                                                                     250

Issuance of common
stock for services      86,400           86       56,059                                                                     56,145

Issuance of
common stock           300,000          300        2,700                                                                      3,000

Issuance of common
stock for services      68,000           68       44,132                                                                     44,200
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       2
<PAGE>

<TABLE>
<CAPTION>
                                                         5% Series A Convertible                                          Total
                         Common Stock         Additional     Preferred Stock       Retained                            Shareholders'
                      Number      $ 0.001      Paid In      Number                 Earnings   Subscription  Treasury      Equity
                    of Shares      Value       Capital    of Shares  $0.001 Par    (Deficit)   Receivable     Stock      (Deficit)
                    ----------  -----------  -----------  ---------  -----------  -----------   ---------   ---------   -----------
<S>                 <C>         <C>          <C>          <C>          <C>         <C>           <C>         <C>         <C>
Issuance of
common stock         1,296,666        1,297        2,903                                                                      4,200

Issuance of
preferred stock, net
of $134,590
issuance costs                                            4,117,500    3,872,843                 (850,000)                3,022,843

Net loss for the
year ended
December 31, 1999                                                                  (2,341,237)                           (2,341,237)
                    ----------  -----------  -----------  ---------  -----------  -----------   ---------   ---------   -----------
Balances at
December 31, 1999    3,344,066        3,344      238,007  4,117,500    3,872,843   (2,652,644)   (850,952)          0     $ 610,598

Issuance of common
stock                  284,166          284                                                                                     284

Exercise of stock
options              1,018,604        1,019      292,293                                                                    293,312

Purchase of treasury
stock in connection
with stock
appreciation rights    (20,951)                                                                              (293,312)     (293,312)

Payment of
subscription
receivable                                                                                        850,000                   850,000

Acquisition of
WebIPA, Inc.         1,200,000  $     1,200  $     3,833                                                                      5,033

Issuance of
preferred stock                                             146,000      146,000                                            146,000
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>

<TABLE>
<CAPTION>
                                                         5% Series A Convertible                                          Total
                         Common Stock         Additional     Preferred Stock       Retained                            Shareholders'
                      Number      $ 0.001      Paid In      Number                 Earnings   Subscription  Treasury      Equity
                    of Shares      Value       Capital    of Shares  $0.001 Par    (Deficit)   Receivable     Stock      (Deficit)
                    ----------  -----------  -----------  ---------  -----------  -----------   ---------   ---------   -----------
<S>                  <C>        <C>          <C>          <C>        <C>          <C>           <C>         <C>         <C>
Issuance costs                                                          (206,750)                                          (206,750)

Conversion of
convertible notes
payable                320,000  $       320  $   399,680                                                                    400,000

Exercise of stock
options                 20,000  $        20  $    15,980                                                                     16,000

Exercise of stock
warrants               246,000  $       246  $   491,754                                                                    492,000

Net (loss) for the
Six months ended
March 31, 2000                                                                     (3,390,523)                           (3,390,523)
                    ----------  -----------  -----------  ---------  -----------  -----------   ---------   ---------   -----------
Balances at
June 30, 2000        6,411,885  $     6,433  $ 1,441,547  4,263,500  $ 3,812,093  $(6,043,167)  $    (952)  $(293,312)  $(1,077,358)
                    ==========  ===========  ===========  =========  ===========  ===========   =========   =========   ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>

                             OMNICOMM SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                For the six months ended       For the three months ended
                                                        June 30,                        June 30,
                                               ---------------------------     ---------------------------
                                                   2000            1999            2000           1999
                                               -----------     -----------     -----------     -----------
<S>                                            <C>             <C>             <C>             <C>
Revenue - sales, net                           $    40,759     $   912,401     $    15,782     $   383,679

Cost of sales                                       46,524         634,524          11,404         409,233
                                               -----------     -----------     -----------     -----------
Gross margin (loss)                                 (5,765)        277,877           4,378         (25,554)
                                               -----------     -----------     -----------     -----------
Other expenses
  Salaries, benefits and related taxes           1,511,329         231,266         938,396         128,331
  Rent                                             162,407          27,554         101,476          12,181
  Consulting - medical advisory                     89,000               0          47,000               0
  Consulting - marketing sales                      77,033         210,101          29,033         160,080
  Consulting - product development                  36,420               0           7,985               0
  Legal and professional fees                      315,978          70,374         206,731          32,407
  Travel                                           310,443         105,690         140,724          71,792
  Telephone and internet                           141,347           9,143          77,313           3,921
  Factoring fees                                         0           4,500               0             632
  Selling, general and administrative              402,783         155,017         192,326         127,321
  Interest expense, net                             41,979          29,439          24,956          20,608
  Depreciation and amortization                    194,470         139,396         101,854          70,168
                                               -----------     -----------     -----------     -----------
Total other expenses                             3,283,189         982,480       1,867,794         627,441

(Loss) before taxes and preferred dividends     (3,288,954)       (704,603)     (1,863,416)       (652,995)

Income tax expense (benefit)                             0               0               0               0

Preferred stock dividends                         (101,569)              0         (52,115)              0
                                               -----------     -----------     -----------     -----------
Net (loss)                                     $(3,390,523)    $  (704,603)    $(1,915,531)    $  (652,995)
                                               ===========     ===========     ===========     ===========
Net (loss) per share                           $     (0.62)    $     (0.46)    $     (0.31)    $     (0.41)
                                               ===========     ===========     ===========     ===========
Weighted average number of
shares outstanding                               5,456,705       1,532,428       6,102,179       1,604,390
                                               ===========     ===========     ===========     ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>

                             OMNICOMM SYSTEMS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                    For the six months ended
                                                                                             June 30,
                                                                                   ---------------------------
                                                                                      2000             1999
                                                                                   -----------     -----------
       <S>                                                                         <C>             <C>
       CASH FLOWS FROM OPERATING ACTIVITIES
       Net (loss)                                                                   (3,390,523)    $  (704,603)
       Adjustment to reconcile net loss to net cash
          provided by (used in) operating activities
          Depreciation and amortization                                                194,470         139,396
          Changes in operating assets and liabilities, net of
             effects of acquisition of Education
             Navigator, Inc. (EdNav)
             Accounts receivable                                                       (27,301)         37,015
             Inventory                                                                   5,120           2,555
             Due from placement agent                                                        0         (12,431)
             Prepaid expenses                                                          (22,260)              0
             Other assets                                                              (13,892)          2,500
             Accounts payable and accrued expenses                                   1,118,544          14,745
             Sales tax payable                                                          (1,487)        (29,955)
             Due to factoring agent                                                         --         (42,485)
                                                                                   -----------     -----------
       Net cash provided by (used in) operating activities                          (2,137,329)       (593,263)
                                                                                   -----------     -----------
       CASH FLOWS FROM INVESTING ACTIVITIES
          Equity investment in European Medical Networks                              (335,000)              0
          Purchase of WebIPA                                                             5,033               0
          Purchase of property and equipment                                          (272,899)        (26,198)
                                                                                   -----------     -----------
       Net cash provided by (used in) investing activities                            (602,866)        (26,198)

       CASH FLOWS FROM FINANCING ACTIVITIES
          Net proceeds from convertible notes                                                0         742,875
          Proceeds from notes payable                                                  530,000               0
          Proceeds from the issuance of preferred stock,
          net of issuance costs                                                        789,250               0
          Issuance of common stock                                                         284          56,145
          Proceeds from stock warrant exercise                                         492,000               0
          Proceeds from stock option exercise                                           16,000               0
          Payments on notes payable                                                         --        (150,000)
                                                                                   -----------     -----------
       Net cash provided by financing activities                                     1,827,534         649,020
                                                                                   -----------     -----------
       Net increase (decrease) in cash and cash equivalents                           (912,661)         29,559
       Cash and cash equivalents at beginning of period                              1,127,263          44,373
                                                                                   -----------     -----------
       Cash and cash equivalents at end of period                                      214,602     $    73,932
                                                                                   ===========     ===========
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       6
<PAGE>

<TABLE>
<CAPTION>
                                                                                    For the six months ended
                                                                                             June 30,
                                                                                   ---------------------------
                                                                                      2000             1999
                                                                                   -----------     -----------
       <S>                                                                         <C>             <C>
       Supplemental disclosures of cash flow information:
          Cash paid during the period for:
             Income taxes                                                          $         0     $         0
             Interest                                                              $    44,728     $     1,532

       Non Cash Investing and Financing Transactions;                             June 30, 2000
          Acquisition of all of the outstanding common                            -------------
          stock of WebIPA, Inc. during the quarter
          ended March 31, 2000
             Assets acquired, fair value                                           $     5,033
             Cash acquired                                                               5,033
                                                                                   -----------
             Net cash paid for acquisition                                         $         0
                                                                                   ===========
       Non Cash Investing and Financing Transactions (continued)

          During the quarter ended June 30, 2000, $400,000 of convertible notes
          payable were converted into 320,000 shares of common stock

          During the six months ended June, 2000, 1,018,604 incentive
          stock options were excercised.  The options were excercised
          utilizing stock appreciation rights.  The net proceeds to the
          company would have been $293,312.  The Company
          recorded a treasury stock transaction in the amount of
          $293,312 to account for the stock appreciation rights
</TABLE>

   The accompanying notes are an integral part of these financial statements.

                                       7
<PAGE>

NOTE 1:  ORGANIZATION AND NATURE OF OPERATIONS

         OmniComm Systems, Inc. (the Company) was originally incorporated in
         Florida in February 1997. The Company provides Internet based database
         applications that integrate significant components of the clinical
         trial process, including the collection, compilation and validation of
         data over the Internet. The Company's primary products include
         TrialMaster(TM) and WebIPA(TM).

NOTE 2:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         CASH AND CASH EQUIVALENTS

         Cash equivalents consist of highly liquid, short-term investments with
         maturities of 90 days or less. The carrying amount reported in the
         accompanying balance sheets approximates fair value.

         CONSOLIDATION

         The Company's accounts include those of its two wholly owned
         subsidiaries OmniCommerce and OmniTrial B.V. All significant
         intercompany transactions have been eliminated in consolidation.

         ACCOUNTS RECEIVABLE

         Accounts receivable are judged as to collectibility by management and
         an allowance for bad debts is established as necessary. As of each
         balance sheet date, no reserve was considered necessary.

         EARNINGS PER SHARE

         The Financial Accounting Standards Board issued Statement of Financial
         Accounting Standards ("SFAS") No. 128, "Earnings per Share." SFAS 128
         replaced the previously reported primary and fully diluted earnings per
         share with basic and diluted earnings per share. Unlike primary
         earnings per share, basic earnings per share excludes any dilutive
         effects of options, warrants, and convertible securities. The diluted
         earnings per shared calculation is very similar to the previously fully
         diluted earnings per share calculation method. SFAS 128 became
         effective December 31, 1997.

         Basic earnings per share were calculated using the weighted average
         number of shares outstanding of 5,456,705 and 6,102,179 at June 30,
         2000 and 1999 and 1,532,428 and 1,604,390 at March 31, 2000 and 1999
         respectively. There were no differences between basic and diluted
         earnings per share. Options to purchase 3,605,497 shares of common
         stock at prices ranging from $.25 to $6.50 per share were outstanding
         during both periods, but were not included in the computation of
         diluted earnings per share because the options have an anti-dilutive
         effect. The effect of the convertible debt and convertible preferred
         stock are anti-dilutive.

         5% SERIES A CONVERTIBLE PREFERRED STOCK

         During the year ended December 31, 1999, the Company designated
         5,000,000 shares of its 10,000,000 authorized preferred share as 5%
         Series A Convertible Preferred Stock. Each shares is convertible into
         common stock at $1.50 per share. In the event of liquidation, these
         shareholders will be entitled to receive in preference to the holders
         of common stock an amount equal to their original purchase price plus
         all accrued but unpaid dividends. Dividends are payable at the rate of
         5% per annum, payable semi-annually.

         ADVERTISING

         Advertising costs are expensed as incurred.

                                       8
<PAGE>

         Reclassifications

         Certain items from prior periods within the financial statements have
         been reclassified to conform to current period classifications.

         INTANGIBLE ASSETS AND GOODWILL

         Included in Intangible Assets are the following assets:

                                                     June 30, 2000
                                                      Accumulated
                                           Cost      Amortization
                                         --------      --------
         Covenant not to compete         $120,000      $105,000
         Software development costs        87,500        51,042
         Organization costs                   539           405
         Debt acquisition costs           119,625        29,906
         Trademarks                         1,363             0
         Patents                            4,901             0
                                         --------      --------
                                         $333,928      $214,672
                                         ========      ========

                                                   December 31, 1999
                                                      Accumulated
                                           Cost      Amortization
                                         --------      --------
         Covenant not to compete         $120,000      $ 90,000
         Software development costs        87,500        43,750
         Organization costs                   539           360
         Debt acquisition costs           119,625        23,925
                                         --------      --------
                                         $327,664      $158,035
                                         ========      ========

         The covenant not to compete and the software development costs were
         acquired as a result of the acquisition of Education Navigator, Inc.
         (EdNav) on June 26, 1998. The covenant is for a two-year period and is
         being amortized ratably over that time. The software development costs
         were capitalized and are being amortized ratably over a three-year
         period, as that is the expected life of the various products.

         During the first nine months of 1999, the Company issued Convertible
         Notes totaling $862,500. The fees of $119,625 associated with these
         notes are being amortized ratably over the term of the notes, which is
         five years.

         Included in Goodwill, as a result of the EdNav acquisition at March 31,
         2000 and December 1999 is the cost of $475,665 and accumulated
         amortization of $317,110 and $237,833 respectively. The goodwill is
         being amortized ratably over a period of three years.

                                       9
<PAGE>

         PROPERTY AND EQUIPMENT, AT COST

         Property and equipment consists of the following:

                                 June 30, 2000           December 31, 1999
                             --------------------      --------------------
                                        Accumulated               Accumulated
                               Cost    Depreciation      Cost    Depreciation
                             --------    --------      --------    --------
         Computer and
         Office equipment     380,858    $ 76,964      $195,340    $ 30,146
         Leasehold
         Improvements           1,156          39             0           0
         Computer software    227,433       9,664       167,220       1,034
         Office furniture      47,108       5,221        23,070       1,267
                             --------    --------      --------    --------
                             $656,555    $ 91,888      $385,630    $ 32,447
                             ========    ========      ========    ========

         Renewals and betterments are capitalized; maintenance and repairs are
         expensed as incurred.

         Depreciation is calculated using the straight-line method over the
         asset's estimated useful life, which is 5 years for equipment and
         furniture and 3 years for software.

         Depreciation expense for the six months ended June 30, 2000 and 1999
         was $58,557 and $4,336 respectively.

         REVENUE RECOGNITION POLICY

         The Company recognizes sales, for both financial statement and tax
         purposes, when its products are shipped and when services are provided.

         ESTIMATES IN FINANCIAL STATEMENTS

         The preparation of 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 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.

         INCOME TAXES

         The Company accounts for income taxes in accordance with Statement of
         Financial Accounting Standards No. 109, "Accounting for Income Taxes."
         SFAS 109 has as its basic objective the recognition of current and
         deferred income tax assets and liabilities based upon all events that
         have been recognized in the financial statements as measured by the
         provisions of the enacted tax laws.

         Valuation allowances are established when necessary to reduce deferred
         tax assets to the estimated amount to be realized. Income tax expense
         represents the tax payable for the current period and the change during
         the period in the deferred tax assets and liabilities.

         STOCK OPTION PLAN

         In 1998 the Company initiated a stock option plan. The Plan provides
         for granting Incentive Stock Options, Nonqualified Stock Options, Stock
         Appreciation Rights, Restricted Stock Awards, Phantom Stock Unit Awards
         and Performance Share Units.

         During the second and third quarters of 1999, the Company issued 86,377
         and 68,000, respectively, common shares to employees and advisors under
         its stock bonus arrangement. The Company adopted SFAS 123 to account
         for its stock based compensation plans. SFAS 123 defines the "fair
         value based

                                       10
<PAGE>

         method" of accounting for stock based compensation. Under the fair
         value based method, compensation cost is measured at the grant date
         based on the value of the award and is recognized over the service
         period. In accordance with this method, the Company recognized expense
         of $56,145 and $44,200, respectively, during the second and third
         quarters of 1999.

         As of June 30, 2000 the Company had issued 3,605,497 options to
         purchase common stock at prices ranging from $0.25 to $6.50 per share
         with expirations through August 19, 2011

NOTE 3:  OPERATIONS AND LIQUIDITY

         The Company has incurred substantial losses in 1999 and 2000. Until
         such time that the Company's products and services can be successfully
         marketed the Company will continue to need to fulfill working capital
         requirements through the sale of stock and issuance of debt. The
         inability of the company to continue its operations, as a going concern
         would impact the recoverability and classification of recorded asset
         amounts.

         The ability of the Company to continue in existence is dependent on its
         having sufficient financial resources to bring products and services to
         market for marketplace acceptance. As a result of its significant
         losses, negative cash flows from operations, and accumulated deficits
         for the periods ending June 30, 2000, there is doubt about the
         Company's ability to continue as a going concern.

         Management believes that its current available working capital,
         anticipated contract revenues and subsequent sales of stock and or
         placement of debt instruments will be sufficient to meet its projected
         expenditures for a period of at least twelve months from June 30, 2000.

NOTE 4:  ACQUISITION

         WebIPA, Inc. Acquisition

         On February 9, 2000, the Company acquired WebIPA, Inc., a Florida
         corporation pursuant to an Agreement and Plan of Acquisition dated
         January 26, 2000. In consideration of receiving all of the issued and
         outstanding shares of WebIPA Inc., OmniComm issued 1,200,000 restricted
         shares of common stock to the shareholders of WebIPA Inc.

NOTE 5:  EQUITY INVESTMENT

         European Medical Network (EMN) Investment

         On March 20, 2000 the Company entered into a stock purchase agreement
         under which it agreed to purchase a 25% interest in Medical Network AG
         EMN, a Swiss company ("EMN"). The agreement, set to close on April 20,
         2000, provided that the purchase price for 25% of EMN's stock equity
         was $838,500 to be paid partly in cash and stock. Two cash payments
         totaling US $645,000 were to be paid in installments as follows:
         $335,000 on March 20, 2000, upon which EMN would deliver 10% of its
         stock equity, and $310,000 on April 20, 2000, upon which EMN would
         deliver the remaining 15% of its stock equity. In addition, the Company
         was to provide 41,883 shares of restricted common stock to EMN.
         Pursuant to the terms of the stock purchase agreement, on March 20,
         2000, EMN's shareholders entered into an agreement that provided for
         the Company to have one seat on EMN's board of directors and the right
         to veto any sale of equity in excess of 49% of the total issued and
         outstanding equity of EMN.

         On March 20, 2000, the Company paid EMN $335,000 and received 10% of
         EMN's equity and a seat on EMN's board. On April 20, 2000, the Company
         did not make the second payment of $310,000 or the stock payment of
         41,883 shares to EMN and the stock purchase agreement did not close.
         However, on July 11, 2000, the Company and EMN agreed to renegotiate
         the terms of their agreement subject to the Company's success in
         finding adequate financing. As part of the renegotiation the Company
         has resigned its seat on EMN's board and offered to sell its 10%
         interest back to EMN.

                                       11
<PAGE>

NOTE 6:  NOTES PAYBLE

         Education Navigator

         As of June 30, 2000, the Company owed $177,500 to the selling
         stockholders of Education Navigator. The notes are payable over two
         years and bear interest at 5.51% annually. The amount payable during
         fiscal 2000 is $177,500. At August 15, 2000 the Company was in default
         under the terms of the promissory note governing the debt. In
         accordance with the terms of the promissory note the Company will pay a
         late charge equal to 5% of the $177,500 due on June 26, 2000. In
         addition, the interest rate on the note will increase to the maximum
         rate allowed by law in the State of Florida.

         Short-term Borrowings

         At June 30, 2000 the Company owed $530,000 under short-term notes
         payable. The notes bear interest at rates ranging from 8.75% to 12%.
         The average term of the promissory notes is 40 days. The notes are not
         collateralized and the note holders were granted stock warrants in the
         Company at a price of $2.25 per share. As of June 30, 2000 the Company
         was in default on the three of the notes for a principal amount of
         $300,000. Subsequent to June 30, 2000, the Company negotiated a
         conversion of the debt into common stock of the Company with all three
         parties for the principal amount due plus all accrued interest.

NOTE 7:  CONVERTIBLE NOTES

         During the first quarter of 1999, the Company issued Convertible Notes
         Payable in the amount of $862,500 pursuant to a Confidential Private
         Placement Memorandum. There were costs of $119,625 associated with this
         offering. The Company also granted the agent the option to purchase
         250,000 common shares at $.001. The agent exercised the option. The net
         proceeds to the Company were $742,875. The notes bear interest at ten
         percent annually, payable semi-annually. The notes are convertible
         after maturity, which is five years, into shares of common stock of the
         Company at $1.25 per share, including registration rights. As of June
         30, 2000 approximately $320,000 of the Convertible Notes had been
         converted into 400,000 shares of common stock of the Company.

NOTE 8:  COMMITMENTS AND CONTINGENCIES

         The Company currently leases office space requiring minimum annual base
         rental payments for the fiscal periods shown as follows:

                                2000      $ 75,469
                                2001       142,341
                                2002       139,965
                                2003             0
                                2004             0
                                          --------
                               Total      $357,775
                                          ========

         In addition, to annual base rental payments, the company must pay an
         annual escalation for operating expenses as determined in the lease.

NOTE 9:  RELATED PARTY TRANSACTIONS

         The Company was owed $0 and $3,406 at June 30, 2000 and December 31,
         1999, respectively, from a shareholder. The interest rate was 6%
         annually.

                                       12
<PAGE>

NOTE 10: POST-RETIREMENT EMPLOYEE BENEFITS

         The Company does not have a policy to cover employees for any health
         care or other welfare benefits that are incurred after employment
         (post-retirement). Therefore, no provision is required under SFAS's 106
         or 112.

NOTE 11: INTERIM FINANCIAL REPORTING

         The unaudited financial statements of the Company for the period from
         January 1, 2000 to June 30, 2000 and January 1, 1999 to June 30, 1999
         have been prepared by management from the books and records of the
         Company, and reflect, in the opinion of management, all adjustments
         necessary for a fair presentation of the financial position and
         operations of the Company as of the period indicated herein, and are of
         a normal recurring nature.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATION

FORWARD LOOKING STATEMENTS

In addition to historical information, this Quarterly Report contains "forward
looking statements". These statements can often be identified by the use of
forward-looking terminology such as "estimate", "project", "believe", "expect",
"may", "will", "should", "intends", or "anticipates" or the negative thereof or
other variations thereon or comparable terminology, or by discussions of
strategy that involve risks and uncertainties. We wish to caution the reader
that these forward-looking statements, such as statements relating to timing,
costs and of the acquisition of, or investments in, existing business, the
revenue profitability levels of such businesses, and other matters contained in
this Quarterly Report regarding matters that are not historical facts, are only
predictions. No assurance can be given that plans for the future will be
consummated or that the future results indicated, whether expressed or implied,
will be achieved. While sometimes presented with numerical specificity, these
plans and projections and other forward-looking statements are based upon a
variety of assumptions, which we consider reasonable, but which nevertheless may
not be realized. Because of the number and range of the assumptions underlying
our projections and forward-looking statements, many of which are subject to
significant uncertainties and contingencies that are beyond our reasonable
control, some of the assumptions inevitably will not materialize, and
unanticipated events and circumstances may occur subsequent to the date of this
Quarterly Report. Therefore, our actual experience and results achieved during
the period covered by any particular projections or forward-looking statements
may differ substantially from those projected. Consequently, we or any other
person that these plans will be consummated or that estimates and projections
will be realized, and actual results may vary materially should not regard the
inclusion of projections and other forward-looking statements as a
representation. There can be no assurance that any of these expectations will be
realized or that any of the forward-looking statements contained herein will
prove to be accurate.

RESULTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND JUNE 30, 1999

Revenues:

Total revenues decreased to $40,759 from $912,401 for the six months ended June
30, 2000 compared to the corresponding period in fiscal year 1999. This
substantial decrease in revenue can be attributed to the Company changing its
focus away from computer systems integration to the development and marketing of
Internet based database products.

All of the Company's revenue for both periods presented is attributed to its
systems integration business. The Company has earned no revenue from its
TrialMaster(TM) or WebIPA(TM) Internet based systems.

                                       13
<PAGE>

Cost of Sales:

Total cost of sales decreased to $46,524 from $634,524 for the six months ending
June 30, 2000 compared to the corresponding period in fiscal year 1999. The
decrease in cost of sales can be attributed to the Company's decision to
redeploy its resources on the development and marketing of the TrialMaster(TM)
Internet and WebIPA systems. The Company experienced a decrease in product and
service revenues in connection with the change in strategic focus and therefore
a corresponding decrease in cost of goods sold.

Salaries and Wages. Salaries and wages increased to $1,511,329 from $231,266 for
the six month period ending June 30, 2000 compared to the corresponding period
in fiscal year 1999. The Company currently has thirty two employees compared to
eight for the comparable period in fiscal 1999. All of the Company's employees
are directly involved in the development, marketing, and implementation of the
TrialMaster(TM) and WebIPA systems.

Selling, General and Administrative. Selling, general and administrative
expenses which includes; rent, telephone and Internet expenses and travel,
increased to $1,016,980 from $301,904 for the first six months of the fiscal
year 2000 compared to the corresponding period in fiscal year 1999. The
substantial increase in selling, general and administrative expenses is
attributed to the increase in resources expended related to the development and
marketing of the Company's TrialMaster(TM) and WebIPA systems. The Company
experienced increases in its, travel and general and administrative expenses in
connection with its decision to execute its Internet strategy. The Company
incurred significantly higher telephone and Internet access expenses related to
its move to an Internet based operating strategy. Rents increased during the
first six months in fiscal 2000 due to the opening of a Research and Development
facility in Tampa, Florida, and the establishment of OmniTrial B.V., a
wholly-owned subsidiary, in Amsterdam, The Netherlands.

Legal and Professional Fees. Legal and professional fees increased to $315,978
from $70,374 for the first six months of fiscal 2000 compared to the comparable
period in fiscal 1999. The increase is primarily attributable to Investment
Banking and Financial Advisory fees paid to First Stanford Healthcare in
conjunction with the Company's attempt to raise capital during the first half of
fiscal 2000.

Independent Consultants. Independent consulting expenses decreased to $202,453
from $210,101 for the six months ended June 30, 2000 compared to the
corresponding period in fiscal year 1999. The decrease can be attributed a
decrease in marketing fees that was created by hiring one of its consultants as
an employee, offset by increases in Medical Advisory and Product Development
Consulting Fees. The Company has retained the services of independent
programmers to assist in finalizing certain software issues related to the
application. In addition, the Company continues to retain the services of
consultants to assist in developing marketing strategies for the marketing and
sales of the TrialMaster(TM) system and WebIPA systems. The Company has
established a medical advisory board and the members are paid monthly retainers
ranging from $1,000 to $8,333 per month.

LIQUIDITY AND CAPITAL RESOURCES:

Cash and cash equivalents decreased to $214,602 from $1,127,263 during the first
three months of fiscal year 2000. The decrease can be attributed to the losses
incurred during the first fiscal quarter, the Company's investment in European
Medical networks of $335,000, the purchase of property and equipment offset by
the receipt of equity financing received from the issuance of Series A
Convertible Preferred Convertible Stock and from the exercise of common stock
warrants associated with the Series A Preferred shareholders.

The Company generated a loss of $3,390,523 from operations in the first six
months of fiscal year 2000 compared to a loss of $704,6038 for the corresponding
period in 1999. The losses can be primarily attributed to the increased expenses
associated with the development and marketing of the TrialMaster(TM) and WebIPA
systems. The Company has incurred increased expenses in salaries and wages,
consulting fees, travel and professional fees in connection with developing and
marketing the Company's Internet based products.

                                       14
<PAGE>

The Company's primary capital requirements are for daily operations and for the
continued development and marketing of TrialMaster(TM) and WebIPA systems.
Management believes that its current available working capital, anticipated and
subsequent sales of stock and or debt financing will be sufficient to meet its
projected expenditures for a period of at least twelve months from June 30,
2000. The Company's capital requirements, will need to be funded through debt
and equity financing, of which there can be no assurance that such financing
will be available or, if available, that it will be on terms favorable to the
Company.

PART II. OTHER INFORMATION

ITEM 1 LEGAL PROCEEDINGS

         In the Circuit Court of the 11th Judicial Circuit Court in and for
Miami-Dade County, Florida, SPP Real Estate, Inc. filed suit on May 24, 2000 for
damages and other relief against OmniComm Systems, Inc. alleging OmniComm's
breach of a lease for real property.

ITEM 5.  OTHER INFORMATION

Private Placement

         On January 18, 1999, Northeast Securities, Inc., as placement agent,
began the distribution of a Confidential Private Placement Memorandum to
accredited investors on behalf of the Company. The terms of the offering are as
follows:

         Amount: $400,000 Minimum/$750,000 Maximum, All or none, Best Efforts.

         Offering: 16 Units Minimum/30 Units Maximum. Each Unit consists of a
five (5) year convertible note in the principal amount of $25,000, bearing 10%
annual interest, payable semi-annually with the principal convertible into
shares of common stock, $.001 par value, of the Company ("Common Stock" or
"Shares") at $1.25 per Share, subject to customary anti-dilution provisions. The
Convertible Notes may be called in whole or in part at a premium of 102% of par
into shares at the conversion price, as may be adjusted, in the event the
Company's Common Stock publicly trades on a recognized exchange, NASDAQ or OTC
Bulletin Board, for a period of 20 consecutive trading days at a bid price per
share of $3.50 or greater, and provided the Shares underlying the Convertible
Note have been registered and may be sold without restriction by the holders
thereof.

         Interest Adjustment: In the event holders demand registration of the
Shares underlying the Convertible Notes and such registration statement is not
effective within 90 days after the date of notice of demand by said holders, the
interest rate on the Convertible Notes beginning on the next quarter following
the expiration of the 90 day period, shall increase to 15%, and shall remain at
15% until said registration statement is effective, at which time the interest
rate shall revert back to 10%.

         Price: $25,000 per Unit. The Company will accept subscriptions for
partial Units.

         Registration Rights: Demand (so long as 50% of the aggregate amount of
the total offering files notices) and PiggyBack registration rights (subject to
underwriter's cut-back).

         Use of Proceeds:  Operating and Marketing Expenses

         Conditions:

         (1) Regulation D of the Securities Act of 1933, as amended.
         (2) Suitability Standards; Accredited Investors Only.
         (3) Board of Directors: Northeast Securities, placement agent, shall
         have the right to designate one observer with the same notice and
         reimbursement of expenses as other directors.
         (4) Termination Date: March 31, 1999
         (5) Placement Fee: 250,000 Common Shares at a purchase price of $.001
         per share at the closing of the Minimum.

                                       15
<PAGE>

         (6) The Company agrees not to issue equity securities except ISO stock
         options and other options or stock bonuses to employ consultants and
         advisors.
         (7) Northeast shall have a right of first refusal to match any bonafide
         equity based offering proposal.
         (8) The Company shall have no more than 4,000,000 Shares outstanding on
         a fully diluted basis prior to the placement of the Convertible Notes.

         Placement Agent Fees: 10% Commission (cash); 3%
         Nonaccountable expense allowance (cash); $7,500 advance against
         non-accountable due diligence expense.

The private placement was extended for an additional forty-five (45) days.

Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibits

         27.1 Financial Data Schedule

(b) Reports on Form 8-K

         On March 6, 2000 the company filed a current report on Form 8-K dated
         March 6, 2000 reporting items 1,2,5,6 and 7 in connection with its
         preliminary agreement to acquire 25% of the current stock equity of
         Medical Network EMN Ltd. for cash and restricted common stock of
         Omnicomm.

         On February 9, 2000 the company filed a current report on Form 8-K
         dated February 9, 2000 reporting items 1,2,5,6 and 7 in connection with
         its acquisition WebIPA, Inc. pursuant to an Agreement and Plan of
         Acquisition dated January 26, 2000.

         On June 30, 2000 the company filed a current report on Form 8-K dated
         June 30, 2000 reporting items 5 and 7 in connection organizational
         changes occurring on that date. The Company announced that Cornelis F.
         Wit a member of the Company's Board of Directors had been named interim
         CEO. The Company also announced that Peter S. Knezevich had been
         replaced as CEO and would remain on a Director of the Company.

                                   SIGNATURES

                  Pursuant to the requirements of Section 13 or 15(d) of the
                  Securities Act of 1934, the Registrant has duly caused this
                  report to be signed on its behalf by the undersigned thereunto
                  duly authorized.

                                                          OMNICOMM SYSTEMS, INC.
                                                                      Registrant

                  Date: August 18, 2000

                                                        /S/ DAVID GINSBERG, D.O.
                                                        ------------------------
                                                            David Ginsberg, D.O.
                                                         Chief Executive Officer



                                                           /S/ RONALD T. LINARES
                                                           ---------------------
                                                               Ronald T. Linares
                                                              Vice President and
                                                             Chief Financial and
                                                        Chief Accounting Officer

                                       16
<PAGE>

                                 EXHIBIT INDEX

EXHIBIT            DESCRIPTION
-------            -----------
 27.1              Financial Data Schedule