<PAGE>

                      U.S. SECURITIES AND EXCHANGE COMMISSION
                             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
         DECEMBER 31, 1999

                                       OR

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



                         Commission File Number 0-23153

                                 VOLU-SOL, INC.
        (Exact name of small business issuer as specified in its charter)



              Utah                                      87-0543981
 (State or other jurisdiction of            (I.R.S. Employer Identification No.)
  incorporation or organization)



5095 West 2100 South
Salt Lake City, Utah                                                    84120
(Address of principal executive offices)                              (Zip Code)

                                 (801) 974-9474
                           (Issuer's telephone number)

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

As of February 8, 2000, the issuer had issued and outstanding  2,721,042  shares
of common stock, par value $.0001.

Transitional Small Business Disclosure Format
(Check One):

Yes __            No X
                    --

                                        1


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                                TABLE OF CONTENTS

PART I.           FINANCIAL INFORMATION
                                                                            Page
                                                                             No.

         1.       Financial Statements

                  Unaudited Condensed Consolidated Balance Sheets as of December
                  31, 1999.....................................................3

                  Unaudited Condensed Consolidated Statements of Operations for
                  the three and three months ended December 31, 1999 and 1998..4

                  Unaudited Condensed Consolidated Statements of Cash Flows for
                  the three months ended December 31, 1999 and 1998............5

                  Notes to Unaudited Condensed Consolidated Financial
                  Statements...................................................6

         2.       Management's Discussion and Analysis or Plan of Operation....7


PART II.          OTHER INFORMATION...........................................10


                                        2


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                                     PART I

 ITEM 1 - Financial Statements

                          VOLU-SOL, INC. AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)
<TABLE>
<CAPTION>

ASSETS

                                                                    December 31,
                                                                        1999

<S>                                                                              <C>
Current assets:
  Cash and cash equivalents                                                      $         37,850
                                                                                 ----------------
 Accounts receivable, less allowance for doubtful accounts of $2,188                       74,461
  Inventories                                                                              49,819
                                                                                 ----------------
       Total current assets                                                               162,130

Property and equipment, net                                                                86,937
                                                                                 ----------------
Other assets                                                                                1,074
------------                                                                     ----------------
       Total assets                                                              $        250,142
                                                                                 ================

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable                                                               $         57,800
 Accrued liabilities                                                                       24,423
 Preferred stock dividends payable                                                         40,100
                                                                                 ----------------
        Total current liabilities                                                         122,323
                                                                                 ----------------
  Stockholders' equity:
    Preferred stock, $.0001 par value; 10,000,000 shares authorized 13,153 shares
outstanding              (aggregate liquidation preference $2,834,277)                  3,130,416
    Common Stock, par value $.0001; 50,000,000 shares authorized, 2,721,042
shares                                                                                        272
        issued and outstanding
   Additional paid-in capital                                                           1,911,541
   Preferred stock subscriptions receivable                                              (338,300)
   Accumulated deficit                                                                 (4,576,110)
                                                                                 ----------------
       Total stockholders' equity                                                         127,819
                                                                                 ----------------
       Total liabilities and stockholders' equity                                $        250,142
                                                                                 ================
</TABLE>






       The accompanying notes are an integral part of these unaudited  condensed
consolidated balance sheets.

                                        3


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                         VOLU-SOL, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                   Three Months
                                                                Ended December 31,

                                                                 1999           1998
Sales                                                            -----         -----
<S>                                                             <C>           <C>
Cost of goods sold                                              $  115,350    $  133,919


                                                                    73,051        93,101
                                                                -----------   ----------
          Gross Margin                                              42,299        40,818
Selling, general and administrative expenses
                                                                   180,619       277,998

          Loss from operations                                    (138,219)     (237,180)
Other income (expense):
          Interest Income                                               --            85
          Interest Expense                                              --        (7,708)
                                                                -----------   -----------
Net loss before provision for income taxes                        (138,219)     (244,803)

Provision for income taxes                                              --            --
          Net loss                                              $ (138,219)   $ (244,803)
                                                                -----------   -----------

Dividends on Series A preferred stock                              (40,100)      (29,313)
                                                                -----------   -----------

Net loss applicable to common stock                             $ (178,319)   $ (274,116)
                                                                -----------   -----------

Net loss per common share - basic and diluted                        (0.07)        (0.11)
                                                                -----------   -----------

Weighted average common shares outstanding                        2,721,042     2,446,288
                                                                -----------   -----------
</TABLE>












         The  accompanying  notes  are  an  integral  part  of  these  unaudited
condensed consolidated statements.

                                        4


<PAGE>



                         VOLU-SOL, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                 For the Three months
                                                                                  Ended December 31,

                                                                                 1999             1998
                                                                                ------           ------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                               <C>            <C>
Net income                                                                        $  138,219)    $ (244,803)
Adjustments to reconcile net loss to net cash used in operating
      activities:
Depreciation                                                                          19,875         19,975
     Provision for losses
Preferred stock issued for services                                                   90,000              -
(Increase) Decrease in:
     Accounts receivable                                                               1,236        (19,242)
     Inventories                                                                       6,401           (299)
    Other assets                                                                          --         12,117
Decrease in:
     Accounts payable                                                                 23,434        (22,942)
     Accrued liabilities                                                              (9,000)       (15,526)
                                                                                  -----------    -----------
     Net cash used in operating activities:                                           (6,273)      (130,720)
                                                                                  -----------    -----------
Cash flows from investing activities Cash flows from financial activities:

     Proceeds from sale of preferred stock                                                --         53,500
     Proceeds from notes payable                                                          --         70,000
     Principal Payment

     Net cash provided by financing activities                                            --        123,500
                                                                                  -----------    -----------

     Net increase (decrease) in cash                                                  (6,273)        (7,220)
  Cash, beginning of period                                                           44,123         16,411
                                                                                  -----------    -----------
  Cash, end of period                                                             $    37,850    $    9,191
                                                                                  ===========    ===========
</TABLE>



















         The  accompanying  notes  are  an  integral  part  of  these  unaudited
condensed consolidated statements.

                                        5


<PAGE>



                         VOLU-SOL, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

(1)  PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
     -----------------------------------------------------------

The  accompanying  interim  condensed   consolidated   financial  statements  of
Volu-Sol,  Inc. and Volu-Sol Reagents  Corporation,  its wholly owned subsidiary
(collectively,  the  "Company"),  have been prepared  consistent  with generally
accepted accounting  principles for interim financial  information in accordance
with  the   instructions  to  Form  10-QSB  and  Item  310  of  Regulation  S-B.
Accordingly,  such  unaudited  financial  statements  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  only of normal  recurring  adjustments,  necessary  to
present fairly the financial  position,  results of operations and cash flows of
the Company for the interim  periods  presented,  have been included.  Operating
results  for the  three  months  ended  December  31,  1999 are not  necessarily
indicative of the results that may be expected for the year ending September 30,
2000.  The  Company  suggests  that  these  condensed   consolidated   financial
statements  be read in  conjunction  with the  financial  statements  and  notes
thereto  included in the Company's Form 10-KSB for the year ended  September 30,
1999.

(2) RELATED-PARTY TRANSACTIONS

From March 5, 1997 through  December 31, 1999,  the Company  borrowed money from
Biomune Systems,  Inc. its former parent ("Biomune") totaling $486,500. At March
31, 1999, the amount owed Biomune was $400,961, payable pursuant to a promissory
note  bearing  interest  at an annual  rate of ten  percent  and due on  demand.
Biomune sold the note during the three months ended  December 31, 1999. The note
was  paid in full by the  Company  by  issuing  2,011  shares  of its  Series  A
Preferred Stock at the request of the new noteholder.

(3) INVENTORIES

Inventories  are  stated at the lower of cost  (first-in,  first-out  method) or
market value. Inventories consist of the following as of December 31, 1999:

Raw materials, packaging and supplies                          $29,819
Instruments, biological stains and reagents                     20,000
                                                               -------
                                                               $49,819

(4) SERIES A PREFERRED STOCK

As of December 31, 1999,  the Company had $900,000 of  subscriptions  receivable
from the sale of 4,500  shares of Series A  Preferred  Stock.  During  the three
months ended December 31, 1999, the Company sold no shares of Series A Preferred
Stock.  During the three months ended  December 31, 1999,  the Company  issued a
total of 450 shares of Series A Preferred Stock as fees for consulting  services
provided to the  Company.  The  Company  also  issued  2,011  shares of Series A
Preferred Stock in satisfaction of the Note. The Series A Preferred Stock became
convertible into Common Stock beginning January 1, 1998. The "conversion price,"
which is the basis for such conversion,  is the lesser of (i) 80% of the average
closing  bid price of the  Company's  Common  Stock for the three  trading  days
immediately preceding the date of conversion or (ii) $1.25 per share.

                                        6


<PAGE>



(5) NET LOSS PER COMMON SHARE

Basic net loss per common share ("Basic EPS") excludes  dilution and is computed
by dividing net loss by the weighted average number of common shares outstanding
during the period.  Diluted net loss per common share  ("Diluted  EPS") reflects
the potential  dilution that could occur if stock options or other  contracts to
issue Common  Stock  including  convertible  Preferred  Stock were  exercised or
converted  into Common  Stock.  The  computation  of Diluted EPS does not assume
exercise or conversion of securities that would have an anti-dilutive  effect on
net loss per common  share.  Because  the  Company  has  incurred a loss for the
periods  presented,  no exercises or  conversions  have been  considered as they
would be  anti-dilutive,  thereby  decreasing the net loss  applicable to common
shares.

During the three months ended  December 31, 1999 the Company issued 8,540 shares
of Common Stock as part of the original divestiture in the nature of a dividend.

At December 31, 1999, there were outstanding  options to purchase 446,100 shares
of Common  Stock and  there  were  13,153  shares  of Series A  Preferred  Stock
convertible into a minimum of 2,104,480 shares of Common Stock, neither of which
are  included  in the  computation  of Diluted  EPS  because  they would be anti
dilutive.  The options all relate to options to purchase  Biomune  common  stock
outstanding at the time of the divestiture.  The holders of such Biomune options
were also granted options to purchase Volu-Sol common stock.

ITEM 2 - Management's Discussion and Analysis or Plan of Operation

         Until  October 1, 1997,  the Company  was a division  and then a wholly
owned subsidiary of Biomune.  Effective October 1, 1997, Biomune divested itself
of the  Company  by  distributing  Volu-Sol  Common  Stock to holders of Biomune
Common  Stock as of March 5,  1997.  Since  October  1, 1997,  the  Company  has
operated as a separate entity.  The following  discussion and analysis should be
read  in  conjunction  with  the  Company's  unaudited  condensed   consolidated
financial  statements and the notes thereto contained  elsewhere in this report.
The  discussion  of these  results  should  not be  construed  to imply that any
condition or  circumstance  discussed  herein will  necessarily  continue in the
future.

Results of Operations

Comparison of the Three Months Ended December 31, 1999 to the Three Months Ended
December 31, 1998.

         During the three months ended December 31, 1999, the Company's revenues
totaled  $115,350  compared to $133,919 for the three months ended  December 31,
1998. This decrease in revenues  resulted  primarily from a decrease in sales of
reagents.

         Cost of revenues for the three  months ended  December 31, 1999 totaled
$73,051  compared to $93,101 for the three months ended  December 31, 1998.  The
overall  gross  margin  for the  three  months  ended  1999 was 36% of  revenues
compared to 30% of revenues for the  comparable  three months ended in 1998. The
increase in the gross margin on sales of stains and reagents is  attributable to
shipping  charges  that  are  now  being  paid by  customers  as well as a price
increase that was  implemented in March 1998. The increased gross margin results
from a continued effort to create a leaner  production team and better inventory
management.

                                        7


<PAGE>



         Selling,  general and administrative  expenses totaled $180,619 for the
three months ended December 31, 1999,  compared to $277,998 for the three months
ended  December  31,  1998,  an overall  decrease of $97,379.  This  decrease is
attributed to a continued effort to create a leaner management team. The Company
also paid  consulting  expenses  through the  issuance  of 90,000  shares of the
Company's preferred stock.

         Interest  expense  decreased  from  $7,708 for the three  months  ended
December 31, 1998 to $0 for the three months ended December 31, 1999.

         The Company incurred a net loss applicable to common shares of $178,319
for the three months ended  December 31, 1999 compared to a net loss  applicable
to common shares of $274,116 for the three months ended December 31, 1998.

         The Company incurred a net loss applicable to common shares of $630,766
for the three months ended  December 31, 1999 compared to a net loss  applicable
to common shares of $705,617 for the three months ended December 31, 1998.  This
decrease in net loss is  primarily  due to a decrease  in  selling,  general and
administrative expenses as well as a reduction in cost of goods sold.

Liquidity and Capital Resources

         The Company  currently is unable to finance its operations  solely from
its cash flows from operating activities. From October 1, 1993 through March 31,
1999,  Biomune financed the Company's  operations  through a series of loans and
other capital contributions totaling approximately $2,900,000.  The Company also
sold shares of Series A Preferred Stock to provide additional working capital.

         The Company  believes that cash generated by operations,  together with
the proceeds from additional  sales of its securities will be sufficient to meet
its capital requirements for a minimum of twelve months.

         As of December 31,  1999,  the Company had cash of $37,850 and positive
working  capital of $39,807  compared  to cash of $9,191  and  negative  working
capital of $194,189 as of December 31, 1998.

         During  the  three  months  ended  December  31,  1999,  the  Company's
operating activities used cash of $6,273, much of which was provided by the sale
of Series A Preferred  Stock.  During the three months ended  December 31, 1998,
the Company's  operating  activities used cash in the amount of $130,720,  which
was provided by the sale of Series A Preferred Stock.

         The  Company  has  no  credit  facility  with  any  commercial  lending
institution. In the past, the Company borrowed and received capital from time to
time  from  Biomune,  but  the  Company  has no  formal  financing  arrangement,
agreement or understanding for debt financing in the future.

         The  unaudited  condensed  consolidated  financial  statements  of  the
Company have been prepared on the assumption that the Company will continue as a
going concern.  The Company's product line is limited and the Company has relied
upon borrowings and financing from the sale of its equity  securities to sustain
operations.  Additional financing will be required if the Company is to continue
as a going concern.  If such additional funding cannot be obtained,  the Company
may be  required  to scale  back or  discontinue  its  operations.  Even if such
additional financing is available to the Company, there can be no assurance that
it will be on terms favorable to the Company.  In any event, such financing will
result in immediate and possible substantial dilution to existing shareholders.

                                        8


<PAGE>



Forward-looking Statements and Certain Risk Factors

         Statements  which are not historical facts contained in this report are
forward-looking statements.  Section 21E of the Securities Exchange Act of 1934,
as amended,  provides a safe harbor for forward- looking statements. In order to
comply with the terms of the safe harbor, the Company cautions that a variety of
factors  could cause the  Company's  actual  results to differ  materially  from
anticipated  results  or  other  expectations  expressed  in  this  report.  The
forward-looking   statements  contained  in  this  Management's  Discussion  and
Analysis  or  Plan  or  Operation  also   contemplate  a  number  of  risks  and
uncertainties  that could  cause  actual  results to differ  from  projected  or
anticipated  results.  The risk factors discussed in Part I, Item I ("Business")
and in the "Management's  Discussion and Analysis or Plan or Operation" (Item 6)
of the  Company's  Annual  Report  on Form  10-KSB  for the  fiscal  year  ended
September 30, 1999 may also affect actual operating results.

                           PART II - OTHER INFORMATION

ITEM 4                     Exhibits and Reports on Form 8-K

              (a) Exhibits Required by Item 601 of Regulation S-B

         Exhibit No.                Description

         27                Financial Data Schedule

              (b) Reports on Form 8-K

         The Company  filed no current  Reports on Form 8-K in the quarter ended
December 31, 1999.

                                        9


<PAGE>


                                   SIGNATURES

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

                                           VOLU-SOL, INC.

Date:   February 18, 1999                  By:   /s/ Wilford W. Kirton, III
                                                 ---------------------------
                                                 Wilford W. Kirton, III,
                                                 Chief Executive Officer






Date:   February 18, 1999                   By:   /s/ Michael G. Acton
                                                  ---------------------
                                                  Michael G. Acton,
                                                  Acting Principal Accounting
                                                  Officer






















                                       10