SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549


                                   FORM 10-Q/A
                                 Amendment No. 1

(Mark one)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                  For the quarterly period ended March 31, 1996

                                       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 No. 0-23900


                             IDM ENVIRONMENTAL CORP.
             ------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)


           New Jersey                                       22-2194790
-------------------------------                ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)


               396 Whitehead Avenue, South River, New Jersey 08882
               ---------------------------------------------------
                    (Address of principal executive offices)

                                 (908) 390-9550
              ----------------------------------------------------
              (Registrant's Telephone Number, Including Area Code)



(Former  name,  former  address and former  fiscal year,  if changed  since last
report.)

     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 May 1, 1996,  6,797,966 shares of Common Stock of the issuer were
outstanding.

<PAGE>
                 IDM ENVIRONMENTAL CORPORATION AND SUBSIDIARIES


                                      INDEX

                                                                         Page
                                                                         Number
                                                                         ------

PART 1 - FINANCIAL INFORMATION

     Item 1. Financial Statements

          Consolidated Balance Sheets - March 31, 1996 and
          December 31, 1995.........................................       1

          Consolidated Statements of Operations - For the three
          months ended March 31, 1996 and March 31, 1995............       2

          Consolidated Statements of Cash Flows - For the three
          months ended March 31, 1996 and March 31, 1995............       3

          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

     Item 6.  Exhibits and Reports on Form 8-K......................       9

SIGNATURES..........................................................      10


                                        2
<PAGE>
                         PART I - FINANCIAL INFORMATION


ITEM 1 - FINANCIAL STATEMENTS


                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                              March 31,             December 31,
                                                                                1996                    1995
                                                                           ---------------         ---------------

<S>                                                                            <C>                     <C>
Current Assets:
     Cash and cash equivalents                                                 $   104,041             $    83,286
     Accounts receivable, net of allowance for doubtful accounts
        of $200,000                                                              8,013,236               6,616,130
     Notes receivable - current                                                  1,528,479               1,596,559
     Inventory                                                                   1,482,517               1,482,517
     Costs and estimated earnings in excess of billings                          1,415,031               3,634,052
     Prepaid expenses                                                              471,761                 710,706
     Bonding deposits                                                              833,163                 883,163
     Deferred income taxes                                                       1,092,600                 652,600
     Recoverable income taxes                                                    1,095,167               1,114,442
     Due from officers                                                             670,580                 548,488
     Other current assets                                                           55,333                  55,238
                           Total current assets                                 16,761,908              17,377,181
                                                                           ---------------         ---------------
Notes receivable - long term                                                     1,596,559               1,596,559
Deferred issuance costs, net                                                       207,881                 506,586
Property, plant and equipment, net                                               2,859,112               2,547,406
                                                                           ---------------         ---------------
                                                                               $21,425,460             $22,027,732
                                                                           ===============         ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Current portion of long-term debt                                         $   322,184             $   327,974
     Accounts payable and accrued expenses                                       7,377,656               5,836,510
     Billings in excess of costs and estimated earnings                          1,272,245                 919,575
     Income taxes payable                                                                -                       -
                                                                           ---------------         ---------------
                           Total current liabilities                             8,972,085               7,084,059
                                                                           ---------------         ---------------
Long-term debt                                                                   2,032,385               4,004,142
                                                                           ---------------         ---------------
Commitments and Contingencies
Stockholders' Equity:
     Common stock, authorized 20,000,000 shares $.001 par
        value, issued and outstanding 6,797,359 in 1996
        and 6,200,079 in 1995                                                        6,797                   6,200
     Additional paid-in capital                                                 15,376,585              13,693,895
     Retained earnings (deficit)                                               (4,962,392)             (2,760,564)
                                                                           ---------------         ---------------
                                                                                10,420,990              10,939,531
                                                                           ---------------         ---------------
                                                                               $21,425,460             $22,027,732
                                                                           ===============         ===============
</TABLE>


    The accompanying notes are an integral part of these financial statements


                                        3
<PAGE>
                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                               Three Months Ended March 31,
                                                      -----------------------------------------------
                                                            1996                           1995
                                                      -----------------               ---------------
<S>                                                   <C>                                <C>
Revenue:
     Sale of equipment                                $               -                  $    513,791
     Contract income                                          5,401,749                     5,433,198
     Sale of scrap                                               65,047                        62,240
     Miscellaneous                                                    -                             -
                                                      -----------------               ---------------
                                                              5,466,796                     6,009,229
                                                      -----------------               ---------------
Cost of Sales:
     Cost of equipment sales                                          -                       220,287
     Direct job costs                                         6,247,505                     5,542,172
                                                      -----------------               ---------------
                                                              6,247,505                     5,762,459
                                                      -----------------               ---------------
Gross Profit (loss)                                           (780,709)                       246,770
                                                      -----------------               ---------------
Operating Expenses:
     General and administrative expenses                      1,652,783                     1,903,651
     Depreciation and amortization                              211,161                        96,627
                                                      -----------------               ---------------
                                                              1,863,944                     2,000,278
                                                      -----------------               ---------------
Income (loss) from operations                               (2,644,653)                   (1,753,508)
Other income (expense):
     Interest income (expense)                                    2,825                        96,946
                                                      -----------------               ---------------
Income (loss) before provision (credit) 
 for income taxes                                           (2,641,828)                   (1,656,562)
Provision (credit) for income taxes                           (440,000)                     (660,000)
                                                      -----------------               ---------------
Net income (loss)                                          $(2,201,828)                    $(996,562)
                                                      =================               ===============
Earnings (loss) per share:
     Primary earnings (loss) per share                 $         (0.33)               $        (0.14)
     Fully diluted earnings (loss) per share           $         (0.33)               $        (0.14)
                                                      =================               ===============
     Primary common shares outstanding                        6,640,934                     6,979,430
     Fully diluted common shares outstanding                  6,640,934                     6,979,430
                                                      =================               ===============
</TABLE>


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


                                        4
<PAGE>
                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                For the Three Months Ended March 31,
                                                                             ------------------------------------------
                                                                                  1996                       1995
                                                                             --------------            ----------------
<S>                                                                           <C>                         <C>
Cash flows from operating activities:
     Net income (loss)                                                         $ (2,201,828)               $   (996,562)
     Adjustments to reconcile net income (loss) to net cash used
       in operating activities:
         Deferred taxes                                                            (440,000)                          -
         Depreciation and amortization                                              211,161                      96,627
         Decrease (increase) in:
           Accounts receivable                                                   (1,397,106)                 (2,967,115)
           Inventory                                                                      -                        (347)
           Notes receivable                                                          68,080                           -
           Costs and estimated earnings in excess of billings                     2,219,021                   1,298,053
           Prepaid expenses and other current assets                                238,945                     161,158
           Bonding deposits                                                          50,000                     215,304
           Recoverable income taxes                                                  19,275                   (155,963)
           Due from officers                                                       (122,092)                         -
           Other current assets                                                         (95)                         -
         Increase (decrease) in:
           Accounts payable and accrued expenses                                  1,570,046                 (1,877,132)
           Billings in excess of costs and estimated earnings                       352,670                    239,680
           Income taxes payable                                                           -                   (477,600)
                                                                             --------------            ---------------
              Net cash (used in) operating activities                               568,077                 (4,463,897)
                                                                             --------------            ----------------
Cash flows from investing activities:
     Acquisition of property, plant and equipment                                  (476,101)                  (299,886)
     Increase (decrease) of officers loans                                                -                    (50,872)
                                                                             --------------            ---------------
       Net cash (used in) investing activities                                     (476,101)                  (350,758)
                                                                             --------------            ----------------
Cash flows from financing activities:
     Principal payments and current maturities of long-term debt                    (85,880)                   (39,806)
     Issuance of common stock upon exercise of stock options                         14,659                          -
                                                                             --------------            ---------------
       Net cash provided by financing activities                                    (71,221)                   (39,806)
                                                                             --------------            ----------------
Increase (decrease) in cash and cash equivalents                                     20,755                 (4,854,461)
Cash and cash equivalents, beginning of period                                       83,286                  5,068,325
                                                                             --------------            ----------------
Cash and cash equivalents, end of year                                          $   104,041               $    213,864
                                                                             ==============            ================
Supplementary  disclosures of cash flow  information: 
 Cash paid during the year for:
     Interest expense                                                           $     8,909               $       3,239
                                                                             ==============            ================
     Income taxes                                                                         -                           -
Supplemental disclosure of noncash investing and financing
     activities:
       Property, plant and equipment financing                                            -                $     15,456
                                                                             ==============            ================
       Conversion of convertible promissory notes to common
         stock                                                                   $1,668,628                           -
                                                                             ==============            ================
</TABLE>


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


                                        5
<PAGE>
                    IDM ENVIRONMENTAL CORP. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


1.   The interim consolidated  financial statements are prepared pursuant to the
     requirements  for  reporting  on Form 10-Q.  These  statements  include the
     accounts of IDM  Environmental  Corp.  and its  majority  owned  subsidiary
     companies.  The  December  31, 1995  balance  sheet data was  derived  from
     audited financial  statements but does not include all disclosures required
     by  generally  accepted  accounting   principles.   The  interim  financial
     statements  and  notes  thereto  should  be read in  conjunction  with  the
     financial  statements  and notes  included in the Company's Form 10-KSB for
     the year ended December 31, 1995. In the opinion of management, the interim
     financial  statements  reflect all adjustments of a normal recurring nature
     necessary  for a fair  statement  of the results  for the  interim  periods
     presented.  The current period  results of operations  are not  necessarily
     indicative of results which  ultimately  will be reported for the full year
     ending December 31, 1996.

2.   On April 1, 1996,  Frank Falco,  the Chairman of the Board of Directors and
     Chief Operating  Officer of the Company,  surrendered  92,214 shares of his
     common stock in repayment of his officer's loan in the amount of $670,580.

3.   The  consolidated  financial  statements have been prepared on the basis of
     the  percentage  of  completion  method of  accounting.  Under this  method
     contract revenue is determined by applying to the total estimated income on
     each contract,  a percentage  which is equal to the ratio of contract costs
     incurred to date to the most recent estimate of total costs which will have
     been  incurred upon the  completion  of the  contract.  Costs and estimated
     earnings  in  excess  of  billings  represents   additional  earnings  over
     billings,  based upon percentage completed,  as outlined above.  Similarly,
     billings  in excess of costs and  estimated  earnings  represent  excess of
     amounts billed over income  recognized.  Actual results can differ from the
     estimates  especially on government  contracts because of the uncertainties
     inherent in the  estimation  process as it relates to long term  contracts.
     Losses  anticipated  on  government  contracts  and  commercial  contracts,
     excluding period costs, should be charged to operations as soon as they are
     evident.  Starting  in the first  quarter  of 1996 the  Company  recognized
     revenues  equivalent to its costs incurred on two  government  contracts in
     Los Alamos, New Mexico and Oak Ridge, Tennessee, based on unapproved change
     orders. In the case of the Los Alamos contract with the Los Alamos National
     Laboratory,  the Company  submitted 28 individual change orders (of which 7
     were  subsequently  approved).  A final  comprehensive  change order in the
     amount of  $2,798,000  was  submitted  in November of 1996.  Lab  personnel
     informally rejected our request and the Company reversed all revenues based
     on the unapproved  change orders in the fourth quarter of 1996. The Company
     is  aggressively  pursuing its claims.  Future  revenues will be recognized
     when  these  claims are  finally  settled.  The  Company  also  experienced
     significant  cost  overruns  on several  contracts  which  were  originally
     recognized  in the  third  and  fourth  quarters  based on a  change  in an
     accounting estimate principal.  Based on the Company's discussions with the
     SEC  accounting  staff,  the Company  has agreed to restate  its  quarterly
     financial  statements  for the year "because  recognizing  change orders as
     revenues  was  tantamount  to  recognizing  gain  contingencies   which  is
     expressly  prohibited by SFAS 5"; and,  "because the cost  overruns  should
     have been foreseeable and accrued in prior  quarters.".  The amount for the
     year has not changed,  just the allocation to each quarter.  The disclosure
     requirements of the APB opinion number 20 of earnings (loss) per share, net
     income (loss), and income tax (credit) are as follows:


                                        6
<PAGE>
<TABLE>
<CAPTION>

                                                                           1996
                            ----------------------------------------------------------------------------------------------
                                 First               Second               Third              Fourth
                                Quarter             Quarter              Quarter             Quarter               Year
                            ----------------    ----------------    -----------------   -----------------   --------------
<S>                           <C>                <C>                 <C>                 <C>                  <C>
Income (loss) before
 provision (credit)
for income taxes               1,056,585               9,324          (4,370,625)         (7,693,128)         (10,997,844)
Change                        (3,698,413)         (1,539,857)          1,461,925           3,776,345                    -
                              ----------          ----------          ----------          ----------          -----------
Amount restated               (2,641,828)         (1,530,533)         (2,908,700)         (3,916,783)         (10,997,844)

Provision (credit) 
 for income taxes                210,000               2,000            (772,000)         (1,290,000)          (1,850,000)
Change                          (650,000)           (262,000)            282,000             630,000                    -
                              ----------          ----------          ----------          ----------          -----------
Amount restated                 (440,000)           (260,000)           (490,000)           (660,000)          (1,850,000)

Net income (loss)                846,585               7,324          (3,598,625)         (6,403,128)          (9,147,844)
Change                        (3,048,413)         (1,277,857)          1,179,925           3,146,345                    -
                              ----------          ----------          ----------          ----------          -----------
Amount restated               (2,201,828)         (1,270,533)         (2,418,700)         (3,256,783)          (9,147,844)

Earnings (loss)
 per share                          0.13                   -               (0.41)              (0.85)               (1.13)
Change                             (0.46)              (0.17)               0.14                0.49                    -
                              ----------          ----------          ----------          ----------          -----------
Amount restated                    (0.33)              (0.17)              (0.27)              (0.36)               (1.13)
</TABLE>


                                        7
<PAGE>
Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations.

Material Changes in Results of Operations

This report contains  forward looking  statements  within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of Securities  Exchange Act of
1934. Actual results could differ materially from those projected in the forward
looking statements as a result of the risk factors set forth in this report.

First Quarter of 1996 Compared with First Quarter of 1995

The Company's total revenues decreased  approximately 9% from $6,009,000 for the
quarter ended March 31, 1995 to $5,467,000 for the quarter ended March 31, 1996.
Contract  service income decreased during the quarter by 0.6% from $5,433,000 in
1995 to $5,402,000 in 1996.  The decrease in total revenues is  attributable  to
the  decrease in surplus  equipment  sales.  Surplus  equipment  and scrap sales
revenues  decreased  by 88.7% from  $576,000  in 1995 to  $65,000  in 1996.  The
decrease in surplus  equipment and scrap sales revenues was  attributable to the
sale in a single  transaction of $4,000,000 worth of surplus equipment to UPE in
the third quarter of 1995.

Direct  job costs  increased  by  approximately  12.7% from  $5,542,000  for the
quarter  ended March 31,  1995 to  $6,248,000  for the same period in 1996.  The
primary  elements of such  increase in job costs were job  salaries and material
and  supplies.  The increase is due to two factors.  The first,  representing  a
decrease  in job costs was  attributable  to the fact that the first  quarter of
1995 included an adjustment  for $1.3 million in additional  shipping  costs for
the FFC Jordan Fertilizer Company contract. The second factor was the accrual of
$2,813,000 in cost over runs on two government contracts in Oakridge,  Tennessee
and Los Alamos,  New Mexico.  Cost of equipment sales decreased from $220,000 in
1995 to $0 in 1996. The decrease in cost of equipment sales was  attributable to
the UPE sale mentioned previously.

While total revenues decreased by 9% for the quarter, general and administrative
expenses decreased 13.2% from $1,904,000 during the quarter ended March 31, 1995
to  $1,653,000  during the same  period in 1996.  The  decrease  in general  and
administrative  expenses was primarily  attributable to two refunds of insurance
premiums  totaling $90,000 as a result of audits on prior years premiums.  Also,
advertising and travel and entertainment  expenses were $19,000 and $72,000 less
then for the same period in the prior year.

In addition to its  operating  income and  expenses,  the Company  reported  net
interest  income of $3,000 for the  quarter  ended March 31, 1996 as compared to
net interest  income of $97,000 for the same period in 1995. The decrease in net
interest  income/expense  was  attributable to $31,000 in interest expense which
accrued on $1,750,000 of  indebtedness  which  remained  outstanding  during the
quarter out of the $5,000,000 of  convertible  notes issued in the third quarter
of 1995 and an increase in interest  expense due to the  additional  $450,000 in
equipment financing compared to the same period last year.

As a result of the  foregoing,  the  Company  reported  a loss  before  taxes of
$2,462,000  and net loss of  $2,202,000  for the quarter ended March 31, 1996 as
compared to a loss before taxes of $1,656,000 and a net loss of $997,000 for the
same quarter in 1995.

Material Changes in Financial Condition, Liquidity and Capital Resources

At March 31, 1996, the Company had a backlog totaling  approximately $50 million
compared  to a backlog  of  approximately  $47  million at March 31,  1995.  The
largest component of the Company's backlog at March 31, 1996 was $25 million for
a paper plant relocation to the People's Republic of China.


                                        8
<PAGE>
In addition to its existing  backlog,  the Company is presently  bidding on, and
intends to bid on numerous projects to replace revenues from projects which will
be completed  during 1996 and to increase  the total  dollar  volume of projects
under contract.  Management anticipates that the Company's efforts to bid on and
secure new contracts will focus on projects  which can be readily  serviced from
the three  regional  offices  opened by the  Company  during  1994 and 1995.  In
addition,  the Company has submitted  proposals on several  large  international
plant relocation projects. The Company's regional offices,  particularly the Oak
Ridge, Tennessee and Los Alamos, New Mexico offices are strategically located in
areas having a high concentration of prospective public and private  remediation
sites.  While bidding to perform services at such sites is expected to be highly
competitive,  management  believes  that  the  Company's  existing  presence  on
projects at these  locations  combined  with its proven  expertise and resources
will enhance the Company's  chances of  successfully  bidding on substantial new
projects.

The  Company  had  working  capital  of  $7,790,000   including  cash  and  cash
equivalents  balances of $104,000 at March 31,  1996.  This  compares to working
capital of  $10,293,000  and a cash balance of $83,000 at December 31, 1995. The
decrease in working capital is attributable to the loss for the quarter.

Approximately  $833,000  of the  Company's  working  capital  at March 31,  1996
consisted of cash performance  bonds and related  refundable  deposits which the
Company had posted in connection with the performance of various  projects which
are expected to be completed  within twelve months,  at which time such deposits
are expected to be released to the Company.

Additionally,  $1,483,000  of the  Company's  working  capital at March 31, 1996
consisted of surplus equipment  inventory.  Such inventory level compares to the
same amount at December 31, 1995.

The Company has  available  at December  31, 1995  approximately  $2,350,000  in
operating loss carry forwards that may be applied against future taxable income.
They expire in the year 2010.  Based on the  reported  loss to date it will take
approximately  $3.2  million  dollars in future  taxable  income to recover  the
reported deferred tax asset.

At March 31, 1996, the Company's only long term debt other than the  convertible
notes was $605,000 in installment debt secured by job equipment.

Other than  funding the  Company's  bonding and other job costs the Company does
not anticipate any substantial  demands on the liquidity or capital resources of
the Company during the following twelve months.

Management believes that the Company's working capital is sufficient to meet the
Company's anticipated needs for at least the following twelve months,  including
the  performance  of all  existing  contracts of the  Company.  However,  as the
Company is presently  pursuing bids on multiple large projects,  the Company may
be  required  to seek new bank  lines of credit or other  financing  in order to
facilitate  the  performance  of jobs if the volume and size of  projects  being
performed  by  the  Company  increases  substantially.   While  the  Company  is
conducting  ongoing  discussions with various  potential  lenders with a view to
establishing available bank lines of credit if and when needed to support future
growth,  the Company  presently has no commitments from any bank or other lender
to provide financing if such financing becomes necessary to support growth.


                                        9
<PAGE>
                           PART II - OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

          None 

     (b)  Reports on Form 8-K

          None 


                                       10
<PAGE>
                                   SIGNATURES


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


                                       IDM ENVIRONMENTAL CORP.


Dated:  September 30, 1997             By:  /s/ Joel Freedman
                                          --------------------------------------
                                          Joel Freedman, President


Dated:  September 30, 1997             By:  /s/ Michael B. Killeen
                                          --------------------------------------
                                          Michael B. Killeen, Principal
                                          Financial and Accounting Officer


                                       11