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                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549
                                 FORM 10-Q/A


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

For the quarterly period ended     June 30, 1996
                               -----------------------------------------
              

Commission File Number:     1-123620
                       -------------------------------------------------
                       

                     U.S. DRUG TESTING, INC.
------------------------------------------------------------------------        
        (Exact Name of registrant as specified in its charter)

      DELAWARE                          #33-0539168
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(State or other jurisdiction of				     (I.R.S. Employer
incorporation or organization)			       Identification Number)

   4517 N.W. 31ST AVENUE, FT. LAUDERDALE, FLORIDA       33309
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   (Address of Principal Executive Offices)				        (Zip Code)

 10410 TRADEMARK STREET, RANCHO CUCAMONGA, CALIFORNIA 91730
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(Former name, former address and former fiscal year, if changed 
since last report.)

Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the 
Securities Exchange Act of 1934 during the preceding 12 months 
(or for such shorter period that the registrant was required to 
file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.   [X] Yes     [  ] No


Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the last practicable date.

As of August 1, 1996 - Common Stock, $.001 Par Value, 5,221,90

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

Liquidity and Capital Resources
-------------------------------

	The Company is a development stage enterprise with no 
earnings history and initially derived its capital resources from 
unsecured advances provided by its parent company, USAT, a 
publicly traded company.  During October and November 1993, the 
Company sold 1,721,900 shares of its common stock to the public 
at $5.00 per share and netted approximately $7,099,000.  From the 
net proceeds of the offering, the Company repaid the advances 
made by USAT.  During the period ended June 30,1996, the Company 
had outstanding loans receivable from its parent company for 
working capital purposes in the amount of $161,343.  These 
advances are evidenced by notes due December 31, 1996, bearing 
interest at the rate of 8% per annum at June 30, 1996 and secured 
by USAT's shares in the Company.  USAT has agreed to repay these 
loans by August 31, 1996 and has committed to advance $500,000 to 
the Company to fund continuing research and development.  The 
Company is dependent on continuing advances from its parent 
company to continue the research, development and ultimate 
marketing of its products and to fund its working capital 
requirements for the next 12 months.  There are presently no 
unfunded commitments for capital expenditures.

	The Company is currently conducting a feasibility study as 
to the saliva based drug testing products currently under 
development.  The Company expects to complete the feasibility 
study by November 1996 at the cost of $1.2 million during the 
July 1996 to November 1996 period.  Assuming the study indicates 
that the Company should proceed, the Company estimates that it 
will be approximately two years before the drug testing products 
will be available for marketing.  There can be no assurance that 
the Company will successfully complete its

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development program on a timely basis, that it will thereafter 
obtain the necessary governmental approval or that marketing will 
start when contemplated.

	U.S. Drug will require approximately $10,000,000, in 
addition to the approximately $6,800,000 already expended, to 
complete development of a saliva based testing product.  Although 
U.S. Drug management believes that its parent company, USAT, can 
raise the necessary funds to complete this project, failure to 
raise the funds will result in the cessation of operations of 
U.S. Drug because it has no other product to market or service to 
furnish.

Results of Operations
---------------------

	During the quarter ended June 30, 1996, the Company spent 
$163,000 on research and development as compared with $187,000 in 
the prior year, a decrease of $24,000 or 13%.  The decrease 
reflects the timing of expenses over a short period and not a 
slow down in the project.

	General and administrative expense for the quarter ended 
June 30, 1996 was $72,000 as compared with $75,000 in the same 
period of the prior year, a decrease of $3,000 or 4%.

	Depreciation expense for the quarter ended June 30, 1996 was 
$20,000 as compared with $31,000 in the same period of the prior 
year.  Management fees paid to the parent company, USAT, were 
$105,000 in the quarter ended June 30 of both the current and 
prior years.

	Interest expense in the quarter ended June 30, 1996 was $400 
as compared with $43,000 in the same period of the prior year.  
The prior year expense was the result of interest on broker 
margin loans secured by REMIC bond owned by the Company.  The 
REMIC bonds were sold in the quarter ended September 30, 1995.

	Other income was $4,000 in the quarter ended June 30, 1996 
as compared with $336,000 in the same period of the prior year.  
Prior year other income includes interest income generated

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by the REMIC bonds of $75,000, unrealized gain on marketable securities 
of $249,000 and interest income from loans to the parent company, 
USAT, of $12,000.

	Since inception the Company has spent $2,719,197 on research 
and development and an additional $2,089,860 on general and 
administrative expenses.

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                           SIGNATURES 
                           ----------

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



                          								U.S. DRUG TESTING, INC.
									                                Registrant


Date:  April 15, 1997			      	
                                	BY: /s/ Robert Stutman
                                    __________________________________
						                              Robert Stutman, Chief Executive Officer



Date:  April 15, 1997				   
                                	BY: /s/ Robert Muccini
                                    __________________________________
                       								     Robert Muccini, Vice President - Finance 
							                             and Chief Financial Officer