<PAGE 1>

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

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

For the quarterly period ended  	September 30, 1997

Commission File Number:		1-12362

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

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

10400 Trademark Street, Rancho Cucamonga, CA	    	91730		
 (Address of Principal Executive Offices)					  	(Zip Code)	

       	(909) 466-8047										
Registrant's Telephone Number, Including Area Code

4517 N.W. 31stst Avenue  Ft. Lauderdale  FL					33309		
(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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all 
documents and reports required to be filed by Sections 12, 13 OR 
15(d) of the Securities Exchange Act of 1934 subsequent to the 
distribution of securities under a plan confirmed by a court.
	[  ] Yes	[  ] No

APPLICABLE ONLY TO CORPORATE ISSUERS:

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

As of November 22, 1997 - Common Stock, $.001 Par Value, 7,297,206

<PAGE 2>

                               PART I
                       FINANCIAL INFORMATION

Item 1. Financial Statements

                        U.S. DRUG TESTING, INC.
                  (A DEVELOPMENT STAGE ENTERPRISE)
                          BALANCE SHEETS
                            (Unaudited)

                                             September 30        March 31
                                                 1997              1997
                                            ------------         --------

                    ASSETS
                    ------

Current Assets:
 Cash and Cash Equivalents                    $   23,243       $     -
 Prepaid Expenses and Other Current                
  Assets                                            -              49,996
                                              ----------        ---------
Total Current Assets                              23,243           49,996

Property and Equipment, net                      687,055          505,799

Patents and other assets, net                     35,371           40,152
                                               ---------        ---------
  Total Assets                                   745,669          595,947
                                               =========        =========

          LIABILITIES AND STOCKHOLDERS' EQUITY
          ------------------------------------

Current Liabilities:
 Bank Overdraft                                $     -         $   119,514
 Accounts Payable                                  57,561          216,687
 Accrued Expenses                                 184,462           16,340
 Current Portion of Capital Leases                 12,139           25,494 
 Loan Payable-Parent                                 -           1,668,179
                                               ----------       ----------
Total Current Liabilities                         254,162        2,046,214
 
Long term Portion of Capital Lease                
 Obligations                                       59,266          123,419
                                               ----------        ---------
    Total Liabilities                             313,428        2,169,633  

Stockholders' Equity (Deficit):
Common Stock, $.001 Par Value; 50,000,000
 Shares Authorized, 7,297,206 shares and
 5,221,900 shares issued and outstanding at 
 September 30, 1997 and March 31, 1997
 respectively                                       7,297           5,222
 Additional Paid-in Capital                    10,967,320       7,542,401
Deficit Accumulated in the Development Stage  (10,542,376)     (9,121,309)
                                              -----------      ----------
Total Stockholders' Equity (Deficit)              432,241      (1,573,686)
                                              -----------      ----------

  Total Liabilities and Stockholders' 
   Equity (Deficit)                            $  745,669      $  595,947
                                               ==========      ==========

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

<PAGE 3>

                      U.S. DRUG TESTING, INC.
                 (A DEVELOPMENT STAGE ENTERPRISE)
                      STATEMENT OF OPERATIONS
                            (Unaudited) 

<TABLE>
                                                                            Cumulative                   
                                                                              From
                                    For the              For the            October 8, 1992
                               Three Months Ended     Six Months Ended        (Inception)
                                  September 30         September 30          September 30,
                               -----------------   ------------------
                               1997         1996       1997       1996         1997
                             ---------   ---------    ------    --------     ------------
<S>                          <C>         <C>          <C>        <C>         <C>  
Revenues                     $   -       $    -       $  -       $   -       $   -

Costs and Expenses:
 General and Administrative    
  Expenses                     33,256      55,816       170,534    128,592     1,983,613
 Research and Development     170,832     539,635       700,674    702,413     5,466,013   
 Depreciation and
  Amortization                 88,761      52,189       105,491     72,032       665,149
 Interest Expense-Parent         -          1,847        34,530      1,847        95,790          
 Management Fees-Parent          -        105,000       409,838    210,000     2,089,838
 Interest Expense                -          1,114          -         1,503       118,344
                              -------     -------      --------  ---------    ----------

Total Costs and Expenses      292,849     755,601     1,421,067  1,116,387    10,418,747
                              -------     -------     ---------  ---------    ----------

Loss from Operations         (292,049)   (755,601)   (1,421,067)(1,116,387)  (10,418,747)

Other Income/(Expense)           -            710          -         5,526       123,629
                             ---------   ---------    ---------  ----------  -----------

Net Loss                    $(292,849)   $(754,891) $(1,421,067)$(1,110,861)$(10,542,376)
                            ==========   ========== ===========  ==========  ===========

Weighted Average Common
 Shares Outstanding         7,297,206    5,221,900    6,707,502   5,221,900
                            =========    =========    =========   =========
                           

Net Loss Per Common Share    $ (0.04)      $ (0.14)     $ (0.21)   $ (0.21)
                             ========     =========     ========   ========

</TABLE>

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

<PAGE 4>

                         U.S. DRUG TESTING, INC.
                   (A DEVELOPMENT STAGE ENTERPRISE)
                       STAEMENT OF CASH FLOWS
                             (Unaudited)

                                                                   Cumulative
                                                                      From
                                                                 October 8, 1992
                                  For the Six Months Ended       (Inception) to
                                        September 20               September 30
                                      1997          1996              1997 
                                   ----------    -----------    ---------------
  
Cash Flow from Operating
Activities:
 Net Loss                        $ (1,421,067)  $ (1,110,861)   $ (10,542,376)

Adjustments to Reconcile 
 Net Loss to Net Cash
  Used by Operating Activities:
   Depreciation and                  
    Amortization                      105,491         72,032         665,149
   Disposal of Property
    and Equipment                        -              -             59,380
   Realized Gain on
    Marketable Securities                -              -            627,512  
   Unrealized Loss on 
    Marketable Securities                -              -             (4,855)  

Changes in Operating Assets
 and Liabilities:
  (Increase) Decrease in 
   Prepaid Expenses and 
   Other Current Assets                  -            30,686        (100,599)
  (Increase) Decrease in 
   Other Assets                         4,993           -              1,174
  Decrease in Bank Overdraft         (119,514)          -               -
  Increase (Decrease) in 
   Accounts Payable                  (159,126)       352,703         111,920
  Increase (Decrease) in 
   Accrued Expenses'                  168,122        (14,164)        184,482
                                  -----------      ---------      ----------
Net Cash Used by Operating
 Activities                        (1,421,101)      (669,604)     (8,998,233)
                                  -----------      ---------      ----------

Cash Flow From Investing 
 Activities:
  Sale of Marketable 
   Securities                            -              -         3,285,625
  Purchase of Marketable
   Securities                            -              -        (3,908,281)
  Purchase of Property
   and Equipment                      (19,065)      (120,655)      (556,462)
  Patent Costs                         (1,402)          (617)       (39,238)
                                    ---------      ---------     ----------
Net Cash Used by Investing 
 Activities                           (20,467)      (121,272)    (1,218,356)
                                    ---------      ---------     ----------

Cash Flow from Financing 
 Activities:
  Sales of Common Stock                  -              -         8,621,226
  Expenses of Stock Offering             -              -        (1,510,663)
  Payment of Loan to Parent              -              -        (1,917,057)
  Repayment of Loan by Parent            -           282,295      1,917,057
  Proceeds of Loan Payable-Parent   1,464,811        278,892      4,715,067
  Payment of Loan payable-Parent         -              -        (1,299,782)
  Proceeds of Capital Leases             -              -           101,572
  Payments of Capital Leases             -           (18,883)      (105,293)
  Proceeds of Brokerage Loan 
   Payable                               -              -         2,674,683
  Payments of Brokerage Loan
   Payable                               -              -        (2,674,683)
                                   ----------      ---------      ---------
Net Cash Provided by Financing 
 Activities                         1,464,811        542,304     10,239,832 
                                   ----------      ---------    -----------
                             
The accompanying notes are an integral part of the financial statements.

<PAGE 5>

                          U.S. DRUG TESTING, INC.
                      (A DEVELOPMENT STAGE ENTERPRISE)
                           STATEMENT OF CASH FLOWS
                               (Unaudited)
                                (Continued)


                                                                Cumulative 
                                                                   From 
                                                             October 8, 1992 
                                For the Six Months Ended       (Inception) to 
                                       September 30            September 30,
                                    1997         1996               1997
                                  --------      ---------      --------------

Increase (Decrease) in Cash
 and Cash Equivalents              23,243       (248,572)          23,243

Cash and Cash Equivalents- 
 Beginning of Period                 -           249,047             -
                                ---------      ---------        ---------

Cash and Cash Equivalents-
 End of Period                  $  23,243      $     475        $  23,243
                                =========      =========        =========
  
Supplemental Disclosure of
 Cash Information: Cash
 paid for Interest              $    -         $   1,503        $ 156,560
                                =========      =========        ==========

Non-cash Financing Activities:
 Value of Common Stock Issued
 and Additional Paid In
 Capital for the Transfer of
 Assets from Parent             $ 344,000      $     -          $ 781,060
                                =========      =========        =========

 Value of Common Stock Issued
 to Parent and Additional Paid
 In Capital for the Forgiveness
 of Debt                        $3,082,996     $    -           $3,082,994
                                ==========     =========        ==========
            
                                          

<PAGE 6>


                         U.S. DRUG TESTING, INC.
                    (A DEVELOPMENT STAGE ENTERPRISE)
                      NOTES TO FINANCIAL STATEMENTS
                            SEPTEMBER 30, 1997
                               (Unaudited)



NOTE 1  - Basis of Presentation

 In the opinion of U.S. Drug Testing, Inc. (the "Company"), 
the accompanying unaudited financial statements reflect all 
adjustments (which include only normal recurring adjustments 
except as disclosed below) necessary to present fairly the 
financial position, results of operations and cash flows for the 
periods presented.  Results of operations for interim periods are 
not necessarily indicative of the results of operations for a 
full year due to external factors which are beyond the control of 
the Company.  This Report should be read in conjunction with the 
Company's Annual Report on Form 10-K for the fiscal year ended 
March 31, 1997.

NOTE 2. - Continuing Operations

 The Company has incurred recurring operating losses and, at 
September 30, 1997, has a deficiency in working capital of 
approximately $231,000.  To increase working capital, in May 1997 
and July 1997, the Company converted outstanding indebtedness to 
Substance Abuse Technologies, Inc. ("SAT"), the Company's former 
parent, into shares of the Company's common stock, $.001 par 
value (the "Common Stock"), and additional paid in capital. 
However, the Company will require additional capital to continue 
the research, development and ultimate manufacture and marketing 
of its product and to fund its working capital requirements for 
the next 12 months.
 Additionally, on September 10, 1997, SAT filed a voluntary 
petition for reorganization under Chapter 11 of the Bankruptcy 
Code and, on September 19, 1997, the Company announced the 
temporary suspension of the development of the saliva based drugs 
of abuse and alcohol testing device.  Subsequently,  on October 
29, 1997 SAT sold its majority shares of the Common Stock to an 
unaffiliated investor for $250,000.  The purchaser of the Common 
Stock also loaned money to the Company to allow the Company to 
recommence product development.

NOTE 3  - Property and Equipment

	Property and equipment is summarized as follows:
	

                                 September 30,     March 31,
                                    1997             1997
                                 -------------     ---------

Furniture and Fixtures           $  306,973        $  363,229
Test Equipment                      736,849           400,798
Leasehold Improvements              214,569           208,822
                                 ----------        ----------
                                  1,258,391           972,849
Less:  Accumulated 
 Depreciation                       571,336           467,050
                                 ----------         ---------

                                 $  687,055         $ 505,799
                                 ==========         =========

<PAGE 7>


                          U.S. DRUG TESTING, INC.
                     (A DEVELOPMENT STAGE ENTERPRISE)
                        NOTES TO FINANCIAL STATEMENTS
                              SEPTEMBER 30, 1997
                                  (Unaudited)
                                  (Continued)



NOTE 4 - Loan Conversion and Fixed Asset Purchase

 On May 26, 1997, the Board of Directors of the Company 
authorized the issuance of additional shares of the Common Stock 
to SAT on the basis of a share of  Common Stock for each $1.25 of 
indebtedness of the Company to SAT.  As a result of SAT's 
inability to obtain its own financing, SAT ceased advances to the 
Company in July 1997.  Based on SAT's advice that the amount of 
the indebtedness owed by the Company to SAT was $2,594,133, all 
of which SAT agreed to treat as a capital contribution, the 
Company authorized the issuance to SAT of  2,075,306 shares of 
the Common Stock, which were issued as of June 30, 1997 and prior 
to the sale of the Common Stock held by SAT to an outside third 
party.  Subsequent to the sale, SAT advised the Company that the 
amount of the indebtedness was $3,426,994.  As such, the 
forgiveness of the remaining indebtedness to SAT of $832,861 was 
reflected as additional paid in capital as of September 30, 1997.

 Included in the indebtedness, which was converted to 
additional paid in capital as noted above, was $344,000 related 
to the purchase of various fixed assets from SAT at the Rancho 
Cucamonga, California premises.  


NOTE 5 - Commitments and Contingencies

	In June 1995, the License Agreement with the Department of 
the Navy then held by SAT was renegotiated and amended to provide 
for minimum annual royalties of $100,000 per year commencing 
October 1, 1995 and terminating September 30, 2005.  Additional 
royalties will be paid pursuant to a schedule based upon sales of 
products.  Through March 31, 1997, the Company sub-licensed this 
Agreement from its parent and, accordingly, had obligations to 
its parent for the royalty payments required by the License 
Agreement.  This license was transferred from SAT to the Company 
effective with the sale of SAT's majority ownership of the Common 
Stock and all past liability for the license was forgiven.

NOTE 6 - Registration Statement

	During May 1996, SAT filed a Registration Statement on 
Form S-4, File No. 333-4790, under the Securities Act of 1993, as 
amended (the "Securities Act"), in an attempt, through a consent 
solicitation, to acquire the Common Stock  owned by the minority 
stockholders and thereby own 100% of the Common Stock.  As 
discussed in Note 2, SAT sold its majority interest in the 
Company to an unaffiliated investor; therefore, the consent 
solicitation will not occur. 

<PAGE 8>

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

General.

	From its incorporation on October 8, 1992 until October 31, 
1997, when a sale of the controlling stock interest in the 
Company was consummated (see Part II, Item 5 of this Report), the 
Company was a subsidiary of SAT, a publicly-owned company which 
filed a petition under Chapter 11 of the Federal Bankruptcy Code 
on September 10, 1997.  Because SAT had ceased advances to the 
Company in July 1997 as a result of its inability to secure 
financing for its own programs, the Company temporarily suspended 
its product development activities on September 19, 1997 and did 
not resume until October 27, 1997.

	The Company is a development stage enterprise, currently 
seeking to develop a product to detect drugs of abuse and alcohol 
using saliva as a test specimen, and has no earnings history.

 	On May 6, 1996, SAT had filed Registration Statement on Form 
S-4, File No. 333-4790, under the Securities Act to make an offer 
of shares of SAT's Common Stock, $.001 par value, to the holders 
of the 1,721,900 shares of the Common Stock not owned by SAT, 
said shares to be issued as consideration if a proposed merger of 
the Company with and into a wholly-owned subsidiary of SAT was 
approved by such minority stockholders.  As a result of SAT's 
bankruptcy and its sale of the controlling interest as described 
in Part II, Item 5, of this Report, this proposed merger 
transaction to take the Company private has been abandoned by 
SAT.

Liquidity and Capital Resources.

	Until July 1997 when SAT's inability to secure its own 
financing caused SAT to cease advances to the Company, SAT had 
been the sole source of financing to the Company since the 
Company's public offering of 1,721,900 shares of the Common Stock 
in October and November 1993.  This initial public offering 
netted the Company approximately $7,099,000.

	As a result of two loans made to the Company in September 
and October 1997 totaling $310,000 ($10,000 from an officer and 
$300,000 from an unaffiliated source), both loans secured by a 
lien in the assets of the Company, the Company recommenced its 
product development on October 27, 1997.  The Company has 
subsequently repaid the loans from the net proceeds of a private 
placement currently being conducted pursuant to Regulation D 
under the Securities Act offering up to 3,200,000 shares of the 
Common Stock at $.50 per share or an aggregate purchase price of 
$1,600,000.  As of December 8, 1997, the Company had accepted 
subscriptions for all 3,200,000 shares of the Common Stock for 
gross proceeds of $1,600,000. 

	An independent technology and market assessment firm engaged 
by SAT concluded in June 1997 that the Company's immunosensor 
technology will have the capability to deliver performance with 
the analytical sensitivity for the targeted products in drug and 
alcohol testing, but estimated that the product launch date may 
be August 1999 at the earliest and the incremental cost may be as 
high as $18,400,000.  The report assumed that the Company's 
development program would be adequately financed and brought to a 
successful conclusion, as to neither of which assumptions can 
there be any assurance.  Although management believed that the 
product launch date could be earlier than the consulting firm 
projected and the incremental cost could also be lower, 
management is currently studying the effect of the suspension and 
reduction of the research and development program during the 
period July to October 1997 and continuing at a reduced rate 
until long-term funding is secured, on both the projected product 
launch date and on the incremental costs.  The Company believes 
that it is premature for making a definitive conclusion as to 
whether the Company should effect any change in either or both 
estimates.

	Management continues to search for a venture capital 
investor to fund the balance of the development program, 
believing that such an investor or investors would be the most 
likely source of financing.  Management has identified companies 
which are likely candidates for such an investment based on an 
analysis of their investment 

<PAGE 9>

history and has conducted preliminary discussions with one or two 
of the potential candidates, but this search remains in its 
preliminary stages.  Management recognizes that many prospective 
venture capital investors prefer to invest in a privately-owned 
company with an initial public offering as the investor's exist 
strategy, rather than in a publicly-owned company such as the 
Company; however, the initial responses to the Company's 
solicitation, preliminary as they are, have suggested to 
management that this potential problem may be overcome.

	Management also intends to explore the possibility of an 
underwritten public offering or another private placement as a 
means of raising the capital necessary to complete the 
development program; however, market conditions and other 
considerations may make these methods of financing not feasible. 
These efforts are being conducted simultaneous to discussions 
with venture capital sources.

	Lastly, the Company has not abandoned the possibility of 
obtaining a major pharmaceutical or medical company to assist in 
the product development.  Management believes that the 
consultant's report may encourage such a company to proceed where 
normally such a company would, in management's opinion, be 
waiting for a working prototype to be developed, which working 
prototype, even on the original estimate timetable, was not to be 
available until April 1998.

	The Company believes that, if the currently pending private 
placement described above is consummated for its maximum gross 
proceeds of $1,600,000, it will have sufficient capital to keep 
the Company operating for a period of up to 10 months while it 
seeks the long-term financing.  Unless such long-term financing 
is obtained, the Company will have to abandon the product 
development program and, accordingly, have no product or service 
in order to become an operating entity.  There can be no 
assurance that such long-term financing will be obtained or, if 
available, as to when or that management's estimate as to the 
period of not requiring additional short-term financing will be 
correct.

Results of Operations

Three Months Ended September 30, 1997 vs. September 30, 1996 

	During the quarter ended September 30, 1997, the Company 
spent $170,832 on research and development and an additional 
$33,256 on general and administrative expenses, as compared with 
$539,635 and $55,816, respectively, during the three months ended 
September 30, 1996.  The lower expenditures in the 1997 period 
were due to the fact that SAT advanced no funds to the Company 
after July 1997 and, accordingly, the Company's operations were 
suspended.  There was no management fee paid to SAT in the 
quarter ended September 30, 1997, while the Company paid SAT 
$105,000 in management fees during the quarter ended September 
30, 1996, because no management services were being provided by 
SAT in the 1997 quarter.

Six Months Ended September 30, 1997 vs. September 30, 1996

	During the six months ended September 30, 1997, the Company 
spent $700,674 on research and development and an additional 
$170,534 on general and administrative expenses, as compared with 
$702,413 and $128,592, respectively, during the six months ended 
September 30, 1996.  Although the Company had been incurring 
expenditures with the accelerated effort in the R & D program, 
the overall expenditures were significantly lower in the 1997 
period due to the fact that SAT advanced no funds to the Company 
after July 1997 and, accordingly, the Company's product 
development activities were suspended.  The management fees paid 
to SAT in the six months ended September 30, 1997 aggregated 
$409,838 as compared to $210,000 in the same period in 1996 due 
to increased expenses for corporate overhead.

	From inception on October 8, 1992 to September 30, 1997, the 
Company has spent $5,466,013 on research and development and 
$1,983,613 on general and administrative expenses.  Management 
fees paid to SAT aggregated $2,089,838 during such period.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

	Not applicable.

<PAGE 10>

                              PART II

                        OTHER INFORMATION


Item 1.  Legal Proceedings.

	None.

Item 2.  Changes in Securities and Use of Proceeds.

(a) Not applicable.

(b) Not applicable.

(c)	On May 26, 1997, the Board of Directors of the Company 
authorized the issuance to SAT, the owner of 3,500,000 shares of 
the Common Stock or 67.0% of the outstanding shares, of 
additional shares of the Common Stock on the basis of a share of 
the Common Stock for each $1.25 of indebtedness of the Company to 
SAT as to which SAT had agreed (on May 23, 1997) or would agree 
to capitalize.  As a result of SAT's inability to obtain its own 
financing, SAT ceased advances to the Company in July 1997.  
Based on SAT's advice that the amount of the indebtedness owed by 
the Company to SAT was $2,594,133, all of which SAT agreed to 
capitalize, the Company authorized the issuance to SAT of 
2,075,306 shares of the Common Stock.  Subsequent to the sale 
described in Item 5 of this Report, SAT advised the Company that 
the amount of the indebtedness was $3,426,994.  The remaining 
666,289 shares were not issued and the related amounts of 
indebtedness of $832,861 which were forgiven by SAT was deemed a 
contribution to paid in capital.  None of the 2,075,306 shares 
for issuance to SAT were registered under the Securities Act 
pursuant to the exemption of Section 4(2) of the Securities Act 
in that it was a transaction not involving a public offering, 
i.e., an offer to capitalized indebtedness owed by the Company to 
the lender in exchange for shares of the Common Stock.

(d)	Not applicable.

Item 5.  Other Information.

	On July 17, 1997, SAT sold to the Company SAT's furniture, 
fixtures, inventory, and other assets at the Rancho Cucamonga, 
California premises for $344,000, and payment was to be made with 
275,722 shares of the Common Stock, which indebtedness and shares 
were included in those described in Item 2(c) of Part II to this 
Report.  The fixed assets included laboratory furniture and 
scientific equipment, a networked computer system, telephone 
system, and other electronic equipment, office furniture, 
electronic test and production benches, and other furniture and 
vehicles (including an automobile and forklift).  The Company 
subsequently contracted Remarketing Associates, Inc. of Woodland 
Hills, California, a licensed certified appraiser, to conduct a 
full appraisal of all assets at the Rancho Cucamonga location.  
Remarketing Associates estimated that the forced liquidation 
value of the assets was approximately $767,698.  

	On October 29, 1997, the United States Bankruptcy Court for 
the Southern District of Florida (Ft. Lauderdale Division) 
approved the sale by SAT, the debtor in possession, to Meadow 
Lane Associates, Inc. ("Meadow Lane") of the 5,575,306 shares of 
the Common Stock owned by SAT, which shares constituted 76.4% of 
the 7,297,206 shares of the Common Stock then outstanding, and, 
on October 31, 1997, the sale was consummated, thus terminating 
the relationship of the Company as a subsidiary of SAT, which 
relationship had existed since the Company was incorporated on 
October 8, 1992.

	In addition, the Bankruptcy Court approved the assignment by 
SAT to the Company of the License Agreement dated January 24, 
1992 between SAT and the United States Navy, granting SAT a 
partial exclusive patent license to the "Flow Immunosensor Method 
and Apparatus," Patent Application Serial Number 07486024 (the 
"License"), and the rejection of the Sublicense Agreement dated 
September 23, 1993 between SAT and the 

<PAGE 11>

Company (the "Sublicense") and the lease between SAT and The 
Realty Trust (the "Landlord") of the premises located at 10410 
Trademark Street, Rancho Cucamonga, California (the "Lease").  
The transfer of the License permits the Company to use the 
technology directly rather than relying on the Sublicense.  A 
copy of the agreement effecting such transfer is filed as an 
exhibit to this Report and is incorporated herein by this 
reference.  The rejection of the Lease has permitted the Company 
to enter into its own leasing arrangements with the Landlord for 
half of the premises formerly leased by SAT, but used by the 
Company, at the same rental rate.  A copy of the lease is filed 
as an exhibit to this Report and incorporated herein by this 
reference.

	As a result of the sale by SAT to Meadow Lane of the 
controlling stockholder interest in SAT and their relationship to 
SAT, on October 31, 1997, Robert M. Stutman and Michael S. McCord 
resigned as directors of the 
Company, with Mr. Stutman also resigning as the Company's 
Chairman of the Board.  Messrs. Stutman and McCord are directors 
of SAT, with Mr. Stutman also serving as SAT's Chairman of the 
Board and Chief Executive Officer.  At the same meeting, Jonathan 
J. Pallin who, through  Meadow Lane, is the beneficial owner of 
4,227,381 shares of the Common Stock or 40.3% of the outstanding 
shares of the Company, was elected as Chairman of the Board and a 
director of the Company.  Since October 16, 1997, Mr. Pallin had 
been serving as a financial consultant to the Company.  In 
addition, Robert Muccini resigned as the Vice President of 
Finance, the Treasurer, the Chief Financial Officer and the Chief 
Accounting Officer of the Company because he held comparable 
positions with SAT.  No person has been appointed as yet to 
replace Mr. Muccini.  Linda H. Masterson, the President, the 
Chief Executive Officer and a director of the Company, 
subsequently resigned as a director of SAT, thereby severing the 
final interlocking relationship between the Company and SAT.  For 
the first time in its corporate existence, the Company has sole 
responsibility for its administrative and financial operations, 
with independent directors and executive officers and no 
management services arrangements with SAT.

	As a result of SAT ceasing to advance funds to the Company 
in July (see Item 2(c) of Part II to this Report), the Company 
temporarily suspended its product development activities on 
September 19, 1997.  As a result of loans to the Company by 
unaffiliated parties, product development was resumed on October 
27, 1997, with Vice President, Operations William B. Benken, and 
10 other employees resuming their prior employment with the 
Company.  Because Vice President, Research and Development Steven 
J. Kline resigned, a search for his replacement has been 
instituted.

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

(a) Exhibits

 All of the following exhibits designated with a footnote 
reference are incorporated herein by reference to a prior 
registration statement filed under the Securities Act or a 
periodic report filed by the Company or SAT pursuant to Section 
13 of the Securities Exchange Act of 1934, as amended.  If no 
footnote reference is made, the exhibit is filed with this 
Report.

Number	   Exhibit

A	        Copy of License Agreement dated January 24, 1992 
          by and between United States Navy (the "USN") and 
          SAT.  (Confidential Treatment Request for 
          Exhibit.) (1)

A(1)	     Copy of Amended Sublease Agreement dated September 
          23, 1993 between SAT and the Company. (2)

A(2)	     Copy of Fifth Modification dated November 12, 1997 
          to License Agreement filed as Exhibit A hereto by 
          and between the USN and the Company.

B	        Copy of Management Agreement dated April 1, 1993 
          by and between the Company and SAT. (1)

B(1)	     Copy of Amendment dated July 20, 1993 to Agreement 
          filed as Exhibit B. (1)

<PAGE 12>

C	        Copy of Lease dated March 18, 1991 by and between 
          Rancho Cucamonga Business Park (now The Realty 
          Trust) as landlord and SAT as tenant. (3)

C(1)	     Copy of Lease Modification Agreement to Lease 
          filed as Exhibit C hereto. (3)

C(2)	     Copy of Sub-Lease Agreement dated as of January 1, 
          1993 by and between SAT as sublandlord and the 
          Company as subtenant. (1)

C(3)	     Copy of Third Amendment dated January 2, 1997 to 
          Lease filed as Exhibit C hereto. (4)


C(4)	     Copy of Fourth Amendment dated November 3, 1997 to 
          Lease filed as Exhibit C hereto by and between The 
          Realty Trust as landlord and the Company as tenant.

------------------	

(1) Filed as an exhibit to the Company's Registration Statement 
on Form SB-2, File No. 33-61786, and incorporated herein by 
this reference.

(2) Filed as an exhibit to the Company's Annual Report on Form 
10-K for the fiscal year ended March 31, 1996 and 
incorporated herein by this reference. 

(3) Filed as an exhibit to SAT's Annual Report on Form 10-K for 
the fiscal year ended March 31, 1996 and incorporated herein 
by this reference.

(4) Filed as an exhibit to SAT's Annual Report on Form 10-K for 
the fiscal year ended March 31, 1997 and incorporated herein 
by this reference.

   (b) Reports on Form 8-K.

	There were no Reports on Form 8-K filed during the quarter 
for which this Report is filed.


                      SIGNATURES


	Pursuant to the requirement of the Securities Exchange Act 
of 1934, the registrant has duly caused this Report to be signed 
on its behalf by the undersigned therein to be duly authorized.


                           						U.S. DRUG TESTING, INC.
                             							(Registrant)



Date: 	December 9, 1997			    By /s/ Linda H. Masterson						
                                 -----------------------------
                     						      Linda H. Masterson
                     						      President and Chief Executive Officer


<PAGE E-1>

                       U.S. DRUG TESTING, INC.
                 Quarterly Report on Form 10-Q for the
                   Quarter Ended September 30, 1997

                          EXHIBIT INDEX



	The following exhibits are filed with this Report:



Number		Exhibit							Page

A(2)			Copy of Fifth Modification dated November
    			12, 1997 to License Agreement filed as
    			Exhibit A hereto by and between the USN and	the 
       Company...................................................	E-2

C(4)			Copy of Fourth Amendment dated November 3,
    			1997 to Lease filed as Exhibit C hereto by and
    			between The Realty Trust as landlord and the
    			Company as tenant.........................................	E-4

<PAGE E-2>

                                                     Exhibit A(2)
                   DEPARTMENT OF THE NAVY
                 NAVAL RESEARCH LABORATORY
                  4555 OVERLOOK AVENUE SW
                 WASHINGTON, D.C.  20375-5320 

                                    										In reply refer to:
                                    										1004/1011G
                                    										12 November 1997


Ms. Linda H. Masterson
U.S. Drug Testing, Inc.
10410 Trademark Street
Rancho Cucamonga,  CA  91730

Dear Ms. Masterson:

	In reference to your letter of October 28, 1997, proposed 
below are modifications to the Partially Exclusive License 
between U.S. Drug Testing, Inc. (formerly Substance Abuse 
Technologies, Inc., and U.S. Alcohol Testing of America, Inc.) 
and the U.S. Navy dated January 24, 1992, as follows:

1. The fourth paragraph under Article III Licensee's 
Performance, is to be amended as follows:

LICENSEE shall pay to the LICENSOR a non-refundable 
licensing fee in the amount of one hundred ten thousand 
dollars ($110,000).  Fifteen thousand dollars ($15,000) 
shall be payable on December 1, 1997.  A second payment 
in the amount of fifteen thousand dollars ($15,000) 
shall be payable on January 1, 1998.  A third payment 
of forty thousand dollars ($40,000) shall be payable on 
April 1, 1998.  A fourth payment of forty thousand 
dollars ($40,000) shall be payable on July 1, 1998.  
LICENSEE agrees to pay to LICENSOR one half of any 
licensing fee collected from any sublicensee.  Payment 
will be made in the manner prescribed in Article IV.

2. The fifth paragraph under Article IV Royalties, is to 
be amended as follows:

All payments due LICENSOR under this LICENSE shall be made 
payable to DFAS-CH DSSN 8347 and mailed to: 

	Deputy Counsel (Intellectual Property)
	Office of Naval Research
	Code 00CC1P, Room 207
	800 North Quincy Street
	Arlington, Virginia  22217-5660

<PAGE E-3>

 Your consent to the modifications of this License may be 
evidenced by affixing your signature in the space provided below.  
A duplicate of the original will be provided to you.

                                   					Sincerely,


                                        /s/ Richard H. Rein   
                                        --------------------------------
                                  						Richard H. Rein
                                  						Head, Technology Transfer Office



UNITED STATES OF AMERICA FOR 		             U.S. DRUG TESTING, INC.
THE SECRETARY OF THE NAVY


BY: /s/ B.W. BUCKELY            			         BY: /s/ Linda H. Masterson     
    ----------------                            -----------------------
       	B.W. BUCKLEY				                           	Linda H. Masterson
	       Captain, U.S. Navy
       	Commanding Officer
	
DATE: 11/21/97            			                	DATE: 11/14/97  

<PAGE E-4>

                                                    Exhibit C(4)

                FOURTH AMENDMENT TO INDUSTRIAL LEASE
         10400 Trademark Street, Rancho Cucamonga, CA  91730

	
	The terms of the industrial lease dated March 18, 1991 
originally between Rancho Cucamonga Business Park as Lessor and 
U.S. Alcohol Testing of America as Lessee and currently by and 
between Substance Abuse Technologies, Inc. (formerly U.S. Alcohol 
Testing of America) as Lessee and The Realty Trust (TRT) as 
Lessor is amended as follows:

	Substance Abuse Technologies (SAT) has rejected the existing 
lease under authority of bankruptcy proceedings.

	U.S. Drug Testing, Inc. (USDT) has been occupying the 
premises at 10400 and 10401 Trademark Street as a subsidiary of 
SAT.  USDT wishes to continue occupancy of that 1/2 of the premises 
at 10400 Trademark Street as Lessee for a period of one year.

	Commencing on October 1, 1997 and terminating on September 
31, 1998, the monthly rental for 10400 Trademark Street shall be 
$5,500.00 per month.  At least 90 days before the lease 
termination date USDT shall give TRT notice of its intention to 
terminate.  In the event of a holdover by USDT, agreed to by TRT 
in writing, the lease shall continue from month to month and 
either party may terminate the lease by giving the other party a 
60 day notice of termination.  The terms and conditions of the 
original lease dated March 18,1991 and its addendum and 
amendments shall remain in full force and effect except that USDT 
shall occupy only the premises at 10400 Trademark Street and 
shall pay only 1/2 of the total real estate taxes, insurance, 
landscaping and exterior maintenance charges levied against the 
entire building.

This Fourth Amendment is executed in two (2) originals.  One 
original shall be held by the Lessor, The Realty Trust, and one 
original shall be held by the Lessee, U.S. Drug Testing, Inc.

Date:	11/3/97                 


                                								U.S. Drug Testing, Inc.
	
                             							By:	/s/ Linda H. Masterson             
                                        -----------------------------
                                								Linda H. Masterson, President

Date:	11/5/97                 

                               								The Realty Trust

                             							By:	/s/ Simi Dabah                    
                                        -------------------
                                								Simi Dabah, Trustee