----

| Advance      Display Technologies, Inc.                                 |
|-------------------------------------------------------------------------|
| (Exact      name of small business issuer as specified in its  charter) |

| Colorado                      |   | 84-0969445                    |
|-------------------------------|--------|-------------------------------|
| (State      of incorporation) |   | (IRS      Employer ID number) |

| 7334      South Alton Way, Suite F, Centennial, CO 80112             |
|----------------------------------------------------------------------|
| (Address      of principal executive offices)  (Zip  Code) |

| (303)      267-0111                                        |
|------------------------------------------------------------|
| (Issuer’s      telephone number, including areacode) |

|   | Large      accelerated filer | [   ] |   | Accelerated      filer         | [   ] |   |
|--------|------------------------------|----------------------|--------|--------------------------------|----------------------|--------|
|   |                         |                 |   |                           |                 |   |
|   | Non-accelerated      filer   | [   ] |   | Smaller      reporting company | [X]                  |   |

----

| ADVANCE      DISPLAY TECHNOLOGIES, INC.       |
|-----------------------------------------------|
|                                          |
| INDEX                                         |
|                                          |
| PART      I.  FINANCIAL INFORMATION |
|                                          |
|                                          |   |   |   | Page |
|                                          |   |   |   |   |
| Item      1.                                  |   | Consolidated      Balance Sheets - |   |   |
|                                          |   |     March      31, 2009 (unaudited) and June 30, 2008 |   | 1 |
|                                          |   |   |   |   |
|                                          |   | Consolidated      Statements of Operations (unaudited) |   |   |
|                                          |   |     Three      months and nine months ended March 31, 2009 and 2008 and |   |   |
|                                          |   |     for      the period from March 15, 1995, inception, to March 31,    2009 |   | 2 |
|                                          |   |   |   |   |
|                                          |   | Consolidated      Statements of Cash Flows (unaudited) |   |   |
|                                          |   |     Nine      months ended March 31, 2009 and 2008 and |   |   |
|                                          |   |     for      the period from March 15, 1995, inception, to March 31,    2009 |   | 3 |
|                                          |   |   |   |   |
|                                          |   | Notes      to Unaudited Consolidated Financial Statements |   | 5 |
|                                          |   |   |   |   |
| Item      2.                                  |   | Management’s      Discussion and Analysis of Financial Condition |   |   |
|                                          |   |     and      Results of Operations |   | 12 |
|                                          |   |   |   |   |
| Item      3.                                  |   | Quantitative      and Qualitative Disclosures About Market Risk |   | 20 |
|                                          |   |   |   |   |
| Item      4T.                                 |   | Controls      and Procedures |   | 20 |
|                                          |   |   |   |   |
|                                          |   | PART      II.  OTHER INFORMATION |   |   |
|                                          |   |   |   |   |
| Item      1.                                  |   | Legal      Proceedings |   | 21 |
|                                          |   |   |   |   |
| Item      1A.                                 |   | Risk      Factors |   | 21 |
|                                          |   |   |   |   |
| Item      2.                                  |   | Unregistered      Sales of Equity Securities and Use of Proceeds |   | 21 |
|                                          |   |   |   |   |
| Item      3.                                  |   | Defaults      Upon Senior Securities |   | 21 |
|                                          |   |   |   |   |
| Item      4.                                  |   | Submission      of Matters to a Vote of Security Holders |   | 22 |
|                                          |   |   |   |   |
| Item      5.                                  |   | Other      Information |   | 22 |
|                                          |   |   |   |   |
| Item      6.                                  |   | Exhibits |   | 22 |
|                                          |   |   |   |   |
|                                          |   | Signatures |   |   |

----

|                                                                                                                                                                |   | March      31,2009 |         |   | June      30,2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------------|--------|-------------------|--------|
|                                                                                                                                                                |   | (Unaudited)        |         |   |              |   |
| ASSETS                                                                                                                                                              |   |
| Current      Assets:                                                                                                                                                |   |               |         |   |              |   |
| Cash                                                                                                                                                                |   | $                  | 281,476      |   |              | $      | 1,271,364 |   |
| Component inventory, net of      reserve for obsolescence                                                                                                           |   |               | 664,097      |   |              |   | 224,314 |   |
| Work in progress      inventory                                                                                                                                     |   |               | 698,324      |   |              |   | 102,561 |   |
| Finished goods      inventory                                                                                                                                       |   |               | 531,685      |   |              |   | --- |   |
| Vendor deposits                                                                                                                                                     |   |               | ---          |   |              |   | 33,400 |   |
| Other current    assets                                                                                                                                             |   |               | 115,996      |   |              |   | 57,512 |   |
| Total current    assets                                                                                                                                             |   |               | 2,291,578    |   |              |   | 1,689,151 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| Property      and Equipment, Net                                                                                                                                    |   |               | 1,344,854    |   |              |   | 1,153,892 |   |
| Deferred      Manufacturing Costs, Net                                                                                                                              |   |               | 388,066      |   |              |   | 407,232 |   |
| Deposits                                                                                                                                                            |   |               | 31,353       |   |              |   | 31,353 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| Total Assets                                                                                                                                                        |   | $                  | 4,055,851    |   |              | $      | 3,281,628 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY      (DEFICIT)                                                                                                           |   |
| Current      Liabilities:                                                                                                                                           |   |               |         |   |              |   |   |   |
| Accounts payable -      Trade                                                                                                                                       |   | $                  | 858,715      |   |              | $      | 989,450 |   |
| Accounts payable - Related      party                                                                                                                               |   |               | 46,482       |   |              |   | 35,821 |   |
|        Senior      secured revolving convertible note, net of debt discount, to related      parties                             |   |               | 2,760,954    |   |              |   | --- |   |
|        Revolving      convertible redeemable promissory notes to related parties                                                 |   |               | 79,861       |   |              |   | 740,000 |   |
|        Demand      notes to related parties                                                                                      |   |               | 100,000      |   |              |   | 800,000 |   |
|        Accrued      interest payable to related parties                                                                          |   |               | 401,857      |   |              |   | 321,008 |   |
|        Conversion      feature liability on debt to related parties                                                              |   |               | 2,156,118    |   |              |   | --- |   |
| Other accrued      liabilities                                                                                                                                      |   |               | 42,114       |   |              |   | 49,808 |   |
| Total current      liabilities                                                                                                                                      |   |               | 6,446,101    |   |              |   | 2,936,087 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| Long-term      obligations, less current maturities                                                                                                                 |   |               | 31,944       |   |              |   | 19,729 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| Total liabilities                                                                                                                                                   |   |               | 6,478,045    |   |              |   | 2,955,816 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                  |   |               |         |   |              |   |   |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| Stockholders’      Equity (Deficit):                                                                                                                          |   |               |         |   |              |   |   |   |
| Preferred Series D stock, $.001      par value, 70,100,000 shares authorized, 70,100,000 shares issued and      outstanding (liquidation preference of $1,170,670). |   |               | 70,100       |   |              |   | 30,571 |   |
| Preferred Series E stock, $.001      par value, 1,008,985 shares authorized, 1,008,985 shares issued and      outstanding (liquidation preference of $1,267,531).   |   |               |  1,009  |   |              |   |  1,009 |   |
| Preferred Series F stock, $.001      par value, 4,549,015 shares authorized, 4,549,015 shares issued and      outstanding (liquidation preference of $4,549,015).   |   |               |  4,549  |   |              |   |  4,549 |   |
| Preferred Series G stock, $.001      par value, 100,000 shares authorized, 90,544 shares issued and outstanding      (liquidation preference of $8,802,750).        |   |               | 91           |   |              |   | 91 |   |
| Common stock, $.001 par value,      175,000,000 shares authorized, 26,198,177 issued and      outstanding                                                           |   |               |  26,199 |   |              |   | 26,199 |   |
| Additional paid-in      capital                                                                                                                                     |   |               | 21,200,563   |   |              |   | 20,442,137 |   |
| Deficit accumulated during the      development stage                                                                                                               |   |               | (23,724,705  | )      |              |   | (20,178,744 | ) |
| Total stockholders’ equity      (deficit)                                                                                                                     |   |               | (2,422,194   | )      |              |   | 325,812 |   |
|                                                                                                                                                                |   |               |         |   |              |   |   |   |
| Total      Liabilities and Stockholders’ Equity (Deficit)                                                                                                     |   | $                  | 4,055,851    |   |              | $      | 3,281,628 |   |

----

|                                                                                                  |   |  Three      Months EndedMarch      31, |       |   |  Nine      Months EndedMarch      31, |   |       | Cumulative      From Inception(March      15, 1995)ThroughMarch      31, |   |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|------------|--------|--------------------------------------------|--------|------------|--------------------------------------------------------------------------|--------|
|                                                                                                  |   | 2009                                        |       |   | 2008                                       |   |       | 2009                                                                     |   |   | 2008 |   |   | 2009 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |
| Consulting      Revenue                                                                               |   | $                                           | ---        |   |                                       | $      | ---        |                                                                     |   | $ | --- |   |   | $ | --- |   |   | $ | 91,014 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income:                                                                                    |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|         Related      party interest income                    |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 162,761 |   |
|         Other      interest income                            |   |                                        | 347        |   |                                       |   | 4,240      |                                                                     |   |   | 1,066 |   |   |   | 13,608 |   |   |   | 30,066 |   |
|         Settlement      income                                |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 463,179 |   |
| Other                                                                                                 |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 550 |   |
| Total revenue and other      income                                                                   |   |                                        | 347        |   |                                       |   | 4,240      |                                                                     |   |   | 1,066 |   |   |   | 13,608 |   |   |   | 747,570 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs      and Expenses:                                                                         |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|         Cost      of consulting revenue                       |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 93,648 |   |
| Manufacturing      operations                                                                         |   |                                        | 692,617    |   |                                       |   | 121,711    |                                                                     |   |   | 1,829,370 |   |   |   | 121,711 |   |   |   | 2,378,658 |   |
| General and      administrative                                                                       |   |                                        | 406,429    |   |                                       |   | 288,322    |                                                                     |   |   | 1,376,306 |   |   |   | 1,042,787 |   |   |   | 8,395,319 |   |
| Marketing                                                                                             |   |                                        | 122,551    |   |                                       |   | 89,908     |                                                                     |   |   | 560,485 |   |   |   | 174,260 |   |   |   | 1,516,376 |   |
| Research and      development                                                                         |   |                                        | 200,249    |   |                                       |   | 373,739    |                                                                     |   |   | 367,944 |   |   |   | 2,680,294 |   |   |   | 8,449,331 |   |
| Impairment of intangible      asset                                                                   |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 451,492 |   |
| Interest expense – related      parties                                                         |   |                                        | 128,009    |   |                                       |   | 38,928     |                                                                     |   |   | 275,212 |   |   |   | 117,639 |   |   |   | 4,284,900 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total costs and      expenses                                                                         |   |                                        | 1,549,855  |   |                                       |   | 912,608    |                                                                     |   |   | 4,409,317 |   |   |   | 4,136,691 |   |   |   | 25,569,724 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Loss                                                                                   |   | $                                           | (1,549,508 | )      |                                       | $      | (908,368   | )                                                                        |   | $ | (4,408,251 | ) |   | $ | (4,123,083 | ) |   | $ | (24,822,154 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income and  Expenses:                                                            |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|         Change      in derivative conversion feature          |   |                                        | 832,433    |   |                                       |   | ---        |                                                                     |   |   | 3,981,071 |   |   |   | --- |   |   |   | 3,981,071 |   |
|         Interest      expense - derivative conversion feature |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | (1,516,736 | ) |   |   | --- |   |   |   | (1,516,736 | ) |
|         Amortization      of debt discount                    |   |                                        | (1,093,662 | )      |                                       |   | ---        |                                                                     |   |   | (1,602,045 | ) |   |   | --- |   |   |   | (1,602,045 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other income and      expenses                                                                  |   |                                        | (261,229   | )      |                                       |   | ---        |                                                                     |   |   | 862,290 |   |   |   | --- |   |   |   | 862,290 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      Before  Discontinued  Operations      and Extraordinary Gain            |   | $                                           | (1,810,737 | )      |                                       | $      | (908,368   | )                                                                        |   | $ | (3,545,961 | ) |   | $ | (4,123,083 | ) |   | $ | (23,959,864 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      from discontinued operations                                                                |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | (202,278 | ) |
| Gain      on disposal of discontinued operations                                                      |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 108,652 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss      Before Extraordinary Gain                                                                   |   | $                                           | (1,810,737 | )      |                                       | $      | (908,368   | )                                                                        |   | $ | (3,545,961 | ) |   | $ | (4,123,083 | ) |   | $ | (24,053,490 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Extraordinary      Gain Due to                                                                        |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Extinguishment      of Debt                                                         |   |                                        | ---        |   |                                       |   | ---        |                                                                     |   |   | --- |   |   |   | --- |   |   |   | 328,785 |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                                                         |   | $                                           | (1,810,737 | )      |                                       | $      | (908,368   | )                                                                        |   | $ | (3,545,961 | ) |   | $ | (4,123,083 | ) |   | $ | (23,724,705 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    accrued      preferred series e dividend                                            |   |                                        | (2,102     | )      |                                       |   | (12,612    | )                                                                        |   |   | (27,326 | ) |   |   | (37,836 | ) |   |   | (258,546 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss applicable to common shareholders                                                       |   | $                                           | (1,812,839 | )      |                                       | $      | (920,980   | )                                                                        |   | $ | (3,573,287 | ) |   | $ | (4,160,919 | ) |   | $ | (23,983,251 | ) |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| net      loss per common share  (basic and dilutive):                                       |   | $                                           | (.07       | )      |                                       | $      | (.04       | )                                                                        |   | $ |  (.14 | ) |   | $ |  (.16 | ) |   |   |   |   |
|                                                                                                  |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted      average number of common                                                                |   |                                        |       |   |                                       |   |       |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|  shares      outstanding                                                                         |   |                                        | 26,198,177 |   |                                       |   | 26,198,177 |                                                                     |   |   | 26,198,177 |   |   |   | 26,198,177 |   |   |   |   |   |

----

|                                                                   |   |   Nine      Months EndedMarch      31, |       |   | Cumulative      From Inception(March      15, 1995) Through March 31, |   |
|------------------------------------------------------------------------|--------|--------------------------------------------------|------------|--------|-----------------------------------------------------------------------|--------|
|                                                                   |   | 2009                                             |       |   | 2008                                                                  |   |   | 2009 |   |
| cash      flows from (to) operating activities:                        |   |                                             |       |   |                                                                  |   |   |   |   |
| Net (Loss)                                                             |   | $                                                | (3,545,961 | )      |                                                                  | $      | (4,123,083 | ) |   | $ | (23,724,705 | ) |
| Adjustments      to reconcile net loss to net                          |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
|  Cash      used in operating activities:                          |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| Loss from discontinued      operations                                 |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 202,278 |   |
| Gain on disposition of      discontinued operations                    |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | (108,652 | ) |
| Gain on debt      forgiven                                             |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | (496,777 | ) |
| Acquired research and      development expense                         |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 2,536,494 |   |
| Reserve for inventory      obsolescence                                |   |                                             | 133,846    |   |                                                                  |   | --- |   |   |   | 133,846 |   |
| Impairment of intangible      asset                                    |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 451,492 |   |
| Impairment of    assets                                                |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 380,373 |   |
| Depreciation and      amortization                                     |   |                                             | 490,999    |   |                                                                  |   | 24,540 |   |   |   | 896,660 |   |
| Amortization of debt      discount                                     |   |                                             | 1,602,045  |   |                                                                  |   | --- |   |   |   | 1,602,045 |   |
| Amortization of deferred merger      costs                             |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 75,000 |   |
| Stock and stock option      compensation expense                       |   |                                             | 137,816    |   |                                                                  |   | 143,458 |   |   |   | 586,958 |   |
| Interest expense related to debt      discount                         |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 1,893,573 |   |
| Interest expense related to      derivative conversion feature on debt |   |                                             | 1,516,736  |   |                                                                  |   | --- |   |   |   | 1,516,736 |   |
| Change in derivative conversion      feature                           |   |                                             | (3,981,071 | )      |                                                                  |   | --- |   |   |   | (3,981,071 | ) |
| Loss on disposal of property and      equipment                        |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 7,015 |   |
| (Increase)      decrease in:                                           |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| Inventory                                                              |   |                                             | (1,701,077 | )      |                                                                  |   | (3,937 | ) |   |   | (2,347,296 | ) |
|     Vendor      deposits                           |   |                                             | 33,400     |   |                                                                  |   | (167,206 | ) |   |   | --- |   |
| Other current    assets                                                |   |                                             | (58,484    | )      |                                                                  |   | (65,974 | ) |   |   | (172,481 | ) |
| (Decrease)  increase      in:                                |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| Accounts payable                                                       |   |                                             | (120,074   | )      |                                                                  |   | 133,083 |   |   |   | 867,498 |   |
| Interest payable to      shareholders                                  |   |                                             | 275,211    |   |                                                                  |   | 117,639 |   |   |   | 2,318,374 |   |
| Other accrued      liabilities                                         |   |                                             | 236        |   |                                                                  |   | (14,580 | ) |   |   | (130,052 | ) |
| Net cash used in operating      activities                             |   |                                             | (5,216,378 | )      |                                                                  |   | (3,956,060 | ) |   |   | (17,492,692 | ) |
|                                                                   |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| cash      flows from (to)  investing activities:             |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| Purchases of property and      equipment                               |   |                                             | (541,770   | )      |                                                                  |   | (119,423 | ) |   |   | (1,952,263 | ) |
| Proceeds from sale of property      and equipment                      |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 17,030 |   |
| Long-term    deposits                                                  |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | (31,353 | ) |
| Deferred manufacturing      costs                                      |   |                                             | (112,630   | )      |                                                                  |   | (287,767 | ) |   |   | (525,598 | ) |
| Advances to      affiliates                                            |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | (932,925 | ) |
| Purchase of notes receivable and      security interest                |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | (225,000 | ) |
| Cash received in      acquisition                                      |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 303,812 |   |
| Net cash used in investing      activities                             |   |                                             | (654,400   | )      |                                                                  |   | (407,190 | ) |   |   | (3,346,297 | ) |
|                                                                   |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| cash      flows from (to) financing activities:                        |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| Proceeds from stock      sales                                         |   |                                             | ---        |   |                                                                  |   | 5,212,750 |   |   |   | 9,505,877 |   |
|      Proceeds      from exercise of options   |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 14,400 |   |
| Proceeds from notes payable to      shareholders                       |   |                                             | 4,885,000  |   |                                                                  |   | --- |   |   |   | 11,314,754 |   |
| Proceeds from line of      credit                                      |   |                                             | ---        |   |                                                                  |   | --- |   |   |   | 299,505 |   |
| Principal payments on leased      equipment                            |   |                                             | (4,110     | )      |                                                                  |   | (982 | ) |   |   | (14,071 | ) |
| Net cash provided by financing      activities                         |   |                                             | 4,880,890  |   |                                                                  |   | 5,211,768 |   |   |   | 21,120,465 |   |
|                                                                   |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |
| Increase      (decrease) in cash                                       |   |                                             | (989,888   | )      |                                                                  |   | 848,518 |   |   |   | 281,476 |   |
| Cash      & cash equivalent at beginning of period                 |   |                                             | 1,271,364  |   |                                                                  |   | 1,237,599 |   |   |   | --- |   |
| Cash      & cash equivalent at end of period                       |   | $                                                | 281,476    |   |                                                                  | $      | 2,086,117 |   |   | $ | 281,476 |   |
|                                                                   |   |                                             |       |   |                                                                  |   |   |   |   |   |   |   |

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|                                                                                                                                             |   | Nine      Months EndedMarch      31, |       |   | Cumulative      From Inception(March      15, 1995) ThroughMarch      31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|--------|---------------------------------------------------------------------------|--------|
|                                                                                                                                             |   | 2009                                 |       |   | 2008                                                                      |   |   | 2009 |   |
|                                                                                                                                             |   |                                 |       |   |                                                                      |   |   |   |   |
| supplemental      disclosure of cash flow information                                                                                            |   |                                 |       |   |                                                                      |   |   |   |   |
| Cash      paid for:                                                                                                                              |   |                                 |       |   |                                                                      |   |   |   |   |
|   Interest                                                                                                                             |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | 26,570 |   |
| Non-cash      transactions:                                                                                                                      |   |                                 |       |   |                                                                      |   |   |   |   |   |   |   |
| Issuance      of common stock for acquisition of Display Group, LLC  and      Display Optics, Ltd. and conversion of convertible debt  |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | 2,199,026 |   |
| Conversion      of notes payable to stockholders to Common stock                                                                                 |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | 550,000 |   |
| Conversion      of interest payable on notes to notes payable                                                                                    |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | 12,354 |   |
| Retirement      of shares in settlement                                                                                                          |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | 1,402 |   |
| Extinguishment      of debt and trade payables                                                                                                   |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | 496,777 |   |
| Acquired      membership interest in Regent Theaters, LLC and  Regent      Releasing, LLC                                              |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 50,000 |   |
| Conversion      of Preferred Series C stock to common stock                                                                                      |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 1,844 |   |
| Subscriptions      for Preferred Series D stock                                                                                                  |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 400,000 |   |
| Cancellation      of Subscriptions for Preferred Series D Stock                                                                                  |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | (325,000 | ) |
| Subscription      for Preferred Series G stock                                                                                                   |   | $                                    | ---        |   |                                                                      | $      | 1,000,000 |   |   | $ | --- |   |
| Conversion      of convertible, redeemable promissory notes to  Preferred      Series D Stock                                          |   | $                                    | 660,139    |   |                                                                      | $      | --- |   |   | $ | 660,139 |   |
| Conversion      of interest on convertible, redeemable promissory   notes      to Preferred Series D Stock                        |   | $                                    | ---        |   |                                                                      | $      |  --- |   |   | $ | 80,000 |   |
| Conversion      of demand notes and accrued interest to Preferred  Series      E stock                                                 |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 1,008,985 |   |
| Conversion      of convertible, redeemable promissory notes, demand   notes      and accrued interest to Preferred Series F stock |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 4,549,015 |   |
| Acquisition      of 15,000,000 shares of Preferred Series D stock                                                                                |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 75,000 |   |
| Conversion      of demand notes and accrued interest to senior   secured,      revolving, convertible note to related parties     |   | $                                    | 2,694,362  |   |                                                                      | $      |  --- |   |   | $ | 2,694,362 |   |
| Conversion      feature on senior secured, revolving, convertible   note      to related parties                                  |   | $                                    | 6,137,189  |   |                                                                      | $      |  --- |   |   | $ | 6,137,189 |   |
| Discount      on senior secured, revolving, convertible note to  related      parties                                                  |   | $                                    | (4,620,453 | )      |                                                                      | $      |  --- |   |   | $ | (4,620,453 | ) |
| Equipment      acquired under capital lease                                                                                                      |   | $                                    | 8,395      |   |                                                                      | $      | --- |   |   | $ | 14,603 |   |
| Issuance      of shares of Common Stock for debt                                                                                                 |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 5,000 |   |
| Issuance      of shares of Preferred Series D stock for   deferred      compensation                                              |   | $                                    |  ---  |   |                                                                      | $      |  --- |   |   | $ | 304,500 |   |
| Cancellation      of unearned Preferred Series D stock                                                                                           |   | $                                    | ---        |   |                                                                      | $      | --- |   |   | $ | (297,491 | ) |

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| ·   | Expected      term – .79% of one year |
|--------------------|---------------------------------------------|

| ·   | Volatility      – 248% |
|--------------------|------------------------------|

| ·   | Annual      rate of quarterly dividends – 0% |
|--------------------|----------------------------------------------------|

| ·   | Discount      rate - .42% |
|--------------------|---------------------------|

| ·   | Stock      Price at Valuation Date - $0.09 |
|--------------------|--------------------------------------------|

| ·   | Conversion      Price - $0.11 |
|--------------------|-------------------------------|

| ·   | Expected      term – .67% of one year |
|--------------------|---------------------------------------------|

| ·   | Volatility      – 248% |
|--------------------|------------------------------|

| ·   | Annual      rate of quarterly dividends – 0% |
|--------------------|----------------------------------------------------|

| ·   | Discount      rate - 0.66% |
|--------------------|----------------------------|

| ·   | Stock      Price at Valuation Date - $0.08 |
|--------------------|--------------------------------------------|

| ·   | Conversion      Price - $0.11 |
|--------------------|-------------------------------|

----

| Date      of Draw      |   | Amount      of Draw |      |   | Conversion      Feature |   |      | Debt      Discount |   |   | Amount      Recorded as Interest expense – derivative conversion    feature |   |   | Amortization      of Debt Discount |      |   | Senior      Secured Revolving Convertible Note, net of debt discount, to related      parties |   |
|------------------------|--------|---------------------|-----------|--------|-------------------------|--------|-----------|--------------------|--------|--------|-----------------------------------------------------------------------------------|--------|--------|------------------------------------|-----------|--------|-----------------------------------------------------------------------------------------------|--------|
| November      6, 2008  |   | $                   | 2,694,362 |   |                    | $      | 4,137,731 |               |   | $      | (2,694,362                                                                        | )      |   | $                                  | 1,443,369 |   |                                                                                          | $      | 1,070,363 |   |   | $ | 1,070,363 |   |
| November      10, 2008 |   |                | 650,000   |   |                    |   | 723,367   |               |   |   | (650,000                                                                          | )      |   |                               | 73,367    |   |                                                                                          |   | 253,878 |   |   |   | 253,878 |   |
| December      21, 2008 |   |                | 650,000   |   |                    |   | 337,775   |               |   |   | (337,775                                                                          | )      |   |                               | -         |   |                                                                                          |   | 105,555 |   |   |   | 417,780 |   |
| January      22, 2009  |   |                | 975,000   |   |                    |   | 560,327   |               |   |   | (560,327                                                                          | )      |   |                               | -         |   |                                                                                          |   | 132,299 |   |   |   | 546,972 |   |
| March      5, 2009     |   |                | 810,000   |   |                    |   | 377,989   |               |   |   | (377,989                                                                          | )      |   |                               | -         |   |                                                                                          |   | 39,950 |   |   |   | 471,961 |   |
| Total                  |   | $                   | 5,779,362 |   |                    | $      | 6,137,189 |               |   | $      | (4,620,453                                                                        | )      |   | $                                  | 1,516,736 |   |                                                                                          | $      | 1,602,045 |   |   | $ | 2,760,954 |   |

| ·   | Expected      term – .60% of one year |
|--------------------|---------------------------------------------|

| ·   | Volatility      – 248% |
|--------------------|------------------------------|

| ·   | Annual      rate of quarterly dividends – 0% |
|--------------------|----------------------------------------------------|

| ·   | Discount      rate - 0.57% |
|--------------------|----------------------------|

| ·   | Stock      Price as Valuation Date – $0.07 |
|--------------------|--------------------------------------------------|

| ·   | Conversion      Price - $0.11 |
|--------------------|-------------------------------|

----

| Quarter      Ended March 31, | Preferred      Series D stock | PreferredSeries G stock(1) | Convertible      redeemable promissory      notes | Interest      on convertible redeemable promissory      notes | Revolving      Credit Agreement | Vested      Stock Options |
|------------------------------|-------------------------------|----------------------------|---------------------------------------------------|---------------------------------------------------------------|---------------------------------|---------------------------|
|                         |                          |                       |                                              |                                                          |                            |                      |
| 2009                         | 70,100,000                    | 90,544,000                 | 4,782,119                                         | 11,576,644                                                    | 52,539,656                      | 2,803,125                 |
|                         |                          |                       |                                              |                                                          |                            |                      |
| 2008                         | 25,780,322                    | 90,544,000                 | 44,311,377                                        | 12,797,529                                                    | 0                               | 1,315,625                 |

| (1)   | 36,364,000      shares of the Preferred Series G stock outstanding is not convertible      until the shareholders approve an increase in the Company’s authorized      common stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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KETRISK

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|   | Exhibit No.    |   | Description                                                                                                                                                                                                                |
|--------|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           |   |                                                                                                                                                                                                                       |
|   | 31.1 31.2 |   | Certificate      of Chief Executive Officer pursuant to Section 302 of The Sarbanes-Oxley      Act of 2002 Certificate      of Chief Financial Officer pursuant to Section 302 of The Sarbanes-Oxley      Act of 2002 |
|   |           |   |                                                                                                                                                                                                                       |
|   | 32.1           |   | Certificate      of Chief Executive and Financial Officer pursuant to Section 906 of The      Sarbanes-Oxley Act of 2002                                                                                                   |

----

|                               | ADVANCE      DISPLAY TECHNOLOGIES, INC.(Registrant)            |
|------------------------------------|------------------------------------------------------------------------------------|
| Date:      May 20, 2009            | /s/  Matthew      W. Shankle                                             |
|                               | Matthew      W. ShanklePresident,      Chief Executive and Financial Officer       |
|                               |                                                                               |
| Date:  May      20, 2009 | /s/  Rebecca      L. McCall                                              |
|                               | Rebecca      L. McCallVice      President of Accounting, Chief Accounting  Officer |