----

**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**Washington,        D.C.  20549**

**FORM        10-QSB**

|   | [                  X                  ]    QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF                  THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [     ]    TRANSITION                  REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE                  ACT |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Commission        file number:  0-15224**

| **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, Building 14, Suite F, Centennial, CO                  80112** |
|--------------------------------------------------------------------------------------------------------|
| (Address                  of principal executive offices)  (Zip                  Code)       |

| **(303)                  267-0111**                                                      |
|------------------------------------------------------------------------------------------|
| (Issuer’s                  telephone number, including area                  code) |

----

| **ADVANCE                  DISPLAY TECHNOLOGIES, INC.**   |
|-----------------------------------------------------------|
|                                                      |
| **INDEX**                                                 |
|                                                      |
| PART                  I.  FINANCIAL INFORMATION |
|                                                      |
|                                                      |   |   |   | **Page** |
|                                                      |   |   |   |   |
| **Item                  1.**                              |   | Consolidated                  Balance Sheets - |   |   |
|                                                      |   |     September                  30, 2007 (unaudited) and June 30, 2007 |   | **1** |
|                                                      |   |   |   |   |
|                                                      |   | Consolidated                  Statements of Operations (unaudited) |   |   |
|                                                      |   |     Three                  months ended September 30, 2007 and 2006 and for the |   |   |
|                                                      |   |     period                  from March 15, 1995, inception, to September 30, 2007 |   | **2** |
|                                                      |   |   |   |   |
|                                                      |   | Consolidated                  Statements of Cash Flows (unaudited) |   |   |
|                                                      |   |     Three                  months ended September 30, 2007 and 2006 and for the |   |   |
|                                                      |   |     period                  from March 15, 1995, inception, to September 30, 2007 |   | **3** |
|                                                      |   |   |   |   |
|                                                      |   | Notes                  to Consolidated Financial Statements (unaudited) |   | **5** |
|                                                      |   |   |   |   |
| **Item                  2.**                              |   | Management’s                  Discussion and Analysis or Plan of Operations |   | **7** |
|                                                      |   |   |   |   |
| **Item                  3.**                              |   | Controls                  and Procedures |   | **11** |
|                                                      |   |   |   |   |
|                                                      |   |   |   |   |
|                                                      |   | PART                  II.  OTHER INFORMATION |   |   |
|                                                      |   |   |   |   |
| **Item                  2.**                              |   | Unregistered                  Sales of Equity Securities and Use of Proceeds |   | **12** |
|                                                      |   |   |   |   |
| **Item                  6.**                              |   | Exhibits |   | **12** |
|                                                      |   |   |   |   |
|                                                      |   | Signatures |   |   |
|                                                      |   |   |   |   |
|                                                      |   |   |   |   |
|                                                      |   |   |   |   |
|                                                      |   |   |   |   |
|                                                      |   |   |   |   |
|                                                      |   |   |   |   |

----

**Item        1.**

**ADVANCE        DISPLAY TECHNOLOGIES, INC.**

**(A        Development Stage Company)**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                                                                                        |   | **September                  30,****2007** |        |   | **June                  30,****2007** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-------------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                        |   | **(Unaudited)**                            |        |   |                                  |   |
| ASSETS                                                                                                                                                                                                                      |   |
| Current                  Assets:                                                                                                                                                                                            |   |                                       |        |   |                                  |   |
| Cash                                                                                                                                                                                                                        |   | $                                          | 634,268     |   |                                  | $      | 1,237,599 |   |
|         Preferred                  stock subscriptions receivable                                                                                                                   |   |                                       | 500,000     |   |                                  |   | 500,000 |   |
| Other                  current                  assets                                                                                                                                                                      |   |                                       | 43,457      |   |                                  |   | 35,369 |   |
| Total                  current                  assets                                                                                                                                                                      |   |                                       | 1,177,725   |   |                                  |   | 1,772,968 |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| Property                  and Equipment, Net                                                                                                                                                                                |   |                                       | 64,951      |   |                                  |   | 46,360 |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| Total                  Assets                                                                                                                                                                                               |   | $                                          | 1,242,676   |   |                                  | $      | 1,819,328 |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS’ EQUITY (DEFICIT)                                                                                                                                                       |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| Current                  Liabilities:                                                                                                                                                                                       |   |                                       |        |   |                                  |   |   |   |
| Accounts                  payable                                                                                                                                                                                           |   |                                       |        |   |                                  |   |   |   |
| Trade                                                                                                                                                                                                                       |   | $                                          | 646,079     |   |                                  | $      | 281,522 |   |
| Related                  party                                                                                                                                                                                              |   |                                       | 14,023      |   |                                  |   | 11,759 |   |
|        Revolving,                  convertible, redeemable promissory notes                                                                                                              |   |                                       |        |   |                                  |   |   |   |
|            to                  related parties                                                                                                                       |   |                                       | 740,000     |   |                                  |   | 740,000 |   |
|        Demand                  notes to related parties                                                                                                                                  |   |                                       | 800,000     |   |                                  |   | 800,000 |   |
|         Accrued                  interest payable to related parties                                                                                                                |   |                                       | 283,797     |   |                                  |   | 244,441 |   |
| Other                  accrued                  liabilities                                                                                                                                                                 |   |                                       | 15,300      |   |                                  |   | 28,175 |   |
| Total                  current                  liabilities                                                                                                                                                                 |   |                                       | 2,499,199   |   |                                  |   | 2,105,897 |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| Long-term                  capital lease obligations, less current maturities:                                                                                                                                              |   |                                       | 4,268       |   |                                  |   | 4,641 |   |
| Total                  liabilities                                                                                                                                                                                          |   |                                       | 2,503,467   |   |                                  |   | 2,110,538 |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| COMMITMENTS                  AND CONTINGENCIES                                                                                                                                                                              |   |                                       |        |   |                                  |   |   |   |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| Stockholders’                  Equity (Deficit):                                                                                                                                                                      |   |                                       |        |   |                                  |   |   |   |
| Preferred                  Series D stock, $.001                  par value, 70,100,000 shares authorized, 25,780,322 shares issued                  and                  outstanding (liquidation preference of $429,672). |   |                                       | 25,780      |   |                                  |   | 25,780 |   |
| Preferred                  Series E stock, $.001                  par value, 1,008,985 shares authorized, 1,008,985 shares issued                  and                  outstanding (liquidation preference of $1,202,369). |   |                                       | 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, 50,000 shares authorized, 40,705 shares issued and outstanding                  (liquidation preference of $3,590,000).                        |   |                                       | 41          |   |                                  |   | 41 |   |
| Preferred                  stock subscriptions                  receivable                                                                                                                                                  |   |                                       | ---         |   |                                  |   | (500,000 | ) |
| Common                  stock, $.001 par value,                  100,000,000 shares authorized, 26,198,177 issued and                  outstanding                                                                          |   |                                       | 26,199      |   |                                  |   | 26,199 |   |
| Additional                  paid-in                  capital                                                                                                                                                                |   |                                       | 15,007,079  |   |                                  |   | 14,961,393 |   |
| Deficit                  accumulated during the                  development stage                                                                                                                                          |   |                                       | (16,325,448 | )      |                                  |   | (14,810,181 | ) |
| Total                  stockholders’ equity                  (deficit)                                                                                                                                                |   |                                       | (1,260,791  | )      |                                  |   | (291,210 | ) |
|                                                                                                                                                                                                                        |   |                                       |        |   |                                  |   |   |   |
| Total                  Liabilities and Stockholders’ Equity (Deficit)                                                                                                                                                 |   | $                                          | 1,242,676   |   |                                  | $      | 1,819,328 |   |

----

**ADVANCE        DISPLAY TECHNOLOGIES, INC.**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                                 |   |                       **Three                    Months Ended****September                    30,** |         |   |                  **March                  15, 1995 (Inception) Through****September                  30,** |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------------|--------|-----------------------------------------------------------------------------------------------------------------|--------|
|                                                                            |   | **2007**                                                                                                                |         |   | **2006**                                                                                                        |   |   | **2007** |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |
| Consulting                  Revenue                                             |   | $                                                                                                                       | ---          |   |                                                                                                            | $      | --- |   |   | $ | 91,014 |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Other                  Income:                                                  |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Related                  party interest                  income                 |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 162,761 |   |
| Other                  interest                  income                         |   |                                                                                                                    | 5,784        |   |                                                                                                            |   | 101 |   |   |   | 15,560 |   |
| Settlement                  Income                                              |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 463,179 |   |
| Other                                                                           |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 550 |   |
| Total                  revenue and other                  income                |   |                                                                                                                    | 5,784        |   |                                                                                                            |   | 101 |   |   |   | 733,064 |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Costs                  and Expenses:                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
|       Cost                  of consulting revenue |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 93,648 |   |
| General                  and                  administrative                    |   |                                                                                                                    | 377,324      |   |                                                                                                            |   | 175,053 |   |   |   | 6,534,578 |   |
| Research                  and                  development                      |   |                                                                                                                    | 1,104,371    |   |                                                                                                            |   | 58,338 |   |   |   | 6,321,476 |   |
| Impairment                  of intangible                  assets               |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 451,492 |   |
| Interest                  expense – related                  party        |   |                                                                                                                    |  39,356 |   |                                                                                                            |   |  35,967 |   |   |   | 3,892,477 |   |
| Total                  costs and                  expenses                      |   |                                                                                                                    | 1,521,051    |   |                                                                                                            |   | 269,358 |   |   |   | 17,293,671 |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Loss                  Before Discontinued Operations and Extraordinary Gain     |   | $                                                                                                                       | (1,515,267   | )      |                                                                                                            | $      | (269,257 | ) |   | $ | (16,560,607 | ) |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Loss                  from Discontinued Operations                              |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | (202,278 | ) |
| Gain                  on Disposal of Discontinued Operations                    |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 108,652 |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Loss                  Before Extraordinary Gain                                 |   | $                                                                                                                       | (1,515,267   | )      |                                                                                                            | $      | (269,257 | ) |   | $ | (16,654,233 | ) |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Extraordinary                  Gain Due to Forgiveness of Debt                  |   |                                                                                                                    | ---          |   |                                                                                                            |   | --- |   |   |   | 328,785 |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| NET                  LOSS                                                       |   | $                                                                                                                       | (1,515,267   | )      |                                                                                                            | $      | (269,257 | ) |   | $ | (16,325,448 | ) |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Accrued                  Preferred Series E Dividend                            |   |                                                                                                                    | (12,612      | )      |                                                                                                            |   | (12,612 | ) |   |   | (193,384 | ) |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Net                  Loss Applicable to Common Shareholders                     |   | $                                                                                                                       | (1,527,879   | )      |                                                                                                            | $      | (281,869 | ) |   | $ | (16,518,832 | ) |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Net                  Loss Per Common Share(Basic and Dilutive):                 |   | $                                                                                                                       | (.06         | )      |                                                                                                            | $      | (.01 | ) |   |   |   |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |
| Weighted                  Average Number of Common Shares Outstanding           |   |                                                                                                                    | 26,198,177   |   |                                                                                                            |   | 26,198,177 |   |   |   |   |   |
|                                                                            |   |                                                                                                                    |         |   |                                                                                                            |   |   |   |   |   |   |   |

----

**ADVANCE        DISPLAY TECHNOLOGIES, INC.**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                            |   | **Three                  Months Ended****September                  30,** |       |   | **March                  15, 1995****(Inception)                  Through****September                  30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|------------|--------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                            |   | **2007**                                                                  |       |   | **2006**                                                                                                      |   |   | **2007** |   |
| Cash                  Flows from Operating Activities:                                                                          |   |                                                                      |       |   |                                                                                                          |   |   |   |   |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |
| Net                  (Loss)                                                                                                     |   | $                                                                         | (1,515,267 | )      |                                                                                                          | $      | (269,257 | ) |   | $ | (16,325,448 | ) |
| 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 |   |
| Impairment                  of intangible                  asset                                                                |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 451,492 |   |
| Impairment                  of                  assets                                                                          |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 186,981 |   |
| Depreciation                  and                  amortization                                                                 |   |                                                                      | 7,056      |   |                                                                                                          |   | 5,189 |   |   |   | 335,612 |   |
| Amortization                  of deferred merger                  costs                                                         |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 75,000 |   |
| Stock                  and stock option                  compensation expense                                                   |   |                                                                      | 45,686     |   |                                                                                                          |   | 3,908 |   |   |   | 301,993 |   |
| Interest                  expense related to debt                  discount                                                     |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 1,893,573 |   |
| Loss                  on sale of property and                  equipment                                                        |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 7,015 |   |
| (Increase)  decrease                  in:                                                                             |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
|     Trade                  accounts receivable                                                              |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | --- |   |
| Inventory                                                                                                                       |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | (125,952 | ) |
|     Vendor                  deposits                                                                        |   |                                                                      | ---        |   |                                                                                                          |   | (71,424 | ) |   |   | --- |   |
| Other                  current                  assets                                                                          |   |                                                                      | (8,088     | )      |                                                                                                          |   | (11,311 | ) |   |   | (99,942 | ) |
| (Decrease)  increase                  in:                                                                             |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
| Accounts                  payable                                                                                               |   |                                                                      | 366,821    |   |                                                                                                          |   | 9,254 |   |   |   | 622,403 |   |
| Accrued                  interest payable to                  shareholders                                                      |   |                                                                      | 39,356     |   |                                                                                                          |   | 35,967 |   |   |   | 1,925,952 |   |
| Other                  accrued                  liabilities                                                                     |   |                                                                      | (12,935    | )      |                                                                                                          |   | (4,394 | ) |   |   | (161,675 | ) |
| Net                  cash used in operating                  activities                                                         |   |                                                                      | (1,077,371 | )      |                                                                                                          |   | (302,068 | ) |   |   | (8,779,653 | ) |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
| Cash                  Flows from (to) Investing Activities:                                                                     |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
| Purchases                  of property and                  equipment                                                           |   |                                                                      | (25,647    | )      |                                                                                                          |   | (47,294 | ) |   |   | (276,847 | ) |
| Proceeds                  from sale of property                  and equipment                                                  |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 17,030 |   |
| 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                                                         |   |                                                                      | (25,647    | )      |                                                                                                          |   | (47,294 | ) |   |   | (1,113,930 | ) |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
| Cash                  Flows from (to) Financing Activities:                                                                     |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
| Proceeds                  from stock                  sales                                                                     |   |                                                                      | 500,000    |   |                                                                                                          |   | --- |   |   |   | 3,793,127 |   |
|     Proceeds                  from exercise of options                                                      |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 14,400 |   |
| Proceeds                  from notes payable to                  shareholders                                                   |   |                                                                      | ---        |   |                                                                                                          |   | 300,000 |   |   |   | 6,429,754 |   |
| Proceeds                  from                  line-of-credit                                                                  |   |                                                                      | ---        |   |                                                                                                          |   | --- |   |   |   | 299,505 |   |
|     Principal                  payments on leased equipment                                                 |   |                                                                      | (313       | )      |                                                                                                          |   | (1,181 | ) |   |   | (8,935 | ) |
| Net                  cash provided by financing                  activities                                                     |   |                                                                      | 499,687    |   |                                                                                                          |   | 298,819 |   |   |   | 10,527,851 |   |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |
| Increase                  (decrease) in cash                                                                                    |   |                                                                      | (603,331   | )      |                                                                                                          |   | (50,543 | ) |   |   | 634,268 |   |
| Cash                  and cash equivalents, Beginning of Period                                                                 |   |                                                                      | 1,237,599  |   |                                                                                                          |   | 130,248 |   |   |   | --- |   |
| Cash                  and cash equivalents, End of Period                                                                       |   | $                                                                         | 634,268    |   |                                                                                                          | $      | 79,705 |   |   | $ | 634,268 |   |
|                                                                                                                            |   |                                                                      |       |   |                                                                                                          |   |   |   |   |   |   |   |

----

**ADVANCE        DISPLAY TECHNOLOGIES, INC.**

**(A        Development Stage Company)**

**CONSOLIDATED        STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(Continued)**

|                                                                                                                                                                          |   | **Three                  Months Ended****September                  30,** |   |   | **March                  15, 1995****(Inception)                  Through****September                  30,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                          |   | 2007                                                                      |   |   | 2006                                                                                                          |   |   | 2007 |   |
|                                                                                                                                                                          |   |                                                                      |   |   |                                                                                                          |   |   |   |   |
| **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 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 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 | ) |
| 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 |   |
| Equipment                  acquired under capital lease                                                                                                                       |   | $                                                                         | ---    |   |                                                                                                          | $      | --- |   |   | $ | 14,603 |   |
| Issuance                  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 | ) |
| Subscriptions                  for Preferred Series G stock                                                                                                                   |   | $                                                                         | ---    |   |                                                                                                          | $      | --- |   |   | $ | (500,000 | ) |
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**ADVANCE        DISPLAY TECHNOLOGIES, INC.**

**(A        Development Stage Company)**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**Note        1. – Interim Financial Statements**

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**Note        2. –Subscriptions Receivable**

**Note        3. – Stockholders’ Equity (Deficit)**

**Note        4. – Subsequent Events**

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**I**
**tem**

**        2.**
**MANAGEMENT’S DISCUSSION AND ANALYSIS OF        FINANCIAL**

**            CONDITION        AND RESULTS OF OPERATION**

**General**

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**Results        of Operations**

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**Liquidity        and Capital Resources**

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**ITEM        3.  CONTROLS AND PROCEDURES**

**Disclosure        Controls and Procedures**

**Internal        Controls**

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**PART        II.  OTHER INFORMATION**

**ITEM        2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF        PROCEEDS**

**ITEM        6.  EXHIBITS**

|   | Exhibit                  No. |   | Description                                                                                                                                                       |
|--------|------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                         |   |                                                                                                                                                              |
|   | 4.1                          |   | Subscription                  Agreement between the Company and Mr. Lawrence F. DeGeorge dated                  November                  13, 2007.               |
|   |                         |   |                                                                                                                                                              |
|   | 31                           |   | Certificate                  of Chief Executive and Financial Officer pursuant to Section 302                  of The                  Sarbanes-Oxley Act of 2002 |
|   |                         |   |                                                                                                                                                              |
|   | 32                           |   | Certificate                  of Chief Executive and Financial Officer pursuant to Section 906                  of The                  Sarbanes-Oxley Act of 2002 |

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**SIGNATURES**

|                                     | ADVANCE                  DISPLAY TECHNOLOGIES, INC.(Registrant)                                   |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| Date:                  November 14, 2007 | /s/  Matthew                  W. Shankle                                                                    |
|                                     | Matthew                  W. ShanklePresident,                  Chief Executive and Financial                  Officer |