SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB
(Mark One)

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

                     For the Quarter Ended December 31, 2001

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

           For the transition period from ____________ to ____________

                         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, Englewood, Colorado 80112
     ----------------------------------------------------------------------
               (Address of principle executive offices) (Zip Code)


                                 (303) 267-0111
                 ----------------------------------------------
                (Issuer's telephone number, including area code)



Check whether the issuer (1) has filed all reports required to be filed by
section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.

                     YES   X                     NO
                         -----                      -----


As of January 31, 2002, 23,774,275 shares of Common Stock, $.001 par value per
share, were outstanding.

           Transitional Small Business Disclosure Format (check one):

                      YES                        NO  X
                         -----                     -----


<PAGE>



                       ADVANCE DISPLAY TECHNOLOGIES, INC.


                                      INDEX


                                                                           Page
                                                                           ----

                          PART I. FINANCIAL INFORMATION


Item 1.   Balance Sheets (unaudited) -
           December 31, 2001 and June 30, 2001...............................3

          Statements of Operations (unaudited) -
           Three and six months ended December 31, 2001 and 2000
           and for the period from March 15, 1995, inception, to
           December 31, 2001.................................................4

          Statements of Cash Flows (unaudited) - Three and six months
           ended December 31, 2001 and 2000
           and for the period from March 15, 1995, inception, to
           December 31, 2001.................................................5

          Notes to Financial Statements (unaudited)..........................7

Item 2.  Management's Discussion and Analysis or
          Plan of Operations..............................................8-10


                           PART II. OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K...................................10

             Signatures.....................................................11


                                        2

<PAGE>
<TABLE>
<CAPTION>

                             ADVANCE DISPLAY TECHNOLOGIES, INC.
                               (A Development Stage Company)

                                      BALANCE SHEETS
                                        (Unaudited)

                                                           December 31,              June 30,
                                                              2001                     2001
                                                           ------------             -----------

                                           ASSETS
                                           ------

<S>                                                        <C>                       <C>
CURRENT ASSETS:
   Cash                                                    $       643              $     6,627
   Other current assets                                         12,721                    4,657
                                                           -----------              -----------
      Total current assets                                      13,364                   11,284

PROPERTY AND EQUIPMENT                                         125,931                  124,751
   Less:  Accumulated depreciation                            (104,710)                (100,988)
                                                           -----------              -----------
      Net Property and Equipment                                21,221                   23,763
                                                           -----------              -----------

      TOTAL ASSETS                                         $    34,585              $    35,047
                                                           ===========              ===========


                               LIABILITIES AND SHAREHOLDERS' DEFICIT
                               -------------------------------------

CURRENT LIABILITIES:
   Accounts payable
      Trade                                                $    54,429              $    56,659
      Related parties                                          141,724                  125,628
   Notes payable to related parties                            246,000                   70,000
   Convertible redeemable notes to related parties           2,911,079                     --
   Accrued interest payable-related parties                    800,642                  643,172
   Other accrued liabilities                                    38,486                   23,253
                                                           -----------              -----------
      Total current liabilities                              4,192,360                  918,712

CONVERTIBLE REDEEMABLE NOTES PAYABLE-RELATED PARTIES              --                  2,911,079

COMMITMENT AND CONTINGENCY (NOTE 1.)

STOCKHOLDERS' DEFICIT:
   Preferred stock, $.001 par value,
        100,000,000 shares authorized, 1,843,900
        shares issued and outstanding
        (liquidation preference of $2,765,850)                   1,844                    1,844
   Common stock, $.001 par value, 100,000,000
        shares authorized, 23,774,275 shares
        issued and outstanding                                  23,775                   23,775
   Additional paid-in capital                                4,443,770                4,443,770
   Deferred merger costs                                       (75,000)                 (75,000)
   Deficit accumulated during the development
        stage                                               (8,552,164)              (8,189,133)
                                                           -----------              -----------
      Total Shareholders' Deficit                           (4,157,775)              (3,794,744)
                                                           -----------              -----------

      TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT          $    34,585              $    35,047
                                                           ===========              ===========

                     (See accompanying notes to unaudited financial statements)


                                                  3

<PAGE>




                                               ADVANCE DISPLAY TECHNOLOGIES, INC.
                                                  (A Development Stage Company)

                                                    STATEMENTS OF OPERATIONS
                                                           (Unaudited)


                                                                                                                    March 15, 1995
                                                                                                                      (Inception)
                                             Three Months Ended                       Six Months Ended                  Through
                                                December 31,                             December 31,                 December 31,
                                         ---------------------------             -----------------------------        ------------

                                             2001             2000                  2001               2000               2001
                                         -----------       ----------            ----------         ----------        -----------
CONSULTING REVENUE                       $      ---        $      ---            $      ---         $      ---        $    30,200

OTHER INCOME:
  Related party interest income                 ---               ---                   ---                ---            162,761
  Other interest income                          12               445                   139              1,758              7,934
  Settlement Income                             ---               ---                   ---                ---            175,000
  Other                                         ---               ---                   ---                ---                550
                                         ----------        ----------            ----------         ----------        -----------
     Total revenue and other income              12               445                   139              1,758            376,445

COSTS AND EXPENSES:
 General and administrative                  60,889           111,904               145,852            219,188          2,650,561
 Research and development                    26,053           116,433                59,848            334,271          3,942,970
 Impairment of Intangible assets                ---               ---                   ---                ---            451,492
 Interest expense - related parties          80,049            70,713               157,470            136,608          2,212,371
                                         ----------        ----------            ----------         ----------        -----------
     Total costs and expenses               166,991           299,050               363,170            690,067          9,257,394
                                         ----------        ----------            ----------         ----------        -----------

LOSS BEFORE EXTRAORDINARY GAIN           $ (166,979)       $ (298,605)           $ (363,031)        $ (688,309)       $(8,880,949)
                                         ----------        ----------            ----------         ----------        -----------

EXTRAORDINARY GAIN DUE TO
  EXTINGUISHMENT OF DEBT                        ---            57,951                   ---             57,951            328,785
                                         ----------        ----------            ----------         ----------        -----------

NET LOSS                                 $ (166,979)       $ (240,654)           $ (363,031)        $ (630,358)      $ (8,552,164)
                                         ==========        ==========            ==========         ==========       ============

NET LOSS PER COMMON SHARE
  (BASIC AND DILUTIVE):                  $     (.01)       $     (.01)           $     (.02)        $     (.03)
   Loss before extraordinary gain               ---               ---                   ---                ---
                                         ----------        ----------            ----------         ----------

   Extraordinary Gain                    $     (.01)       $     (.01)           $     (.02)        $     (.03)
                                         ==========        ==========            ==========         ==========
   Net loss

WEIGHTED AVERAGE NUMBER OF COMMON
   SHARES OUTSTANDING                     23,774,275        23,774,275            23,774,275         23,774,275
                                         ===========       ===========           ===========        ===========



                                  (See accompanying notes to unaudited financial statements)



                                                               4

<PAGE>


                                               ADVANCE DISPLAY TECHNOLOGIES, INC.
                                                  (A Development Stage Company)
                                                    STATEMENTS OF CASH FLOWS
                                                           (Unaudited)

                                                                                                                      March 15, 1995
                                                                                                                       (Inception)
                                                           Three Months Ended              Six Months Ended              Through
                                                               December 31,                    December 31,             December 31,
                                                         --------------------------     ---------------------------     -----------

                                                             2001           2000           2001            2000            2001
                                                         -----------    -----------     -----------     -----------     -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss                                              $  (166,979)    $  (240,654)    $  (363,031)    $  (630,358)    $(8,552,164)
Adjustments to reconcile net loss to net
  cash used in operating activities:
 Acquired research and development expense                     --              --              --              --         2,536,494
 Impairment of intangible asset                                --              --              --              --           451,492
 Depreciation and amortization                                1,882           5,111           3,722          10,123         269,512
 Stock option compensation expense                             --              --              --              --           214,125
 Interest expense related to debt discount                     --              --              --              --         1,153,573
 Loss on disposal of assets                                    --              --              --              --             5,445

 (Increase)decrease in:
     Inventory                                                 --              --              --              --             6,048
     Other current assets                                      (268)         (1,221)         (8,064)         (7,558)       (144,206)
 (Decrease) increase in:
   Accounts payable                                          (8,512)         40,031          13,866          50,550        (249,697)
   Interest payable to shareholders                          80,049          70,657         157,470         136,552         985,845
   Other accrued liabilities                                 (1,150)        (56,301)         15,233         (54,585)        (62,059)
                                                        -----------     -----------     -----------     -----------     -----------
Net cash used in operating activities                       (94,978)       (182,377)       (180,804)       (495,276)     (3,385,592)
                                                        -----------     -----------     -----------     -----------     -----------



CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchases of property and equipment                           (881)         (1,992)         (1,180)        (15,831)       (125,068)
 Proceeds-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                       (881)         (1,992)         (1,180)        (15,831)       (962,151)
                                                        -----------     -----------     -----------     -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Capital contributions                                         --              --              --              --           103,127
 Proceeds from notes payable
   to shareholders                                           96,000          40,000         176,000         510,000       3,945,754
 Proceeds from line-of-credit                                  --              --              --              --           299,505
                                                        -----------     -----------     -----------     -----------     -----------
   Net Cash provided by
       financing activities                                  96,000          40,000         176,000         510,000       4,348,386
                                                        -----------     -----------     -----------     -----------     -----------

Increase (decrease) in cash                                     141        (144,369)         (5,984)         (1,107)            643
Cash & cash equivalents at
  beginning of period                                           502         161,272           6,627          18,010            --
                                                        -----------     -----------     -----------     -----------     -----------
Cash and cash equivalents at end
  of period                                             $       643     $    16,903     $       643     $    16,903     $       643
                                                        ===========     ===========     ===========     ===========     ===========



                                      (See accompanying notes to unaudited financial statements)


                                                                   5

<PAGE>

                                                 ADVANCE DISPLAY TECHNOLOGIES, INC.
                                                   (A Development Stage Company)
                                                     STATEMENTS OF CASH FLOWS
                                                           (Unaudited)



                                                                                                                   March 15, 1995
                                                                                                                     (Inception)
                                                       Three Months Ended              Six Months Ended                Through
                                                          December 31,                    December 31,               December 31,
                                                 ----------------------------      ----------------------------      -----------


                                                     2001             2000            2001              2000             1999
                                                 -----------      -----------      ----------        -----------     -----------


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
   Interest                                      $       ---      $       ---      $      ---        $       ---     $    26,750
                                                 ===========      ===========      ==========        ===========     ===========
   Taxes                                         $       ---      $       ---      $      ---        $       ---     $       ---
                                                 ===========      ===========      ==========        ===========     ===========
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 on notes
  payable to notes payable                       $       ---      $       ---      $      ---        $       ---     $    12,354
                                                 ===========      ===========      ==========        ===========     ===========
Retirement of shares in settlement               $       ---      $       ---      $      ---        $       ---     $     1,402
                                                 ===========      ===========      ==========        ===========     ===========
Extinguishment of Debt                           $       ---      $       ---      $      ---        $       ---     $   328,785
                                                 ===========      ===========      ==========        ===========     ===========





                                     (See accompanying notes to unaudited financial statements)










                                                                 6
</TABLE>

<PAGE>



                       ADVANCE DISPLAY TECHNOLOGIES, INC.
                     NOTES TO UNAUDITED FINANCIAL STATEMENTS


Note 1.

Unaudited Financial Statements
------------------------------

     The accompanying unaudited interim financial statements have been prepared
in accordance with the instructions to Form 10-QSB and do not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. The results of operations for any interim
period are not necessarily indicative of results for the entire fiscal year.

     These statements should be read in conjunction with the financial
statements and related notes included in Form 10-KSB for Advance Display
Technologies, Inc. ("ADTI" or the "Company")for the year ended June 30, 2001, as
the notes to these interim financial statements omit certain information
required for complete financial statements.


Note 2.

Subsequent Events
-----------------

     Subsequent to December 31, 2001, the Company issued two 10% demand notes in
the aggregate amount of $54,000 to stockholders.



                                        7

<PAGE>



Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
        ----------------------------------------------------------


                Special Note Regarding Forward Looking Statements

     Certain statements contained herein constitute "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward looking statements include, without limitation, statements regarding
Advance Display Technologies, Inc.'s ("ADTI" or the "Company") need for working
capital, business plan and results of operations. Factors that could cause
actual results to differ materially include, among others, the following: future
economic conditions, the ability of the Company to obtain sufficient capital, to
attract and retain qualified management and other personnel, and generally to
successfully execute a business plan that will take the Company from a
development stage entity to a profitable operating company. Many of these
factors are outside the control of the Company. Investors are cautioned not to
put undue reliance on forward looking statements. Except as otherwise required
by rules of the Securities and Exchange Commission, the Company disclaims any
intent or obligation to update publicly these forward looking statements,
whether as a result of new information, future events or otherwise.

     Statements in this Report are qualified in their entirety by reference to
contracts, agreements, and other exhibits filed or incorporated with the
Company's Form 10-KSB for the fiscal year ended June 30, 2001.


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

     During the prior fiscal year ended June 30, 2001, the Company suspended
efforts to further commercialize its products due to various product development
setbacks. Management currently believes the commercialization of the Company's
products will be best executed by an industry incumbent with established market
channels and complete manufacturing capabilities. Therefore, during this period
the Company hired a financial advisor in support of the Company's efforts to
maximize shareholder value by licensing, partnering or selling the Company's
patent portfolio and other intellectual property assets, or completing a merger
or acquisition with another entity. The Company continues to search for an
appropriate opportunity.

     For the fiscal quarter and six months ended December 31, 2001, the Company
reported net losses of ($166,979) and ($363,031), respectively, as compared to
net losses of ($240,654) and ($630,358) for the same periods in 2000. During the
quarter ended December, 31, 2000, the Company negotiated a settlement on a
previously outstanding liability resulting in an extraordinary gain of $57,951.
Without the extraordinary gain, net loss for the quarter and six months ended
December 31, 2000 would have been ($298,605) and ($688,309), respectively. The
decrease in net losses for the quarter and six months ended December 31, 2001
from the same periods in 2000 are primarily due to downsizing and the change in
the Company's focus in strategy as described above.

     Research and development costs decreased from $116,433 and $334,271 for the
quarter and six months ended December 31, 2000 to $26,053 and $59,848 for the
quarter and six months ended December 31, 2001. These decreases of $90,380 and
$274,423 for the quarter and six month periods, respectively, are primarily due
to the suspension of further product commercialization efforts.


                                        8

<PAGE>



     There were no sales of the Company's products to report for the quarter or
six month period for either year. As of the date of this report, the Company
remains in the development stage, as it has not received significant revenues
from operations. The Company reported interest income of $12 and $139 for the
quarter and six months ended December 31, 2001 compared to $445 and $1,758 for
the comparable periods in 2000.

     The Company reported G&A expenses of $60,889 and $145,852 for the quarter
and six months ended December 31, 2001, compared to $111,904 and $219,188 for
the same periods in 2000. Depreciation decreased for the six month period ended
December 31, 2001 from 2000 by approximately $6,600 primarily due to certain
assets being fully depreciated. As a result of the downsizing, salaries and
related expenses decreased approximately $30,900 for the six month period in
2001 from 2000. Travel and related expenses decreased by approximately $30,200
for the six months ended December 31, 2001 from December 31, 2000 also as a
result of the Company's redirection. Other G&A expenses fluctuated slightly
resulting in a net decrease to the combined remaining G&A expenses of
approximately $5,600.

     Interest expense increased from $136,608 for the six month period ended
December 31, 2000 to $157,470 for the same period of 2001 primarily due to an
increase in total debt outstanding for the six months ended December 31, 2001.


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

     Since inception, the Company has been totally dependent on financing from
outside sources to fund operations. At December 31, 2001, the Company reported
negative net worth of $4,157,775 and negative working capital of $4,178,996. The
Company will continue to require additional capital for administrative expenses
and business development efforts currently being explored on behalf of the
Company by it's financial advisor. Management believes that the Company's
continued operational existence is dependent upon its ability to: (1) develop
additional intellectual property for products and manufacturing processes; (2)
successfully license, partner or sell the Company's patent portfolio and other
intellectual property assets to an industry incumbent; (3) obtain additional
sources of funding through outside sources; and (4) achieve and maintain
profitable operations. There can be no assurance that the Company will be able
to achieve its intellectual property creation goals, obtain sufficient
additional capital or successfully license, partner or sell the Company's patent
portfolio and other intellectual property assets on terms and conditions
satisfactory to the Company.

     Cash flows from financing activities for the six months ended December 31,
2001 consisted of the issuance of 10% demand notes to shareholders totaling
$176,000. Cash flows from financing activities for the six month period ended
December 31, 2000 consisted of the issuance of 10% convertible, redeemable
promissory notes to shareholders totaling $470,000 and the issuance of 10%
demand notes totaling $40,000. All of these advances came from related parties.
Cash flows for the six months ended December 31, 2001 were primarily used for
limited product process development and administrative expenses. Cash flows for
the six months ended December 31, 2000 were used for ongoing product and
manufacturing process development, operating expenses and investments in capital
equipment.

     At December 31, 2001, the Company reported current assets of $13,364 and a
working capital deficit. Effective October 15, 2001, $2,911,079 of convertible,
redeemable promissory notes became due within a one year period. Therefore,


                                        9

<PAGE>


these notes were reported as current liabilities during the quarter ended
December 31, 2001 and resulted in current liabilities in excess of current
assets of $4,178,996. This represents an increase in the working capital deficit
of $3,000,000 from the end of the prior quarter. At December 31, 2001, current
liabilities of $4,192,360 consisted of convertible, redeemable notes payable to
shareholders due October 15, 2002, demand notes payable to shareholders, trade
payables and accrued expenses which were incurred primarily for 1) working
capital loans 2) interest on the outstanding promissory notes, 3) product design
and development, and 4) operating costs. Accrued interest on notes payable due
to stockholders totaled approximately $800,642. The Company hopes to negotiate
an extended due date on the convertible, redeemable promissory notes and to
satisfy payment of accrued interest with cash from future operations or funding,
or by issuance of common stock. In addition, management hopes to negotiate
settlement on approximately $67,400 of very old payables and accrued expenses by
payment of a reduced amount in cash or by issuance of shares of the Company's
Common Stock. There can be no assurances that the Company will be successful in
negotiating its debt terms and amounts. Also, due to inadequacies in certain
product design and development by a contracted engineering firm, the Company is
currently disputing approximately $81,000 in engineering fees.

     Subsequent to the fiscal quarter ended December 31, 2001, the Company
issued two additional 10% demand notes to stockholders totaling $54,000.

     The Company will continue efforts on raising additional capital through
private placements or other sources. In addition, the Company will seek to
maximize shareholder value in the public entity by licensing, partnering or
selling the Company's patent portfolio, proprietary intellectual property and
other Company assets or by pursuing a merger or acquisition. Any merger or
acquisition may be undertaken with an entity within or outside the large screen
display industry. There can be no assurances that Management will be able to
acquire the capital needed or be successful in achieving these objectives. If
these efforts are not successful, the Company may be forced to discontinue
operations.


                           PART II. OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

None.


















                                       10

<PAGE>



                                   SIGNATURES


In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report on Form 10-QSB to be signed on its behalf by
the undersigned, thereunto duly authorized.


                                              ADVANCE DISPLAY TECHNOLOGIES, INC.
                                                       (Registrant)



Date: February 14, 2001                                   /s/ Matthew W. Shankle
                                                          ----------------------
                                                              Matthew W. Shankle
                                                                       President
                                         (Chief Executive and Financial Officer)



                                       11