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, 2000

[ ] 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, 2001, 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, 2000 and June 30, 2000...........................  3

          Statements of Operations (unaudited) -
            Three and six months ended December 31, 2000 and 1999
            and for the period from March 15, 1995, inception, to
            December 31, 2000.............................................  4

          Statements of Cash Flows (unaudited) -
          Three and six months ended December 31, 2000 and 1999
           and for the period from March 15, 1995, inception, to
           December 31, 2000..............................................  5

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

Item 2.  Management"s Discussion and Analysis of
          Financial Condition and Results of Operations................... 8-11


                                             PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings................................................ 11

Item 2.  Changes in Securities............................................ 11

Item 3.  Defaults on Senior Securities.................................... 11

Item 4.  Submission of Matters to a Vote of
                  Security Holders........................................ 11

Item 5.  Other Information................................................ 11

Item 6.  Exhibits and Reports on Form 8-K................................. 11

             Signatures................................................... 12


                                       2


<PAGE>
<TABLE>
<CAPTION>

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

                                                   BALANCE SHEETS
                                                    (Unaudited)
                                                                            December 31,           June 30,
                                                                               2000                  2000
                                                                            -----------           ----------

                                                      ASSETS
                                                      ------
<S>                                                                       <C>                    <C>
CURRENT ASSETS:
   Cash                                                                    $    16,903           $    18,010
   Other current assets                                                         12,215                 4,657
                                                                           -----------           -----------
      Total current assets                                                      29,118                22,667

PROPERTY AND EQUIPMENT                                                         155,971               140,140
   Less:  Accumulated depreciation                                            (127,787)             (117,664)
                                                                           -----------           -----------
      Net Property and Equipment                                                28,184                22,476
                                                                           -----------           -----------

      TOTAL ASSETS                                                         $    57,302           $    45,143
                                                                           ===========           ===========


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

CURRENT LIABILITIES:
   Notes payable to shareholders                                           $    40,000           $      --
   Accounts payable                                                            194,457               143,907
   Other accrued liabilities                                                    10,537                65,122
                                                                           -----------           -----------
      Total current liabilities                                                244,994               209,029

CONVERTIBLE, REDEEMABLE NOTES PAYABLE TO SHAREHOLDERS                        2,764,867             2,294,867
ACCRUED INTEREST ON CONVERTIBLE, REDEEMABLE NOTES
    PAYABLE TO SHAREHOLDERS                                                    498,075               361,523

SHAREHOLDERS' 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                                                4,368,770             4,368,770
   Deficit accumulated during the development
     stage                                                                  (7,845,023)           (7,214,665)
                                                                           -----------           -----------
      Total Shareholders' Deficit                                           (3,450,634)           (2,820,276)
                                                                           -----------           -----------

      TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT                          $    57,302           $    45,143
                                                                           ===========           ===========

                                 (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,
                                              --------------------------           ---------------------------         ------------

                                                  2000           1999                 2000             1999                 2000
                                              ----------      ----------           ----------       ----------          -----------
CONSULTING REVENUE                            $      ---      $      ---           $      ---       $      ---          $    30,200

OTHER INCOME:
  Related party interest income                      ---             ---                  ---              ---              162,761
  Other interest income                              445             935                1,758            1,221                7,712
  Settlement Income                                  ---             ---                  ---              ---              175,000
  Other                                              ---             ---                  ---              ---                  550
                                              ----------      ----------           ----------       ----------          -----------
     Total revenue and other income                  445             935                1,758            1,221              376,223

COSTS AND EXPENSES:
 General and administrative                      111,904         116,996              219,188          240,657            2,365,166
 Research and development                        116,433         113,682              334,271          152,920            3,824,724
 Impairment of Intangible                            ---             ---                  ---              ---              451,492
 Interest expense - related party                 70,713          67,221              136,608          218,401            1,908,649
                                              ----------      ----------           ----------       ----------          -----------
     Total costs and expenses                    299,050         297,899              690,067          611,978            8,550,031
                                              ----------      ----------           ----------       ----------          -----------

LOSS BEFORE EXTRAORDINARY GAIN                $ (298,605)     $ (296,964)          $ (688,309)      $ (610,757)         $(8,173,808)
                                              ----------      ----------           ----------       ----------          -----------

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

NET LOSS                                      $ (240,654)     $ (296,964)          $ (630,358)      $ (610,757)        $ (7,845,023)
                                              ==========      ==========           ==========       ==========         ============

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

   Extraordinary Gain                         $     (.01)     $     (.01)          $     (.03)      $     (.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,
                                                        ---------------------------     ---------------------------     -----------
                                                           2000            1999            2000            1999            2000
                                                        -----------     -----------     -----------     -----------     -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss                                              $  (240,654)    $  (296,964)    $  (630,358)    $  (610,757)    $(7,845,023)
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                                5,111           8,850          10,123          17,623         261,129
 Stock option compensation expense                             --              --              --              --           214,125
 Interest expense related to debt discount                     --            19,265            --           128,950       1,153,573
 Loss on disposal of assets                                    --              --              --              --             5,445
 (Increase)decrease in:
     Inventory                                                 --              --              --              --             6,048
     Other current assets                                    (1,221)         (2,293)         (7,558)         (6,946)       (143,700)
 (Decrease) increase in:
   Interest payable to shareholders                          70,657          47,957         136,552          89,451         683,279
   Accounts payable                                          40,031          15,220          50,550           7,445        (251,393)
   Other accrued liabilities                                (56,301)          2,576         (54,585)           (996)        (90,009)
                                                        -----------     -----------     -----------     -----------     -----------
Net cash used in operating activities                      (182,377)       (205,389)       (495,276)       (375,230)     (3,018,540)
                                                        -----------     -----------     -----------     -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Additions to property and equipment                         (1,992)         (1,503)        (15,831)         (3,811)       (123,648)
 Proceeds from sale of assets                                  --              --              --              --            17,030
 Advances to affiliates                                        --              --              --              --          (932,925)
 Purchase of notes receivable and
   security interest                                           --              --              --              --          (225,000)
 Cash received in acquisition                                  --              --              --              --           303,812
                                                        -----------     -----------     -----------     -----------     -----------
   Net cash provided by (used in)
    investing activities                                     (1,992)         (1,503)        (15,831)         (3,811)       (960,731)
                                                        -----------     -----------     -----------     -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Capital contributions                                         --              --              --              --           103,127
 Proceeds from notes payable
   to shareholders                                           40,000         240,000         510,000         340,000       3,593,542
 Proceeds from line-of-credit                                  --              --              --              --           299,505
                                                        -----------     -----------     -----------     -----------     -----------
   Net Cash provided by
       financing activities                                  40,000         240,000         510,000         340,000       3,996,174
                                                        -----------     -----------     -----------     -----------     -----------

Increase (decrease) in cash                                (144,369)         33,108          (1,107)        (39,041)         16,903
Cash & cash equivalents at
  beginning of period                                       161,272           8,203          18,010          80,352            --
                                                        -----------     -----------     -----------     -----------     -----------
Cash and cash equivalents at end
  of period                                             $    16,903     $    41,311     $    16,903     $    41,311     $    16,903
                                                        ===========     ===========     ===========     ===========     ===========


                                        (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,
                                                  ----------------------------       ---------------------------        ------------
                                                      1999             1998             1999            1998                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
                                                  ===========      ===========       ==========      ===========        ===========




                                      (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, 2000, as
the notes to these interim financial statements omit certain information
required for complete financial statements.


Note 2.

Subsequent Events

     Subsequent to December 31, 2000, the Company issued one 10% demand note in
the face amount of $40,000 to a related party. However, the Company lenders
have expressed reluctance to invest significant additional funds for product
development.


                                       7
<PAGE>



Item a.             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS 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") anticipated
marketing and production, need for working capital, future revenues 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 further develop and improve the
manufacturing process for its product, to manufacture its product at a cost that
would result in profitable sales, to sell a sufficient number of screens at a
sufficient price to result in positive operating margins, 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, 2000.


General

     During the quarter and six months ended December 31, 2000, the Company
expended efforts toward the development of a product specifically for an
Intelligent Traffic System Variable Message Sign application. Accordingly, the
Company continued development of the fiber optic screen and has achieved
significant improvement in its overall appearance and characteristics. In
conjunction with these developments and other optical research, the Company was
granted a patent titled Fiber Optic Display System with Enhanced Light
Efficiency which allowed 64 claims.

     However, due to inadequacies with the electronic control and communication
system design, the Company did not complete a fully demonstrable prototype for
this application. As a result, the Company determined that it lacks adequate
technical and financial resources to further develop this technology into a
commercially acceptable product. Also, the Company's current group of investors
have not committed to continue to fund the Company for further product
development. For those reasons, the Company has currently suspended efforts
toward commercializing any product.

     The Company's current focus will be to seek out a potential partner that
has the technical and financial ability to continue development under the
Company's current and newly issued patents. In connection with this plan and in
order to reduce overhead, the Company reduced its workforce in half and
implemented additional cost containment measures. As of the date of this report,
the Company remains in a development stage as it has not received significant
revenues from operations. In the event the Company is unsuccessful in finding a
partner to assist in developing its products, the Company may be forced to
curtail or cease operations.

                                       8

<PAGE>


Results of Operations

     For the fiscal quarter and six months ended December 31, 2000, the Company
reported net losses of ($240,654) and ($630,358), respectively, as compared to
net losses of ($296,964) and ($610,757) for the same periods in 1999. 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 three months and six months
ended December 31, 2000 would have been ($298,605) and ($688,309), respectively.

     The differences in net losses for the six months ended December 31, 2000 as
compared to 1999 are primarily due to: 1) a decrease in general and
administrative ("G&A") expenses for the quarter and six months ended December
31, 2000 of approximately 5,100 and $21,500, respectively, from amounts reported
in 1999, 2) an increase in research and development ("R&D")costs for the quarter
and six months ended December 31, 2000 of approximately $2,800 and $181,400,
respectively, from the same periods of the prior year, 3) an increase in
interest expense of approximately $3,500 for the quarter and a decrease of
approximately $81,800 for the six months ended December 31, 2000 from 1999, and
4) extraordinary gain due to the extinguishment of debt of approximately $58,000
for the quarter and six months ended December 31, 2000.

     The Company reported total revenue and other income of $445 and $1,758 for
the quarter and six months ended December 31, 2000 which consisted entirely of
interest income. There were no sales of the Company"s products to report for
either fiscal period.

     The Company reported G&A expenses of $219,188 for the six months ended
December 31, 2000, compared to $240,657 for the same period in 1999.
Depreciation decreased by approximately $8,100 in 2000 from 1999 due to certain
assets being fully depreciated. Legal and other professional fees decreased
approximately $19,700 for the six month period in 2000 from 1999 primarily due
to a decrease in: 1) consulting fees in connection with market research and
analysis, 2) accounting fees for the annual audit, and 3) legal fees in
connection with SEC and intellectual property matters. Travel expenses decreased
by approximately $7,000 for the six months ended December 31, 2000 from 1999
primarily related to the market research and analysis conducted in 1999.
Employee salaries and benefits increased approximately $13,700 for the six
months ended December 31, 2000 from 1999 primarily due to rising health care and
the addition of certain manufacturing/R&D employees. These employees have now
been reduced as a result of cost cutting measures. Other G&A expenses fluctuated
slightly resulting in a net decrease of the combined remaining G&A expenses of
approximately $400.

     G&A expenses for the six months ended December 31, 2000 included: 1)
depreciation of approximately $8,500; 2) general office expense of approximately
$52,000; 3) employee salaries and expenses of approximately $98,900; 4) travel
related expenses of approximately $31,300, and 5) professional fees of
approximately $28,500 (including legal fees incurred for patent work and general
corporate matters, and, accounting fees in connection with the audit of the
Company"s financial statements for the fiscal year ended June 30, 2000).

                                       9

<PAGE>


     Management efforts during the quarter and six months ended December 31,
2000 were directed toward the development of a product specifically for an
Intelligent Traffic System Variable Message Sign application. The Company
contracted with optical, electrical and mechanical engineering specialists to
design and build a prototype to adequately demonstrate the commercial viability
of the product. These efforts resulted in an increase in research and
development expenses from $152,920 for the six months ended December 31, 1999 to
$334,271 for the six months ended December 31, 2000. Due to the inadequacies in
the prototype design, the Company is currently disputing approximately $81,000
in engineering consulting fees.

     Interest expense decreased from $218,401 for the six months ended December
31, 1999 to $136,608 for the six months ended December 31, 2000. This decrease
is primarily due to a non-cash charge to interest expense in the six months
ended December 31, 1999 of $128,950 which related to immediately convertible
debt that was issued at a conversion price below the quoted price of the
Company"s common stock. However, the Company believes that the conversion price
determined on the dates of issuance more closely reflected the actual fair
market value of the Company"s common stock on the dates of issuance. Without the
charge in 1999, interest expense would have increased by $47,157 due to an
increase in long term debt outstanding.


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

     The Auditor's Opinion Letter included in the Financial Statement Exhibits
of the Company's annual report Form 10-KSB for the fiscal year ended June 30,
2000 includes an explanatory paragraph regarding the Company's ability to
continue as a going concern. The Company is in the development stage, as it has
not yet commenced principal operations and has not yet realized significant
revenues from its planned operations. Since inception, the Company has devoted
most of its efforts toward raising capital and research and development
activities.

     The Company has been totally dependent on financing from outside sources to
fund operations. At December 31, 2000, the Company reported negative net worth
of $3,450,634 and negative working capital of $215,876. At December 31, 2000,
the Company had approximately $29,000 of current assets and approximately
$245,000 of current liabilities. The Company will require additional capital for
administrative expenses and maintenance of intellectual property in its efforts
to seek out a strategic partner for continued product development and marketing.
Management believes such a relationship is essential for the Company's continued
existence. There can be no assurance that the Company will be able to find and
secure a relationship with a strategic partner or obtain sufficient additional
capital to continue operations. If the Company is unable to obtain capital to
pay its liabilities, it's assets may be exposed to the claims of its creditors.

     The Company's activities continue to use rather than provide cash.
Operating activities used approximately $495,000 for the first six months of the
current fiscal year. Cash flows from financing activities for the six months
ended December 31, 2000 consisted primarily of the issuance of 10% convertible,
redeemable promissory notes to shareholders totaling $470,000. The notes are due
October 15, 2002 and are convertible, at the option of the note holder, into
shares of the Company's Common Stock. In addition, the Company issued one short
term 10% demand note in the amount of $40,000 to a related party. Cash flows for
the six months ended December 31, 2000 were used for ongoing product and
manufacturing process development, alternative application and market analysis,
operating expenses and investment in capital equipment.

                                       10

<PAGE>


     Subsequent to December 31, 2000, the Company issued an additional 10%
demand note in the face amount of $40,000 to a related party. However, the
Company lenders have expressed reluctance to invest significant additional funds
for product development.

     During the six month period ended December 31, 1999, cash flows from
financing activities consisted entirely of proceeds from the issuance of
convertible, redeemable promissory notes in the aggregate amount of $190,000,
due and payable October 15, 2002 and with substantially the same terms as the
Company"s other convertible, redeemable promissory notes then outstanding.
Proceeds from the settlement and financing activities received during the fiscal
quarter ended December 31, 1999 were primarily used for ongoing research and
development and operating expenses.

     The Company will continue efforts on raising additional capital through
private placements or other sources. In addition, the Company will seek an
alliance with a company that has the technical and financial resources to
complete development of the technology into a commercially viable product. 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 1.  LEGAL PROCEEDINGS.

None.


ITEM 2.  CHANGES IN SECURITIES.

None.


ITEM 3.  DEFAULTS ON SENIOR SECURITIES.

None.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.


ITEM 5.  OTHER INFORMATION.

None.


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

None.


                                       11


<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)

                                       12