**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-QSB**

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934

For the quarterly period ended:
             June 30,
2000

Commission File Number:
                       
 0-23952

|***AVERT, INC.***
    (Exact name of small business issuer as specified in its charter.)
|----------------------------------------------------------------------------------------
|Colorado
    *State or other jurisdiction of  incorporation or organization)*           
|301 Remington, Fort Collins, CO 80524
    *(Address of principal executive offices)*    
|970/484-7722  *(Registrant's telephone number, including area code*:)                   

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

# [ X ] Yes [ ] No

As of August 7,
2000 the issuer had 3,305,845 shares of Common Stock, no par value, outstanding.

Transitional Small Business Disclosure Format.

[ ] Yes [ X ] No

# INDEX

`PAGE
                                                                                                                         -----



  PART I - FINANCIAL INFORMATION

         ITEM 1.  Financial statements

                  Unaudited balance sheets......................................................................   3

                  Unaudited statements of income.............................................................  4

                  Unaudited statements of cash flows........................................................  5

                  Notes to unaudited financial statements..................................................   6

         ITEM 2.  Management's Discussion and Analysis or
                 Plan of Operations.................................................................................  7


   PART II - OTHER INFORMATION

         ITEMS 1, 2, 3, 4, 5 and 6 ...........................................................  Not applicable

      Signatures........................................................................................................ 13`

# PART I - FINANCIAL INFORMATIONAVERT, INC.

# BALANCE SHEETS

# ASSETS

`June 30,    December 31,
                                                                        2000          1999
                                                                        ----          ----
                                                                     (unaudited)
Current assets:
         Cash and cash equivalents ..............................   $   691,000   $ 1,569,000
         Marketable securities ..................................     7,449,000     6,361,000

         Accounts receivable, net of allowance ..................     2,165,000     1,602,000
         Prepaid expenses and other .............................       246,000        99,000
                                                                     ----------    ----------
                  Total current assets ..........................   $10,551,000     9,631,000

Property and equipment, net .....................................     2,766,000     2,797,000
                                                                     ----------    ----------
Total assets ....................................................   $13,317,000   $12,428,000
                                                                     ==========    ==========

                              LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
         Accounts payable .......................................   $   665,000   $   500,000
         Accrued expenses .......................................       502,000       486,000
         Income taxes payable ...................................        96,000       150,000
                                                                     ----------    ----------
                  Total current liabilities .....................     1,263,000     1,136,000
         Deferred Taxes..........................................       290,000       340,000
                                                                     ----------    ----------
                  Total liabilities..............................   $ 1,553,000   $ 1,476,000

Shareholders' equity:
         Preferred shares, no par value; authorized
           1,000,000 shares; none outstanding ...................          --            --

         Common stock, no par value; authorized
           9,000,000 shares; 3,305,845 shares issued
           and outstanding ......................................     4,143,000     3,924,000
         Retained earnings ......................................     7,621,000     7,028,000
                                                                     ----------    ----------
                  Total shareholders' equity ....................   $11,764,000   $10,952,000
                                                                     ----------    ----------

Total liabilities and shareholders' equity ......................   $13,317,000   $12,428,000
                                                                     ==========    ==========`

See accompanying notes to the financial statements.

# AVERT, INC.STATEMENTS OF INCOME

# (unaudited)

`Three Months Ended             Six Months Ended
                                                                         June 30,                       June 30,
                                                                     ------------------             ----------------
                                                                     2000           1999            2000          1999
                                                                     ----           ----            ----          ----
Net revenues:
         Search and product fees .............................  $ 4,288,000    $ 2,896,000    $ 7,941,000    $ 5,312,000
         Interest and other income ...........................       95,000         81,000        187,000        157,000
                                                                -----------    -----------    -----------    -----------

                                                                  4,383,000      2,977,000    $ 8,128,000    $ 5,469,000
Expenses:
         Search and product costs ............................    2,095,000      1,357,000      3,795,000      2,498,000
         Marketing ...........................................      488,000        311,000        920,000
                                                                                                                 660,000
         General and administrative ..........................      437,000        345,000        843,000        648,000
         Software development ................................      156,000        107,000        298,000        238,000
         Depreciation and amortization .......................      170,000        150,000        335,000        298,000
                                                                -----------    -----------    -----------    -----------
                                                                  3,346,000      2,270,000      6,191,000      4,342,000
                                                                -----------    -----------    -----------    -----------
Income before income taxes ...................................    1,037,000        707,000      1,936,000      1,127,000

         Income tax expense ..................................     (414,000)      (278,000)      (748,000)       443,000
                                                                -----------    -----------    -----------    -----------

Net income ...................................................  $   623,000    $   429,000    $ 1,189,000    $   684,000
                                                                ===========    ===========    ===========    ===========
Net income per basic common share ............................  $       .19    $       .13    $       .36    $       .21
                                                                ===========    ===========    ===========    ===========
Net income per diluted common share ..........................  $       .17    $       .13    $       .33    $       .21
                                                                ===========    ===========    ===========    ===========
Weighted average common
         shares outstanding (Basic) ..........................    3,304,263      3,323,025      3,295,091      3,323,025

Weighted average common shares
         Outstanding (diluted) ...............................    3,636,766      3,323,025      3,615,301      3,323,025
                                                                ===========    ===========    ===========    ===========`

See accompanying notes to the financial statements.

# AVERT, INC. STATEMENTS OF CASH FLOWS

# (unaudited)

`SIX MONTHS ENDED
                                                                                 ----------------
                                                                                    JUNE  30,
                                                                                    ---------

                                                                              2000             1999
                                                                              ----             ----

Cash Flows From Operating Activities:
    Net income .......................................................    $ 1,189,000     $   684,000
    Adjustments to reconcile net income to net cash
      (used in)/provided by operating activities:
         Depreciation and amortization ...............................        317,000         298,000
         Bad debt expense ............................................         36,000          37,000
         Deferred taxes...............................................        (50,000)           --

         Changes in operating assets and liabilities:
              Accounts receivable ....................................       (599,000)       (475,000)
              Marketable securities...................................     (1,088,000)       (145,000)
              Prepaid expenses and other current assets ..............       (147,000)        (26,000)
              Accounts payable .......................................        165,000          83,000
              Accrued expenses .......................................        (36,000)        118,000
              Income taxes payable ...................................        (54,000)         45,000
              Deferred revenue and deposits ..........................         52,000          (3,000)


         Net cash (used in)/provided by operating activities .........    $  (215,000)    $   616,000

Cash Flows from Investing Activities:
     Additions to furniture and equipment ............................       (287,000)       (236,000)
                                                                           ----------      ----------
           Net cash used in investing activities .....................       (287,000)       (236,000)
                                                                           ----------      ----------
Cash Flows from Financing Activities:
         Options Exercised ...........................................        219,000            --
         Dividends declared ..........................................       (595,000)       (419,000)
                                                                           ----------      ----------
           Net cash used in financing activities .....................       (376,000)       (419,000)
                                                                           ==========      ==========

Increase/(Decrease) in Cash and Cash Equivalents .....................       (878,000)        (39,000)

Cash and Cash Equivalents, beginning of period .......................      1,569,000         531,000
                                                                           ----------      ----------
Cash and Cash Equivalents, end of period .............................    $   691,000     $   492,000
                                                                           ==========      ==========`

See accompanying notes to the financial statements.

# AVERT, INC.NOTES TO FINANCIAL STATEMENTS

The financial  information  contained herein is unaudited,  but includes all adjustments  (consisting of only normal recurring
accruals)  which, in the opinion of management,  are necessary to present fairly the information  set forth.  The financial  statements
should be read in  conjunction  with the Notes to Financial  Statements  which are included in the Annual  Report on Form 10-KSB of the
Company for the year ended December 31, 1999.

The results for interim  periods are not  necessarily  indicative of results to be expected for the fiscal year of the Company
ending  December 31, 2000.  The Company  believes that the three month report filed on Form 10-QSB is  representative  of its financial
position, its results of operations and its cash flows as of and for the periods ended June 30, 2000 and 1999 covered thereby.

In previous  periods,  the Company  recognized  set-up fees when  received.  In response to SAB 101, the Company has adopted a
policy of deferring  set-up fees and incremental direct acquisition costs over the estimated life of the customer  (generally  three years).  As
incremental  acquisition  costs  exceed the set-up fees  received,  incremental  acquisition  costs are only  deferred to the extent of
set-up fee  income.  Therefore,  the change in policy had no effect on net  income.  This change in policy also did not have a material
effect on prior or current revenues or expenses.

"The  Company" or "Avert" is used in this  report to refer to Avert,  Inc.  The Company may from time to time make  written or
oral  forward-looking  statements,  including statements contained in the Company's filings with the Securities and Exchange Commission
and its reports to  shareholders.  This  document may contain  forward-looking  statements  that are made pursuant to the "safe harbor"
provisions  of the  Private  Securities  Litigation  Reform Act of 1995.  These  statements  include,  without  limitation,  statements
relating  to Avert's  growth and  business  strategies,  regulatory  matters  affecting  Avert,  other plans and  objectives  of Avert,
management  for future  operations  and  activities,  expansion  and growth of Avert's  operations  and other such  matters.  The words
"believes,"  "expects,"  "intends,"  "strategy,"  "considers"  or  "anticipates"  and  similar  expressions  identify   forward-looking
statements.  The Company does not undertake to update, revise or correct any of the forward-looking information.

## ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION

## Results of Operations

## Comparison of quarters ended June 30, 2000 and June
30, 1999

Total net revenues  increased from $2,977,000 for the three-month  period ended June 30, 2000 to $4,383,000 for the comparable
three-month period in 2000 or approximately 47.2%.  This increase was primarily due to:

- Continued use of Avert's criminal history products
- Overall growth of Avert's customer base
- Increased membership in Avert program and subscription models
- Increased usage of pre-determined order packages
- Increased reference checking and credit order volumes

The criminal history product line continues to be the top revenue producing product line accounting for approximately
$2,186,000  or 49.9% of total net revenues in the second  quarter 2000, as compared to $1,716,000 or 57.6% of total net revenues in the
second quarter 1999. This growth of  approximately  27.4% results from the continued use of the product of its existing  customers,  as
well as the new customers.

Avert added 1,123 new customers in the second three-month period ended June 30, 2000 or approximately an 8.6%
increase,  over the same three-month  period in 1999 in which 1,034 new customers were added.  There were 9,392 customers that actually
used  Avert  services  the second  three  months of 2000.  This  compares  to 6,350 the second  three  months of 1999,  and  represents
approximately  a 47.9% increase.  The dollars spent per customer in the second quarter 2000 were nearly  identical at $457 per customer
in the second  quarter 1999 and $456 in the first quarter 2000. In addition,  as a result of increased  customers,  revenues  generated
from set up fees  increased  from  approximately  $27,000 in the second  three months of 1999 to $106,000 in the second three months of
2000. In connection  with set up fees  received,  the Company is also obligated to pay a marketing fee to the referral  sources,  sales
commissions,  and incurs other  incremental  direct  acquisition  costs. The Company has performed an analysis of costs associated with
its start up fees,  and has confirmed  that its  incremental  acquisition  costs exceed the fees  received.  In previous  periods,  the
Company  recognized  set-up fees when received.  In response to SAB 101, the Company has adopted a policy of deferring  set-up fees and
direct  acquisition  costs over the estimated life of the customer  (generally three years).  As incremental  acquisition  costs exceed
the set-up fees received,  incremental  acquisition costs are only deferred to the extent of set-up fee income.  Therefore,  the change
in policy had no effect on net  income.  This  change in policy  also did not have a material  effect on prior or current  revenues  or
expenses.

Revenues  generated  from  reference  checking  increased  from $312,000 in second  quarter 1999 to $476,000 in second quarter
2000,  representing a 52.6%  increase.  Reference  checking  continues to be an area of human  resources  that is commonly  outsourced.
Revenues  generated  from credit  reports  increased  from  $224,000 in second  quarter 1999 to $330,000 in the same period of 2000, or
approximately  47.3%.  Credit reports has continued to increase due to the quick turnaround of this product,  positively  impacting the
customer base in their quest for quicker hiring decisions.

The breakdown of net revenues, exclusive of product discounts and other miscellaneous income items, is as follows:

`Three Months Ended              Three Months Ended
                                                   June 30, 2000                     June 30, 1999              Percent of
                                             -------------------------          ------------------------         Increase
                                             Revenues          % total          Revenues         % total        (Decrease)
                                             --------          -------          --------         -------         --------

Products:
  Workers compensation histories          $   216,000           4.9%           $     225,000      7.6%            (3.8)%
  Criminal history reports                $ 2,186,000          49.9%           $   1,715,000     57.6%            27.5%
  Previous employment reports/            $   440,000          10.0%           $     296,000      9.9%            48.6%
     credit reports
  Motor vehicle driving records           $   417,000           8.5%           $     346,000     11.6%            20.5%
  Other products                          $   374,000           8.5%           $     146,000      4.9%           156.2%
Services:                                 $   719,000          16.4%           $     185,000      6.2%           288.6%

Interest income                           $    97,000           2.2%           $      75,000      2.5%
        29.3%


         NET REVENUES                     $ 4,383,000                          $   2,977,000                      47.2%`

Workers'  compensation  histories  revenue  continued to decline as a percentage of net revenues as previously  predicted.  In
second quarter, 1999 workers' compensation reports,  represented,  $225,000 or approximately 7.6% of total net revenues, as compared to
$216,000 in the second three months of 2000, or  approximately  4.9% of total net revenues.  This trend is expected to continue as more
states have more stringent requirements for release of workers' compensation data.

Income before income taxes increased  approximately 46.7% from $707,000 in second quarter 1999 to $1,037,000,  and represented
approximately  23.7% of total net revenues in 1999, as compared to approximately  23.6% of total net revenues in the comparable  period
of 2000. There have been some minor reclassifications of expenses for simpler internal reporting.

Total expenses, when expressed as a percentage of total net revenues, remained constant at 76.3%, representing approximately
$2,270,000 in the second quarter 1999, and approximately $3,346,000 in the same period of 2000.  A breakdown in expenses is as
follows:

`Three Months Ended              Three Months Ended
                                                   June 30, 2000                     June 30, 1999          Increase (Decrease)
                                             -------------------------          ------------------------        % of Revenue
                                             Expenses     % of Revenue          Expenses    % of Revenue       2000 over 1999
                                             --------     ------------          --------    ------------       --------------

Search and product                        $ 2,095,000        47.8%            $1,357,000       45.6%                 2.2%
Marketing                                     488,000        11.1                311,000       10.4                   .7
General and administration                    437,000        10.0                345,000       11.7                 (1.7)
Software development                          156,000         3.5                107,000        3.6                 (0.1)
Depreciation and amortization                 170,000         3.9                150,000        5.0                 (1.1)
                                          -----------       -----             ----------      -----                -----


         Expenses                         $ 3,346,000        76.3%            $2,270,000       76.3%                 0.00%
                                          ===========       =====              =========      =====                ======`

Search and product fees increased when expressed as a percentage of total net revenues,  representing  approximately  45.6% of
net  revenues in the second  quarter  1999 as compared to 47.8% of net  revenues  for the same  quarter  2000.  The Company was able to
produce  approximately  71% more actual reports in second quarter 2000 than second quarter 1999. This production was accomplished  with
approximately  53% increased  full-time  equivalents.  In addition,  product costs were  substantially  reduced for the largest product
line - criminal history  searches - from  approximately  23.3% of total net revenues in the three-month  period ended June 30, 1999, to
approximately 19.1% of total net revenues in the comparable period of 2000.

However,  the product costs  associated with providing motor vehicle records  increased from  approximately  6.9% of total net
revenues in the quarter  ended June 30, 1999,  to  approximately  7.7% of total net revenues in the same period in 2000.  This increase
was a result of change in the  interpretation  of the Federal  Driver's  Privacy  Protection  Act (1994)  regarding the sale of driving
record  information for resale.  The major providers of driving records  determined that no data would be provided to companies such as
Avert until final certification  requirements could be determined.  Those certification  requirements have since been defined and Avert
aggressively  pursued  certification  for both itself,  as well as its  customers.  The Company  believes  that the  temporary  loss of
automated  driving records and the  certification  process had an approximate  $260,000 overall financial impact on the Company's costs
to produce the product,  lost  revenues,  opportunity  costs,  as well as  certification  costs.  Following are more specific  areas of
impact:

- Increased Costs - During the period that automated  driving records could not be obtained,  Avert  aggressively  pursued other
              data sources in order to be able to continue to offer this  product to its  customers.  The new process  required the use
              of its courier network and manual internal  fulfillment,  and was substantially more costly to the Company.  To quantify,
              the average cost of a driving  record in 1st quarter  2000 was  approximately  $4.26.  In May, the average cost was $5.55
              and in June the cost increased to $7.50. It is estimated that just the increase of internal labor was  approximately
              $42,000.
- Lost Revenues - The Company estimates that  approximately  450 orders per day were not received due to customer  confusion and
              inability to accept increased turnaround times for results.   The estimate of lost revenues was approximately $155,000.
- Opportunity Costs - In an effort to continue to process driving records and aggressively  pursue additional data sources,  all
              human  resources  available were utilized on this project.  As a result,  other revenue  generating  company  initiatives
              could not be pursued during this period.  The estimate of opportunity  costs as a result of the resources  focused on the
              driving record project was approximately $30,000.
- Certification  Costs - Avert  quickly  became  certified to provide  driving  records in an automated  fashion with a new data
              provider.  In addition,  there was a $50 fee per customer  required to certify  each of its  customers  desiring to order
              driving records through Avert.  In order to minimize  impact to large volume  customers,  Avert agreed to absorb the cost
              of this  certification  fee.  In  addition,  the  Company  also  agreed to absorb  the fees for those  customers  already
              belonging to the Avert Advantage Online  membership,  both to reward current members,  as well as to encourage  increased
              membership.  The amount of certification costs not passed on to the customer was approximately $33,000.

There will be some  ongoing  impact of the change in process of driving  records,  though the vast  majority of the  financial
burden was in second  quarter  2000.  Avert has taken a variety of steps to increase  the  profitability  of this product  line.  There
have been price  re-negotiations  with several large customers,  and the majority of the initial  absorption of certification  fees has
been completed.  In addition, the Company continues to aggressively pursue other more direct, cost-effective automated data sources.

The only other category of expense that  experienced  an increase was that of Marketing  costs.  There was an approximate  .7%
increase as a percentage of total net revenues in this  category,  in the second three months of 2000 as compared to the same period of
1999.  The  majority  of the  increase  was  due to  increased  revenue  pass-through  payments  as a  result  of  strategic  marketing
arrangements  being developed and implemented  with other  partners,  such as ADP. The Company has continued to reduce  expenditures in
certain lead  generation  activities such as yellow pages  advertising and broadcast fax as it transitions its marketing  activities to
web-based lead generation programs.  Examples of web-based lead generation  activities include web site links with other human resource
providers,  banner  advertisements,  listings on Internet  portals,  email  messages  sponsored  by human  resource  publications,  and
additional information services on our own web site.

General and  Administrative  expenses  decreased  approximately  1.7% of total net revenues in second three-month period ended
June 30, 2000,  representing  approximately  10.0% of total net revenues,  as compared to the second  three-month period ended June 30,
1999  representing  11.7% of total net  revenues.  This was due  primarily to a 7% decrease in  full-time  equivalents,  and  decreased
telephone costs from better pricing.

There was a slight decrease in software  development and maintenance  expenses expressed as a percentage of total net revenues
from approximately 3.5% in second quarter 2000 to approximately 3.6% in the comparable period of 1999.

There was a decrease in  depreciation  and  amortization  expenses when expressed as a percentage of total net revenues,  from
approximately  5.0% in the second three months of 1999, to  approximately  3.9% in the comparable  period of 2000.  There have not been
substantial capital purchases in this period of 2000, though revenues continue to increase.

Income  taxes  for the  combined  federal  and  state  statutory  rate was  approximately  39.9% in  second  quarter  2000 and
approximately  39.3% in the  second  quarter  1999.  The  higher  expense  percentage  in the  second  quarter  of 2000 is a result  of
increased  state tax estimates.  The result was net income of $429,000 or $.13 per basic share on 3,323,025  shares  (weighted  average
shares) for the second  three months ended June 30,  1999.  This  compares to net income of $623,000 or $.19 per basic share  3,304,263
shares  (weighted  average  shares) for the first three months ended June 30, 2000. The result in terms of diluted  earnings  (weighted
average shares plus common stock  equivalents) was $.17 per diluted share on 3,636,766 for the three-month  period ended June 30, 2000,
as compared to $.13 per diluted share on 3,323,025 shares for the same three-month period ended June 30, 1999.

## Comparison of six months ended June 30, 2000 and
June 30, 1999

`Six Months Ended                 Six Months Ended
                                                   June 30, 2000                     June 30, 1999              Percent of
                                             -------------------------          ------------------------         Increase
                                             Revenues          % total          Revenues         % total        (Decrease)
                                             --------          -------          --------         -------         --------

Products:
  Workers compensation histories          $   425,000           5.2%           $     430,000      7.9%            (1.2)%
  Criminal history reports                $ 4,057,000          49.9%           $   3,120,000     57.0%            30.0%
  Reference Check reports/                $   806,000           9.9%           $     536,000      9.8%            50.4%
     Credit reports
  Motor vehicle driving records           $   893,000          11.0%           $     628,000     11.5%            42.2%
  Other products                          $   528,000           6.5%           $     271,000      5.0%            94.8%
Services:                                 $ 1,359,000          16.7%           $     372,000      6.8%           265.3%

Interest income                           $   193,000           2.4%           $     149,000      2.7%            29.5%


         NET REVENUES                     $ 8,128,000                          $   5,469,000                      48.6%`

The largest single product line growth of approximately 52.6%, during the first six months of 2000 over the first six months
of 1999, was reference checks.  It represented $476,000 in the first six months of 2000, as compared to approximately $312,000 in the
first six months of 1999.  There were 56.2% more reference check reports provided to customers in the six-month period of 2000 as in
the six-month period of 1999.

Motor vehicle driving records grew by approximately 42.2% in the six-month period ended June 30, 2000 when compared to the
same period in 1999.  The processing issues described above with this product line occurred towards the end of the six-month period,
thus minimizing it's loss of revenue impact of the entire period.

The Criminal History product line experienced continued growth of approximately 30.0% in the six-month period ended June 30,
2000 as compared to the six-month period ended June 30, 1999.  It has decreased as a percentage of total net revenues from
approximately 57.0% in the first six months of 1999, representing $3,120,000, to approximately 49.9% in the same period of 2000,
representing $4,057,000.

Workers' compensation reports continued its downward trend, decreasing from $430,000 in revenues for the six-month period
ended June 30, 1999 to $425,000 in revenues for the six-month period ended June 30, 2000.   The regulation requirements of this
product have made it less viable in the marketplace.

The category of "Other Products" experienced an increase of approximately 94.8% of total net revenues in the first six
months ended June 30, 2000 as compared to the first six months ended June 30, 1999.  This increase was primarily a result of package
sales, which increased approximately 843% in the first six months of 2000, as compared to the same period in 1999.  Packages allow
customers to set up custom packages, comprised of products and services to allow ease of order entry.  Avert believes this area will
have a positive impact on future revenues, and has been the model for the ADP joint marketing venture, and recent large customers.
In addition, the product Instant Address Link, increased approximately 51.9%, representing $71,000 in six-month period ended June 30,
2000, and $24,000 in the comparable period in 1999.   This product is an address locator service that identifies up to three known
addresses for an applicant, based on social security number usage.  These addresses can be used by customers to "build" criminal
history orders in those geographical areas, and is often included in packages.

The Services category increased as a percentage of total net revenues by approximately 265.3% when comparing the first six
months of 2000 to the first six months of 1999.  The increase resulted primarily from increased membership in Avert Advantage and
Avert Advantage On-line programs, along with the partner equivalent programs.  For the first six months of 2000, subscription
revenues generated as a result of the distribution arrangement with ADP accounted for approximately $765,000.  The ADP arrangement
was not in affect in the first six months of 1999.   Partner relationships have continued to be a focus of Avert in 2000.

Income before income taxes increased from $1,127,000 in the six-month period ended June 30, 1999 to $1,936,000 in the six-
month period ended June 30, 2000 or approximately 71.8%.  This represented approximately 20.6% of net revenues in the first six
months of 1999 compared to approximately 23.8% in the first six months of 2000.

Total expenses decreased when expressed as a percentage of total net revenues from $6,191,000, or approximately 76.2% of
total net revenues for the six-month period ended June 30, 2000 to $4,342,000, or approximately 79.4% for the comparable period in
1999.  A breakdown in expenses is as follows:

`Three Months Ended              Three Months Ended
                                                   June 30, 2000                     June 30, 1999          Increase (Decrease)
                                             -------------------------          ------------------------        % of Revenue
                                             Expenses     % of Revenue          Expenses    % of Revenue       2000 over 1999
                                             --------     ------------          --------    ------------       --------------

Search and product                        $ 3,795,000        46.7%            $2,498,000       45.7%                 1.0%
Marketing                                     920,000        11.3                660,000       12.1                 (0.8)
General and administration                    843,000        10.4                648,000       11.8                 (1.4)
Software development                          298,000         3.7                238,000        4.4                 (0.7)
Depreciation and amortization                 335,000         4.1                298,000        5.4                 (1.3)
                                            ---------       -----              ---------      -----
         Expenses                         $ 6,191,000        76.2%            $4,342,000       79.4%                (3.2)%
                                            =========       =====              =========      =====                   ===========`

Total expenses decreased approximately 3.2% as a percentage of total net revenues in the first six-month period of 2000 as
compared to the first six-month period of 1999.  All but one of the individual expense areas decreased as a percentage of total net
revenues in comparing the six-month periods of 2000 and 1999.

Search and product expenses accounted for $3,795,000, or approximately 46.7% of total net revenues in the first six months
of 2000, as compared to $2,498,000, or approximately 45.7% of total net revenues in the first six months of 1999.  The processing
issues with driving record reports described above impacted the search and product cost expense area in the six-month period ended
June 30.2000.  Despite an increase in this expense category, Avert was able to reduce direct product costs for criminal history
reports by approximately 24% as a result of increased automation. in the first six months of 2000 as compared to the comparable
period of 1999.  These costs represent approximately 19.0% of total net revenues in period ended June 30, 2000 as compared to
approximately 22.7% of total net revenues in the period ended June 30, 1999.

Income taxes for the combined federal and state statutory rate were approximately 38.6% in the first six months of 2000 and
39.3% in the first six months of 1999. The lower expense percentage in the period of 2000 is a result of an approximate $15,000 over
accrual of state income taxes in the prior year.   The result was an increase of net income of approximately 73.8% when comparing
first six months of 1999 to the same period in 2000.  The net income of the first six month of 1999 represented $684,000 or $.21 per
basic share on 3,323,025 shares (weighted average shares).  This compares to net income of $1,189,000 or $.36 per basic share
3,295,091 shares (weighted average shares) for the first six months ended June 30, 2000.  The result in terms of diluted earnings
(weighted average shares plus common stock equivalents) was $.21 per diluted share on 3,323,025 for the six-month period ended June
30, 1999, as compared to $.33 per diluted share on 3,615,301 shares for the same six-month period ended June 30, 2000.

## Liquidity and Capital Resources

## Subsequent Events

# PART II - OTHER INFORMATION

## ITEM 1.    Legal Proceedings

## ITEM 6.    Exhibits and Reports on Form 8-K

# SIGNATURES

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

AVERT, INC.

|By | /s/ Dean A. Suposs
         ______________________________
                 Dean A. Suposs
President | 
|-- | ---------------------------------------------------------------------------------------------------- | 

Dated:  August 9, 2000

|By | /s/ Jamie M. Burgat
         ______________________________
                 Jamie M. Burgat, Vice President of
Operations and Chief Financial Officer | 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | 

Dated:  August 9, 2000