UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

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

                  For the quarterly period ended June 30, 1999

                                       OR

        [   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                 THE SECURITIES EXCHANGE ACT OF 1934

              For the transition period from          to
                                             ---------   ---------

                         Commission File Number: 0-23952

                                   AVERT, INC.
        (Exact name of small business issuer as specified in its charter)

          Colorado                                        84-1028716
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization

                      301 Remington, Fort Collins, CO 80524
                    (Address of principal executive offices)

                                  970/484-7722
              (Registrant's telephone number, including area code)

                                    No Change
         (Former name, former address and former fiscal year, if changed
                               from last report)

     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 2, 1999 the issuer had 3,323,025  shares of Common  Stock,  no
par value, outstanding.

                 Transitional Small Business Disclosure Format.
                                [ ] Yes [ X ] No



<PAGE>


Form 10-QSB
Quarter Ended June 30, 1999

                                      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 ............................................................. 14















                                       2
<PAGE>

<TABLE>
<CAPTION>
                              PART I - FINANCIAL INFORMATION
                                        AVERT, INC.
                                      BALANCE SHEETS

                                          ASSETS

                                                                      JUNE 30,    DECEMBER 31,
                                                                        1999         1998
                                                                    -----------   -----------
                                                                    (unaudited)
<S>                                                           <C>               <C>
Current assets:
         Cash and cash equivalents............................$       492,000   $   531,000
         Marketable securities ................................     6,151,000     6,006,000
         Accounts receivable, net of allowance ................     1,499,000     1,061,000
         Prepaid expenses and other ...........................       169,000       172,000
                                                                  -----------   -----------
                  Total current assets ........................   $ 8,311,000     7,770,000

Property and equipment, net ...................................     3,076,000     3,138,000
Other assets ..................................................        29,000             0
                                                                  -----------   -----------

Total assets ..................................................   $11,416,000   $10,908,000
                                                                  ===========   ===========

                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
         Accounts payable .....................................   $   380,000   $   297,000
         Accrued expenses .....................................       282,000       119,000
         Deferred revenue .....................................         2,000         5,000
                                                                  -----------   -----------
                  Total current liabilities ...................       664,000       421,000
         Deferred Taxes .......................................       476,000       476,000
                                                                  -----------   -----------
                  Total liabilities ...........................   $ 1,140,000   $   897,000

Shareholders' equity:
         Preferred shares, no par value; authorized
           1,000,000 shares; none outstanding .................          --            --
         Common stock, no par value; authorized
           9,000,000 shares; 3,323,025 shares issued
           and outstanding ....................................     4,462,000     4,462,000
         Retained earnings ....................................     5,814,000     5,549,000
                                                                  -----------   -----------
                  Total shareholders' equity ..................   $10,276,000   $10,011,000
                                                                  -----------   -----------

Total liabilities and shareholders' equity ....................   $11,416,000   $10,908,000
                                                                  ===========   ===========
</TABLE>

               See accompanying notes to the financial statements.




                                       3
<PAGE>

<TABLE>
<CAPTION>
                                                  AVERT, INC.
                                             STATEMENTS OF INCOME
                                                  (unaudited)

                                                                     Three Months Ended                        Six Months Ended
                                                                            June 30,                               June 30,
                                                                    1999               1998               1999               1998
                                                                    ----               ----               ----               ----
<S>                                                            <C>                <C>                <C>                <C>
Net revenues:
         Search and product fees .......................       $ 2,896,000        $ 2,475,700        $ 5,312,500        $ 4,622,200
         Interest and other income .....................            81,200             81,500            156,900            167,700
                                                               -----------        -----------        -----------        -----------

                                                               $ 2,977,200        $ 2,557,200        $ 5,469,400        $ 4,789,900
Expenses:
         Search and product costs ......................         1,297,000          1,204,200          2,396,000          2,271,300
         Marketing .....................................           310,700            360,100            659,700            739,200
         General and administrative ....................           406,000            370,600            749,500            697,300
         Software development ..........................           106,800            177,400            238,400            250,900
         Depreciation and amortization .................           149,700            149,900            298,500            261,200
                                                               -----------        -----------        -----------        -----------

                                                                 2,270,200          2,262,200        $ 4,342,100        $ 4,219,900
                                                               -----------        -----------        -----------        -----------

Income before income taxes .............................           707,000            295,000        $ 1,127,300            570,000

         Income tax expense ............................          (277,700)          (116,100)          (442,800)          (224,200)
                                                               -----------        -----------        -----------        -----------

Net income .............................................       $   429,300        $   178,900        $   684,500        $   345,800
                                                               ===========        ===========        ===========        ===========
Net income per common share ............................       $       .13        $       .05        $       .21        $       .10
                                                               ===========        ===========        ===========        ===========
Weighted average common
         shares outstanding ............................         3,323,024          3,522,800          3,323,024          3,529,400
                                                               ===========        ===========        ===========        ===========
</TABLE>


               See accompanying notes to the financial statements.



                                       4

<PAGE>

<TABLE>
<CAPTION>

                                                  AVERT, INC.
                                           STATEMENTS OF CASH FLOWS
                                                  (unaudited)
                                                                                        SIX MONTHS ENDED JUNE 30,
                                                                                        1999                1998
                                                                                        ----                ----
<S>                                                                                  <C>                <C>
Cash Flows From Operating Activities:
    Net income .............................................................         $ 684,500          $ 345,800
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization .....................................           298,500            261,200
         Bad debt expense ..................................................            36,600             13,100
         Increase/(decrease) in marketable securities and
                  other gains ..............................................          (145,000)          (162,300)
         Changes in operating assets and liabilities:
              Accounts receivable ..........................................          (474,900)          (283,200)
              Prepaid expenses and other current assets ....................           (26,100)            12,500
              Accounts payable .............................................            83,000            180,100
              Accrued expenses .............................................           117,600            (52,800)
              Income taxes payable .........................................            45,400            (40,000)
              Deferred revenue and deposits ................................            (3,000)             3,100
                                                                                     ---------          ---------

         Net cash provided by operating activities .........................         $ 616,600          $ 277,500

Cash Flows from Investing Activities:
     Additions to furniture and equipment ..................................          (236,300)          (319,200)
     Proceeds from sale of furniture and equipment .........................              --                 --
                                                                                     ---------          ---------

           Net cash provided by investing activities .......................          (236,300)          (319,200)
                                                                                     ---------          ---------

Cash Flows from Financing Activities:
         Purchase of Treasury Stock ........................................              --             (171,200)
                 Dividends declared ........................................          (419,300)           349,400
                                                                                     ---------          ---------

           Net cash provided by financing activities .......................          (419,300)          (520,600)


Increase/(Decrease) in Cash and Cash Equivalents ...........................           (39,000)          (562,300)

Cash and Cash Equivalents, beginning of period .............................           531,000            580,000
                                                                                     ---------          ---------

Cash and Cash Equivalents, end of period ...................................         $ 492,000          $  17,700
                                                                                     =========          =========

</TABLE>
               See accompanying notes to the financial statements.



                                       5

<PAGE>

                                   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, 1998.

     The results for interim periods are not  necessarily  indicative of results
to be expected for the fiscal year of the Company ending  December 31, 1999. 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, 1999 and 1998 covered thereby.

     "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.

New  Pronouncement.  SFAS No. 133,  "Accounting  for Derivative  Instruments and
Hedging  Activities,"  was  issued  in June  1998.  This  statement  establishes
accounting and reporting  standards for derivative  instruments  and for hedging
activities.  It requires  that an entity  recognize  all  derivatives  as either
assets or liabilities  in the statement of financial  position and measure those
instruments  at fair  value.  This  statement  is  effective  for the  Company's
financial  statements  for the year ended June 30, 200 and the  adoption of this
standard is not expected to have a material  effect on the  Company's  financial
statements.

SFAS No. 132,  "Employers'  Disclosures about Pensions and Other  Postretirement
Benefits,"  was issued in February 1998.  This statement  revises the disclosure
requirement for pensions and other  postretirement  benefits.  This statement is
effective for the  Company's  financial  statements  for the year ended June 30,
1999 and the adoption of this standard is not expected to have a material effect
on the Company's financial statements.

SFAS  No.  131,  "Disclosures  about  Segments  of  an  Enterprise  and  Related
Information," was issued in June 1997. This statement  establishes standards for
the way public business enterprises report information about operating segments.
It  also  establishes  standards  for  related  disclosure  about  products  and
services,  geographical  areas and major customers.  This statement is effective
for the company's financial  statements for the year ended June 30, 1999 and the
adoption  of this  standard  is not  expected  to have a material  effect on the
Company's financial statements.

SFAS No. 130,  "Reporting  Comprehensive  Income" was issued in June 1997.  This
statement  establishes  standards  for  reporting  and display of  comprehensive
income, its components and accumulated balances. Comprehensive income is defined
to include all changes in equity  except those  resulting  from  investments  by
owners and  distributions  to owners.  Among other  disclosures,  Statement  130
requires that all components of  comprehensive  income shall be classified based
on their nature and shall be reported in the financial  statements in the period
in which they are recognized.  A total amount for comprehensive  income shall be
displayed  in  the   financial   statements   where  the   components  of  other
comprehensive income are reported. This statement is effective for the Company's
financial  statements  for the year ended June 30, 1999 and the adoption of this
standard is not expected to have a material  effect on the  Company's  financial
statements.

                                       6
<PAGE>


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION


Results of Operations

Comparison of quarters ended June 30, 1999 and June 30, 1998

     Total net revenues  increased from  $2,557,200 for the  three-month  period
ended June 30, 1998,  to $2,977,200  for the  comparable  three-month  period in
1999,  or  approximately  16.4%.  This increase was primarily due to the overall
growth of its customer base and their  increased  membership in Avert  programs.
There were 6350  customers  that actually  used Avert  services the second three
months  of  1999,  as  compared  to  5,296  the  second  three  months  of 1998,
representing approximately a 20% increase. The dollars spent per customer in the
second  quarter  1999 was $457 as compared to $463 in the second  quarter  1998,
representing  an  approximate  1.4%  decrease.  The Company  believes that there
continues  to be a very  low  unemployment  rate  job  market  where  there  are
substantially  fewer job applicants to screen than in a higher unemployment rate
job market.

     Another key element in the improved second quarter 1999 revenue growth, was
that the Company was able to focus on obtaining  1,034 new customers as compared
to 499 in the second quarter 1998.  Additional focus has been on  implementation
of improvements in order  processing,  and other features and enhancements  made
possible by the new computer system implemented in April, 1998. The breakdown of
net  revenues,  exclusive of product  discounts and other  miscellaneous  income
items, is as follows:

<TABLE>
<CAPTION>
                                                       Three Months Ended            Three Months Ended
                                                          June 30, 1999                 June 30, 1998          Percent of
                                                    -------------------------      -----------------------      Increase
                                                    Revenues          % total      Revenues         % total    (Decrease)
                                                    --------          -------      --------         -------    ----------
<S>                                                <C>                  <C>      <C>                  <C>       <C>
Products:
  Workers compensation histories ...........       $  225,000           7.6%     $  251,000           9.8%      (10.4)%
  Criminal history reports .................       $1,715,200          57.6%     $1,462,000          57.2%       17.3%
  Reference Check reports/ .................       $  295,500           9.9%     $  287,700          11.3%        2.7%
     Credit reports
  Motor vehicle driving records ............       $  345,900          11.6%     $  255,700          10.0%       35.3%
  Other products ...........................       $  146,400           4.9%     $   97,600           3.8%       50.0%
Services: ..................................       $  184,700           6.2%     $  123,800           4.8%       49.2%

Interest income ............................       $   75,200           2.5%     $   80,800           3.2%       (6.9)%


         NET REVENUES ......................       $2,977,200                    $2,557,200                      16.4%
</TABLE>

     The largest single product growth of approximately  35.3% occurred in Motor
Vehicle Driving records. This product line accounted for approximately  $345,900
or  approximately  11.6% of total net revenues in the  three-month  period ended
June 30,  1999,  as  compared  to  approximately  $255,700  or 10.0% in the same
three-month period of 1998. Internal enhancements specific to this product line,
improving  turnaround  time were  implemented in first quarter 1999,  positively
impacting  the  customer  base in their  quest  for  quicker  hiring  decisions.
Enhanced automated features made possible by the new computer system implemented
in second  quarter  1998,  currently  being  piloted  by several  customers  has
increased the usage of this product.


                                       7
<PAGE>


     The Criminal History product line experienced growth of approximately 17.3%
in second  quarter  1999 over  second  quarter  1998.  The  product  contributed
$1,715,200  to total net  revenues in the second  quarter  1999,  as compared to
$1,462,000  to total net  revenues  in the  second  quarter  1998.  The  Company
believes  there  continues  to  be  a  nationwide  trend  to  check  prospective
employees'  criminal  records  and it  continues  to have  as a key  initiative,
obtaining the quickest, most accurate data available.

     There  was  an  increase  as  a   percentage   of  total  net  revenues  of
approximately  50.0% in "Other  Products",  representing  $146,400 in the second
three-month  period of 1999,  and  $97,600 in the second  three-month  period of
1998.  This increase was primarily due to a new product called  Instant  Address
Link, just introduced in first quarter 1999.  Through its links with the service
bureaus this product  offers an address  locator  service that  identifies up to
three known  addresses for an applicant,  based on social security number usage.
Customers can match the findings of the report with information  provided by the
applicant. Additionally,

     Instant  Address  Link  can be used to  "build"  a  ready-to-go  order  for
criminal  records  searches that match the addresses  identified.  Customers can
order the criminal records on-line with just a click of the mouse.

     There was relative flat revenue growth of  approximately  2.7% generated in
the  areas  of  education/credential  verification  and  credit  reports,  which
increased  from $287,700 in the second quarter of 1998 to $295,500 in the second
quarter of 1999.

     Workers' compensation histories 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 $251,000 for the second three months of 1999, or approximately  9.8%
of total net  revenues.  The Company  believes it will continue to decrease as a
percentage of total net revenues.

     Service sales experienced  approximately 49.2% revenue growth from $123,800
in the  three-month  period ended June 30, 1999, to $184,700 in the  three-month
period ended June 30, 1999. This increase is primarily attributable to growth of
the customer base membership in the Avert Advantage and Avert Advantage  On-line
programs,  which  increased from $67,000 in revenues for the second quarter 1998
to $108,900 for the second quarter in 1999.

     Income before income taxes  increased from $295,000 in second quarter 1998,
to $707,000  in second  quarter  1999 or  approximately  139.7% and  represented
approximately  11.5% in 1998, as compared to  approximately  23.8% in 1999.  The
Company  believes  that  decreases in all expenses  areas was a direct result of
decreased  head count,  and increased  internal  efficiencies  and capacity made
possible by the new computer system implemented in April 1998.

     Total  expenses,  when  expressed  as a percentage  of total net  revenues,
decreased from  approximately  88.4% in the second  three-month  period of 1998,
representing  $2,262,200 to approximately 76.3% in the second three-month period
of 1999, representing $2,270,200. A breakdown in expenses is as follows:




                                       8

<PAGE>

<TABLE>
<CAPTION>

                                                      Three Months Ended              Three Months Ended       Increase (Decrease)
                                                        June 30, 1999                   June 30, 1998             % of Revenues
                                                 ----------------------------     -------------------------    -------------------
                                                 Expenses        % of Revenue     Expenses   % of Revenue        1999 over 1998
                                                 ----------------------------     ---------  --------------    -------------------
<S>                                             <C>                  <C>         <C>                  <C>            <C>
Search and product ........................     $1,297,000           43.6%       $1,204,200           47.1%          (3.5)%
Marketing .................................        310,700           10.5           360,100           14.1           (3.6)
General and administration ................        406,000           13.6           370,600           14.4           (0.8)
Software development ......................        106,800            3.6           177,400            6.9           (3.3)
Depreciation and amortization .............        149,700            5.0           149,900            5.9           (0.9)
                                                ----------           ----        ----------           ----           ----


         Expenses .........................     $2,270,200           76.3%       $2,262,200           88.4%         (12.1)%
                                                ==========          =====        ==========           ====           ====
</TABLE>

     Search and product fees decreased approximately 3.5% as a percentage of net
revenues in the second  quarter 1999 over the second  quarter 1998. The majority
of the decrease was  attributable  to the improved  automation  of the Company's
supply  chain,  specifically  decreasing  costs of  obtaining  criminal  history
information  from  sources.  Despite  the  level  of  increased  product  growth
mentioned  above,  the Company was able to decrease head count in the operations
area of 16.1 full-time  equivalents,  or approximately  32.1%, in second quarter
1999, as compared to second quarter 1998. This was also due to improved internal
efficiencies brought about by the new computer system.

     There  was an  approximate  3.6%  decrease  as a  percentage  of total  net
revenues in  marketing  expenses,  in the second  three- month period of 1999 as
compared to the same period 1998. This resulted primarily from a decrease of 2.1
full-time  equivalents,  or  approximately  12.9%,  as well as  decreased  costs
associated  with lead  generation  activities,  in the  second  quarter  1999 as
compared to the second  quarter  1998.  The  reduction in  marketing  staff is a
result of the  Company's  emphasis  on  partnership  selling to large  corporate
accounts.  During the second  quarter in 1999,  several  new  corporate  account
customers were signed through partnerships.

     The company has reduced 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  .8%  as a
percentage of total net revenues in the second three months ended June 30, 1999,
representing  approximately  13.6%, as compared to the second three months ended
June 30, 1998 representing 14.4% of total net revenues.  There was a decrease of
2.0 full-time equivalents, or approximately 17.7%, from second quarter 1999 over
second quarter 1998, as well as reduced expenditures for temporary personnel.

     There was a decrease  in  software  development  and  maintenance  expenses
expressed as a percentage of total net revenues to approximately  3.6% in second
quarter  1999 from  approximately  6.9% in the  comparable  period of 1998.  The
primary  reason for the reduction of expenses is the decrease in second  quarter
1999 of  expenditures  associated  with  outside  consultants  required  for the
computer system implementation in second quarter 1998. In addition, a portion of
personnel costs were  capitalized in the second  three-month  period of 1999, as
compared to the second  three-month period of 1998, in which all personnel costs
were  expensed.  These  personnel  costs in second  quarter  1999 were  directly



                                       9

<PAGE>


associated with the development and  implementation of software required for the
joint marketing venture with ADP recently  announced.  The software provides for
enhanced  capabilities  for volume  specifically in the areas of customer setup,
customer  management and order processing.  The software will be put into actual
production  during third quarter 1999,  at which point  depreciation  costs will
begin.  The  Company  continues  to focus on  making  technology  its  strategic
advantage in its relationships with customers, partners and suppliers.

     There  was a  decrease  in  depreciation  and  amortization  expenses  when
expressed as a percentage of total net revenues,  from approximately 5.9% in the
second three months of 1998, to approximately  5.0% in the comparable  period of
1999.  This  decrease was  primarily  due to the decrease of  depreciation  as a
result of the sale of an automobile.

     Income  taxes  for the  combined  federal  and  state  statutory  rate  was
approximately  39% in both second  quarter  periods of 1999 and 1998. The result
was net  income of  $429,300  or $.13 per share on  3,323,024  shares  (weighted
average shares plus common stock  equivalents) for the second three months ended
June 30,  1999,  as  compared  to net  income of  $178,900  or $.05 per share on
3,522,800 shares (weighted average shares plus common stock equivalents) for the
second three months ended June 30, 1998.  The increased net income  generated in
second quarter 1999 represented an approximate 140% increase over the net income
generated in second quarter 1998.

Comparison of six months ended June 30, 1999 and June 30, 1998

     Net revenues  increased from $4,789,900 for the six-month period ended June
30,  1998,  to  $5,469,400  for  the  comparable  six-month  period  in  1999 or
approximately  14.2%.  The  breakdown  of net  revenues,  exclusive  of  product
discounts and other miscellaneous income items, is as follows:

<TABLE>
<CAPTION>
                                                     Six Months Ended                    Six Months Ended
                                                       June 30, 1999                       June 30, 1998              Percent of
                                               -----------------------------       -----------------------------       Increase
                                               Revenues              % total       Revenues              % total      (Decrease)
                                               --------              -------       --------              -------      ----------
<S>                                         <C>                         <C>      <C>                         <C>        <C>
Products:
  Workers compensation histories ......     $  429,600                  7.9%     $  492,800                  10.3%      (12.8)%
  Criminal history reports ............     $3,119,700                 57.0%     $2,560,000                  53.4%       21.9%
  Reference Check reports/ ............     $  536,300                  9.8%     $  583,900                  12.2%       (8.2)%
     Credit reports
  Motor vehicle driving records .......     $  628,100                 11.5%     $  507,100                  10.6%       23.9%
  Other products ......................     $  271,400                  5.0%     $  215,500                   4.5%       25.9%
Services: .............................     $  371,600                  6.8%     $  226,400                   4.7%       64.1%

Interest income .......................     $  149,300                  2.7%     $  164,700                   3.4%       (9.4)%
                                             ---------                            ---------                             -----

         NET REVENUES .................     $5,469,400                           $4,789,900                              14.2%
                                             =========                            =========                             =====
</TABLE>

     The largest single product line growth of approximately  23.9%,  during the
first six  months of 1999  over the first six month of 1998,  was Motor  vehicle
driving records. It represented  approximately  11.5% of total net revenues,  or
$628,100 in the first six months of 1999, as compared to approximately  10.6% of
total net  revenues,  or $507,100 in the first six months of 1998.  The Criminal
History product line experienced  continued growth of approximately 21.9% in the
six-month  period ended June 30, 1999 as compared to the six-month  period ended
June 30,  1998.  It has  increased as a  percentage  of total net revenues  from
approximately 53.4% in the first six months of 1998, representing $2,560,000, to
approximately 57.0% in the same period of 1999, representing $3,119,700.


                                       10

<PAGE>

     Workers' compensation reports continued its downward trend, decreasing from
$492,800 in revenues for the six-month period ended June 30, 1998 to $429,600 in
revenues  for  the  six-month   period  ended  June  30,  1999.  The  regulation
requirements of this product have made it less viable in the marketplace.

     The Services  category  increased as a percentage  of total net revenues by
approximately 64.1% when comparing the first six months of 1999 to the first six
months of 1998. The increase  resulted  primarily  from increased  membership in
Avert Advantage and Avert  Advantage  On-line  programs,  along with the partner
equivalent programs. Partner relationships have continued to be a focus of Avert
in  1999,  as  evidenced  by  the  recent  announcements  of ADP  joint  venture
relationship and national rollout.

     The category of "Other  Products"  experienced an increase of approximately
25.9% of total net  revenues  in the first six  months  ended  June 30,  1999 as
compared  to the first  six  months  ended  June 30,  1998.  This  increase  was
primarily a result of the new product  Instant  Address Link introduced in first
quarter 1999 which 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 "buil  criminal  history  orders in those
geographical areas. In addition,  package sales increased approximately 42.7% in
the first six months of 1999,  as compared to the same period in 1998.  Packages
are a direct  result of  increased  capabilities  made  possible by the computer
conversion  in  April  1998,  allowing  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.

     Income before income taxes increased from $570,000 in the six-month  period
ended June 30, 1998 to  $1,127,300  in the six- month period ended June 30, 1999
or approximately 97.8%. This represented  approximately 11.9% of net revenues in
the first six months of 1998  compared to  approximately  20.6% in the first six
months of 1999.

     Total  expenses  increased from  $4,219,900 for the six-month  period ended
June 30, 1998 to $4,342,100  for the  comparable  period in 1999. A breakdown in
expenses is as follows:

<TABLE>
<CAPTION>

                                                    Six Months Ended                   Six Months Ended        Increase (Decrease)
                                                      June 30, 1999                      June 30, 1998             % of Revenues
                                                ------------------------         ---------------------------   ------------------
                                                Expense     % of Revenue         Expense        % of Revenue     1998 over 1997
                                                -------     ------------         -------        ------------   ------------------
<S>                                          <C>                  <C>         <C>                  <C>                 <C>
Search and product .................         $2,396,000           43.7%       $2,271,300           47.4%               (3.7)%
Marketing ..........................            659,700           12.1           739,200           15.4                (3.3)
General and administration .........            749,500           13.7           697,300           14.6                (0.9)
Software development ...............            238,400            4.4           250,900            5.2                (0.8)
Depreciation and amortization ......            298,500            5.5           261,200            5.5                 0.0
                                             ----------          -----        ----------          -----               -----

         Expenses ..................         $4,342,100           79.4%       $4,219,900           88.1%               (8.7)%
                                             ==========          =====         ==========         =====               =====
</TABLE>



                                       11

<PAGE>



     Total expenses  decreased  approximately  8.7% as a percentage of total net
revenues  in the  first  six-month  period  of 1999  as  compared  to the  first
six-month period of 1998. One of the primary decreases was in the area of Search
and Products costs,  which decreased as a result of increased  efficiencies  and
decreased head count directly enabled by the new computer system  implemented in
second  quarter  1998.  The other primary area in which  expenses  decreased was
Marketing,  which  resulted  from a decrease in head count and costs  associated
with lead generation activities.

     There was a slight  decrease as a percentage  of total net revenues in both
general  and  administrative  and  software  development  expenses  in the first
six-month  period  ended June 30,  1999 as  compared to the same period in 1998.
These decreases  resulted primarily from a decrease in head count in general and
administration   area,  and  amortized   personnel  costs  associated  with  the
development and  implementation of software required for the recently  announced
ADP joint marketing venture in the software development area.

     Income taxes for the combined  federal and state statutory rate remained at
approximately  39% in both the first six months of 1998 and 1999. The result was
an increase of net income of approximately 97.9%,  representing $345,800 or $.10
per share on  3,529,400  shares  for the six  months  ended  June 30,  1998,  as
compared to $684,500  or $.21 per share on  3,323,024  shares for the six months
ended June 30, 1999.


Liquidity and Capital Resources

     The  Company's  financial  position at June 30, 1999  remained  strong with
working  capital at that date of  $7,647,000  compared to $7,349,000 at December
31,1998.  Cash and cash  equivalents and marketable  securities at June 30, 1999
were  $6,151,000  and increased  from  $6,006,000 at December 31, 1998. Net cash
provided  from  operations  for the  six-month  period  ended June 30,  1999 was
$616,600 and consisted primarily of net income of $684,500,  a $474,900 increase
in accounts receivable, and a $117,600 increase in accrued expenses. The Company
had capital  expenditures  of $236,300 for the  six-month  period ended June 30,
1999 as  compared  to  $319,200  for the six  months  ended June 30,  1998.  The
majority of the capital  expenditures  during the six months ended June 30, 1999
were  attributable  to the  development  of new software and upgrade of existing
hardware for the ADP joint marketing venture and ongoing enhancements.  Net cash
used in financing  activities  for the six-month  period ended June 30, 1999 was
$419,300 and  consisted of a cash  dividend of $.12 per common share  payable on
March 24, 1999 to shareholders of record on March 15, 1999.









                                       12

<PAGE>


                           PART II - OTHER INFORMATION


ITEM 1.   Legal Proceedings

          NONE


ITEM 6.   Exhibits and Reports on Form 8-K

          (a)  1998 Avert Index

          (b)  Leaders OnLine from Heidrick & Struggles Internet Partnership

          (c)  1st Quarter 1999 Results

          (d)  Avert/ADP Joint Marketing Venture with Emerging Business Services
               Division































                                       13

<PAGE>



                                   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.


DATE:  August 2, 1999                 BY: /s/ Dean A. Suposs
                                          --------------------------------------
                                          Dean A. Suposs, President



DATE:  August 2, 1999                 BY: /s/ Jamie M. Burgat
                                          --------------------------------------
                                          Jamie M. Burgat, Vice President of
                                          Operations and Chief Financial Officer





























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