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 March 31, 2000

                                       OR

[x]  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 May 9, 2000 the issuer had 3,302,845  shares of Common Stock,  no par
value, outstanding.

                 Transitional Small Business Disclosure Format.

                         [ ] Yes      [X] No




                                        1

<PAGE>


Form 10-QSB
Quarter Ended March 31, 2000


                                      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...........................................................    11






























                                       2

<PAGE>


                         PART I - FINANCIAL INFORMATION
                                   AVERT, INC.


<TABLE>
<CAPTION>
                                      BALANCE SHEETS

                                          ASSETS

                                                                       MARCH 31,         DECEMBER 31,
                                                                         2000               1999
                                                                       ---------         -----------
                                                                      (unaudited)
<S>                                                                  <C>                 <C>
Current assets:
         Cash and cash equivalents ................................  $   770,000         $ 1,569,000
         Marketable securities ....................................    7,355,000           6,361,000
         Accounts receivable, net of allowance ....................    1,753,000           1,602,000
         Prepaid expenses and other ...............................      164,000              99,000
                                                                     -----------         -----------
                  Total current assets ............................  $10,042,000           9,631,000


Property and equipment, net .......................................    2,830,000           2,797,000
                                                                     -----------         -----------

Total assets ......................................................  $12,872,000         $12,428,000
                                                                     ===========         ===========

                           LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
         Accounts payable .........................................  $ 1,102,000         $   500,000

         Accrued expenses .........................................      309,000             486,000

         Income taxes payable .....................................       49,000             150,000
                                                                     -----------         -----------

                  Total current liabilities .......................    1,460,000           1,136,000

         Deferred Taxes ...........................................      290,000             340,000
                                                                     -----------         -----------
                  Total liabilities ...............................  $ 1,750,000         $ 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; 3,302,845 shares issued
           and outstanding ........................................    4,124,000           3,924,000
         Retained earnings ........................................    6,998,000           7,028,000
                                                                     -----------         -----------

                  Total shareholders' equity ......................  $11,122,000         $10,952,000
                                                                     -----------         -----------


Total liabilities and shareholders' equity ........................  $12,872,000         $12,428,000
                                                                     ===========         ===========
</TABLE>


               See accompanying notes to the financial statements.


                                        3

<PAGE>

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

                                                                           Three Months Ended
                                                                                March 31,

                                                                     2000                         1999
                                                                     ----                         ----
<S>                                                             <C>                          <C>
Net revenues:
         Search and product fees ...........................    $ 3,653,000                  $ 2,416,000
         Interest and other income .........................         92,000                       76,000
                                                                -----------                  -----------

                                                                  3,745,000                    2,492,000
Expenses:
         Search and product costs ..........................      1,700,000                    1,140,000
         Marketing .........................................        432,000                      349,000
         General and administrative ........................        406,000                      302,000
         Software development ..............................        142,000                      132,000
         Depreciation and amortization .....................        165,000                      149,000
                                                                -----------                  -----------

                                                                  2,845,000                    2,072,000
                                                                -----------                  -----------

Income before income taxes .................................        900,000                      420,000

         Income tax expense ................................       (334,000)                    (165,000)
                                                                -----------                  -----------

Net income .................................................    $   566,000                  $   255,000
                                                                ===========                  ===========
Net income per common share ................................    $       .17                  $       .08
                                                                ===========                  ===========
Weighted average common
         shares outstanding ................................      3,285,990                    3,323,024
                                                                ===========                  ===========
</TABLE>






               See accompanying notes to the financial statements.



                                       4

<PAGE>

<TABLE>
<CAPTION>

                                        AVERT, INC.
                                 STATEMENTS OF CASH FLOWS
                                        (unaudited)

                                                                                     THREE MONTHS ENDED
                                                                                           MARCH 31,

                                                                                2000                    1999
                                                                                ----                    ----

<S>                                                                        <C>                     <C>
Cash Flows From Operating Activities:
    Net income .........................................................   $   566,000             $   255,000
    Adjustments to reconcile net income to net cash
      (used in)/provided by operating activities:
         Depreciation and amortization .................................       165,000                 149,000
         Bad debt expense ..............................................        18,000                  17,000
         Deferred taxes ................................................       (50,000)                   --

         Changes in operating assets and liabilities:
              Accounts receivable ......................................      (169,000)               (103,000)
              Marketable securities ....................................      (994,000)                (72,000)
              Prepaid expenses and other current assets ................       (77,000)                (22,000)
              Accounts payable .........................................       602,000                 184,000
              Accrued expenses .........................................      (208,000)                (21,000)
              Income taxes payable .....................................      (101,000)                  6,000
              Deferred revenue and deposits ............................        31,000                  (2,000)


         Net cash (used in)/provided by operating activities ...........   $  (217,000)            $   391,000

Cash Flows from Investing Activities:
     Additions to furniture and equipment ..............................      (187,000)                 (9,000)
                                                                           -----------             -----------

           Net cash used in investing activities .......................      (187,000)                 (9,000)
                                                                           -----------             -----------

Cash Flows from Financing Activities:
         Options Exercised .............................................       200,000                    --
         Dividends declared ............................................      (595,000)               (419,000)
                                                                           -----------             -----------

           Net cash used in financing activities .......................      (395,000)               (419,000)


Increase/(Decrease) in Cash and Cash Equivalents .......................      (799,000)                (37,000)

Cash and Cash Equivalents, beginning of period .........................     1,569,000                 531,000
                                                                           -----------             -----------

Cash and Cash Equivalents, end of period ...............................   $   770,000             $   494,000
                                                                           ===========             ===========
</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, 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 March 31, 2000 and 1999 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.

In  December  1999,  the  SEC  released  SAB  101,  which  discusses  the  SEC's
interpretation  of  various  revenue  recognition  matters.  In  March,  the SEC
released SAB 101A,  which provided  companies with December 31, 1999  year-ends,
similar to Avert,  until the second  quarter to fully  implement the SEC revenue
recognition  policies.  Avert has been  recognizing  as  revenue  non-refundable
set-up fees,  generally ranging from $40 to $150 per customer,  at the time such
service  is  provided.  The fee is  intended  to  cover  Avert's  internal  cost
associated with entering the customer's  data profile into Avert's  sophisicated
online computer system. In addition, in many instances Avert will pay a referral
fee to third parties,  which by agreement with the third party,  is based on the
set-up fee charged.  The SEC has indicated in SAB 101, that as such set-up could
not be sold separately  from the companies  normal  services,  such fees must be
amortized  into income over the life of the service  contract or customer  life,
whichever  is  longer.  Substantially  all of  Avert's  customer  contracts  are
cancelable  by either party at any time.  During  fiscal 1998 and 1999,  and the
first quarter of 2000, Avert has recognized as income,  net of referral fees and
income taxes,  approximately ________,  _________,  and ________,  respectively,
associated with start- up fees. The Company is currently  conducting a sample of
customers to evaluate an appropriate  customer life into which it will amortized
the start-up  fees into income as well as analyzing  start-up  fees  received by
month for prior  periods.  This will provide the basis by which the company will
adjust for income recognized in prior periods related to start-up fees. Pursuant
to guidance  provided by the SEC, the Company will record this adjustment in the
second quarter of 2000 as a change in accounting principal with an adjustment to
retained earnings and other appropriate disclosure.




















                                       6

<PAGE>


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


Results of Operations

Comparison of quarters ended March 31, 2000 and March 31, 1999

     Total net revenues  increased from  $2,492,200 for the  three-month  period
ended March 31, 1999 to $3,744,600 for the comparable three-month period in 2000
or approximately 50.3%. This increase was primarily due to:

     o    Overall growth of Avert's customer bas
     o    Increased membership in Avert program and subscription models
     o    Increased reference checking and motor vehicle order volumes
     o    Continued use of Avert's criminal history products

     Avert added 1,448 new customers in the first three-month period ended March
31, 2000 or approximately an 85.9% increase, over the same three-month period in
1999 in which 779 new  customers  were added.  There were 9,190  customers  that
actually  used Avert  services the first three months of 2000.  This compares to
5,701 the first  three  months of 1999,  and  represents  approximately  a 61.2%
increase.  The dollars  spent per customer in the first  quarter 2000  decreased
from  $424  in the  first  quarter  1999  to $397  in the  first  quarter  2000,
representing an approximate 6.3% decrease. In addition, as a result of increased
customers,  revenues  generated from set up fees  increased  from  approximately
$36,700 in the first three  months of 1999 to $103,800 in the first three months
of 2000. In connection with set up fees received,  the Company is also obligated
to pay a marketing fee to the referral source,  which totaled $1,000 and $42,500
in the respective periods.

     In first quarter 2000, the Company's  distribution  arrangement with ADP in
which  Avert  services  are  sold  to  ADP  customers,   generated  revenues  of
approximately  $349,800 in total. The ADP arrangement was not in affect in first
quarter 1999. Of this amount,  the EBS (employers with 1-99  employees)  portion
accounted for $225,900,  while the MAJORS  (employers  with 100- 999  employees)
portion generated $123,900 in revenues.  Avert has a User Agreement with the ADP
customer,  which  is  cancellable  at any time by  either  party.  In  addition,
increased  participation  in the Avert Advantage and Advantage  On-line programs
accounted  for  approximately  $92,100  in the first  three  months of 2000,  as
compared to approximately $66,000 in the first three months of 1999. Program and
user fees are included below in the category named "Services".

     Revenues generated from reference checking increased from $148,200 in first
quarter 1999 to $219,500 in first quarter 2000,  representing a 48.1%  increase.
These  revenues  were  generated by both  existing and new  customers.  Revenues
generated  from motor vehicle  reports  increased from $282,200 in first quarter
1999 to  $476,100  in the same  period of 2000,  or  approximately  68.7%.  This
product line accounts for approximately 11.3% in total net revenues in the first
three months of 1999,  and 12.7% in total net revenues in the first three months
of 2000.  Enhanced  automated  features made this product  attractive to several
large  customers  which  increased  the usage of this  product,  and  positively
impacting the customer base in their quest for quicker hiring decisions.

     The  criminal  history  product line  continues  to  represent  the largest
revenue producing product,  and accounts for approximately  $1,871,400 or 50% of
total  net  revenues  in  first  quarter  2000,  as  compared  to  approximately
$1,404,500 or 56.4% of total net revenues in first quarter 1999.  This growth of
approximately  33.2%  results  from  the  continued  use of the  product  of its
existing customers, as well as the new customers.
















                                       7


<PAGE>


     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
                                                        March 31, 2000               March 31, 1999           Percent of
                                                    ----------------------       ----------------------        Increase
                                                    Revenues       % total       Revenues       % total       (Decrease)
                                                    --------       -------       --------       -------       ----------
<S>                                                <C>             <C>       <C>                <C>             <C>
Products:
  Workers compensation histories ...........       $  208,400         5.6%     $  204,600         8.2%            1.9%
  Criminal history reports .................       $1,871,400        50.0%     $1,404,500        56.4%           33.2%
  Previous employment reports/ .............       $  366,500         9.8%     $  240,800         9.7%           52.2%
     credit reports
  Motor vehicle driving records ............       $  476,100        12.7%        282,200        11.3%           68.7%
  Other products ...........................       $  154,000         4.1%     $  125,100         6.5%           23.1%
Services: ..................................       $  640,800        17.1%     $  187,000         5.0%          242.7%

Interest income ............................       $   95,600         2.6%     $   74,000         3.0%           29.2%


         NET REVENUES ......................       $3,744,600                  $2,492,200                        50.3%
</TABLE>

     Workers'  compensation  histories  revenue  remains flat,  but continued to
decline as a  percentage  of net  revenues  as  previously  predicted.  In first
quarter,   1999  workers'  compensation   reports,   represented,   $204,600  or
approximately  8.2% of total net revenues,  as compared to $208,400 in the first
three months of 2000, or approximately 5.6% of total net revenues.

     Income before income taxes increased from $420,200 in first quarter 1999 to
$899,300 or approximately 114.0% and represented approximately 16.9% in 1999, as
compared to  approximately  24.0% in the comparable  period of 2000. The Company
believes  that  decreases  in all  expense  categories  were a direct  result of
increased internal  efficiencies and capacity.  Avert's focus continues to be to
leverage  technology for improved  efficiencies and financial  condition.  There
have  been  some  minor  reclassifications  of  expenses  for  simpler  internal
reporting.

     Total  expenses,  when  expressed  as a percentage  of total net  revenues,
decreased  from  approximately  83.1% in the first  quarter  1999,  representing
$2,072,000,  to  approximately  76.0% in the  first  quarter  2000  representing
$2,845,300. A breakdown in expenses is as follows:

<TABLE>
<CAPTION>

                                                    Three Months Ended                Three Months Ended       Increase (Decrease)
                                                      March 31, 2000                    March 31, 1999            % of Revenues
                                                --------------------------       ---------------------------   ------------------
                                                Expenses      % of Revenue       Expenses       % of Revenue     1999 over 1998
                                                --------      ------------       --------       ------------     --------------
<S>                                           <C>                <C>         <C>                  <C>               <C>
Search and product ........................   $1,699,900           45.5%       $1,140,100           45.7%             (0.3)%
Marketing .................................      432,400           11.5           349,000           14.0              (2.5)
General and administration ................      405,900           10.8           302,500           12.1              (1.3)
Software development ......................      142,000            3.9           131,600            5.3              (1.4)
Depreciation and amortization .............      165,100            4.4           148,800            6.0              (1.6)
                                              ----------          -----        ----------          -----              ----


         Expenses .........................   $2,845,300           76.0%       $2,072,000           83.1%             (7.1)%
                                              ==========          =====        ==========          =====              ====
</TABLE>


                                       8
<PAGE>


     Search and  product  fees  remained  relatively  flat when  expressed  as a
percentage  of  total  net  revenues,  representing  approximately  45.7% of net
revenues in the first  quarter 1999 as compared to 45.4% of net revenues for the
first  quarter  2000.  The  majority of the  decrease  was  attributable  to the
improved  automation  of the  Company's  acquisition  of  data  supplied  to its
customers,   specifically   decreasing  costs  of  obtaining   criminal  history
information  from  sources.  Despite the level of  increased  product  growth of
approximately  50.3% mentioned above, Avert was able to only increase head count
in the operations area by approximately 28.4% in first quarter 2000, as compared
to first  quarter 1999.  In addition,  the actual number of reports  produced in
first  quarter  2000 was  approximately  72% greater  than the number of reports
produced in first quarter 1999.

     There  was an  approximate  2.5%  decrease  as a  percentage  of total  net
revenues in marketing expenses, in the first three months of 2000 as compared to
the  same  period  of 1999.  This  resulted  primarily  from a  decrease  in 3.3
full-time  equivalents  in the first  quarter 2000 as compared to first  quarter
1999.  Additionally,  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. The Company  believes that there will
be increased marketing expense as a result of strategic  marketing  arrangements
being developed and implemented with other sources, such as ADP.

     General and Administrative  expenses decreased  approximately 1.3% of total
net revenues in first  three-month  period  ended March 31,  2000,  representing
approximately 10.8% of total net revenues,  as compared to the first three-month
period ended March 31, 1999 representing 12.1% of total net revenues.

     There was a decrease  in  software  development  and  maintenance  expenses
expressed as a percentage of total net revenues from approximately 3.9% in first
quarter 2000 to approximately 5.3% in the comparable period of 1999. 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 4.4% in the
first three months of 1999, to  approximately  6.0% in the comparable  period of
2000.

     Income  taxes  for the  combined  federal  and  state  statutory  rate  was
approximately  37.1% in first quarter 2000 and approximately  39.3% in the first
quarter  1999.  The lower  expense  percentage in the first quarter of 2000 is a
result of an approximate $15,000 over accrual of state income taxes in the prior
year.  The  result  was net income of  $255,000  or $.08 per share on  3,323,024
shares  (weighted  average shares plus common stock  equivalents)  for the first
three months ended March 31, 1999, as compared to net income of $566,100 or $.17
per  share  3,285,990  shares   (weighted   average  shares  plus  common  stock
equivalents) for the first three months ended March 31, 2000.


Liquidity and Capital Resources

     The Company's  financial  position at March 31, 2000  remained  strong with
working  capital at that date of  $8,582,000  compared to $8,495,000 at December
31,1999.  Cash and cash equivalents and marketable  securities at March 31, 2000
were  $8,125,000  and increased  from  $7,930,000 at December 31, 1999. Net cash
provided  from  operations  for the three month  period ended March 31, 2000 was
$217,000 and consisted primarily of net income of $566,000,  a $169,000 increase
in accounts receivable, and a $602,000 increase in accounts payable. The Company
had capital  expenditures of $187,000 for the three month period ended March 31,
2000 as  compared  to $9,000 for the three  months  ended  March 31,  1999.  The
majority of the capital  expenditures  during the three  months  ended March 31,
2000 was  attributable to ongoing  development of  enhancements  and upgrades to
internal software programs used in servicing  customers and upgrades of existing
hardware  expected  to be  implemented  in  2000.  Net  cash  used in  financing
activities  for the three month  period  ended March 31, 2000 was  $395,000  and
consisted primarily of a cash dividend of $.18 per common share payable on March
24, 2000 to shareholders of record on March 15, 2000.










                                       9


<PAGE>


                           PART II - OTHER INFORMATION


ITEM 1.   Legal Proceedings

     Avert currently is a defendant in a case in the Superior Court of the State
of  California,  in and for the County of Santa  Clara,  originally  filed on or
about April 29, 1999 styled  Obdiah  Lewis v. Avert,  Inc. and Does 1 to 30. The
complaint seeks monetary damages and alleges that Avert negligently obtained and
released to third  parties  false  information  about the  plaintiff's  criminal
history.  Specifically, the complaint alleges that Avert advised the present and
a potential  employer that the plaintiff had pled guilty to robbery and received
a jail term of 176 days.  The  complaint  further  alleges  that because of this
information the plaintiff was terminated from a job and prevented from obtaining
new employment.  The complaint  asserts that the information  Avert reported was
libelous and done with a conscious  disregard of the plaintiff's  rights.  Avert
has paid the $10,000 deductible on its errors and omissions insurance policy for
this case.  Avert has denied  liability  and intends to  vigorously  defend this
claim.


ITEM 6.   Exhibits and Reports on Form 8-K

     (a)  January 13, 2000 announcing the addition of Felony+ to Avert's product
          line

     (b)  February 1, 2000 announcing 4th Quarter and 1999 Results

     (c)  March 1, 2000 announcing dividend

































                                       10

<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:     May 10, 1999                 BY: /s/ Dean A. Suposs
                                          --------------------------------------
                                          Dean A. Suposs, President



DATE:     May 10, 1999                 BY: /s/ Jamie M. Burgat
                                          --------------------------------------
                                          Jamie M. Burgat, Vice President of
                                          Operations and Chief Financial Officer


































                                       11