UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                     
                               AMENDED 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, 1996
                                     
                                       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
  incorporation or organization)                   Identification No.)
 
 
                      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 13, 1996 the issuer had 3,414,250 shares of Common Stock, no
 par value, outstanding
 
              Transitional Small Business Disclosure Format.

                     [ ]  Yes      [X]   No

<PAGE>

 Form 10-QSB
 Quarter Ended June 30, 1996
 
 
                                      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 and 5 ...............................   Not applicable
 
      ITEM 6   Exhibits and Reports on Form 8-K..............  11
 
 
 Signatures..................................................  12
 
 
                                     


                                       2
<PAGE>
                  
<TABLE>
<CAPTION>


                         PART I - FINANCIAL INFORMATION
                                   AVERT, INC.
                                 BALANCE SHEETS
                                     
                                     ASSETS
                                     
                                                JUNE 30,         DECEMBER 31,
                                                  1996              1995
                                               (unaudited)
                                                ---------        ------------
<S>                                             <C>             <C>      
Current assets:
     Cash and cash equivalents..............  $    73,800     $   159,700
     Marketable securities..................    5,423,800       5,966,500
     Accounts receivable, net of allowance..      926,800         607,900
     Prepaid expenses and other.............      153,000         240,600
                                               ----------      ----------

          Total current assets..............  $ 6,577,400       6,974,700


Property and equipment, net.................    2,028,700       1,389,100
Other assets................................       19,400          19,400
                                               ----------      ----------

Total assets................................  $ 8,625,500    $  8,383,200
                                              ===========      ==========

                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable.......................   $  310,700    $    407,900
     Accrued expenses.......................       72,900          81,300
     Deferred revenue.......................       55,500          58,600
                                               ----------      ----------
          Total current liabilities.........      439,100         547,800
                                               ----------      ----------
Shareholders' equity:
     Preferred shares, no par value; authorized
       1,000,000 shares; none outstanding....         ---            ---
     Common stock, no par value; authorized
       9,000,000 shares; 3,442,250 shares issued
       and outstanding.......................   4,960,600       4,960,600
     Treasury Stock                              (110,400)           ---
     Retained earnings............ ..........   3,336,200       2,874,800
                                               ----------      ----------
          Total shareholders' equity.........   8,186,400       7,835,400


Total liabilities and shareholders' equity... $ 8,625,500     $ 8,383,200
                                               ==========      ==========
</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,
                                     ------------------      ----------------
                                       1996        1995        1996         1995
                                       ----        ----        ----         ----
<S>                                <C>         <C>         <C>         <C>       
Net revenues:
     Search and product fees........$1,861,700  $1,362,200  $3,412,000  $2,579,900
     Interest and other income......   106,100     103,100     208,100     196,700
                                     ---------   ---------   ---------   ---------
                                     1,967,800   1,465,300   3,620,100   2,776,600
Expenses:
     Search and product costs.......   788,000     550,400   1,492,400   1,047,200
     Marketing......................   330,900     197,200     610,100     363,500
     General and administrative.....   280,300     280,800     515,400     494,100
     Software development...........    83,900      52,500     176,900     113,900
     Depreciation and amortization..    47,700      26,600      80,500      53,800
                                     ---------   ---------   ---------   ---------                                                
                                     1,530,800   1,107,500   2,875,300   2,072,500

Income before income taxes.........    437,000     357,800     744,800     704,100

     Income tax expense............   (166,500)   (134,100)   (283,300)   (263,300)
                                     ---------   ---------   ---------   ---------

Net income......................... $  270,500 $   223,700   $ 461,500   $ 440,800
                                    ==========   =========    ========    ========
Net income per common share........ $      .08 $       .06   $     .13   $     .13
                                    ==========   =========    ========    ========
Weighted average common
     shares outstanding............  3,418,500   3,442,250   3,427,800   3,442,250
                                    ==========   =========   =========   =========
</TABLE>


               See accompanying notes to the financial statements.


                                       4
<PAGE>
                                    
<TABLE>
<CAPTION>
                                     
                                   AVERT, INC.
                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                     
                                                               SIX MONTHS ENDED JUNE 30,
                                                             --------------------------
                                                             1996                  1995
                                                             ----                  ----
<S>                                                        <C>                 <C>       
Cash Flows From Operating Activities:
    Net income..........................................   $ 461,500           $  440,800
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization...................     80,500               53,800
         Bad debt expense................................     15,000               11,000
         Increase/(decrease) in marketable securities
          and other gains................................       ---              (169,700)
         Changes in operating assets and liabilities:
          Accounts receivable............................   (333,800)            (125,200)
          Prepaid expenses and other current assets......     87,300              (70,100)
          Other assets...................................       ---                (2,500)
          Accounts payable...............................    (97,000)             170,700
          Accrued expenses...............................    (16,800)             (50,800)
          Income taxes payable...........................      8,200             (184,000)
          Deferred revenue and deposits .................     (3,000)             (17,900)
                                                            --------             --------
     Net cash provided by operating activities...........    201,900               56,100

Cash Flows from Investing Activities:
     Additions to furniture and equipment................   (720,100)            (387,400)
     Sale of marketable securities.......................    542,700                ---
                                                            --------             --------
     Net cash provided by investing activities...........   (177,400)            (387,400)

Cash Flows from Financing Activities:
     Purchase of Treasury Stock..........................   (110,400)               ---
                                                            --------             --------
     Net cash provided by financing activities...........   (110,400)               ---

Increase/(Decrease) in Cash and Cash Equivalents.........    (85,900)            (331,300)

Cash and Cash Equivalents, beginning of period...........    159,700              738,300
                                                            --------             --------
Cash and Cash Equivalents, end of period.................  $  73,800            $ 407,000
                                                           =========            =========
</TABLE>

               See accompanying notes to the financial statements.
                                     
                                       5
<PAGE>
                                     
                                   AVERT, INC.
                          NOTES TO FINANCIAL STATEMENTS


     On June 22, 1994, the Company  completed an initial public offering ("IPO")
of 1,000,000 units  ("Units"),  each consisting of one share of Common Stock and
one Redeemable Warrant.  The Units separated on December 7, 1994, and the Common
Stock and the Redeemable  Warrants began trading separately as of that date. Two
Redeemable  Warrants entitle the holder to purchase one share of Common Stock at
a price of $6.50 per share  (subject  to  adjustment)  for a nine  month  period
originally stated as March 22, 1995 and ending December 22, 1995. On October 11,
1995,  the  Company  announed  that  it  extended  the  expiration  date  of its
Redeemable  Warrants  from December 22, 1995 to April 30, 1996.  The  expiration
date was further  extended to April 30,  1997,  as  announced  on Form 8-K dated
March 6, 1996.  All of the other  terms of the  Redeemable  Warrants  remain the
same.  The  Redeemable  Warrants are  redeemable  by the Company at a redemption
price of $0.05 per Redeemable  Warrant at any time commencing March 22, 1995, on
at least 30 days prior  written  notice,  provided that the closing price of the
Common  Stock equals or exceeds  $7.50 per share for a period of 15  consecutive
trading  days  ending  within 15 days  prior to the  notice of  redemption.  Net
proceeds from the IPO totalled approximately $4,382,300.

     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, 1995.

     The results for interim periods are not  necessarily  indicative of results
to be expected for the fiscal year of the Company ending  December 31, 1996. The
Company   believes   that  the  six  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, 1996 and 1995 covered thereby.



                                       6
<PAGE>

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

Results of Operations

Comparison of quarters ended June, 1996 and June 30, 1995

     Net revenues  increased  from  $1,465,300  for the three month period ended
June 30, 1995,to  $1,967,800  for the  comparable  three month period in 1996 or
34%. 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, 1996        June 30, 1995     Percent of
                                                  ------------------   ------------------   Increase
                                                   Revenues  % total    Revenues  % total  (Decrease)
                                                   --------  -------    --------  -------  ---------
<S>                                               <C>          <C>      <C>           <C>       <C>   
Products:
  Workers compensation histories ..............   $  326,500   16.6%    $  332,800    22.7%     (1.9%)
  Criminal history reports ....................   $1,027,300   52.2%    $  688,000    47.0%     49.3%
  Previous employment reports/credit reports ...  $  222,800   11.3%    $  118,400     8.1%     88.2%
  Motor vehicle driving records ...............   $  230,300   11.7%    $  195,700    13.4%     17.7%
  Other products ..............................   $  122,000    6.2%    $   63,600     3.8%     91.8%

Interest income ...............................   $   78,100    4.0%    $   91,400     6.2%    (14.6)%

     NET REVENUES .............................   $1,967,800            $1,465,300              34.3%
                                                   =========             =========
</TABLE>

     Moderate  to  strong  growth  in  sales  of all of the  Company's  products
continued  during the  second  quarter of 1996 with the  exception  of  workers'
compensation reports. Although sales of workers' compensation histories actually
decreased approximatley 1.9% from second quarter 1995 to second quarter 1996, it
is still the second largest product line  respresenting  $326,500 for the second
three months of 1996 and $332,800 for the comparable period in 1995. The Company
believes  that sales of this  product  will  gradually  increase  as the Company
enters  new  markets,   continues  to  educate  customers,   continues  workers'
compensation  marketing  campaigns,  and  locates  new  data  sources,  but will
continue to decrease as a percentage  of total  revenues.  Very strong growth of
approximately  49.3% continued in the Criminal History product line representing
apprxomately  52.2% of net revenues in the second quarter of 1996 as compared to
approximately  47% of net revenues in the second  quarter of 1995.  There was an
approximate  88.2% growth from second quarter 1995 to second quarter 1996 in the
area of Previous Employment/Credit. These products represent approximately 11.3%
of net revenues in the quarter ended June 30, 1996 as compared to  approximately
8.1% of net revenues in the same quarter in 1995.

     Income before income taxes increased from $357,800 in the period ended June
30, 1995 to $437,000 in the period  ended June 30, 1996 or  approximately  22.1%
and represented  approximately  22.2% of net revenues in the second quarter 1996
compared to approximately 24.4% in the second quarter 1995.

                                       7
<PAGE>

     Total expenses  increased from  $1,107,500 for the three month period ended
June 30, 1995 to $1,530,800  for the  comparable  period in 1996. A breakdown in
expenses is as follows:

<TABLE>
<CAPTION>
                                       Three Months Ended      Three Months Ended
                                          June 30, 1996           June 30, 1995      Increase (Decrease)
                                      ---------------------   ---------------------     % of Revenues
                                      Expense  % of Revenue   Expense  % of Revenue    1995 over 1994
                                      -------  ------------   -------  ------------  -----------------
<S>                                 <C>           <C>       <C>           <C>             <C> 
Search and product ..............   $  788,000    40.0%     $ 550,400     37.6%           2.4%
Marketing .......................      330,900    16.8        197,200     13.4            3.4
General and administration ......      280,300    14.3        280,800     19.2           (4.9)
Software development ............       83,900     4.3         52,500      3.6            0.7
Depreciation and amortization ...       47,700     2.4         26,600      1.8            0.6

     Expenses ...................   $1,530,800    77.8%    $1,107,500     75.6%           2.2%
                                    ==========   =====      =========    =====           ====
</TABLE>

     The  decrease  in  gross  margin  and the  increase  in  marketing  expense
accounted for an increase in total expenses of 6.8% as a percentage of total net
revenues.  There was an approximate 4.9% decrease of general and  administrative
expenses in the second  quarter  ended June 30, 1996 from the same period  ended
June 30, 1995. All other areas of expenses remained relatively stable.

     Income taxes remained consistent between the respective three month periods
at the expected combined federal and state statutory rate of approximately  38%,
resulting  in net income of $270,500 or $.08 per share on  3,418,500  shares for
the second quarter ended June 30, 1996, as compared to net income of $223,700 or
$.06 per share on 3,442,250 shares for the second quarter ended June 30, 1996.
  
Comparison of six months ended June 30, 1996 and June 30, 1995

     Net revenues  increased from $2,776,600 for the six month period ended June
30,  1995,  to  $3,620,100  for  the  comparable  six  month  period  in 1996 or
approximately  30.4%.  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, 1996          June 30, 1995        Percent of
                                                --------------------   --------------------      Increase
                                                Revenues     % total    Revenues    % total     (Decrease)
                                                --------     -------    --------    -------     ----------
<S>                                            <C>            <C>      <C>             <C>         <C>   
Products:
   Workers' compensation histories .........   $  610,200     16.9%    $  631,800      22.8%       (3.4)%
   Criminal history reports ................   $1,868,700     51.6%    $1,293,600      46.6%       44.5%
   Previous employment reports/credit report   $  398,900     11.0%    $  214,000       7.7%       86.4%
   Motor vehicle driving records ...........   $  448,100     12.4%    $  381,200      13.7%       17.5%
   Other products ..........................   $  256,100      7.0%    $  122,800       4.4%      208.5%

Interest income ............................   $  161,000      4.5%    $  176,800       6.4%       (8.9)%

     NET REVENEUS ..........................   $3,620,100              $2,776,600                  30.4%
                                                =========               =========                  ====
</TABLE>

                                       8
<PAGE>

     Moderate  to  strong  grwoth  in  sales  of all of the  Company's  products
continued  during the first six months of 1996 with the  exception  of  workers'
compensation reports. Although sales of workers' compensation histories actually
decreased  approximately  3.4% from the six month  period ended June 30, 1995 to
the same six month period in 1996, it is still the second  largest  product line
representing  $610,200  for six  months of 1996 and  $631,800  for six months of
1995. The Company believes that sales of this product will gradually increase as
the  Company  enters new  markets,  continues  to educate  customers,  continues
workers'  compensation  marketing  campaigns,  and locates new data sources, but
will continue to decrease as a percentage of total revenues.  Very strong growth
of   approximately   44.5%  continued  in  the  Criminal  History  product  line
representing  approximately  51.6% of net revenues in the first six month period
of 1996 as  compared  to  approximately  46.6% of net  revenues in the first six
month period of 1995.  There was an approximate  86.4% growth from the six month
period  ended June 30, 1995 to the six month  period  ended June 30, 1996 in the
area of Previous Employment/Credit. These products represent approximately 11.0%
of net  revenues  in  the  six  months  ended  June  30,  1996  as  compared  to
approximately 7.7% of net revenues in the same period in 1995.

     Income before income taxes  increased from $704,100 in the six month period
ended June 30, 1995 to $744,800 in the six month  period  ended June 30, 1996 or
approximately  5.8% and represented  approximately  20.6% of net revenues in the
first six months of 1996 compared to approximately 25.4% in the first six months
of 1995.

     Total  expenses  increased  from  $2,072,500 for the six month period ended
June 30, 1995, to $2,875,300 for the  comparable  period in 1996. A breakdown in
expenses is as follows:

<TABLE>
<CAPTION>
                                        Six Months Ended        Six Months Ended
                                          June 30, 1996           June 30, 1995      Increase(Decrease)
                                     ----------------------  ----------------------     of Revenues
                                     Expenses  % of Revenue  Expense   % of Revenue    1996 over 1995
                                     --------  ------------  -------   ------------  -----------------
<S>                                 <C>             <C>     <C>            <C>              <C> 
Search and product ..............   $1,492,400      41.2%   $1,047,200      37.7            3.5%
Marketing .......................      610,100      16.9       363,500      13.1            3.8
General and administration ......      515,400      14.2       494,100      17.8           (3.6)
Software development ............      176,900       4.9       113,900       4.1            0.8
Depreciation and amortization ...       80,500       2.2        53,800       1.9            0.3

     Expenses ...................   $2,875,300      79.4%   $2,072,500      74.6%           4.8%
                                     =========     =====     =========     =====           ====
</TABLE>

     The  decrease  in gross  margin  and the  increase  in  marketing  expenses
accounted for an increase in total expenses of 7.3% as a percentage of total net
revenues.  There was an approximate 3.6% decrease of general and  administrative
expenses in the six month  period ended June 30, 1996 from the same period ended
June 30, 1995. Other areas of expenses remained relatively stable.

     Income taxes remained  consistent  between the respective six month periods
at the expected combined federal and state statutory rate of approximately  38%,
resulting  in net income of $461,500 or $.13 per share on  3,427,800  shares for
the six months  ended June 30,  1996,  as  compared to net income of $440,800 or
$.13 per share on 3,442,250 shares for the six months ended June 30, 1995.

                                       9
<PAGE>

Liquidity and Capital Resources

     The  Company's  financial  position at June 30, 1996  remained  strong with
working capital at that date of $6,138,300 compared to $6,426,900 at December 31
1995. Cash and cash equivalents at June 30, 1996 were $73,800 and decreased from
$159,700 at December 31, 1995.  Net cash  provided from  operations  for the six
month period ended June 30, 1996 was  $201,900  and  consisted  primarily of net
income of $461,500,  a $330,800 increase in accounts  receivable,  and a $97,000
decrease in accounts  payble.  The Company had capital  expenditures of $720,100
for the six month  period  ended June 30, 1996 as  compared to $387,400  for the
year ended  December 31, 1995. The majority of the capital  expenditures  during
the six  months  ended  June 30,  1996 was  attributable  to the final  phase of
construction and purchase of assets for an approximate 14,600 square feet office
building for use as its  headquarters.  The total  construction  costs were $1.2
million.   Construction  was  financed  by  available  cash  derived  from  past
operations.  No proceeds from the IPO was used for the land or the  construction
of the building.  Completion was March, 1996. In addition, computer hardware and
software  development  costs were incurred  during the first six month period of
1996.

                           PART II - OTHER INFORMATION
                                     
ITEM 1.   Legal Proceedings

          NONE


                                       10
<PAGE>

ITEM 4.   Submission of Matters to a Vote of Security Holders.

     The Company held an annual  meeting of  sharesholders  on May 16, 1996. The
following table sets forth certain  information  relating to each of the matters
voted upon at the meeting.

          Matters Voted Upon      For       Against   Withheld/    Broker
                                                      Abstain      Non-Votes
          _________________       ___       _______   _________    _________


1)  Election of Directors:

         Dean A. Suposs         2,231,466              96,207
         Michael D. DeWitt      2,231,426              96,247
         D. Michael Vaughan     2,231,466              96,207
         Stephen C. Fienhold    2,231,466              96,207
         Stephen D. Joyce       2,231,426              96,247


2)  Ratification of the 
    appointment of Hein +
    Associates LLP as 
    independent auditors 
    for fiscal 1996             2,173,694    88,095    65,884


ITEM 6.   Exhibits and Reports on Form 8-K

          (a)     None

          (b)     Reports on Form 8-K

     The  registrant  filed the following  reports on Form 8-K during the second
quarter, 1996:

          (i)   Form 8-K  dated  April  4,  1996   announcing  the  addition  of
     independent sales representatives

          (ii)  Form 8-K dated June 3, 1996 announcing increased product revenue
     growth for first two months of second quarter, 1996

          (iii) Form  8-K dated  June 24,  1996, reporting  the  hiring of Jerry
     thurber as Director of Information Technology

          (iv)  Form 8-K dated July 1, 1996, announcing  the new  Avertadvantage
     Program and price increase, and,

          (v)  Form 8-K dated July 23, 1996,  announcing  second quarter and six
     month period results


                                       11

<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:         April 14, 1997            BY: /s/ Dean A. Suposs
                                            ------------------------------
                                        Dean A. Suposs, President


DATE:         April 14, 1997            BY:  /s/ Jamie M.Burgat
                                             -----------------------------
                                        Jamie M. Burgat, Vice President of
                                        Operations and Chief Financial
                                        Officer


                                       12