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 September 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 November 11, 1996 the issuer had 3,400,000 shares of Common Stock, no
 par value, outstanding
 
              Transitional Small Business Disclosure Format.
                    [  ]  Yes     [X]   No
<PAGE>

 Form 10-QSB
 Quarter Ended September 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
                                     
                                                  SEPTEMBER 30,     DECEMBER 31,
                                                      1996              1995
                                                   (unaudited)
                                                  ------------      -----------
<S>                                                 <C>             <C>      
Current assets:
     Cash and cash equivalents..................    $ 243,500       $ 159,700
     Marketable securities......................    5,500,400       5,966,500
     Accounts receivable, net of allowance......    1,002,900         607,900
     Prepaid expenses and other.................      150,400         240,600
                                                   ----------       ---------
          Total current assets..................  $ 6,897,200       6,974,700

Property and equipment, net.....................    2,136,000       1,389,100
Other assets....................................       16,200          19,400
                                                   ----------       ---------
Total assets....................................  $ 9,049,400    $  8,383,200
                                                  ===========      ==========

                      LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
     Accounts payable...........................   $  359,500    $    407,900
     Accrued expenses...........................      170,000          81,300
     Deferred revenue...........................       53,000          58,600
                                                   ----------       ---------
          Total current liabilities.............      582,500         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..............................    (168,200)           ---
     Retained earnings...........................   3,674,500       2,874,800
                                                   ----------       ---------
          Total shareholders' equity.............   8,466,900       7,835,400

Total liabilities and shareholders' equity....... $ 9,049,400     $ 8,383,200
                                                   ==========      ==========
</TABLE>
                                     
               See accompanying notes to the financial statements.
                                     
                                       3
<PAGE>
                                     
<TABLE>
<CAPTION>
                                   AVERT, INC.
                              STATEMENTS OF INCOME
                                   (unaudited)


                                       Three Months Ended      Nine Months Ended
                                          September  30,          September 30,
                                       ------------------      ------------------
                                         1996        1995       1996         1995
                                         ----        ----       ----         ----
<S>                                  <C>         <C>         <C>         <C>       
Net revenues:
     Search and product fees.........$2,054,900  $1,578,000  $5,466,800  $4,158,000
     Interest and other income.......   158,900     106,800     367,100     303,500
                                      ---------   ---------   ---------   ---------
                                      2,213,800   1,684,800   5,833,900   4,461,500
Expenses:
     Search and product costs........   892,700     740,400   2,385,100   1,841,300
     Marketing.......................   374,100     213,900     984,300     578,100
     General and administrative......   259,400     231,300     774,700     670,800
     Software development............    91,500      53,800     268,400     168,000
     Depreciation and amortization...    50,100      26,100     130,600      79,900
                                      ---------   ---------   ---------   ---------                                                
                                      1,667,800   1,265,500   4,543,100   3,338,100

Income before income taxes...........   546,000     419,300   1,290,800   1,123,400

     Income tax expense..............  (207,900)   (159,100)   (491,100)   (422,400)
                                      ---------   ---------   ---------   ---------

Net income...........................$  338,100 $   260,200   $ 799,700   $ 701,000
                                     ==========   =========    ========    ========
Net income per common share..........$      .10 $       .08   $     .23   $     .20
                                     ==========   =========    ========    ========
Weighted average common
     shares outstanding.............. 3,422,797   3,442,250   3,423,893   3,442,250
                                     ==========   =========   =========   =========

</TABLE>


            See accompanying notes to the financial statements.

                                       4
<PAGE>

<TABLE>
<CAPTION>
                                     
                                   AVERT, INC.
                            STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                     
                                                      NINE MONTHS ENDED SEPTEMBER 30,
                                                      ------------------------------
                                                            1996        1995
                                                            ----        ----
<S>                                                      <C>          <C>      
Cash Flows From Operating Activities:
    Net income .......................................   $ 799,700    $ 701,000
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization ...............     130,600       79,900
         Bad debt expense ............................      22,500       21,500
         Increase/(decrease) in marketable securities
          and other gains ............................     (76,600)    (259,400)
         Changes in operating assets and liabilities:
          Accounts receivable.........................    (417,500)    (286,200)
          Prepaid expenses and other current assets ..      90,200      (88,600)
          Other assets ...............................       3,200       11,300
          Accounts payable ...........................     (48,400)     167,200
          Accrued expenses ...........................     (36,900)     (38,600)
          Income taxes payable .......................     125,600     (173,500)
          Deferred revenue and deposits ..............      (5,600)     (25,900)
                                                         ---------    ---------
     Net cash provided by operating activities .......     586,800      108,700

Cash Flows from Investing Activities:
     Additions to furniture and equipment ............    (877,500)    (677,500)
     Sale of marketable securities ...................     542,700         --
                                                         ---------    ---------
     Net cash provided by investing activities .......    (334,800)    (677,500)

Cash Flows from Financing Activities:
     Purchase of Treasury Stock ......................    (168,200)        --
                                                         ---------    ---------
     Net cash provided by financing activities .......    (168,200)        --

Increase/(Decrease) in Cash and Cash Equivalents .....      83,800     (568,800)

Cash and Cash Equivalents, beginning of period .......     159,700      738,300
                                                         ---------    ---------
Cash and Cash Equivalents, end of period .............   $ 243,500    $ 169,500
                                                         =========    =========
</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  September  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 September, 1996 and September 30, 1995

     Net revenues  increased  from  $1,684,800  for the three month period ended
September 30, 1995,to  $2,213,800 for the comparable  three month period in 1996
or 31%. 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
                                                   Septemer 30, 1996         Septemer 30, 1995      Percent of
                                                  -------------------      --------------------      Increase
                                                    Revenues  % total       Revenues    % total     (Decrease)
                                                    --------  -------       --------    -------     ----------
<S>                                                <C>           <C>       <C>            <C>          <C> 
Products:
  Workers compensation histories.... ...........   $  354,600    16.0%     $  350,200     20.8%        1.3%
  Criminal history reports .....................   $1,114,200    50.3%     $  831,800     49.4%       34.0%
  Previous employment reports/credit reports ....  $  246,400    11.1%     $  165,900      9.9%       48.5%
  Motor vehicle driving records ................   $  256,700    11.6%     $  202,300     12.0%       26.9%
  Other products ...............................   $  111,100     5.0%     $   75,300      4.5%      147.5%

Interest income ................................   $   76,700     3.5%     $   93,200      5.5%      (17.7)%

     NET REVENUES ..............................   $2,213,800              $1,684,800                 31.4%
                                                    =========               =========                =====
</TABLE>

     Moderate  to  strong  growth  in  sales  of all of the  Company's  products
continued  during  the third  quarter  of 1996 with the  exception  of  Workers'
Compensation  reports.  Although sales of Workers'  Compensation  histories only
increased  approximately  1.3% from third quarter 1995 to third quarter 1996, it
is still the second largest  product line  respresenting  $354,600 for the third
three months of 1996 and $350,200 for the  comparable  period in 1995.  Sales of
Workers' Compensation  histories are expected to continue to be a viable product
as the Company new markets,  continues to educate customers,  continues workers'
compensation marketing campaigns,  and locates new data sources, but to continue
to decrease as a percentage  of total  revenues.  In terms of dollars,  Criminal
History reports contributed the largest increase in net revenues and represented
strong growth of approximately  34% in the quarter ended September 30, 1995 over
the quarter  ended  September  30,  1996.  The  Criminal  History  product  line
represented  approximately 50.3% of net revenues in the third quarter of 1996 as
compared to  approximately  49% of net  revenues  in the third  quarter of 1995.
There was an  approximate  48% growth from third  quarter 1995 to third  quarter
1996  in the  area  of  Previous  Employment/Credit.  These  products  represent
approximately  11.1% of net revenues in the quarter ended  September 30, 1996 as
compared to approximately 9.9% of net revenues in the same quarter in 1995.

     The category  above titled as "Other  Products"  consists of four products:
Education/Credential Verification, Name Link, Employment Applications, and First
Check. While these products do not represent a material amount of dollars,  they
continue to  experience  strong  growth and  represent  approximately  5% of net
revenues and $111,100 in revenues in the quarter  ended  September  30, 1996, as
compared  to  approximately  4.5% of net  revenue and $75,300 in revenue for the
quarter ended September 30, 1995.

     Income  before  income taxes  increased  from  $419,300 in the period ended
September  30,  1995 to  $546,000  in the period  ended  September  30,  1996 or
approximately  30.2% and represented  approximately 24.7% of net revenues in the
third quarter 1996 compared to approximately 24.9% in the third quarter 1995.


                                       7
<PAGE>

     Total expenses  increased from  $1,265,500 for the three month period ended
September 30, 1995 to $1,667,800 for the comparable  period in 1996. A breakdown
in expenses is as follows:

<TABLE>
<CAPTION>
                                        Three Months Ended      Three Months Ended  
                                        September 30, 1996      September 30, 1995   Increase (Decrease)
                                      ---------------------   ---------------------    % of Revenues
                                      Expense  % of Revenue   Expense  % of Revenue    1995 over 1994
                                      -------  ------------   -------  ------------  ------------------
<S>                                 <C>            <C>       <C>            <C>            <C>   
Search and product ..............   $  892,700     40.3%     $  740,400     43.9%          (3.6)%
Marketing .......................      374,100     16.9         213,900     12.7            4.2%
General and administration ......      259,400     11.7         231,300     13.7            (2.0)%
Software development ............       91,500      4.1          53,800      3.2             0.9%
Depreciation and amortization ....      50,100      2.3          26,100      1.6             0.7%

     Expenses ...................   $1,667,800     75.3%     $1,265,500     75.1%            .20%
                                    ==========     ====      ==========     ====            ====
</TABLE>

     The  expenses  for both third  quarter  periods  in 1996 and 1995  remained
stable as a whole in terms of percentage of revenue.  The Company experienced an
approximate  3.6%  decrease  in product  costs and 2.0%  decrease in general and
administrative  costs.  These decreases were offset by the increase primarily in
marketing expenses.  This increase was primarily  associated with the generation
of new customer leads and the hiring and training of additional  sales personnel
needed for implementation of the Company's nationwide marketing efforts.

     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 $338,100 or $.10 per share on  3,422,800  shares for
the third  quarter  ended  September  30,  1996,  as  compared  to net income of
$260,200  or $.08 per share on  3,442,250  shares  for the third  quarter  ended
September 30, 1996.

Comparison of nine months ended September 30, 1996 and September 30, 1995

     Net  revenues  increased  from  $4,461,500  for the nine month period ended
September 30, 1995, to $5,833,900 for the  comparable  nine month period in 1996
or  approximately  30.8%.  The breakdown of net  revenues,  exclusive of product
discounts and other miscellaneous income items, is as follows:

<TABLE>
<CAPTION>
                                                     Nine Months Ended        Nine Months Ended
                                                    September 30, 1996       September 30, 1995    Percent of
                                                    -------------------     --------------------    Increase
                                                    Revenues    % total     Revenues     % total   (Decrease)
                                                    --------    -------     --------     -------    --------
<S>                                                 <C>           <C>      <C>              <C>        <C>   
Products:
   Workers' compensation histories ..............   $  964,800    16.5%    $  982,000       22.0%      (1.8)%
   Criminal history reports .....................   $2,982,900    51.1%    $2,125,400       47.6%      40.3%
   Previous employment reports/credit report ....   $  645,200    11.1%    $  379,900        8.5%      69.9%
   Motor vehicle driving records ................   $  704,800    12.1%    $  583,500       13.1%      20.8%
   Other products ...............................   $  320,100     5.5%    $  198,100        4.4%     161.6%

Interest income .................................   $  237,700     4.1%    $  270,000        6.1%     (12.0)%

     NET REVENEUS ...............................   $5,833,900             $4,461,500                  30.8%

</TABLE>

                                       8
<PAGE>

     Moderate  to  strong  growth  in  sales  of all of the  Company's  products
continued  during the first nine months of 1996 with the  exception  of Workers'
Compensation reports. Although sales of Workers' Compensation histories actually
decreased approximately 1.8% from the nine month period ended September 30, 1995
to the same nine month period in 1996,  it is still the second  largest  product
line representing  $964,800 for nine months of 1996 and $982,000 for nine months
of 1995. Sales of Workers' Compensation histories are expected to continue to be
a viable  product  as the  Company  enters  new  markets,  continues  to educate
customers,  continues workers' compensation marketing campaigns, and locates new
data  sources,  but to continue to decrease as a percentage  of total  revenues.
Very strong  growth of  approximately  40.3%  continued in the Criminal  History
product line representing  approximately 51.1% of net revenues in the first nine
month period of 1996 as compared to  approximately  47.6% of net revenues in the
first nine month period of1995.  There was an approximate  69.9% growth from the
nine month  period  ended  September  30,  1995 to the nine month  period  ended
September  30, 1996 in the area of Previous  Employment/Credit.  These  products
represent approximately 11.1% of net revenues in the nine months ended September
300, 1996 as compared to  approximately  8.5% of net revenues in the same period
in 1995.

     The category  above labeled  "Other  Products"  consists of four  products:
Education/Credential Verification, Name Link, Employment Applications, and First
Check.  These  products  continue  to  experience  strong  growth and  represent
approximately  5.5% of net  revenues  or  $320,100 in revenues in the nine month
period  ended  September  30,  1996,  as compared to  approximately  4.4% of net
revenues, or $198,100 in the same nine month period in 1995.

     Income  before  income taxes  increased  from  $1,123,400 in the nine month
period ended  September  30, 1995 to  $1,290,800  in the nine month period ended
September 30, 1996 or approximately 14.9% and represented approximately 22.1% of
net revenues in the first nine months of 1996 compared to approximately 25.2% in
the first nine months of 1995.

     Total expenses  increased  from  $3,338,100 for the nine month period ended
September 30, 1995, to $4,543,100 for the comparable period in 1996. A breakdown
in expenses is as follows:

<TABLE>
<CAPTION>
                                    Nine Months Ended            Nine Months Ended
                                    September 30, 1996           September 30, 1995  Increase(Decrease)
                                 -----------------------     -----------------------   % of Revenues
                                 Expenses   % of Revenue     Expense    % of Revenue   1996 over 1995
                                 --------   ------------     -------    ------------  ----------------
<S>                             <C>              <C>        <C>            <C>             <C>   
Search and product ..........   $2,385,100       40.9%      $1,841,300     41.2%           (0.3)%
Marketing ...................      984,300       16.9          578,100     13.0             3.9
General and administration ..      774,700       13.3          670,800     15.0            (1.7)
Software development ........      268,400        4.6          168,000      3.8             0.8
Depreciation and amortization      130,600        2.2           79,900      1.8             0.4

     Expenses ...............   $4,543,100       77.9%      $3,338,100     74.8%            3.1%
                                ==========       ====       ==========     ====             ===
</TABLE>

     The expenses for the nine month period ended  September 30, 1996  increased
approximately  3.1% as a percentage  of revenues over the same nine month period
in  1995.  Additional  marketing  expenses  accounted  for the  majority  of the
increase.  Those  expenses are primarily  associated  with the generation of new
customer leads and the hiring and training of additional  sales personnel needed
for implementation of the Company's  nationwide  marketing efforts.  The Company
experienced   an   approximate   1.7%   decrease  in  product  and  general  and
administrative costs. Other areas of expense remained relatively stable.

     Income taxes remained  consistent between the respective nine month periods
at the expected combined federal and state statutory rate of approximately  38%,
resulting  in net income of $799,700 or $.23 per share on  3,423,900  shares for
the nine months ended  September 30, 1996, as compared to net income of $701,000
or $.20 per share on 3,442,250  shares for the nine months ended  September  30,
1995.

                                       9
<PAGE>

Liquidity and Capital Resources

     The Company's financial position at September 30, 1996 remained strong with
working capital at that date of $6,314,700 compared to $6,426,900 at December 31
1995.  Cash and cash  equivalents  at  September  30,  1996  were  $243,500  and
increased from $159,700 at December 31, 1995. Net cash provided from  operations
for the nine month period ended  September  30, 1996 was $586,800 and  consisted
primarily of net income of $799,700, a $417,000 increase in accounts receivable,
and a $125,600  increase  in income  taxes  payable.  The  Company  had  capital
expenditures  of $877,500 for the nine month period ended  September 30, 1996 as
compared to $387,400 for the year ended  December  31,1995.  The majority of the
capital  expenditures  during  the nine  months  ended  September  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  approximately  $1.2 million.  Construction  was
financed  entirely by available cash derived from past  operations.  No proceeds
from the IPO was used for the  purchase of the land or the  construction  of the
building.  Construction was completed in March, 1996. In addition, Avert has now
internally  committed  to spend up to $1.5  million to develop new  software and
upgrade its existing software.  The Company expects the new software and upgrade
of its existing  sfotware to allow the Company to: (1) manage its higher  volume
with a lower cost per transaction;  (2) introduce new products and services at a
much quicker pace; (3) directly integrate the Company's  information  technology
systems  with  strategic  partners,  suppliers,  and  large  customers;  and (4)
maintain the Company's  competitive  position and provide leading edge, but safe
and  proven,  technology  for its  customers.  Development  and  upgrade  of the
software  will be financed by  available  cash  derived  from past or  continued
operations.  No  proceeds  from  the IPO or  this  offering  will  be  used  for
development of this new software and upgrade of the Company's existing software.
Development  and upgrading of the software  presently is expected to be complete
in late 1997 or early 1998, with scheduled  software releases occurring prior to
that time.


                           PART II - OTHER INFORMATION
                                    
                                     
ITEM 1.   Legal Proceedings


          NONE


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 July 1, 1996 announcing the Avertadvantage Program
     and price increase.

         (ii) Form 8-K  dated July 23, 1996 announcing financial results for the
     second quarter and six month period.

         (iii) Form 8-K dated November 11, 1996 announcing financial results for
     the third quarter and nine month period.

                                       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:         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