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 September 30, 1999

                                       OR

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

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

                         Commission File Number: 0-23952

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

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

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

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

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

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

                                [X] Yes    [ ] No

As of November 2, 1999 the issuer had 3,294,325  shares of Common Stock,  no par
value, outstanding.


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

<PAGE>

Form 10-QSB
Quarter Ended September 30, 1999


                                      INDEX


                                                                            PAGE
                                                                            ----
PART I - FINANCIAL INFORMATION

     ITEM 1.  Financial statements

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

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

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

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

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


PART II - OTHER INFORMATION

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


     Signatures.............................................................  13











                                       2


<PAGE>

                         PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>

                                        AVERT, INC.
                                      BALANCE SHEETS

                                          ASSETS

                                                                      SEPTEMBER 30,    DECEMBER 31,
                                                                           1999          1998
                                                                      -----------      ------------
                                                                       (unaudited)
<S>                                                                    <C>           <C>
Current assets:
         Cash and cash equivalents .................................   $ 1,098,000   $   531,000
         Marketable securities .....................................     6,242,000     6,006,000
         Accounts receivable, net of allowance .....................     1,685,000     1,061,000
         Prepaid expenses and other ................................       155,000       172,000
                                                                       -----------   -----------
                  Total current assets .............................   $ 9,180,000     7,770,000


Property and equipment, net ........................................     2,963,000     3,138,000
Other assets .......................................................         1,000             0
                                                                       -----------   -----------
Total assets .......................................................   $12,144,000   $10,908,000
                                                                       ===========   ===========

                           LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
         Accounts payable ..........................................   $   481,000   $   297,000

         Accrued expenses ..........................................       386,000       119,000

         Deferred revenue ..........................................        40,000         5,000
                                                                       -----------   -----------
                  Total current liabilities ........................       907,000       421,000

         Deferred Taxes ............................................       476,000       476,000
                                                                       -----------   -----------
                  Total liabilities ................................   $ 1,383,000   $   897,000

Shareholders' equity:
         Preferred shares, no par value; authorized
           1,000,000 shares; none outstanding ......................          --            --
         Common stock, no par value; authorized
           9,000,000 shares; 3,310,525 shares issued
           and outstanding .........................................     4,386,000     4,462,000
         Retained earnings .........................................     6,375,000     5,549,000
                                                                       -----------   -----------
                  Total shareholders' equity .......................   $10,761,000   $10,011,000
                                                                       -----------   -----------

Total liabilities and shareholders' equity .........................   $12,144,000   $10,908,000
                                                                       ===========   ===========
</TABLE>

               See accompanying notes to the financial statements.


                                        3

<PAGE>

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

                                               Three Months Ended            Nine Months Ended
                                                  September 30,                September 30,
                                               1999          1998           1999           1998
                                               ----          ----           ----           ----
<S>                                      <C>            <C>            <C>            <C>
Net revenues:
         Search and product fees .....   $ 3,382,700    $ 2,504,600    $ 8,695,200    $ 7,126,800
         Interest and other income ...        83,200         85,600        240,100        253,400
                                         -----------    -----------    -----------    -----------

                                           3,465,900      2,590,200    $ 8,935,300    $ 7,380,200
Expenses:
         Search and product costs ....     1,519,700      1,269,400      3,926,300      3,540,700
         Marketing ...................       315,000        414,500        974,700      1,153,700
         General and administrative ..       409,900        346,000      1,148,800      1,043,400
         Software development ........       134,600        169,200        373,000        420,100
         Depreciation and amortization       162,500        150,900        461,000        412,100
                                         -----------    -----------    -----------    -----------

                                           2,541,700      2,350,000    $ 6,883,800    $ 6,570,000
                                         -----------    -----------    -----------    -----------

Income before income taxes ...........       924,200        240,200    $ 2,051,500        810,200

         Income tax expense ..........      (363,000)       (93,400)      (805,800)      (317,500)
                                         -----------    -----------    -----------    -----------

Net income ...........................   $   561,200    $   146,800    $ 1,245,700    $   492,700
                                         ===========    ===========    ===========    ===========
Net income per common share ..........   $       .17    $       .04    $       .37    $       .14
                                         ===========    ===========    ===========    ===========
Weighted average common
         shares outstanding ..........     3,320,715      3,444,924      3,322,247      3,454,001
                                         ===========    ===========    ===========    ===========
</TABLE>




               See accompanying notes to the financial statements.



                                        4

<PAGE>

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


                         NINE MONTHS ENDED SEPTEMBER 30,
                                                                 1999           1998
                                                                 ----           ----

Cash Flows From Operating Activities:
<S>                                                         <C>            <C>
    Net income ..........................................   $ 1,245,700    $   345,800
    Adjustments to reconcile net income to net cash
      provided by operating activities:
         Depreciation and amortization ..................       461,000        261,200
         Bad debt expense ...............................        55,600         13,100
         Increase/(decrease) in marketable securities and
                  other gains ...........................      (235,600)      (162,300)
         Changes in operating assets and liabilities:
              Accounts receivable .......................      (679,300)      (283,200)
              Prepaid expenses and other current assets .        16,400         12,500
              Accounts payable ..........................       185,000        180,100
              Accrued expenses ..........................       186,000        (52,800)
              Income taxes payable ......................        80,500        (40,000)
              Deferred revenue and deposits .............        34,900          3,100
                                                            -----------    -----------
         Net cash provided by operating activities ......   $ 1,350,200    $   277,500

Cash Flows from Investing Activities:
     Additions to furniture and equipment ...............      (286,500)      (319,200)
     Proceeds from sale of furniture and equipment ......          --             --
                                                            -----------    -----------
           Net cash provided by investing activities ....      (286,500)      (319,200)
                                                            -----------    -----------

Cash Flows from Financing Activities:
         Purchase of Treasury Stock .....................       (87,200)      (171,200)
         Exercising of Options ..........................        10,500           --
         Dividends declared .............................      (419,300)      (349,400)
                                                            -----------    -----------
           Net cash provided by financing activities ....      (496,000)      (520,600)


Increase/(Decrease) in Cash and Cash Equivalents ........       567,700       (562,300)

Cash and Cash Equivalents, beginning of period ..........       530,600        580,000
                                                            -----------    -----------
Cash and Cash Equivalents, end of period ................   $ 1,098,300    $    17,700
                                                            ===========    ===========
</TABLE>

               See accompanying notes to the financial statements.


                                       5


<PAGE>

                                   AVERT, INC.

                          NOTES TO FINANCIAL STATEMENTS


     The financial information  contained herein is unaudited,  but includes all
adjustments (consisting of only normal recurring accruals) which, in the opinion
of management,  are necessary to present fairly the information  set forth.  The
financial  statements  should be read in conjunction with the Notes to Financial
Statements which are included in the Annual Report on Form 10-KSB of the Company
for the year ended December 31, 1998.

     The results for interim periods are not  necessarily  indicative of results
to be expected for the fiscal year of the Company ending  December 31, 1999. The
Company   believes  that  the  three  month  report  filed  on  Form  10-QSB  is
representative of its financial position, its results of operations and its cash
flows as of and for the  periods  ended  September  30,  1999  and 1998  covered
thereby.

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

New  Pronouncement.  SFAS No. 133,  "Accounting  for Derivative  Instruments and
Hedging  Activities,"  was  issued  in June  1998.  This  statement  establishes
accounting and reporting  standards for derivative  instruments  and for hedging
activities.  It requires  that an entity  recognize  all  derivatives  as either
assets or liabilities  in the statement of financial  position and measure those
instruments  at fair  value.  This  statement  is  effective  for the  Company's
financial  statements  for the year ended June 30, 2001 and the adoption of this
standard is not expected to have a material  effect on the  Company's  financial
statements.

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

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

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



                                       6
<PAGE>


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

Results of Operations

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

     Total net revenues  increased from  $2,590,200 for the  three-month  period
ended September 30, 1998, to $3,465,900 for the comparable three-month period in
1999, or approximately  33.8%.  This increase was primarily due to the continued
overall  growth of its customer  base and their  increased  membership  in Avert
programs,  as well as additional  customers  obtained through Avert's  agreement
with Automatic Data Processing (ADP). In total,  Avert added 1,460 new customers
to its customer  base in the  three-month  period ended  September  30, 1999, as
compared to 587 new  customers in the same period of 1998.  This  represents  an
approximate 149% increase. In addition, there were 7,218 customers that actually
utilized Avert services the third three months of 1999, as compared to 5,447 the
third three months of 1998,  representing  approximately a 32.5%  increase.  The
dollars  spent per  customer in the third  quarter  1999 was $476 as compared to
$461 in the third quarter 1998, representing an approximate 3.3% increase.

     As previously  announced,  Avert began its rollout of products and services
during  the third  quarter  of 1999 with  Automatic  Data  Processing,  Emerging
Business  Services  (EBS)  division and Major Account  Division  (MAJORS) of ADP
Employer Services. The focus of this partnership agreement is for ADP's Emerging
Business  Services  division to actively  market Avert services to its customers
utilizing a package format.  This format uses a combination of  cross-referenced
and  cascading   on-line  services  to  provide  ADP's  customers  with  a  very
cost-effective way to help screen employees and reduce their hiring risk. In the
third  quarter  1999,  there were 485 new  customers  added  through EBS channel
(employers of 1-999 employees), and MAJORS channel (employers of 1,000 employees
and up) accounted for 36 new Avert customers.

     It is the  Company's  belief that the  investments  made in a new  computer
system,  implemented in April,  1998, have made it possible to extend our market
by leveraging our fundamental  competencies in process  management,  technology,
and order/delivery  systems.  In addition,  there has been concentrated focus on
processing  improvements to enable more profitable  growth. 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
                                      September 30, 1999         September 30, 1998        Percent of
                                    ----------------------     ------------------------     Increase
                                    Revenues       % total     Revenues         % total    (Decrease)
                                    --------       -------     --------         -------    ----------
<S>                                <C>               <C>       <C>             <C>           <C>
Products:
  Workers compensation histories   $  230,900        6.7%      $  253,200      9.8%          (8.8)%
  Criminal history reports         $1,954,500       56.4%      $1,461,000     56.4%          33.8%
  Reference Check reports/         $  394,600       11.4%      $  298,100     11.5%          32.4%
     Credit reports
  Motor vehicle driving records    $  411,600       11.9%      $  243,100      9.4%          69.3%
  Other products                   $  168,400        4.9%      $   91,700      3.5%          83.6%
Services:                          $  289,900        8.4%      $  160,300      6.2%          80.1%

Interest income                    $   83,000        2.4%      $   80,300      3.1%           3.3%

         NET REVENUES              $3,465,900                  $2,590,200                    33.8%

</TABLE>



                                       7
<PAGE>


     The largest single product growth of approximately  69.3% occurred in Motor
Vehicle Driving records. This product line accounted for approximately  $411,600
or  approximately  11.9% of total net revenues in the  three-month  period ended
September  30, 1999, as compared to  approximately  $243,100 or 9.4% in the same
three-month period of 1998. Internal enhancements specific to this product line,
improving  turnaround  time were  implemented in first quarter 1999,  positively
impacting  the  customer  base in their  quest  for  quicker  hiring  decisions.
Enhanced automated features made possible by the new computer system implemented
in second  quarter  1998,  currently  being  piloted  by several  customers  has
increased the usage of this product.

     The Criminal History product line experienced growth of approximately 33.8%
in  third  quarter  1999  over  third  quarter  1998.  The  product  contributed
$1,954,500  to total net  revenues  in the third  quarter  1999,  as compared to
$1,461,000 to total net revenues in the third quarter 1998. The Company believes
there  continues  to be a  nationwide  trend  to  check  prospective  employees'
criminal  records and it continues to have as a key  initiative,  obtaining  the
quickest, most accurate data available.

     There  was  an  increase  as  a   percentage   of  total  net  revenues  of
approximately  83.6% in "Other  Products",  representing  $168,400  in the third
three-month period of 1999, and $91,700 in the third three-month period of 1998.
This increase was primarily due to a new product  called  Instant  Address Link,
just  introduced in first quarter  1999.  This product  accounted for $52,800 in
third  quarter  1999.  Through its links with the service  bureaus  this product
offers an address  locator  service that  identifies up to three known addresses
for an applicant, based on social security number usage. Customers can match the
findings of the report with information provided by the applicant. Additionally,
Instant  Address  Link can be used to "build" a  ready-to-go  order for criminal
records  searches that match the addresses  identified.  Customers can order the
criminal records on-line with just a click of the mouse.

     There was revenue growth of  approximately  32.4% generated in the areas of
education/credential  verification  and credit  reports,  which  increased  from
$394,600 in the third quarter of 1998 to $298,100 in the third quarter of 1999.

     Workers' compensation histories continued to decline as a percentage of net
revenues as previously  predicted.  In third quarter, 1999 workers' compensation
reports,  represented  $230,900 or approximately 6.7% of total net revenues,  as
compared to $253,200 for the third three months of 1999, or  approximately  9.8%
of total net  revenues.  The Company  believes it will continue to decrease as a
percentage of total net revenues.

     Service sales experienced  approximately 80.1% revenue growth from $160,300
in  the  three-month  period  ended  September  30,  1998,  to  $289,900  in the
three-month  period  ended  September  30,  1999.  This  increase  is  primarily
attributable to growth of the customer base membership and  corresponding  setup
fees,  as well as their  membership in the Avert  Advantage and Avert  Advantage
On-line programs, and subscription fee model associated with the ADP partnership
mentioned above.

     Income before income taxes  increased  from $240,200 in third quarter 1998,
to  $924,200  in third  quarter  1999 or  approximately  285.8% and  represented
approximately  9.3% in 1998,  as compared to  approximately  26.7% in 1999.  The
Company  believes  that  decreases in all expenses  areas was a direct result of
decreased  head count,  and increased  internal  efficiencies  and capacity made
possible by the new computer system implemented in April 1998.


                                       8
<PAGE>

     Total  expenses,  when  expressed  as a percentage  of total net  revenues,
decreased  from  approximately  90.7% in the third  three-month  period of 1998,
representing  $2,350,000 to approximately  73.3% in the third three-month period
of 1999, representing $2,541,700. A breakdown in expenses is as follows:
<TABLE>
<CAPTION>
                                      Three Months Ended         Three Months Ended            Increase (Decrease)
                                      September 30, 1999         September 30, 1998               % of Revenues
                                      ------------------         ------------------            ------------------
                                    Expenses    % of Revenue   Expenses    % of Revenue           1999 over 1998
                                    --------    ------------   --------    ------------        -----------------
<S>                                <C>              <C>        <C>             <C>                     <C>
Search and product                 $ 1,519,700      43.8%      $ 1,269,400     49.0%                   (5.2)%
Marketing                              315,000       9.1           414,500     16.0                    (6.9)
General and administration             409,900      11.8           346,000     13.4                    (1.6)
Software development                   134,600       3.9           169,200      6.5                    (2.6)
Depreciation and amortization          162,500       4.7           150,900      5.8                    (1.1)
                                    ----------     -----        ----------    -----                   -----

         Expenses                  $ 2,541,700      73.3%      $ 2,350,000     90.7%                  (17.4)%
                                     =========     =====        ==========    =====                   =====
</TABLE>

     Search and product fees decreased approximately 5.2% as a percentage of net
revenues in the third quarter 1999 over the third quarter 1998.  The majority of
the decrease was attributable to the improved automation of the Company's supply
chain,  specifically  decreasing costs of obtaining criminal history information
from sources. Despite the level of increased product growth mentioned above, the
Company was able to decrease head count in the operations  area of 7.7 full-time
equivalents,  or approximately  23%, in third quarter 1999, as compared to third
quarter 1998. This was also due to improved internal  efficiencies brought about
by the new computer system.

     There  was an  approximate  6.9%  decrease  as a  percentage  of total  net
revenues  in  marketing  expenses,  in the third  three-month  period of 1999 as
compared to the same period 1998. This resulted primarily from a decrease of 2.6
full-time  equivalents,  or  approximately  17%,  as  well  as  decreased  costs
associated  with  lead  generation  activities,  in the  third  quarter  1999 as
compared to the third  quarter  1998.  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 and distribution  partnerships.  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. Examples of distribution  partnerships  include Automated Data
Processing, WebHire and Employee Information Services.

     General  and  Administrative  expenses  decreased  approximately  1.6% as a
percentage  of total net revenues in the third three months ended  September 30,
1999,  representing  approximately  11.8%, as compared to the third three months
ended September 30, 1998 representing  13.4% of total net revenues.  There was a
decrease of 1 full-time  equivalent  from third  quarter 1999 over third quarter
1998, as well as reduced expenditures for temporary personnel.

     There was a decrease  in  software  development  and  maintenance  expenses
expressed as a percentage of total net revenues to  approximately  3.9% in third
quarter  1999 from  approximately  6.5% in the  comparable  period of 1998.  The
primary  reason for the  reduction of expenses is the decrease in third  quarter
1999 of  expenditures  associated  with  outside  consultants  required  for the
computer system implementation in April 1998.


                                       9


<PAGE>


     There  was a  decrease  in  depreciation  and  amortization  expenses  when
expressed as a percentage of total net revenues,  from approximately 5.8% in the
third three months of 1998, to  approximately  4.7% in the comparable  period of
1999.  This  decrease was  primarily  due to the decrease of  depreciation  as a
result of the sale of an automobile.

     Income  taxes  for the  combined  federal  and  state  statutory  rate  was
approximately  39.2% in third quarter period of 1999 and 38.9% in same period of
1998.  The  result  was net income of  $561,200  or $.17 per share on  3,320,715
shares  (weighted  average shares plus common stock  equivalents)  for the third
three months ended  September 30, 1999, as compared to net income of $146,800 or
$.04 per share on 3,444,924  shares  (weighted  average shares plus common stock
equivalents)  for the third three months ended September 30, 1998. The increased
net income  generated in third  quarter 1999  represented  an  approximate  282%
increase over the net income generated in third quarter 1998.

Comparison of nine months ended September 30, 1999 and September 30, 1998

     Net revenues  increased from  $7,380,200  for the  nine-month  period ended
September 30, 1998, to $8,935,300 for the comparable  nine-month  period in 1999
or  approximately  21.1%.  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, 1999               September 30, 1998         Percent of
                                       -----------------------          ------------------------      Increase
                                       Revenues        % total          Revenues         % total     (Decrease)
                                       --------        -------          --------         -------     ----------
<S>                                    <C>               <C>         <C>                <C>            <C>
Products:
  Workers compensation histories       $   660,500       7.4         $    746,100       10.1%          (11.5)%
  Criminal history reports             $ 5,074,200      56.8%        $  4,038,500       54.7%           25.6%
  Reference Check reports/             $   930,900      10.4%        $    882,000       12.0%            5.5%
     Credit reports
  Motor vehicle driving records        $ 1,039,700      11.6%        $    750,200       10.2%           38.6%
  Other products                       $   439,800       4.9%        $    307,200        4.2%           43.2%
Services:                              $   661,500       7.4%        $    409,100        5.5%           61.7%

Interest income                        $   232,300       2.6%        $    245,100        3.3%           (5.2)%

         NET REVENUES                  $ 8,935,300                   $  7,380,200                       21.1%
</TABLE>

     The largest single product line growth of approximately  38.6%,  during the
first nine months of 1999 over the first nine months of 1998,  was Motor vehicle
driving records. It represented  approximately  11.6% of total net revenues,  or
$1,039,700 in the first nine months of 1999, as compared to approximately  10.2%
of total net revenues, or $750,200 in the first nine months of 1998.

     The  Criminal  History  product  line   experienced   continued  growth  of
approximately  25.6%  in the  nine-month  period  ended  September  30,  1999 as
compared to the nine-month  period ended September 30, 1998. It has increased as
a percentage  of total net revenues from  approximately  54.7% in the first nine
months of 1998,  representing  $4,038,500,  to  approximately  56.8% in the same
period of 1999, representing $5,074,200.

     Workers' compensation reports continued its downward trend, decreasing from
$746,100 in revenues  for the  nine-month  period  ended  September  30, 1998 to
$660,500 in revenues for the  nine-month  period ended  September 30, 1999.  The
regulation  requirements  of  this  product  have  made it  less  viable  in the
marketplace.

                                       10


<PAGE>


     The Services  category  increased as a percentage  of total net revenues by
approximately  61.7% when  comparing  the first nine months of 1999 to the first
nine months of 1998. The increase resulted  primarily from increased  membership
in  Avert  Advantage  and  Avert  Advantage  On-line  programs,  along  with the
subscription  fee model  associated  with the ADP partnership  mentioned  above.
Partner  relationships  have  continued  to be a focus  of  Avert  in  1999,  as
evidenced by the recent  announcements  of ADP joint  venture  relationship  and
national rollout.

     The category of "Other  Products"  experienced an increase of approximately
43.2% of total net revenues in the first nine months ended September 30, 1999 as
compared to the first nine months ended  September  30, 1998.  This increase was
primarily a result of the new product  Instant  Address Link introduced in first
quarter 1999 which is an address  locator  service that  identifies  up to three
known addresses for an applicant,  based on social security number usage.  These
addresses can be used by customers to "build"  criminal  history orders in those
geographical areas.

     Income before income taxes increased from $810,200 in the nine-month period
ended September 30, 1998 to $2,051,500 in the nine-month  period ended September
30, 1999 or approximately  153.2%.  This represented  approximately 11.0% of net
revenues in the first nine months of 1998 compared to approximately 23.0% in the
first nine months of 1999.

     Total expenses  increased from  $6,570,000 for the nine-month  period ended
September 30, 1998 to $6,883,800 for the comparable  period in 1999. A breakdown
in expenses is as follows:
<TABLE>
<CAPTION>

                                     Nine Months Ended                   Nine Months Ended                 Increase (Decrease)
                                     September 30, 1999                  September 30, 1998                   % of Revenues
                                 --------------------------          ---------------------------           ------------------
                                 Expenses      % of Revenue          Expense        % of Revenue             1998 over 1997
                                 --------      ------------          -------        ------------             --------------
<S>                             <C>             <C>                 <C>               <C>                     <C>
Search and product              $ 3,926,300       43.9%             $ 3,540,700         48.0%                   (4.1)%
Marketing                           974,700       10.9                1,153,700         15.6                    (4.7)
General and administration        1,148,800       12.8                1,043,400         14.1                    (1.3)
Software development                373,000        4.2                  420,100          5.7                    (1.5)
Depreciation and amortization       461,000        5.2                  412,100          5.6                    (0.4)
                                -----------      ------              -----------       -----                   -----


         Expenses               $ 6,883,800       77.0%             $ 6,570,000         89.0%                  (12.0)%
                                ===========      =====               ==========        =====                   =====
</TABLE>

     Total expenses decreased  approximately  12.0% as a percentage of total net
revenues  in the  first  nine-month  period  of 1999 as  compared  to the  first
nine-month  period  of 1998.  One of the  primary  decreases  was in the area of
Search and Products costs, which decreased as a result of increased efficiencies
and decreased head count directly enabled by the new computer system implemented
in second quarter 1998.  The other primary area in which expenses  decreased was
Marketing,  which  resulted  from a decrease in head count and costs  associated
with lead generation activities.

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

     Income taxes for the combined  federal and state statutory rate remained at
approximately 39% in both the first nine months of 1998 and 1999. The result was
an increase of net income of approximately 97.9%,  representing $492,700 or $.14
per share on 3,454,401  shares for the nine months ended  September 30, 1998, as
compared to $1,245,700 or $.37 per share on 3,322,247 shares for the nine months
ended September 30, 1999.

                                       11


<PAGE>


Liquidity and Capital Resources

     The Company's financial position at September 30, 1999 remained strong with
working  capital at that date of  $8,273,000  compared to $7,349,000 at December
31,1998.  Cash and cash  equivalents and marketable  securities at September 30,
1999 were  $7,340,000  and increased  from  $6,537,000 at December 31, 1998. Net
cash provided from operations for the nine-month period ended September 30, 1999
was $1,350,200 and consisted  primarily of net income of $1,245,700,  a $679,300
increase in accounts  receivable,  and a $186,000  increase in accrued expenses.
The Company had capital expenditures of $286,500 for the nine-month period ended
September 30, 1999 as compared to $319,200 at December 31, 1998. The majority of
the capital  expenditures  during the nine months ended  September 30, 1999 were
attributable to the development of new software and upgrade of existing hardware
for the ADP joint marketing venture and ongoing  enhancements.  Net cash used in
financing  activities  for the  nine-month  period ended  September 30, 1999 was
$496,000 and  consisted  primarily  of a cash  dividend of $.12 per common share
payable on March 24, 1999 to  shareholders  of record on March 15, 1999, as well
as $87,200 utilized to repurchase Company stock.


                           PART II - OTHER INFORMATION

ITEM 1.   Legal Proceedings

          NONE


ITEM 6.   Exhibits and Reports on Form 8-K

               (a)  2nd Quarter 1999 Results

               (b)  Additional  Funds  Approved for Repurchase of Shares in Open
                    Market

               (c)  Avert,  Inc.  addes  Major  Account  Division  to its  Joint
                    Marketing Agreement with ADP for Pre- Employment Screening

               (d)  Avert,  Inc.  Selected by CIO  Magazine  as Top  Web-Based
                    Business





















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<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: November 12, 1999                BY:/s/ Dean A. Suposs
                                          --------------------------------------
                                          Dean A. Suposs, President



DATE: November 12, 1999                BY:/s/ Jamie M. Burgat
                                          --------------------------------------
                                          Jamie M. Burgat, Vice President of
                                          Operations and Chief Financial Officer





























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