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

                                   Form 10-QSB


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

For the quarterly period ended March 31, 1999

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______________to_______________

Commission file number     0-21489         

                      International Dispensing Corporation
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


             Delaware                                            13-3856324
 -------------------------------                            -------------------
 (State of other jurisdiction of                               (IRS Employer 
 incorporation or organization)                             Identification No.)

          2500 Westchester Avenue, Suite 304, Purchase, New York 10577
          ------------------------------------------------------------
                    (Address of principal executive offices)

                                 (914) 251-0336
                           ---------------------------
                           (Issuer's telephone number)

                                 Not applicable
              ----------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

Check  whether  the  issuer  (1) filed all  reports to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter  period
that the  registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days.
Yes [X]    No  [ ] 

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes or common
equity, as of the latest  practicable date:  9,566,668 shares of Common Stock as
of May 7, 1999

Transitional Small Business Disclosure Format (Check One): Yes [ ]    No [X]


<PAGE>


                      International Dispensing Corporation
                          (A Development Stage Company)


                                Table of Contents



Part I - FINANCIAL INFORMATION
                                                                     
Item 1.  Financial Statements                                        Page Number

         Balance Sheets at March 31, 1999 (unaudited)                     3
         and December 31, 1998

         Statements of Operations for the Three Months                    4
         Ended March 31, 1999 and 1998 and for the Period from
         Inception (October 10, 1995) through March 31, 1999

         Statements of Cash Flows for the Three Months Ended              5
         March 31, 1999 and 1998 and for the Period from Inception
         (October 10, 1995) through March 31, 1999

         Notes to Financial Statements                                    6

Item 2.  Management's Discussion and Analysis of Financial                7
         Condition and Results of Operations

Part II - OTHER INFORMATION                                               11


                                       2

<PAGE>

                      INTERNATIONAL DISPENSING CORPORATION
                          (A Development Stage Company)

                                  BALANCE SHEET


                                                      March 31,     December 31,
                                                         1999           1998
                                                     (unaudited)
                                                     -----------    -----------
Assets
Current Assets:
Cash and cash equivalents  .......................   $ 1,040,269    $ 1,270,527
Prepaid expenses .................................        50,540         43,545
                                                     -----------    -----------
                              Total current assets     1,090,809      1,314,072
Fixed Assets:
Office equipment .................................         7,469          3,480
Automobile .......................................        21,919         21,919
Accumulated depreciation and amortization ........       (10,114)        (8,314)
                                                     -----------    -----------
                                  Net fixed assets        19,274         17,085
Other Assets .....................................        30,035         30,033
                                                     -----------    -----------
                                      Total Assets   $ 1,140,118    $ 1,361,190
                                                     ===========    ===========

Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable .................................        42,112         19,791
Accrued expenses .................................        42,366         72,506
                                                     -----------    -----------
Total current liabilities ........................        84,478         92,297
                                                     -----------    -----------
                                 Total liabilities        84,478         92,297
Commitments & Contingencies
Stockholders' Equity:
Preferred stock, $.001 par value; ................          --             --
2,000,000 shares authorized, no
shares issued or outstanding
Common stock, $.001 par value; ...................         9,567          9,567
40,000,000 shares authorized;
9,566,668 issued and outstanding
as of December 31, 1998 and March 31,
1999 respectively
Additional paid-in capital .......................     9,895,286      9,895,286
Deficit accumulated during .......................    (8,849,213)    (8,635,960)
development stage
                                                     -----------    -----------
                        Total stockholders' equity     1,055,640      1,268,893
                                                     -----------    -----------
        Total liabilities and stockholders' equity   $ 1,140,118    $ 1,361,190
                                                     ===========    ===========




    The accompanying notes are an integral part of these financial statements


                                       3

<PAGE>

<TABLE>
<CAPTION>

                                                       STATEMENT OF OPERATIONS

                                                                                                                        Cumulative
                                                                                                                     from Inception
                                                                                  Three Months ended                October 10, 1995
                                                                        -------------------------------------             through
                                                                        March 31, 1999         March 31, 1998         March 31, 1999
                                                                          -----------            -----------            -----------
                                                                          (unaudited)            (unaudited)            (unaudited)
<S>                                                                       <C>                    <C>                    <C>         
Operating Expenses
  General and adminstrative ...................................               275,971                301,326              4,105,211
  Depreciation and amortization ...............................                 1,800                  1,500                 18,256
                                                                          -----------            -----------            -----------
    Total operating expenses ..................................               277,771                302,826              4,123,467
                                                                          -----------            -----------            -----------
        Loss from operations ..................................              (277,771)              (302,826)            (4,123,467)

Other income (expense)
  Interest expense ............................................                  --                     --                  (66,665)
  Interest income .............................................                13,871                 34,784                384,199
  Miscellaneous income ........................................                50,647                   --                   50,647
                                                                          -----------            -----------            -----------
     Net loss before extraordinary loss
         and discontinued operations ..........................           ($  213,253)           ($  268,042)           ($3,755,286)

Extraordinary loss on retirement debt .........................                  --                     --                 (250,000)

Loss from discontinued operation ..............................                  --                   19,872               (843,927)
                                                                          -----------            -----------            -----------
          Net loss ............................................           ($  213,253)           ($  248,170)           ($4,849,213)
                                                                          ===========            ===========            ===========

Basic and diluted loss per share ..............................           ($     0.02)           ($     0.03)

Basic and diluted weighted average
shares outstanding ............................................             9,566,668              9,566,668

</TABLE>




    The accompanying notes are an integral part of these financial statements


                                       4

<PAGE>


<TABLE>
<CAPTION>

                                                INTERNATIONAL DISPENSING CORPORATION
                                                    (A Development Stage Company)

                                                       STATEMENT OF CASH FLOWS

                                                                                                                         Cumulative
                                                                                                                      from Inception
                                                                                Three months        Three Months    October 10, 1995
                                                                                   ended               ended              through
                                                                              March 31, 1999      March 31, 1998      March 31, 1999
                                                                                (unaudited)         (unaudited)          (unaudited)
                                                                                -----------         -----------         ----------- 

<S>                                                                             <C>                 <C>                 <C>         
Cash flows from operating activities:
Net loss ...............................................................        $  (213,253)        $  (248,170)        $(4,849,213)
Adjustment for (income) loss from discontinued operations ..............               --               (19,872)            843,927
                                                                                -----------         -----------         ----------- 
Net loss from continuing operations
                                                                                   (213,253)           (268,042)         (4,005,286)
Adjustments to reconcile net loss to
net cash used in operating activities-
  Depreciation and amortization ........................................              1,800               1,500              18,254
  Compensation from stock grant ........................................               --                  --                25,279
  Non-cash compensation ................................................               --                  --                76,238
  Loss on retirement of debt ...........................................               --                  --               250,000
  Changes in operating assets and liabilities:
    Increase in accounts receivable ....................................               --               (66,076)               --
    (Increase) decrease in prepaid expenses ............................             (6,995)             17,000             (50,540)
    Increase in other assets ...........................................                 (2)           (389,272)            (24,235)
    Increase (decrease) in accrued expenses ............................            (30,140)             (5,544)             17,087
    Increase in accounts payable .......................................             22,321               8,107              42,112
                                                                                -----------         -----------         ----------- 
Net cash used in continuing operating activities: ......................           (226,269)           (702,327)         (3,651,091)
Net cash provided by (used in) discontinued operations: ................               --                19,872            (843,927)
Net cash used by operating activities: .................................           (226,269)           (682,455)         (4,495,018)

Cash flows from operating activities:
    Purchase of fixed assets ...........................................             (3,989)               --               (37,528)
    Purchase of license ................................................               --                  --            (4,000,000)
                                                                                -----------         -----------         ----------- 
Net cash used in investing activities                                                (3,989)               --            (4,037,528)

Cash flows from financing activities:
    Proceeds from private placement ....................................               --                  --             2,100,000
    Proceeds from issuance of convertible debt .........................               --                  --               150,000
    Repayment of promissory note .......................................               --                  --              (300,000)
    Repayment of bridge loans ..........................................               --                  --            (1,050,000)
    Repayment of convertible debt ......................................               --                  --              (100,000)
    Proceeds from initial public offering ..............................               --                  --             8,772,815
                                                                                -----------         -----------         ----------- 
Net cash provided from financing activities ............................               --                  --           $ 9,572,815
                                                                                -----------         -----------         ----------- 
Net increase (decrease) in cash and cash equivalents ...................           (230,258)           (682,455)          1,040,269
Cash and cash equivalents, beginning of period .........................          1,270,527           3,138,204                --
                                                                                -----------         -----------         ----------- 
Cash and cash equivalents,end of period ................................        $ 1,040,269         $ 2,455,749         $ 1,040,269
                                                                                ===========         ===========         =========== 
Supplemental disclosure of cash flow information:
    Cash paid for interest .............................................               --                  --           $    66,665
Non-cash investing and financing activities:
    Issuance of common stock ...........................................               --                  --           $     5,800
    Purchase of license from affiliate .................................               --                  --           $ 4,000,000


</TABLE>




    The accompanying notes are an integral part of these financial statements


                                       5

<PAGE>


                      INTERNATIONAL DISPENSING CORPORATION
                          (A Development Stage Company)

                        NOTES TO THE FINANCIAL STATEMENTS
              (Information as of and for the period ended March 31,
                               1999 is unaudited)


1.   THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

     The balance sheet as of March 31, 1999 and  statements  of  operations  and
statements  of cash flows for the three months then ended have been  prepared by
International  Dispensing Corporation (the "Company") without audit. The results
should be read in conjunction  with the audited  financial  statements and notes
thereto  included  in the  Company's  Annual  Report on Form 10-KSB for the year
ended December 31, 1998. Results of operations for the three month period is not
necessarily  indicative  of the  operating  results  for the full year.  Interim
statements are prepared on a basis consistent with year end statements.

     In the opinion of management,  the unaudited interim  financial  statements
furnished  herein include all adjustments  necessary for a fair  presentation of
the results of operations of the Company.  All such  adjustments are of a normal
recurring nature.

2.   GOING CONCERN

     The Company's  development stage activities have resulted in an accumulated
deficit from inception to March 31, 1999, in excess of $8.8 million (including a
discontinued  operation  in China of  $844,000,  see Note  3),  and  losses  are
continuing.  Since its inception, the Company has not generated any revenue. The
Company's  primary source of funds since inception has been from the sale of its
common  stock.  Consequently,  there is doubt  about the  Company's  ability  to
continue  as a going  concern.  Management  is  attempting  to raise  additional
capital through a private placement of securities to provide funding to allow it
to continue development of its licensed technology. Notwithstanding, the Company
believes  that with the  completion  of the  production  injection  mold per its
Gravity Feed Valve  Assembly,  scheduled  for the third quarter of 1999, it will
generate sales revenue in the fourth quarter of 1999.

3.   DISCONTINUED OPERATIONS

     On December 23, 1997,  the Company  entered into an agreement with Well Men
Industrial  Company Limited,  a Hong Kong registered  corporation  ("Well Men"),
pursuant to which Well Men granted to the Company an  exclusive  right to market
and sell in China  certain  Well Men  products.  Well Men also  assigned  to the
Company for the purpose of commercializing  such Well Men products,  all of Well
Men's patents and patent  applications  relating to such Well Men products.  The
agreement  was for an  initial  term of ten  years.  The  Company  had  opened a
representative  office in China to promote the sales of Well Men products and to
establish the name of the Company.  The Company incurred  cumulative expenses of
approximately   $844,000   related  to  the  opening  and   maintaining  of  the
representative  office in China,  merchandise  shipped to China, and general and
administrative expenses. 


                                       6

<PAGE>


     In December  1998,  Well Men  materially  breached its  agreement  with the
Company by selling Well Men water heaters  directly in China. In addition,  Well
Men had  refused to pay for any of the  products  provided to it. As a result of
this breach and the  Company's  inability  to obtain  payment from Well Men, the
Company  discontinued  this  operation  and  wrote-off  all related  receivables
resulting  in a loss of  $719,000  in 1998.  In the first  quarter of 1998,  the
Company's results of operations have been classified as discontinued operations.

     It is the Company's  intent to pursue payment of  reimbursement of expenses
incurred in the Company's China undertaking from Well Men.


ITEM 2
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

     The Company  was  incorporated  in Delaware in October  1995 under the name
ReSeal Food  Dispensing  Systems,  Inc.  and  changed its name to  International
Dispensing  Corporation on September 12, 1996. The Company was formed  primarily
for the  purpose  of  commercializing  and  marketing  certain  proprietary  and
patented delivery and dispensing technologies (the "Technologies") licensed from
ReSeal International  Corporation ("RIC"), which Technologies consist of barrier
oriented,  closed delivery and dispensing  systems (the "Systems")  composed of:
(i)   self-adjusting   reservoir   bodies,   (ii)  patented,   barrier  capable,
unidirectional  flow  valves (the "Valve  Assemblies"),  and (iii) as  required,
mechanisms to activate and facilitate the product  delivery and flow  functions.
When  utilized in  dispensing  flowable  food and beverage  products  like milk,
juice,  wine,  etc., the Systems are designed to maintain the sterility,  purity
and freshness of such products  throughout its use life, with the possibility of
eliminating or reducing the need for adding preservatives to the product to keep
it fresh  and/or  refrigeration  throughout  its use  life.  The  self-adjusting
reservoir  body of a System is designed to shrink in proportion to the amount of
the product being dispensed through the Valve Assembly. The Valve Assemblies are
designed to dispense a product without  letting either air or contaminants  flow
back into the internal  reservoir in which the  remaining  product is held.  The
Company  believes that by maintaining  the purity of the product that remains in
the  container,  the  Systems  will  provide  higher  levels  of  freshness  for
significantly  longer periods of time and, if preservatives are eliminated,  the
level of purity, of a wide array of packaged flowable products.

     The  Company  is  primarily  focusing  its  marketing   activities  on  the
application of the licensed  technologies in the Field of Use (as defined below)
as set forth in that certain Amended and Restated License Agreement, between the
Company and RIC, which  encompasses the food and beverage  industries as broadly
defined.  "Field Of Use" means the use of the  Technology to make,  use,  lease,
sell or distribute (a) any food or beverage dispensers or containers that embody
the Technology or the  manufacture,  use,  lease,  sale or distribution of which
uses  the  Technology  (collectively  the  "Product")  intended  for  use  in an
industrial  or  commercial  place  of  business  in the  preparation  of food or
beverage at such place of business,  (b) any food or beverage  Product  intended
for  use  in an  industrial  or  commercial  place  of  business  by a  customer
purchasing  food or beverage at such place of business for consumption on or off
the  premises of such place of  business,  or (c) any food or  beverage  Product
intended to be sold to or by food or beverage


                                       7

<PAGE>


wholesale price discounters, retailers and similar establishments that sell food
or beverage  to  consumers.  Within such  categories,  the  applications  of the
licensed  technologies  can be  divided  into a  number  of  potential  markets,
including  but not  limited  to the  following:  (i)  beverages,  which  include
milk/cream,  coffee, tea (hot and cold), hot chocolate, juices, sweeteners, baby
formula,  baby food (in puree form),  wines and water; (ii) foods, which include
soups, liquid eggs, liquid butter, sauces, yogurt, melted cheese (nachos),  baby
foods and hot  toppings in liquid  form;  and (iii)  condiments,  which  include
ketchup, barbecue sauce, mayonnaise, salad dressing, oils and mustard.

     The prototype tooling for production of prototype Valve Assemblies has been
completed.  Initial  prototype Valve Assemblies have been produced and subjected
to independent  laboratory  testing.  Such laboratory testing is continuing.  In
addition,  the Company has supplied specific  prototype Systems to customers for
consumer  testing.  Additional  customers  will also be supplied with  prototype
systems.

     On November 10, 1997, the Company entered into a Joint Systems  Development
Agreement with Packaging Systems,  L.L.C., the parent company of Rapak, Inc. The
resulting  products of this  strategic  alliance will be Bag-in-Box  with unique
Valve/Pump  Technology food and beverage  delivery systems that will be marketed
to the food and beverage industries throughout the United States.

     On December 23, 1997,  the Company  entered into an agreement with Well Men
Industrial  Company Limited,  a Hong Kong registered  corporation  ("Well Men"),
pursuant to which Well Men granted to the Company an  exclusive  right to market
and sell in China  certain  Well Men  products.  Well Men also  assigned  to the
Company for the purpose of commercializing  such Well Men products,  all of Well
Men's patents and patent  applications  relating to such Well Men products.  The
agreement  is for an  initial  term of ten  years.  The  Company  has  opened  a
representative  office in China to promote  the sales of these  products  and to
establish the name of the Company. Operations commenced in March, 1998.

     In 1998 the Company received two orders for Well Men products in China. The
first  order was for  2,750  water  heaters  and  11,000  pitchers,  which  were
delivered to China in April  pursuant to a  Sale/Purchase  Contract  between the
Company  and  Guangdon  Rixin  Industrial  Development  Corporation,  a  Chinese
Government authorized  Importer/Exporter  ("Rixin"). The Company incurred a cost
of $217,250  for these goods and  recorded  revenues of $332,750 for the sale to
Rixin.  The  second  order  was for 5,000  water  heaters  placed in August  for
delivery to China by December 31, 1998. The $275,000 cost of these units and the
related  sales  revenue of $375,000 was  reflected as an account  payable and an
account receivable, respectively. In December of 1998, Rixin canceled the second
order. Rixin has yet to make payment on the first order.

     In December of 1998,  Well Men  materially  breached its agreement with the
Company by selling Well Men water heaters directly in China. As a result of this
breach,  the Company has  discontinued  its operations in China, and has taken a
charge in the fourth quarter of 1998 of $718,926 representing costs and expenses
incurred  by the  Company  in its  China  venture,  and has fully  reversed  the
$332,750 due from Rixin in the fourth quarter 1998 as well.


                                       8

<PAGE>


     The Company intends to pursue payment of the $332,750 receivable from Rixin
as well as  reimbursement  from Well Men of expenses  incurred by the Company in
its China venture.


                              RESULT OF OPERATIONS

Three Months Ended March 31, 1999 Compared to Three Months Ended March 31, 1998
-------------------------------------------------------------------------------

     Revenue - The Company has not generated any revenue since its inception.

     Operating Expenses - For the three months ended March 31, 1999, the Company
had  operating  expenses of  $277,771,  which  included  $78,419 in research and
development  related  expenses,  versus  operating  expenses of $302,826 for the
three month period ended March 31, 1998. This decrease of $25,055,  or 8.3% over
the  comparable  period  last year is due  primarily  to a  reduction  in travel
expenses  and a reduction in payroll  cost as the result of the  termination  of
employment of one employee.

     Net Loss - For the three months ended March 31, 1999, the Company had a net
loss of $213,253  versus a net loss of $248,170 for the three months ended March
31, 1998.  This  decrease in net loss of $34,917,  or 14.1% over the  comparable
period last year, is due primarily to the reduction in operating expenses.

     The Company has reported a net loss from  operations  of $ 4,849,213  since
inception.

                               FINANCIAL CONDITION

     As  reflected  in the  financial  statements,  the Company has  experienced
continuing net losses and negative cash flows from operations  through March 31,
1999. The Company's ability to continue as a going concern is dependent upon its
ability to obtain  additional  financing and to produce and market its products.
As of March 31, 1999, the Company had liquid assets of $1,040,269.

     In a private  placement  concluded in February 1996,  the Company  obtained
aggregate  capital  of  $2,250,000  through  the  issuance  by  the  Company  of
convertible notes, options and the sale of Common Stock.

     In October 1996, the Company sold, in an initial public  offering,  833,334
Units,  each Unit  consisting  of two shares of Common Stock and two  redeemable
Class A purchase  warrants for $12.00 per Unit. Each warrant entitles the holder
to purchase  one share of the  Company's  Common Stock for $7.00 during the four
year period  commencing  October 3, 1997.  The  warrants are  redeemable  by the
Company at $.05 per warrant any time after October 3, 1997 if certain conditions
are met.  The net  proceeds,  which  the  Company  received  from the  offering,
amounted to approximately $8.8 million.


                                       9

<PAGE>


     As of March 31, 1999, the Company had working capital of $1,006,331. During
the  first  quarter  of Fiscal  1999,  the  Company  was  spending  at a rate of
approximately  $92,500  per  month.  The  Company  expects  that  such rate will
increase to approximately  $130,000 per month commencing in the third quarter of
Fiscal 1999.  Such increase will be primarily due to the Company's  leasing of a
production  mold for the  production  of the Valve  Assemblies.  Therefore,  the
Company  expects  that  it  will  require  additional  capital  to  finance  its
operations after the third quarter of Fiscal 1999.

     The  Company  is seeking a minimum of $1.5  million  in  financing.  If the
Company  is not  able  to  obtain  additional  funds  on  terms  and  conditions
satisfactory  to the  Company,  the Company will have to scale back its research
and development activities.


                                       10

<PAGE>


PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
                 None

Item 2.  Changes in Securities and Use of Proceeds
                 None

Item 3.  Defaults Upon Senior Securities
                 None

Item 4.  Submission of Matters to a Vote of Security Holders
                 None

Item 5.  Other Information
                 None

Item 6.  Exhibits and Reports on Form 8-K
                 (a)  Exhibit 27 - Financial Data Schedule
                 (b)  No  reports  on Forms 8-K  have been filed for the quarter
                      for which this report is being filed.


                                       11

<PAGE>


                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                           INTERNATIONAL DISPENSING
                                                CORPORATION



Date: May 13, 1999                         /s/ Gary Allanson
                                           -------------------------------------
                                           Gary Allanson
                                           Chief Executive Officer & President
                                            (Principal Executive Officer)




Date: May 13, 1999                         /s/ Jeffrey D. Lewenthal
                                           -------------------------------------
                                           Jeffrey D. Lewenthal
                                           Chief Financial Officer and Treasurer
                                            (Principal Accounting and Financial
                                             Officer)





                                       12