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, 1997


[ ]   TRANSITION  REPORT UNDER SECTION 13 OR 15(d)
      OF  THE  EXCHANGE  ACT  For  the  transition
      period from __________to________
      Commission file number__________________________


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



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



              342 Madison Avenue, Suite 1034, New York, N.Y. 10173
              ----------------------------------------------------
                    (Address of principal executive offices)



                                 (212) 682-2244
                                 --------------
                           (Issuer's telephone number)



                                      None
                                      ----
              (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 November 12, 1997

Transitional Small Business Disclosure Format (Check One): Yes [ ]  No [X]
SEC 2334 (3/94)

<PAGE>



                      International Dispensing Corporation


                                Table of Contents



Part I - FINANCIAL INFORMATION                                          Page No.


Item 1.  Balance Sheet at September 30, 1997 (unaudited)
          and December 31, 1996 ..........................................   2

         Statements of Operations for the Nine Months
          Ended September 30, 1997 and for the period from inception
          (October 10, 1995) through September 30, 1997 ..................   3

         Statements of Cash Flows
          For the Nine Months Ended September 30, 1997 and for the
          Period from inception (October 10, 1995)
          through September 30, 1997 .....................................   4

         Notes to Financial Statements ...................................   5


Item 2.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations ............................   6

Part II - OTHER INFORMATION ..............................................   8


<PAGE>

<TABLE>
<CAPTION>


                      INTERNATIONAL DISPENSING CORPORATION
                          (A Development Stage Company)

                                 BALANCE SHEETS
                                                                                                        September 30,
                                                                                          December 31,           1997
                                                                                                  1996    (unaudited)
                                                                                           -----------    -----------
<S>                                                                                        <C>            <C>        
ASSETS

Current Assets:
         Cash and cash equivalents .....................................................   $ 4,268,963    $ 3,537,056
         Miscellaneous receivable ......................................................          --           97,154
         Prepaid expense ...............................................................        95,833         69,697
                                                                                           -----------    -----------
                           Total current assets ........................................     4,364,796      3,703,907

Fixed Assets:
         Leasehold improvements ........................................................         7,270          7,270
         Office equipment ..............................................................         4,350          4,350
         Auto ..........................................................................          --           21,920
         Accumulated depreciation and amortization .....................................        (2,044)        (2,707)
                                                                                           -----------    -----------

                           Net fixed assets ............................................         9,576         30,833
Other assets ...........................................................................        95,761         95,761
                                                                                           -----------    -----------

                           Total assets ................................................   $ 4,470,133    $ 3,830,501
                                                                                           ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Accrued expenses ..............................................................   $   117,759    $    20,743
                                                                                           -----------    -----------
                           Total current liabilities ...................................       117,759         20,743
                                                                                           -----------    -----------
                           Total liabilities ...........................................       117,759         20,743

Commitments and contingencies

Stockholders' Equity:
         Preferred Stock, $.001 par value; 2,000,000 shares authorized; no shares ......          --             --
         issued or outstanding
         Common Stock $.001 par value; 40,000,000 shares authorized; 9,566,668 .........         9,567          9,567
         issued and outstanding as of December 31, 1996 and September 30, 1997,
         respectively
         Additional paid-in capital ....................................................     9,895,286      9,895,286
         Deficit accumulated during the development stage ..............................    (5,552,479)    (6,095,095)
                                                                                           -----------    -----------

                           Total stockholders' equity ..................................     4,352,374      3,809,758
                                                                                           -----------    -----------

                           Total liabilities and stockholders' equity ..................   $ 4,470,133    $ 3,830,501
                                                                                           ===========    ===========

The accompanying notes are an integral part of these financial statements

</TABLE>


<PAGE>

<TABLE>
<CAPTION>


                      INTERNATIONAL DISPENSING CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF OPERATIONS



                                                                                                                         Cumulative
                                                                                                                     from Inception
                                                                             Three Months          Nine Months    (October 10, 1995)
                                                                                    Ended                Ended              through
                                                                            September 30,         September 30,       September 30,
                                                                                     1997                 1997                 1997
                                                                              (unaudited)          (unaudited)          (unaudited)
                                                                              -----------          -----------          -----------

<S>                                                                               <C>                  <C>                <C>      
Revenues                                                                      $     ---            $     ---            $     ---

Costs and expenses:
         General and administrative .................................             250,845              689.378            1,973,217
         Depreciation and amortization ..............................                 221                  663                2,707
                                                                              -----------          -----------          -----------

                           Total costs and expenses .................             251,066              690,041            1,975,924

Loss from operations ................................................             251,066              690,041            1,975,924
         Interest expense ...........................................                --                   --                 66,665
         Interest income ............................................             (48,438)            (147,425)            (197,493)
                                                                              -----------          -----------          -----------

Net loss before extraordinary loss ..................................         $   202,628          $   542,616          $ 1,845,096
Extraordinary loss on retirement of debt ............................                --                   --                250,000
                                                                              -----------          -----------          -----------

Net loss ............................................................         $   202,628          $   542,616          $ 2,095,096
                                                                              ===========          ===========          ===========

Net loss per share ..................................................         $     (0.02)         $     (0.06)
Weighted average shares outstanding .................................           9,566,668            9,566,668



The accompanying notes are an integral part of these financial statements

</TABLE>


<PAGE>

<TABLE>
<CAPTION>


                      INTERNATIONAL DISPENSING CORPORATION
                          (A Development Stage Company)

                            STATEMENTS OF CASH FLOWS

                                                                                                                         Cumulative
                                                                                                                     from Inception
                                                                                                 Nine Months      October 10, 1995)
                                                                                                       Ended                through
                                                                                                September 30,         September 30,
                                                                                                        1997                   1997
                                                                                                 -----------            -----------
                                                                                                 (unaudited)            (unaudited)

<S>                                                                                              <C>                    <C>         
Cash flows from operating activities:
     Net Loss ........................................................................           $  (542,616)           $(2,095,096)
         Adjustments to reconcile net loss to net cash used in
         operating activities;
           Depreciation and amortization .............................................                   663                  2,707
           Non-cash compensation .....................................................                  --                   76,238
           Loss on retirement of debt ................................................                  --                  250,000
           Changes in operating assets and liabilities;
               Increase in miscellaneous receivable ..................................               (97,154)               (97,154)
               (Increase) decrease in prepaid expenses ...............................                26,136                (69,697)
               Increase in other assets ..............................................                  --                  (89,960)
               Increase (decrease) in accrued expenses ...............................               (97,016)                20,743
                                                                                                 -----------            -----------

Net cash used in operating activities ................................................              (709,987)            (2,002,219)
                                                                                                 -----------            -----------

Cash flows from investing activities:
     Purchase of fixed assets ........................................................               (21,920)               (33,540)
     Purchase of license .............................................................                  --               (4,000,000)
                                                                                                 -----------            -----------

Net cash used in investing activities ................................................               (21,920)            (4,033,540)

Cash flows from financing activities:
     Proceeds from private placement .................................................                  --                2,100,000
     Proceeds from issuance of convertible debt ......................................                  --                  150,000
     Repayment of promissory notes ...................................................                  --                 (300,000)
     Repayment of bridge loans .......................................................                  --               (1,050,000)
     Repayment of convertible debt ...................................................                  --                 (100,000)
     Proceeds from initial public offerring ..........................................                  --                8,772,815
                                                                                                 -----------            -----------

Net cash provided from financing activities ..........................................                  --                9,572,815
                                                                                                 -----------            -----------

Net increase (decrease) in cash and cash equivalents, ................................              (731,907)             3,537,056
Cash and cash equivalents, beginning of period .......................................             4,268,963                      0
                                                                                                 -----------            -----------

Cash and cash equivalents, end of period .............................................           $ 3,537,056            $ 3,537,056
                                                                                                 ===========            ===========

Supplemental disclosure of cash flow information:
     Cash paid for interest ..........................................................                  --                   66,665
     Cash paid for taxes .............................................................                  --                     --

Non-cash investing and financing activities:
     Issuance of common stock ........................................................                  --              $     5,800
     Purchase of license from affiliate ..............................................                  --              $ 4,000,000


The accompanying notes are an integral part of these financial statements

</TABLE>


<PAGE>



                      INTERNATIONAL DISPENSING CORPORATION
                          (A Development Stage Company)

                        NOTES TO THE FINANCIAL STATEMENTS
              (Information as of and for the period ended June 30,
                               1997 is unaudited)


1.       THE COMPANY AND SIGNIFICANT ACCOUNTING POLICIES

         The balance sheet as of September 30, 1997 and statements of operations
and  statements  of cash flows for the nine months  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,  1996.  Results of  operations  for the nine and three month
periods 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,  except  for  the  extraordinary  loss  on
retirement of debt.

2.       INITIAL PUBLIC OFFERING

         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 for 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.

3.       RECENTLY ISSUED ACCOUNTING STANDARDS

         In February,  1997,  the Financial  Accounting  Standards  Board issued
Statement of Financial  Accounting  Standards (FSAS) No. 128, Earning Per Share.
This statement  establishes  standards for computing and presenting  earning per
share (EPS), replacing the presentation of currently required primary EPS with a
presentation  of Basic EPS. For entities with complex  capital  structures,  the
statement  requires the dual  presentation  of both Basic EPS and Diluted EPS on
the face of the statement of operations.  Under this new standard,  Basic EPS is
computed based on weighted average shares outstanding and excludes any potential
dilution;   Diluted  EPS  reflects  potential  dilution  from  the  exercise  or
conversion  of  securities  into common  stock or from other  contracts to issue
common stock and is similar to the  currently  required  fully diluted EPS. SFAS
No. 128 is effective  for  financial  statements  issued for periods ended after
December 15, 1997,  including  interim periods,  and earlier  application is not
permitted.  When  adopted,  the Company will be required to restate its EPS data
for all prior periods  presented.  The company does not expect the impact of the
adoption of this statement to be material to previously reported EPS amounts.



<PAGE>


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 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  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 Company has entered into a strategic  alliance on November 10, 1997
with Packaging Systems,  L.L.C., the parent company of Rapak, Inc. The resulting
products of this alliance,  Joint Systems Development Agreement,  are 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.



<PAGE>


                       MANAGEMENT DISCUSSION AND ANALYSIS
                OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
                                   (continued)

         The  Company  has  solicited  bid  quotations   from  three   different
suppliers,  for the fabrication of multi-cavity molds for the manufacture of its
Gravity Feed Valve.  Simultaneously,  quotations for the manufacture of a single
cavity mold have been received.  On July 21, 1997 a Purchase Order was issued to
WEPCO  Plastics,  Inc. for the  production of a single  cavity mold.  The single
cavity mold will allow for the  manufacture  of  prototype  Gravity Feed Valves,
providing refinement capabilities for large production runs.

RESULT OF OPERATIONS

         The  Company  has  not  generated  any  revenues  to date  and  must be
considered  in the  development  stage.  The  activities  of the  Company  since
inception in October 1995 have been primarily directed at formational activities
including the completion of initial capitalization.

         In addition,  the Company has engaged in on-going marketing discussions
with a number of potential strategic alliance partners,  licensees and end users
of the Technologies.  In this regard, discussions have been conducted with major
companies  in  Canada,  Europe,  Australia  and the  United  States  to  explore
opportunities in the product categories.

         The  Company  has  reported a net loss from  operations  of $ 2,095,096
since inception.

FINANCIAL CONDITION

         As reflected in the financial  statements,  the Company has experienced
continuing net losses and negative cash flows from operations  through September
30,  1997.  The  Company's  continuing  existence is dependent on its ability to
attain  profitable  operations.  The Company  continues to be in the development
stage and does not foresee  operating  revenue until the first quarter of fiscal
year ending  December 31, 1998. As of September 30, 1997, the Company had liquid
assets of $3,537,056.

         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.

         The Company does not foresee needing to raise  additional  funds in the
next 12 months.


<PAGE>



PART II - OTHER INFORMATION

Item 1.  Legal Proceedings
 
             None

Item 2.  Changes in Securities

             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.


<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: November 14, 1997            /s/ Jon D. Silverman
                                  --------------------------------
                                  Jon D. Silverman
                                  Chairman of the Board, Chief Executive
                                  Officer & President
                                  (Principal Executive Officer)



Date: November 14, 1997           /s/ Jeffrey D. Lewenthal
                                  --------------------------------
                                  Jeffrey D. Lewenthal
                                  Chief Financial Officer and Treasurer
                                  (Principal Accounting and Financial
                                   Officer)