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 June 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
incorporation or organization)                             Identification No.)


              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 August 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 June 30, 1997 (unaudited)
         and December 31, 1996                                                 2

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

         Statements of Cash Flows
         For the Six Months Ended June 30, 1997 and for the
         Period from inception (October 10, 1995) through June 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
                                                                                                      December 31,         June 30,
                                                                                                             1996             1997
                                                                                                                        (unaudited)
                                                                                                       -----------      -----------
ASSETS

<S>                                                                                                    <C>              <C>        
Current Assets:
         Cash and cash equivalents ...............................................................     $ 4,268,963      $ 3,796,791
         Miscellaneous receivable ................................................................            --             29,709
         Prepaid expense .........................................................................          95,833           78,409
                                                                                                       -----------      -----------
                  Total current assets ...........................................................       4,364,796        3,904,909

Fixed Assets:
         Leasehold improvements ..................................................................           7,270            7,270
         Office equipment ........................................................................           4,350            4,350
         Auto ....................................................................................            --             21,920
         Accumulated depreciation and amortization ...............................................          (2,044)          (2,486)
                                                                                                       -----------      -----------

                  Net fixed assets ...............................................................           9,576           31,054
Other assets .....................................................................................          95,761           95,761
                                                                                                                        -----------

                  Total assets ...................................................................     $ 4,470,133      $ 4,031,724
                                                                                                       ===========      ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Accrued expenses ........................................................................     $   117,759      $    19,338
                                                                                                                        -----------
                  Total current liabilities ......................................................         117,759           19,338
                                                                                                                        -----------
                  Total liabilities ..............................................................         117,759           19,338

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;  20,000,000 shares authorized; 9,566,668 issued and
         outstanding  as of  December 31, 1996 and June 30, 1997, respectively ...................           9,567            9,567
         Additional paid-in capital ..............................................................       9,895,286        9,895,286
         Deficit accumulated during the development stage ........................................      (5,552,479)      (5,892,467)
                                                                                                       -----------      -----------

                  Total stockholders' equity .....................................................       4,352,374        4,012,386
                                                                                                       -----------      -----------

                  Total liabilities and stockholders' equity .....................................     $ 4,470,133      $ 4,031,724
                                                                                                       ===========      ===========


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            Six Months       (October 10, 1995)
                                                                             Ended                 Ended                  through
                                                                            June 30,              June 30,                June 30,
                                                                              1997                  1997                    1997
                                                                           -----------           -----------            -----------
                                                                          (unaudited)            (unaudited)             (unaudited)

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

Costs and expenses:
         General and administrative ...........................               258,537                438,533              1,722,372
         Depreciation and amortization ........................                   221                    442                  2,486
                                                                           -----------           -----------            -----------

                  Total costs and expenses ....................               258,758                438,975              1,724,858

Loss from operations ..........................................               258,758                438,975              1,724,858
         Interest expense .....................................                  --                     --                   66,665
         Interest income ......................................               (49,880)               (98,987)              (149,055)
                                                                          -----------            -----------            -----------

Net loss before extraordinary loss ............................           $   208,878            $   339,988            $ 1,642,468
Extraordinary loss on retirement of debt ......................                  --                     --                  250,000
                                                                          -----------            -----------            -----------

Net loss ......................................................           $   208,878            $   339,988            $ 1,892,468
                                                                          ===========            ===========            ===========

Net loss per share ............................................           $     (0.02)
Weighted average shares outstanding ...........................             9,533,333



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

                                                                                                                      For the Period
                                                                                                                      from Inception
                                                                                                 Six Months       (October 10, 1995)
                                                                                                    Ended                through
                                                                                                   June 30,              June 30,
                                                                                                     1997                  1997
                                                                                                 -----------            -----------
                                                                                                 (unaudited)            (unaudited)

<S>                                                                                              <C>                    <C>         
Cash flows from operating activities:
     Net Loss ........................................................................           $  (339,988)           $(1,892,468)
         Adjustments to reconcile net loss to net cash used in
         operating activities;
           Depreciation and amortization .............................................                   442                  2,486
           Non-cash compensation .....................................................                  --                   76,238
           Loss on retirement of debt ................................................                  --                  250,000
           Changes in operating assets and liabilities;
               Increase in miscellaneous receivable ..................................               (29,709)               (29,709)
               Increase (decrease) in prepaid expenses ...............................                17,424                (78,409)
               Increase in other assets ..............................................                  --                  (89,960)
               Increase (decrease) in accrued expenses ...............................               (98,421)                19,338
                                                                                                 -----------            -----------

Net cash used in operating activities ................................................              (450,252)            (1,742,484)
                                                                                                 -----------            -----------

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, ................................              (472,172)             3,796,791
Cash and cash equivalents, beginning of period .......................................             4,268,963                      0
                                                                                                 -----------            -----------

Cash and cash equivalents, end of period .............................................           $ 3,796,791            $ 3,796,791
                                                                                                 ===========            ===========

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 June 30, 1997 and statements of operations
and  statements  of cash flows for the six 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 six 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, 1998 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 is  undertaking  the formation of strategic  alliances
and/or direct license/supply  agreements with major food and beverage companies,
as well as applicable equipment/bag-in-box  manufacturers,  currently generating
substantial  revenues from their existing  markets.  It is further intended that
these  relationships will include  co-development of new products in tandem with
the production of new dispensing  systems which  incorporate  the  Technologies.
Upon successful  consummation of a strategic  alliance or direct  license/supply
relationship,  of which there can be no  assurance,  the  customer or  strategic
partner will utilize the  Technologies in conjunction with products that have an
existing market share, as well as the System associated with the introduction of
new products.



<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 multicavity  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 $ 1,892,468
since inception.

Financial Condition

              As  reflected  in  the  financial  statements,   the  Company  has
experienced  continuing  net losses and negative  cash flows from  operations at
June 30, 1997. The Company's continuing existence is dependent on its ability to
maintain profitable  operations.  The Company continues to be in the development
stage and does not foresee  operating revenue until the fourth quarter of fiscal
year ending  December  31,  1997.  As of June 30,  1997,  the Company had liquid
assets of $3,796,791.

              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, 1998 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: August 14, 1997              /s/ Jon D. Silverman
                                   ---------------------
                                   Jon D. Silverman
                                   Chairman of the Board, Chief Executive
                                   Officer & President
                                   (Principal Executive Officer)



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