UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                            Washington, DC 20549-1004

                                   Form 10-QSB

(Mark One)

[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000

                                       or

[ ] Transition report pursuant to Section 13 or 15(d) of the Securities

                              Exchange Act of 1934

        For the transition period from _______________ to _______________

                         Commission File Number 0-26455

                        ADVANCED BUSINESS SCIENCES, INC.
        -----------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

            DELAWARE                                      87-0347787
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

                              3345 No.107th STREET
                              OMAHA, NEBRASKA 68134
                                 (402) 498-2734
               ---------------------------------------------------
               (Address, including zip code, and telephone number,
                      including area code, of registrant's
                           principal executive office)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Securities  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 [ ]

The  number of  issuer's  shares  outstanding  as of  September  30,  2000,  was
16,173,032.

Transitional Small Business Disclosure Form (Check One): YES  [  ]  NO  [X]





<PAGE>


PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

ADVANCED BUSINESS SCIENCES, INC.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>

                                                                                  (Unaudited)
                                                                                  September 30,    December 31,
                                                                                     2000             1999
                                                                                  ----------------------------
<S>                                                                               <C>             <C>
ASSETS
Current Assets
       Cash ...................................................................   $        394    $      7,843
       Receivables:
          Trade accounts, less allowance for doubtful accounts 2000 $2,100,
            1999 none .........................................................         27,150          32,782
          Employees ...........................................................             --          21,778
       Inventories ............................................................        692,365         777,432
                                                                                  ----------------------------
            Total current assets ..............................................        719,909         839,835
                                                                                  ----------------------------

Leasehold Improvements and Equipment ..........................................        895,075         790,232
       Less accumulated depreciation ..........................................        622,594         463,518
                                                                                  ----------------------------
                                                                                       272,481         326,714
                                                                                  ----------------------------

Other Assets ..................................................................        419,278         322,359
                                                                                  ----------------------------

            Total assets ......................................................   $  1,411,668    $  1,488,908
                                                                                  ============================

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
       Notes payable ..........................................................   $  6,696,637    $  5,158,206
       Current maturities of long-term debt ...................................         12,765          26,251
       Excess of outstanding checks over bank balance .........................         49,279          18,352
       Accounts payable .......................................................        701,103         589,958
       Accrued expenses .......................................................        289,586         192,360
                                                                                  ----------------------------
            Total Current Liabilities .........................................      7,749,370       5,985,127
                                                                                  ----------------------------

Long-term debt, less current maturities .......................................         93,108         103,636
                                                                                  ----------------------------
Commitments and contingency

Stockholders' Equity (Deficit)
       Preferred stock, $.01 par value; authorized 1,000,000 shares; issued
          September 30, 2000 none; December 31, 1999 1,000 shares .............           --                10
       Common stock, $.001 par value; authorized 50,000,000 shares;
          issued September 30, 2000 16,173,032 shares; December 31, 1999
          13,508,958 shares and outstanding respectively retroactively restated         16,173          13,510
       Additional paid-in capital .............................................      9,843,240       8,978,667
       Deficit accumulated during the development stage .......................    (16,290,223)    (13,592,042)
                                                                                  ----------------------------
            Total stockholders' equity (deficit) ...............................    (6,430,810)     (4,599,855)
                                                                                  ----------------------------

            Total liabilities and stockholders' equity (deficit) ..............   $  1,411,668    $  1,488,908
                                                                                  ============================
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE>


ADVANCED BUSINESS SCIENCES, INC.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>

                                                       THREE MONTHS ENDED                 NINE MONTHS ENDED
                                                          September 30,                     September 30,
                                                  ------------------------------------------------------------
                                                       2000           1999             2000           1999
                                                  ------------------------------------------------------------
<S>                                               <C>             <C>             <C>             <C>
Revenues ......................................   $     36,030    $     33,952    $    147,630    $    124,909
Cost of sales .................................         13,736          19,825          47,802          84,384
                                                  ------------------------------------------------------------
       Gross profit ...........................         22,294          14,127          99,828          40,525
                                                  ------------------------------------------------------------

Expenses:
       Research and development ...............        118,312         492,219         222,587         876,208
       Sales and marketing ....................         25,516         118,382         115,317         326,735
       General and administrative .............        936,683         967,523       2,000,991       2,151,040
                                                  ------------------------------------------------------------
                                                     1,080,511       1,578,124       2,338,895       3,353,983
                                                  ------------------------------------------------------------

       Operating (loss) .......................     (1,058,217)     (1,563,997)     (2,239,067)     (3,313,458)
                                                  ------------------------------------------------------------

Other income (expenses):
       Interest expense .......................       (186,013)        (90,784)       (459,208)       (217,642)
       Income .................................              1          (2,578)             94          (2,578)
                                                  ------------------------------------------------------------
                                                      (186,012)        (93,362)       (459,114)       (220,220)
                                                  ------------------------------------------------------------

       (Loss) before provision for income taxes     (1,244,229)     (1,657,359)     (2,698,181)     (3,533,678)
Provision for income taxes ....................             --              --              --              --
                                                  ------------------------------------------------------------
       Net (loss) .............................   $ (1,244,229)   $ (1,657,359)   $ (2,698,181)   $ (3,533,678)
                                                  ============================================================

Net (loss) per share - basic and diluted ......   ($      0.08)   ($      0.15)   ($      0.16)   ($      0.31)
                                                  ============================================================

Weighted average shares outstanding ...........     16,352,615      11,320,281      16,352,615      11,320,281
                                                  ============================================================
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE>


ADVANCED BUSINESS SCIENCES, INC.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
                                                                            NINE MONTHS ENDED
                                                                               September 30
                                                                        --------------------------
                                                                            2000          1999
                                                                        --------------------------
<S>                                                                     <C>            <C>
Net cash flows (used in) operating activities .......................   $(1,654,627)   $(3,686,431)
                                                                        --------------------------

Net cash (used in) investing activities .............................       (61,707)      (113,836)
                                                                        --------------------------

Cash flows from financing activities:
    Increase in notes payable .......................................     1,538,431      2,442,038
    Other ...........................................................       170,454        981,065
                                                                        --------------------------
              Net cash provided by financial activities .............     1,708,885      3,423,103
                                                                        --------------------------

              Increase (decrease) in cash and cash equivalents ......        (7,449)      (377,164)

Cash and cash equivalents, beginning of period ......................         7,843        377,592
                                                                        --------------------------
Cash and cash equivalents, end of period ............................   $       394    $       428
                                                                        ==========================

Supplemental Disclosures of Cash Flow Information:
    Cash payments for:
      Interest ......................................................   $   337,548    $   187,566
      Taxes .........................................................            --             --

Supplemental Schedule of Noncash, Investing and Financing Activities:
    Other assets purchased on account ...............................   $   141,188    $        --

</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE>


                        ADVANCED BUSINESS SCIENCES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



1.  GENERAL

The condensed  balance sheet of Advanced Business  Sciences,  Inc. ("ABS" or the
"Company")  at  December  31,  1999 has been  taken  from  audited  consolidated
financial  statements at that date and  condensed.  The  condensed  consolidated
financial  statements for the three and nine months ended September 30, 2000 and
for the three and nine months ended September 30, 1999 are unaudited and reflect
all normal and recurring  accruals and adjustments  which are, in the opinion of
management,  necessary  for a  fair  presentation  of  the  financial  position,
operating  results  and cash flows for the  interim  periods  presented  in this
quarterly report. The condensed consolidated financial statements should be read
in conjunction  with the  consolidated  financial  statements and notes thereto,
together with  management's  discussion and analysis of financial  condition and
results of operations,  contained in the Company's  Annual Report on Form 10-KSB
for the year ended  December 31, 1999.  The results of operations and cash flows
for the nine months ended September 30, 2000 are not  necessarily  indicative of
the  results  for the  entire  fiscal  year  ending  December  31,  2000.  Where
appropriate,  items within the condensed  consolidated financial statements have
been reclassified from the previous periods' presentation.

The accompanying financial statements of Advanced Business Sciences,  Inc., have
been prepared on a going-concern basis, which contemplates profitable operations
and the satisfaction of liabilities in the normal course of business.  There are
uncertainties  that raise  substantial doubt about the ability of the Company to
continue as a going  concern.  As shown in the  statements  of  operations,  the
Company has not yet achieved  profitable  operations.  As of September 30, 2000,
the Company has  insufficient  working  capital.  These items raise  substantial
doubt about the ability of the Company to continue as a going concern.

Management presently believes that the Company is in the final development stage
of its electronic  tracking and monitoring  devices and the delivery of services
relating to these devices.  Although there has been substantial  progress in the
development of this technology,  the Company does not have any significant sales
and there can be no assurance that the Company will have any significant sales.

Management plans to continue financing  development of the Company's  technology
through the plan described herein.

The Company's  continuation  as a going concern is dependent upon its ability to
satisfactorily  meet its debt obligations,  meet its product  development goals,
secure new financing and generate  sufficient  cash flows from  operations.  The
financial  statements  do not include  any  adjustments  that might  result from
outcome of these uncertainties.

2.  INVENTORIES

The  composition  of inventories as of September 30, 2000 and December 31, 1999,
are as follows:

                                                  September 30,     December 31,
                                                      2000             1999
                                                  ------------------------------

Parts ..................................            $394,960         $381,044
Finished goods .........................             297,405          396,388
                                                    -------------------------
                                                    $692,365         $777,432
                                                    =========================

3.  CURRENT STOCKHOLDERS' EQUITY TRANSACTIONS

Board  members were  compensated  in total with 50,237 shares of stock valued at
$4,939 for  attending  the third  quarter  board  meetings.  Ken Macke,  retired
Chairman  and CEO of Dayton  Hudson  Corp.,  was also  compensated  for being an
Advisor to the Board of Directors.  He received 37,170 shares of stock valued at
$4,333 for attending (2) third quarter board meetings.

On August 16, 2000,  the Company  issued 10,000 shares of its common stock to an
individual per his consulting agreement for services provided valued at $1,072.

On September 20, 2000, the Company issued  1,200,000  shares of its common stock
to a financial consulting firm for services valued at $152,100.

During the quarter ended September 30, 2000, the Company issued 419,010 warrants
to purchase  419,010 shares of its common stock to stockholders for loans to the
Company and charged $62,156 to expense.
<PAGE>

4.       FINANCIAL STATEMENTS SINCE INCEPTION

Below are  ABS's  condensed  statement  of  operations  from  inception  through
September 30, 2000.

Statement of Operations

                                                                Inception to
                                                              September 30, 2000
                                                              ------------------

Revenues .................................................     $    450,197
Cost of sales ............................................          298,567
                                                               ------------
        Gross profit (loss) ..............................          151,630
                                                               ------------

Expenses:
        Research and development .........................        2,703,229
        Sales and marketing ..............................        1,497,658
        General and administrative .......................       11,206,201
                                                               ------------
                                                                 15,407,088
                                                               ------------

        (Loss) from operation ............................      (15,255,458)
                                                               ------------
Other income (expenses):
        Interest expense .................................       (1,259,857)
        Other ............................................           26,989
                                                               ------------
                                                                 (1,232,868)
                                                               ------------
             (Loss) before provision for income taxes
                and extraordinary item ...................      (16,488,326)
Provision for income taxes ...............................               --
                                                               ------------
             (Loss) before extraordinary item ............      (16,488,326)
Extraordinary item
        Gain from extinguishment of debt .................          569,901
                                                               ------------
             Net loss ....................................     $(15,918,425)
                                                               ============

<PAGE>


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

The  following  table sets forth certain  consolidated  statements of operations
information as a percentage of revenues during the periods indicated:
<TABLE>
                                                                        THREE MONTHS ENDED
                                                                            September 30,
                                                          -----------------------------------------------
                                                                    2000                    1999
                                                          -----------------------------------------------
<S>                                                       <C>            <C>      <C>             <C>
Revenues ..............................................   $    36,030    100.0%   $    33,952     100.0%
Cost of sales .........................................        13,736     38.1         19,825      58.4
                                                          -----------------------------------------------
      Gross profit ....................................        22,294     61.9         14,127      41.6
                                                          -----------------------------------------------
Expenses:
      Research and development ........................       118,312    328.4        492,219    1449.7
      Sales and marketing .............................        25,516     70.8        118,382     348.7
      General and administrative ......................       936,683   2599.7        967,523    2849.7
                                                          ----------------------------------------------
                                                            1,080,511   2998.9      1,578,124    4648.1
                                                          ----------------------------------------------
      Operating (loss) ................................    (1,058,217) (2937.0)    (1,563,997)  (4606.5)
                                                          ----------------------------------------------
Other income and (expenses):
      Interest expense ................................      (186,013)  (516.3)       (90,784)   (267.4)
      Other ...........................................             1       --         (2,578)     (7.6)
                                                          ----------------------------------------------
                                                             (186,012)  (516.3)       (93,362)   (275.0)
                                                          ----------------------------------------------

      Net (loss) before provision for income taxes ....    (1,244,229) (3453.3)    (1,657,359)  (4881.5)
Provision for income taxes ............................            --       --             --        --
                                                          ----------------------------------------------
      Net (loss) ......................................   $(1,244,229) (3453.3)%  $(1,657,359) (4881.5)%
                                                          ==============================================

                                                                            NINE MONTHS ENDED
                                                                              September 30,
                                                          ----------------------------------------------
                                                                    2000                    1999
                                                          ----------------------------------------------

Revenues ..............................................   $   147,630    100.0%   $   124,909     100.0%
Cost of sales .........................................        47,802     32.4         84,384      67.6
                                                          ----------------------------------------------
      Gross profit ....................................        99,828     67.6         40,525      32.4
                                                          ----------------------------------------------

Expenses:
      Research and development ........................       222,587    150.8        876,208     701.5
      Sales and marketing .............................       115,317     78.1        326,735     261.6
      General and administrative ......................     2,000,991   1355.4      2,151,040    1722.1
                                                          ----------------------------------------------
                                                            2,338,895   1584.3      3,353,983    2685.1
                                                          ----------------------------------------------

      Operating (loss) ................................    (2,239,067) (1516.7)    (3,313,458)  (2652.27)
                                                          -----------------------------------------------
Other income and (expenses):
      Interest expense ................................      (459,208)  (311.1)      (217,642)    (174.2)
      Other ...........................................            94      0.1         (2,578)      (2.1)
                                                          ----------------------------------------------
                                                             (459,114)  (311.0)      (220,220)    (176.3)
                                                          -----------------------------------------------

      Net (loss) before provision for income taxes ....    (2,698,181) (1827.7)    (3,533,678)   (2829.0)
 Provision for income taxes ...........................            --       --             --         --
                                                          -----------------------------------------------
      Net (loss) ......................................   $(2,698,181) (1827.7)%   $(3,533,678)  (2829.0)%
                                                          ===============================================
</TABLE>
<PAGE>

Discussions of certain matters contained in this Quarterly Report on Form 10-QSB
may constitute  forward-looking  statements  under Section 27A of the Securities
Act  of  1933,  as  amended  (the  "Securities  Act"),  and  Section  21E of the
Securities  Exchange  Act of 1934,  as  amended,  (the  "Exchange  Act").  These
statements may involve risks and uncertainties. These forward-looking statements
relate to, among other things,  the Company's ability to secure  financing,  the
results of the Company's product development  efforts,  future sales levels, the
Company's  future  financial   condition,   liquidity  and  business   prospects
generally, perceived opportunities in the marketplace for the Company's products
and its products under  development  and the Company's  other business plans for
the future.  The actual outcomes of these matters may differ  significantly from
the outcomes expressed or implied in these forward-looking  statements and other
risks detailed in "ITEM 1.  Description  of Business  contained in the Company's
Form 10-KSB filed with the SEC March 31, 2000.

The following  discussion is intended to provide a better  understanding  of the
significant  changes in trends relating to the Company's financial condition and
results of operations.  Management's  Discussion and Analysis  should be read in
conjunction with the accompanying  Condensed  Consolidated  Financial Statements
and Notes thereto.

ABS is a  developmental  stage  company.  As  such,  the  financial  results  of
operations  reflect  the  primary  activities  of the  Company  directed  toward
development and testing of its GPS products, principally for offender monitoring
in the criminal justice  marketplace.  The following table sets forth the number
of tracking  units  monitored  or leased for the period  indicated.  The Company
monitored and leased 280 units in the third quarter of 2000.  The remainder of 5
units in the third quarter of 2000 were monitored units only.

               Year         3rd Quarter        Year-to-date
         -------------------------------------------------------
               1999             411               1,720
               2000             285               1,506

Revenues

The  Company  derives  revenue  from sale of  products,  billable  services  for
monitoring,  software license fees,  equipment and software leasing, and charges
for  maintenance  and repair of  equipment.  For the three and nine months ended
September  30,  2000,  Revenues  increased  6% to $36,030  and 18% to  $147,630,
compared to $33,952 and $124,909 during the same periods in 1999. The reason for
the  increases  in both  comparable  periods is more units being  monitored  and
leased in the three months ended September 30, 2000 (280 units),  as compared to
135 units in the same periods in 1999.  And also more units being  monitored and
leased in the first nine months of 2000 (1,271 units),  as compared to 505 units
in the same period in 1999.

Cost of Sales

Cost of Sales  represents  the direct costs  associated  with the  generation of
revenue, and includes cost of goods for products which are sold, direct costs of
distribution  of software  and  equipment,  maintenance  expenses  on  equipment
repaired  under  service  agreements,  and the  direct  variable  communications
expenses  associated with the monitoring  services provided by the Company.  For
the three and nine months ended  September 30, 2000, Cost of Sales decreased 31%
to $13,736 and 43% to $47,802,  compared to $19,825 and $84,384  during the same
periods in 1999.  The primary  reason for the lower cost of sales was  increased
utilization of the Company assets in service.

Gross Profit

For the three and nine months ended  September  30,  2000,  Gross Profit for the
Company was $22,294 and $99,828  compared to $14,127 and $40,525 during the same
periods  of 1999.  The  reasons  for this  increase  were  higher  revenues  and
proportionately lower Cost of Sales in the 1999 periods, as discussed above.

Research and Development

Research  and  Development  expenses are the direct  costs  associated  with the
Company's  development of its  proprietary  products.  Expenses in this category
include the cost of outside contracted engineering and design, staffing expenses
for the Company's own engineers and software developers, and the actual costs of
components,  prototypes,  and testing equipment and services used in the product
development  functions.  The  Research  and  Development  expenses  decreased to
$118,312 and $222,587  for the three and nine months ended  September  30, 2000,
from $492,219 and $876,208  during the same periods in 1999.  The primary reason
for this  decrease was the  temporary  delay of  development  of its Series 2000
product due to the Company's need for additional operating capital.
<PAGE>

Sales and Marketing

Sales and Marketing  expenses  represent  the costs of the  Company's  sales and
marketing  staff,  travel  and  related  expenses  associated  with sales to the
Company's  customers and  prospects,  the costs of  advertising in magazines and
periodicals,  attendance at trade shows, and production of marketing and related
collateral material.  Sales and Marketing expenses were $25,516 and $115,317 for
the three and nine months  ending  September  30, 2000  compared to $118,382 and
$326,735  during the same  periods in 1999.  The  decrease is the result of less
advertising  and  trade  show  expenses,  as well as a  decrease  in  Sales  and
Marketing  staff  incurred in the first three  quarters of 2000 when compared to
the first three quarters of 1999.

General and Administrative

General and  Administrative  expenses are all the indirect and overhead expenses
associated  with the  operations  of the  Company,  outside  of  those  expenses
described above. These expenses include executive, administrative and accounting
staff payroll, taxes and benefits,  rent on property, all travel not included in
the Sales and Marketing  expense,  fixed telephone  expenses,  office leases and
supplies,  and  recruiting  and  training  expense.  For the three  months ended
September 30, 2000,  General and  Administrative  expense  decreased  $30,840 to
$936,683,  from $967,523 in the  comparable  period of 1999. The main reason for
the decrease was due to smaller  stock and warrant  compensation  expense in the
third quarter of 2000,  as compared to third  quarter 1999.  For the nine months
ended September 30, 2000, General and Administrative  expense decreased $150,049
to $2,000,491  from  $2,151,040 in the same period of 1999. The primary  reasons
for the decrease were decreases in outside  services,  travel,  executive staff,
and  communications  expenses,  along  with the  decrease  in stock and  warrant
compensation expense.

Operating (Loss)

For  the  three  months  ended   September  30,  2000,   operating   (loss)  was
$(1,058,217),  compared to $(1,563,997)  for the same period in 1999. The reason
for this decrease was lower expenses in the period,  as explained above,  offset
by higher gross profits. For the nine months ended September 30, 2000, operating
(loss) was  $(2,239,067),  compared to $(3,313,458) for the same period in 1999.
The reason for the nine month  decrease is the same as the three month  decrease
listed above.

Interest Expense

For the three  months  ended  September  30, 2000,  Interest  expense  increased
$95,229 to $186,013,  compared to Interest  expense of $90,784 in the comparable
period of 1999.  This interest  expense  increase was due to larger  outstanding
balances in Company  borrowings  in 2000 over 1999.  For the nine  months  ended
September 30, 2000, Interest expense increased $241,566 to $459,208, compared to
Interest  expense of $217,642 in the  comparable  period of 1999. The reason for
the  nine  month  increase  is  also  larger  outstanding  balances  in  Company
borrowings in 2000 over 1999.

Liquidity and Capital Resources

For the nine months ended  September 30, 2000, the Company used  $(1,654,627) of
cash in operating activities and another $(61,707) in investing  activities.  It
generated  $1,708,885 in cash from financing  activities.  The total of all cash
flow  activities  resulted  in a  decrease  in the  balance  of  cash  and  cash
equivalents for the nine month period of $(7,449).  For the same period of 1999,
the  Company  used  $(3,686,431)  of cash in  operating  activities  and another
$(113,836)  in  investing  activities.  It  generated  $3,423,103  in cash  from
financing  activities.  The  total of all cash  flow  activities  resulted  in a
decrease in the balance of cash and cash equivalents of $(377,164).

As of September 30, 2000, the Company had the following borrowing  facilities in
place:

The Company has a $750,000 note payable from U.S. Bank N.A. of Omaha,  Nebraska.
The Company shall repay this loan in 35 monthly payments of $16,557 and one last
payment estimated at $369,376 beginning on July 15, 2000. The interest rate is a
variable rate based on the U.S. Bank N.A. Reference Rate (the "Index Rate") plus
two (2) percent. As of September 30, 2000, the Index Rate was currently nine and
one-half  (9.50)  percent.  This loan is secured by a security  interest  in the
Company's tangible and intangible assets.

The Company has a $999,767 note payable from Commercial Savings Bank of Carroll,
Iowa.  The interest  rate is nine  (9.50)% per annum.  This loan is secured by a
security interest in the Company's  tangible and intangible  assets. The Company
has  significantly  renewed  this note on October 5, 2000  maturing  on April 5,
2001.
<PAGE>

The  Company  has a note  payable of  $499,021  through  Firstar  Bank from Mary
Collison,  a director of the Company,  and $327,224 from Martin  Halbur,  also a
director  of  the  Company.   Principal   on  both  notes,   $8,320  and  $5,457
respectively,  along with  interest of 0.250% plus prime (9.50% at September 30,
2000), are payable on a monthly basis.

The Company has a  $1,000,000  note payable from United Bank of Iowa of Carroll,
Iowa. The loan had an original  maturity date of December 30, 1999 and has since
been  extended  until  November 20, 2000.  The interest rate is ten (10.00)% per
annum.

The  Company  has a  $500,000  note  payable  from  Templeton  Savings  Bank  of
Templeton,  Iowa.  The loan is due January 31, 2001 and carries an interest rate
of nine (9.00)% per annum.

The  Company has a $350,000  note  payable  from  Carroll  County  State Bank of
Carroll, Iowa. The loan has a maturity date of July 6, 2001 and an interest rate
of eleven and one-half (11.50) percent. Interest only payments are due beginning
January 6, 2001.

The Company has a $37,326 note payable from  Nebraska  State Bank of Omaha.  The
loan matures on August 24, 2001 and carries an interest rate of ten and one-half
(10.50)  percent.  Payments of $1,245 for principal and interest are due monthly
with the unpaid balance due at maturity.

The Company is a development stage business and has not yet achieved  profitable
operations.  The Company lacks sufficient operating capital, and intends to fund
its ongoing  development  and  operations  through a  combination  of additional
equity capital and further borrowings. As of September 30, 2000, the Company did
not have commitments for either debt or share purchases to meet its planned 2000
operating capital requirements.

The Company entered into an agreement on September 29, 2000 with Prism Resources
Inc.  to provide  the Company new  Internet  based  iSecureTrack(TM)  enterprise
software.  ISecureTrack(TM) will facilitate satellite tracking and monitoring of
people and assets, worldwide, using global positioning system (GPS) and Internet
technology.

The Company  announced that it was awarded its second patent,  6,100,806,  which
issued  8/8/2000.  The patent  compliments  the previous patent  6,072,396.  The
patent covers the Company's  proprietary GPS based tracking product.  The patent
was written broadly enough to allow ABS to aggressively  protect its position in
the criminal  justice market,  as well as cover AVL,  asset,  and other tracking
markets.
<PAGE>


PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         There is no outstanding pending litigation against the Company.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (A)   EXHIBITS
               11 - Computation of Earnings Per Share
               27 - Financial Data Schedule

         (B)   REPORTS ON FORM 8-K
         The  registrant  filed a Form 8-K on  October  17,  2000.  The  Company
engaged the Des Moines,  Iowa, office of McGladrey & Pullen,  LLP, to act as its
certifying  accountant commencing with the Company's fiscal year ending December
31, 2000. This was due to the death of the Company's  previous auditor,  Darrell
Schvaneveldt of Schvaneveldt and Company.

Items 2, 3, 4 and 5 are not applicable and have been omitted.


<PAGE>


                                    SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                       ADVANCED BUSINESS SCIENCES, INC.


Date:    October 27, 2000           By:   /s/ John Gaukel
         ----------------                 --------------------------------------
                                          John Gaukel
                                          President and Chief Executive Officer