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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549-1004

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Form 10-QSB

(Mark One)

|ý | Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------------

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002

or

|o | 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

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ISECURETRAC CORP.(Exact name of small business issuer as specified in its charter)
(formerly Advanced Business Sciences, Inc.)

DELAWARE(State or other jurisdiction of
incorporation or organization)

87-0347787(I.R.S. Employer Identification No.)5022 S. 114th Street, Suite #103
OMAHA, NEBRASKA 68137
(402) 537-0022(Address, including zip code, and telephone number,
including area code, of registrant's
principal executive office)


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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    ý        NO    o

The
number of issuer's shares outstanding as of April 26, 2002, was 28,794,726.

Transitional
Small Business Disclosure Form (Check
One):    YES    o        NO    ý

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PART I.    FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

ISECURETRAC CORP  (A DEVELOPMENT STAGE COMPANY)        CONDENSED CONSOLIDATED BALANCE SHEETS

|                                               |                                                  | March 31,
2002  |                                               | December 31,
2001 |       
|---------------------------------------------- | ------------------------------------------------ | --------------- | --------------------------------------------- | ----------------- | ------
|
|ASSETS                                         |                                                  |                 |                                               |                   |       
|Current Assets                                 |                                                  |                 |                                               |                   |       
|                                               | Cash                                             |                 | $                                             | 341,900           |       
|                                               | Receivables:                                     |                 |                                               |                   |       
|                                               |                                                  | Trade accounts  |                                               |                   | 40,395
|                                               |                                                  | Note receivable |                                               |                   | 75,000
|                                               |                                                  | Employees       |                                               |                   |      
|                                               | Prepaid expenses and other                       |                 |                                               | 123,406           |       
|                                               |                                                  |                 |                                               |                   |       
|                                               |                                                  |                 | Total current assets                          |                   |       
|                                               |                                                  |                 |                                               |                   |       
|Leasehold Improvements and Equipment, net      |                                                  |                 | 180,043                                       |                   |       
|Product Development Costs, net                 |                                                  |                 | 918,346                                       |                   |       
|Other Assets                                   |                                                  |                 | 9,215                                         |                   |       
|                                               |                                                  |                 |                                               |                   |       
|                                               |                                                  |                 | Total assets                                  |                   | $     
|                                               |                                                  |                 |                                               |                   |       
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |                                                  |                 |                                               |                   |       
|Current Liabilities                            |                                                  |                 |                                               |                   |       
|                                               | Notes payable                                    |                 |                                               | 1,725,000         |       
|                                               | Checks outstanding in excess of bank balance     |                 |                                               |                  |       
|                                               | Current maturities of long-term debt             |                 |                                               | 232,176           |       
|                                               | Accounts payable and accrued expenses            |                 |                                               | 707,039           |       
|                                               | Deferred revenue                                 |                 |                                               | 71,663            |       
|                                               | Accrued interest payable                         |                 |                                               | 28,515            |       
|                                               |                                                  |                 |                                               |                   |       
|                                               |                                                  |                 | Total Current Liabilities                     |                   |       
|Long-term Debt, less current maturities        |                                                  |                 | 369,049                                       |                   |       
|Commitments and Contingency                    |                                                  |                 |                                               |                   |       
|Stockholders' Equity (Deficit)                 |                                                  |                 |                                               |                   |       
|                                               | Preferred stock                                  |                 |                                               | 8,609,790         |       
|                                               | Common stock                                     |                 |                                               | 28,359            |       
|                                               | Additional paid-in capital                       |                 |                                               | 17,750,965        |       
|                                               | Deficit accumulated during the development stage |                 |                                               | (27,834,251       | )     
|                                               |                                                  |                 |                                               |                   |       
|                                               |                                                  |                 | Total stockholders' (deficit)                 |                   |       
|                                               |                                                  |                 | Total liabilities and stockholders' (deficit) |                   | $     
|                                               |                                                  |                 |                                               |                   |       

See
Notes to Condensed Consolidated Financial Statements.

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ISECURETRAC CORP  (A DEVELOPMENT STAGE COMPANY)        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

|                                                       |                                          | Three Months Ended
March 31, |           
|------------------------------------------------------ | ---------------------------------------- | ---------------------------- | ----------
|
|Revenues:                                              |                                          |                              |           
|                                                       | Product                                  |                              |           
|                                                       | Service                                  |                              |           
|                                                       |                                          |                              |           
|                                                       |                                          | Total revenues               |           
|                                                       |                                          |                              |           
|Costs and expenses:                                    |                                          |                              |           
|                                                       | Cost of product revenue                  |                              |           
|                                                       | Cost of service revenue                  |                              |           
|                                                       | Research and development                 |                              |           
|                                                       | Sales, general and administrative        |                              |           
|                                                       |                                          |                              |           
|                                                       |                                          | Total costs and expenses     |           
|                                                       |                                          |                              |           
|                                                       | Operating (loss)                         |                              |           
|Other income (expense):                                |                                          |                              |           
|                                                       | Interest income                          |                              |           
|                                                       | Interest expense                         |                              |           
|                                                       | Loan acquisition expense                 |                              |           
|                                                       |                                          |                              |           
|                                                       | Total other income (expense)             |                              |           
|                                                       |                                          |                              |           
|                                                       | (Loss) before provision for income taxes |                              |           
|                                                       | Provision for income taxes               |                              |           
|                                                       |                                          |                              |           
|Net (loss)                                             |                                          | $                            | (1,793,063
|Preferred dividends in arrears                         |                                          |                              | (204,483  
|                                                       |                                          |                              |           
|Net (loss) available to common stockholders            |                                          | $                            | (1,997,546
|                                                       |                                          |                              |           
|Net (loss) per share of common stockbasic and diluted |                                          | $                            | (0.08     
|                                                       |                                          |                              |           
|Weighted average shares common stock outstanding       |                                          |                              | 26,147,706
|                                                       |                                          |                              |           

See
Notes to Condensed Consolidated Financial Statements.

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ISECURETRAC CORP  (A DEVELOPMENT STAGE COMPANY)        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

|                                                                        |                                                                     | Three Months Ended                        |         
|----------------------------------------------------------------------- | ------------------------------------------------------------------- | ----------------------------------------- | --------
|
|Cash flow from operating activities:                                    |                                                                     |                                           |         
|                                                                        | Depreciation and amortization                                       |                                           | $       
|                                                                        | Other                                                               |                                           |         
|                                                                        |                                                                     |                                           |         
|                                                                        |                                                                     | Net cash (used in) operating activities   |         
|                                                                        |                                                                     |                                           |         
|Net cash (used in) investing activities                                 |                                                                     |                                           | (212,035
|                                                                        |                                                                     |                                           |         
|Cash flows from financing activities:                                   |                                                                     |                                           |         
|                                                                        | Increase in notes payable                                           |                                           |         
|                                                                        | Net proceeds from issuance of common stock                          |                                           |         
|                                                                        | Other                                                               |                                           |         
|                                                                        |                                                                     |                                           |         
|                                                                        |                                                                     | Net cash provided by financing activities |         
|                                                                        |                                                                     |                                           |         
|                                                                        |                                                                     | Increase in cash                          |         
|Cash, beginning of period                                               |                                                                     |                                           | 439     
|                                                                        |                                                                     |                                           |         
|Cash, end of period                                                     |                                                                     | $                                         | 341,900 
|                                                                        |                                                                     |                                           |         
|Supplemental Disclosures of Cash Flow Information:                      |                                                                     |                                           |         
|                                                                        | Cash payments for:                                                  |                                           |         
|                                                                        |                                                                     | Interest                                  |         
|                                                                        |                                                                     | Taxes                                     |         
|Supplemental Disclosures of Noncash Investing and Financing Activities: |                                                                     |                                           |         
|                                                                        | Issuance of common and preferred stock in payment of long-term debt |                                           | $       

See
Notes to Condensed Consolidated Financial Statements.

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ISECURETRAC CORP  (A DEVELOPMENT STAGE COMPANY)        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.    GENERAL

The condensed consolidated balance sheet of iSECUREtrac Corp ("iST" or "we", "us", or "our") at December 31, 2001 has been taken from audited consolidated
financial statements at that date and condensed. The condensed consolidated financial statements for the three months ended March 31, 2002 and for the three months ended March 31, 2001
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 our Annual Report on Form 10-KSB for the year ended
December 31, 2001. The results of operations and cash flows for the three months ended March 31, 2002 are not necessarily indicative of the results for the entire fiscal year ending
December 31, 2002. Where appropriate, items within the condensed consolidated financial statements have been reclassified from the previous periods' presentation.

The
accompanying financial statements of iSECUREtrac Corp 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 iST to continue as a going concern. As shown in the statements of operations, iST has not yet
achieved profitable operations. As of March 31, 2002, iST has insufficient working capital to execute its business plan. These items raise substantial doubt about the ability of iST to continue
as a going concern. Management plans to continue financing development of our technology through the plan described herein.

We
presently believe that iST is transitioning from a developmental stage company to an operating stage company with respect to 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, we do not have any significant revenues and there can be no assurance that we
will have any significant revenues.

We
plan to continue financing our technology and operations through external and related party financing. We have raised $1,700,000 and are attempting to secure an additional $2,600,000
of equity financing to fund the operations and production of our tracking devices and related services.

Our
continuation as a going concern is dependent upon our ability to satisfactorily meet our debt obligations, meet our 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.    CURRENT STOCKHOLDERS' EQUITY TRANSACTIONS

Our board members were compensated in total with 12,810 shares of stock valued at $14,000 for attending the (2) two first 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 16,724 shares of stock valued at $17,985 for attending
(2) first quarter board meetings.

In
March of 2002, we issued 250,000 shares of common stock valued at $284,091 to an individual for services per his consulting agreement.

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During
the quarter ended March 31, 2002, we issued 250,000 shares of common stock in exchange for $50,000 upon the exercise of outstanding warrants.

In
March of 2002, we issued 2,231,363 shares of common stock valued at $1,639,096, net of offering costs of $145,994 to various individuals for cash.

During
the quarter ended March 31, 2002, we issued 1,106,744 warrants to purchase 1,106,744 shares of common stock to stockholders for loans to iST and charged $536,734 to loan
acquisition expense.

During
the quarter ended March 31, 2002, we granted options to purchase 435,000 shares of common stock to six employees, three board members, and two outside consultants pursuant
to their stock option agreements. The exercise prices are at 85% of fair value of iST's common stock and vest ratably over one to three years.

iSECUREtrac
Corp., at March 31, 2002, had 10,448,231 outstanding stock options and warrants, and 8,609,800 and 13,201 shares issuable upon conversion of Series A
convertible preferred stock and convertible subordinated debentures, respectively, that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS
because to do so would have been anti-dilutive for the period presented.

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3.    FINANCIAL STATEMENTS SINCE INCEPTION

Below is iST's condensed statement of operations from inception (January 5, 1992) through March 31, 2002.

Statement of Operations

|                                            |                                                                | (Inception)
to March 31, 2001 |            
|------------------------------------------- | -------------------------------------------------------------- | ----------------------------- | -----------
|Revenues:                                   |                                                                |                               |            
|                                            | Product                                                        |                               | $          
|                                            | Service                                                        |                               |            
|                                            |                                                                |                               |            
|                                            |                                                                | Total revenues                |            
|                                            |                                                                |                               |            
|Costs and expenses:                         |                                                                |                               |            
|                                            | Cost of product revenue                                        |                               |            
|                                            | Cost of service revenue                                        |                               |            
|                                            | Research and development                                       |                               |            
|                                            | Sales, general and administrative                              |                               |            
|                                            |                                                                |                               |            
|                                            |                                                                | Total expenses                |            
|                                            |                                                                |                               |            
|                                            | Operating (loss)                                               |                               |            
|                                            |                                                                |                               |            
|Other income (expense):                     |                                                                |                               |            
|                                            | Interest income                                                |                               |            
|                                            | Interest expense                                               |                               |            
|                                            | Loan acquisition expense                                       |                               |            
|                                            | Other, net                                                     |                               |            
|                                            |                                                                |                               |            
|                                            | Total other income (expense)                                   |                               |            
|                                            |                                                                |                               |            
|                                            | (Loss) before extaordinary item and provision for income taxes |                               |            
|Extraordinary item                          |                                                                |                               |            
|                                            | Gain from extinguishment of debt                               |                               |            
|                                            |                                                                |                               |            
|                                            | (Loss) before provision for income taxes                       |                               |            
|                                            | Provision for income taxes                                     |                               |            
|                                            |                                                                |                               |            
|Net (loss)                                  |                                                                | $                             | (27,834,251
|Preferred dividends in arrears              |                                                                |                               | (272,644   
|                                            |                                                                |                               |            
|Net (loss) available to common stockholders |                                                                | $                             | (28,106,895
|                                            |                                                                |                               |            

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

Discussions of certain matters contained in this Quarterly Report on Form 10-QSB may contain statements that plan for or anticipate the future.
Forward-looking statements include statements about the future of our products and the industry, statements about our future business plans and strategies, and most other statements that are not
historical in nature. In this Prospectus, forward-looking

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statements are generally identified by the words "anticipate," "plan," "believe," "expect," "estimate," and the like. Because forward-looking statements involve future risks and uncertainties, there
are
factors that could cause actual results to differ materially from those expressed or implied. 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 iST's Form 10-KSB filed with the SEC March 27, 2002.

The
following discussion is intended to provide a better understanding of the significant changes in trends relating to iST'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.

We
are in the process of moving from a developmental stage company to an operating company at the end of the first quarter of 2002. As such, the financial results of operations reflect
our primary activities transitioning from development and testing of our GPS products to production and sales of our Model 2100NC units, principally for offender monitoring in the criminal justice
marketplace. We have completed the final design and began production of our series 2100 tracking unit. As of the end of the first quarter, we had 16 GPS 2100NC units shipped to our distributor
for deployment.

We
have developed our computerized center for communication and data management (tracNET24 platform), staffed only to maintain the system. We anticipate revenues will
increase significantly in the second and third quarter of 2002 as we begin to deliver our new products to the criminal justice market. The tracNET24 platform will be operated as an
Application Service Provider (ASP) service, allowing agents of our distributing partners at existing monitoring centers to access and use the system to provide the monitoring services. As we continue
roll out this new product offering, our customers will have control and responsibility to monitor the movement of their individuals or assets. Utilizing our GPS tracking products, customers, through a
secure internet connection, will access their information via our host website, www.tracnet24.com. This product changeover will allow our customers greater flexibility, ease of use and reduced
operating costs when compared to our and our competitor's current product offerings and pricing. At the same time, it will allow us to partner with industry-specific service providers, wherein they
will provide the staffing and end-user interaction, and we will supply the tracking technology and information reporting.

Product Revenue

Product
Revenue is derived from the sale of our products. For the three months ended March 31, 2002, Product Revenues were $16,400 compared to $0 for the three month period of
March 2001. The reason for the increase in the comparable period is the sales of our series 2100 tracking units, as opposed to units being leased.

Service Revenue

For
the three months ended March 31, 2002, Service Revenues increased to $59,058 and consisted of sales of various computer equipment and the maintenance associated with such
equipment, compared to $29,234 for the comparable period of 2001, which consisted of monitoring leased units. The main reason for the three month increase was due to the change in the type of service
revenue.

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Cost of Product Revenue

Cost
of Product Revenue represents the direct costs associated with the generation of product revenue, and includes cost of goods for products sold. For the three months ended
March 31, 2002, Cost of Product Revenue increased to $38,432 for the first quarter of 2002, compared to $0 during the same period in 2001. The primary reason for the higher cost of product
revenue in the first quarter was due to the sales of our Series 2100 tracking units due to our business model change.

Cost of Service Revenue

Cost
of Service Revenue represents the direct costs associated with the generation of service revenue. This includes 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 web centric hosting services provided by iST. For the three months ended
March 31, 2002, Cost of Service Revenue decreased to $30,102 for the first quarter of 2002, compared to $88,671 during the same period in 2001. The primary reason for the lower cost of sales in
the first quarter was due to the transition of leasing units to the selling of units, due to the business plan change discussed herein.

Research and Development

Research
and Development expenses are the direct costs associated with the iST's development of its proprietary products. Expenses in this category include the cost of outside contracted
engineering and design, staffing expenses for the iST'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 $126,767 for the three months ended March 31, 2002, down from $185,858 for the three month period in 2001. The main
reason for the three month decrease was the completion of the Series 2100 tracking unit.

Sales, General and Administrative

Sales,
General and Administrative expenses are all the expenses associated with the operations and marketing of our company, outside of depreciation and amortization expenses and the
expenses described above. These expenses include executive, sales, administrative and accounting staff payroll, taxes and benefits, rent on property, all travel, fixed telephone expenses, office
leases and supplies, marketing advertising in magazines and periodicals, attendance at trade shows, production of marketing and related collateral material, as well as recruiting and training
expenses. For the three months ended March 31, 2002, Sales, General and Administrative expense increased to $1,075,374, compared from $910,344 in the comparable period of 2001. The main reasons
for the three month increase were increases in salaries and wages due to additional personnel added to iST, as well as increases in compensation and other costs incurred related to various consulting
agreements.

Operating (Loss)

For
the three months ended March 31, 2002, operating (loss) was $(1,195,217), compared to $(1,155,639) for the same period in 2001. The main reason for this three month decrease
was higher expenses in the period, as explained above.

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Interest Expense

For
the three months ended March 31, 2002, Interest expense totaled $61,444, compared to interest expense of $187,712 in the comparable period of 2001. This interest expense
decrease was due to a reduction of debt in the third and fourth quarter of 2001 through the issuance of common and preferred stock, coupled with lower interest rates throughout the year.

Loan Acquisition Expense, Stockholders

For
the three months ended March 31, 2002, loan acquisition expense totaled $536,734, compared to $655,812 for the comparable period of 2001. This expense is due to stock warrants
issued to various stockholders or individuals for lending us money and for their personal guarantees on the notes payable with certain banks. This expense fluctuates based on the cash needs of iST.

Net (Loss)

For
the three months ended March 31, 2002, we had a Net Loss of $(1,793,063) or $(0.08) per share, compared to a Net Loss of $(1,999,139) or $(0.11) per share, in the comparable
period of 2001, for the reasons described above.

Dividends in Arrears

For
the three months ended March 31, 2002, dividends in arrears totaled $204,483 as compared to $0 for the comparable period of 2001. This increase was due to the issue of
Series A Convertible Preferred Stock in November, 2001 through February, 2002. The $204,483 represents dividends in arrears for the first quarter 2002.

Net (loss) Available to Common Stockholders

For
the quarter ended March 31, 2002, we had a net (loss) available to common stockholders of $(1,997,546) compared to a net (loss) available to common stockholders of
$(1,999,139) for the period ended March 31, 2001. The reasons for the difference are described above.

Liquidity and Capital Resources

For
the three months ended March 31, 2002, we used $(952,638) in cash in operating activities, we used $(212,035) in investing activities, and we generated $1,506,134 in cash from
financing activities. The total of all cash flow activities resulted in an increase in the balance of cash for the three month period of $341,461. For the same period of 2001, we used $(545,996) of
cash in operating activities and another $(158,793) in investing activities. It generated $715,445 in cash from financing activities. The total of all cash flow activities resulted in an increase in
the balance of cash of $10,656.

As
of March 31, 2002, we had the following borrowing facilities in place, all of which are guaranteed by various directors of iST:

We
have a $513,898 note payable from U.S. Bank N.A. of Omaha, Nebraska. iST is repaying 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 March 31, 2002, the
Index Rate was currently four and

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three-fourths (4.75) percent. This loan is secured by a security interest in our tangible and intangible assets.

We
have a $1,000,000 note payable from Wells Fargo Bank. Interest only payments are due monthly. The note matures on August 27, 2002 and carries an interest rate per annum equal
to the prime rate. As of March 31, 2002, the prime rate is four and three-fourths (4.75)%.

The
majority of our remaining notes payable and long-term debt consists of amounts owed to individuals, primarily directors of iST, which mature within one year and carry
interest rates ranging from 6% to 10%.

We
lack sufficient operating capital, and we intend to fund our ongoing development and operations through a combination of additional equity capital and further borrowings. As of
March 31, 2002, we did not have commitments for either debt or share purchases to meet its planned 2002 operating capital requirements.

Significant Agreements

We
entered into a preferred distributor agreement on February 25, 2002 with Veridian Information Services, Inc. for the purchase and distribution of our products, including
our Personal Tracking Units (PTUs), in the criminal justice marketplace in North America.

The
initial term of each agreement with Veridian is for two years and will automatically be extended for a one year period. Either party may terminate upon a breach by the other party
which is not cured within 30 days. There are no purchase commitments in this agreement and no purchase order has been received from Veridian to date.

The
agreement states pricing and contains ordinary and usual terms for shipping dates, shipping delays, cost of shipping, transfer of title, rescheduling and order cancellations. We
provide a one year repair or replacement warranty for our products and will indemnify Veridian against any claims of patent or other intellectual property infringement. Either party's liability is
limited to direct damages. Our liability to Veridian is capped at the cost of the product or service, which causes any damage. We disclaim any liability for the acts of criminal offenders wearing our
products. We also agreed to provide Veridian personnel with onsite training at a fixed daily cost, plus expenses, and to provide extended warranty service for our products up to three years beyond the
term of the original one year manufacturer's warranty.

PART II.    OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

We are subject to pending or threatened lawsuits that are ordinary to our business. We are also subject to a variety of federal and state laws and regulations,
especially those relating to electronic devices and wireless communications.

On
December 20, 2000, iST, a Nebraska corporation, filed a patent infringement lawsuit against the Defendant, Pro Tech Monitoring, Inc. (Pro Tech), a Delaware corporation
located in Palm Harbor, Florida. The case was filed in Omaha, Nebraska in the United States Federal District Court, Case No. 8:00-CV-624. iST contends that Pro Tech, who
provides product to the criminal justice industry, is infringing on the iST patents covering our Company's proprietary GPS based tracking system. On

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January 31, 2001, Pro Tech filed a declaratory judgment action against iST in the United States Federal District Court for the Middle District of Florida, Tampa Division, Case
No. 8:01-CV-216-T-17MSS. Pro Tech claims in this action that its product and methods do not infringe upon the iST patents. iST and Pro Tech
dispute the proper venue between Nebraska and Florida for purposes of determining infringement of the iST patents. We will vigorously defend against the complaint filed by Pro Tech and we will
aggressively protect our Intellectual Property.

On
July 16, 2001 the United States Federal District Court dismissed Case No. 8:00-CV-624 without prejudice. As a result of this dismissal, we filed
a response and counter claim to Case No. 8:01-CV-216-T-17MSS in the Federal District Court for the Middle District of Florida.

As
of April 30, 2002, there is no material update to the pending litigation. The parties are currently engaged in discovery.

On
January 2, 2002, iSecureTrac Corp., a Delaware corporation, filed a complaint against LEDvision Inc, an Iowa corporation, d/b/a Electronic Manufacturing
Technologies, Inc. ("EMT"), in the U.S. District Court, District of Nebraska(Case No. 8:02CV5). iSecureTrac Corp. alleges that EMT breached its contract with iSecureTrac by
its failure to manufacture and deliver production units of iSecureTrac's Model 2100 Series products. Consequently, iSecureTrac has had to utilize other manufacturers to produce such products, causing
a delay in our customer deliveries. iSecureTrac seeks to recover monies previously paid to EMT plus lost profits and incidental and consequential damages, and the cost of
pursuing the action. In an additional claim, iSecureTrac alleges that EMT's conduct concurrent with and subsequent to EMT's breach of contract amounted to trade disparagement and interference with our
business relationships. We seek damages to compensate us for damage to its reputation caused by EMT's conduct.

On
March 4, 2002 LEDvision Holding, Inc. d/b/a Electronics Manufacturing Technology, answered and made a counterclaim in the United States District Court for the District
of Nebraska Case No. 8:02CV5. The defendant, EMT, alleges that iSecureTrac Corp. breached its agreement with EMT and that such alleged breach excused EMT's non-performance. EMT's
counterclaim seeks monies for services allegedly provided to iST and for the loss of manufacturing profits. iST intends to vigorously contest any claims that it breached its agreement with EMT and
that such breach excused EMT's non-performance and contest any claims for monies for alleged services provided to iST for which iST received no value.

As
of April 30, 2002, there is no material update to this pending litigation.

ITEM 2.    CHANGES IN SECURITIES AND USE OF PROCEEDS

iST claims exemption under the Securities Act of 1933 Section 4(2) for the following equity transactions which took place in the first quarter of 2002.



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On
March 28, 2002, we received cash subscriptions to purchase 2,231,363 shares of our common stock at $0.80 per share ($1,785,090 in the aggregate), which shares were covered by a
registration statement filed with the Securities and Exchange Commission on Form SB-2. Because these subscriptions were received prior to the registration statement being declared effective, we
offered each subscriber the opportunity to rescind its subscription. All of these subscribers declined to rescind their respective subscriptions.

ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

(A)    EXHIBITS

N/A

(B)    REPORTS ON FORM 8-K

iST
filed a report on Form 8-K on January 7, 2002 under Item 5. "Other Events" to report the complaint filed by iST against LEDvision Inc., d/b/a
Electronic Manufacturing Technologies, Inc. ("EMT") alleging EMT breached its contract with iST by its failure to manufacture and deliver iST's model 2100 Series production units. In an
additional claim, iST alleges that EMT's conduct amounted to trade disparagement and interference with its business relationships.

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

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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.

|                   |  | ISECURETRAC CORP
|------------------ |  | ----------------
|Date: May 15, 2002 |  | By:             

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