<PAGE>

                                  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 MARCH 31, 2003

                                       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

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

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

                        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)

            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 April 18, 2003, was
38,203,097.

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

<PAGE>


PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

ISECURETRAC CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                               March 31,     December 31,
                                            ASSETS                               2003            2002
                                                                             ------------    ------------
                                                                              (Unaudited)
<S>                                                                          <C>             <C>
Current Assets
      Cash                                                                   $     41,433    $     47,374
      Receivables:
       Trade accounts                                                              78,230          18,493
       Employees                                                                    1,000              --
       Other                                                                           --          75,111
      Inventories                                                                 289,456          51,460
      Prepaid expenses and other                                                   95,302          15,872
                                                                             ------------    ------------
         Total current assets                                                     505,421         208,310

Leasehold Improvements and Equipment, net                                         307,557         217,822
Product Development Costs, net                                                    603,485         682,200
Other Assets                                                                        8,703           9,081
                                                                             ------------    ------------
         Total assets                                                        $  1,425,166    $  1,117,413
                                                                             ============    ============

                 LIABILITIES AND STOCKHOLDERS' (DEFICIT)

Current Liabilities

      Notes payable                                                             2,873,027       2,168,318
      Outstanding checks in excess of bank balance                                  6,423         121,694
      Current maturities of long-term debt                                        458,517         443,438
      Accounts payable and accrued expenses                                       815,971         672,130
      Deferred gain on sale-leaseback transatcion                                  39,571              --
      Accrued interest payable                                                     76,055          46,113
      Preferred dividends payable                                                 203,463         203,121
                                                                             ------------    ------------
         Total Current Liabilities                                              4,473,027       3,654,814
                                                                             ------------    ------------
Long-term Debt, less current maturities                                            47,956              --
                                                                             ------------    ------------
Commitments and Contingency
Stockholders'  (Deficit)
      Series A Preferred stock                                                  8,685,783       8,482,662
      Series B Preferred stock                                                    295,000         145,000
      Common stock                                                                 38,143          34,919
      Additional paid-in capital                                               22,138,140      21,510,819
      Deficit accumulated during the development stage                        (34,252,883)    (32,710,801)
                                                                             ------------    ------------
         Total stockholders'  (deficit)                                        (3,095,817)     (2,537,401)
                                                                             ------------    ------------
         Total liabilities and stockholders' (deficit)                       $  1,425,166    $  1,117,413
                                                                             ============    ============
</TABLE>

            See Notes to Condensed Consolidated Financial Statements.

                                                                          Page 2
<PAGE>


ISECURETRAC CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                Three Months Ended
                                                                     March 31
                                                               2003            2002
                                                           ------------    ------------
<S>                                                        <C>             <C>
Revenues:
       Equipment                                           $     44,307    $     16,400
       Hosting                                                   21,355              --
       Service                                                    2,057          59,058
                                                           ------------    ------------
          Total revenues                                         67,719          75,458
                                                           ------------    ------------
Costs and expenses:
       Cost of equipment and hosting revenue                    126,098          51,556
       Cost of service revenue                                      458          16,978
       Research and development                                 180,487         126,767
       Sales, general and administrative                      1,034,139       1,075,374
                                                           ------------    ------------
          Total costs and expenses                            1,341,182       1,270,675
                                                           ------------    ------------
       Operating (loss)                                      (1,273,463)     (1,195,217)
                                                           ------------    ------------
Other income (expense):
       Interest income                                              109             332
       Interest expense                                         (65,265)        (61,444)
       Loan acquisition expense, stockholders                        --        (536,734)
                                                           ------------    ------------
       Total other income (expense)                             (65,156)       (597,846)
                                                           ------------    ------------
       (Loss) before provision for income taxes              (1,338,619)     (1,793,063)
       Provision for income taxes                                    --              --
                                                           ------------    ------------
Net (loss)                                                 $ (1,338,619)   $ (1,793,063)
Preferred dividends                                            (203,463)       (204,483)
                                                           ------------    ------------
Net (loss) available to common stockholders                $ (1,542,082)   $ (1,997,546)
                                                           ============    ============
Net (loss) per share of common stock - basic and diluted   $      (0.04)   $      (0.08)
                                                           ============    ============
Weighted average shares of common stock outstanding          35,973,163      26,147,706
                                                           ============    ============
</TABLE>

See Notes to Condensed Consolidated Financial Statements.

                                                                          Page 3
<PAGE>


ISECURETRAC CORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                              Three Months Ended
                                                                                    March 31
                                                                              2003           2002
                                                                          -----------    -----------
<S>                                                                       <C>            <C>
Cash flow from operating activities:
    Depreciation and amortization                                         $   114,958    $    42,135
    Other                                                                    (993,218)      (994,773)
                                                                          -----------    -----------
         Net cash (used in) operating activities                             (878,260)      (952,638)
                                                                          -----------    -----------
Net cash (used in) investing activities                                        (5,600)      (212,035)
                                                                          -----------    -----------
Cash flows from financing activities:
    Increase in notes payable                                                 622,000         21,080
    Net proceeds from issuance of common stock                                428,155      1,689,096
    Other                                                                    (172,236)      (204,042)
                                                                          -----------    -----------
         Net cash provided by financing activities                            877,919      1,506,134
                                                                          -----------    -----------
         Increase (decrease) in cash                                           (5,941)       341,461
Cash, beginning of period                                                      47,374            439
                                                                          -----------    -----------
Cash, end of period                                                       $    41,433    $   341,900
                                                                          ===========    ===========
Supplemental Disclosures of Cash Flow Information:
    Cash payments for:
         Interest                                                         $    35,323    $    80,178
         Taxes                                                                     --             --

Supplemental Disclosures of Noncash Investing and Financing Activities:
    Issuance of common and preferred stock in payment of long-term debt   $    10,000    $ 2,476,763
    Issuance of preferred stock in payment of preferred stock dividends       203,121             --
    Preferred stock dividends declared but not paid                           203,463             --
    Equipment acquired through capital lease obligation                       120,000             --
    Accounts payable converted to notes payable                                92,710             --
</TABLE>

See Notes to Condensed Consolidated Financial Statements.
                                                                          Page 4
<PAGE>

                                ISECURETRAC CORP
        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, 2002 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, 2003 and for the three
months ended March 31, 2002 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,
2002. The results of operations and cash flows for the three months ended March
31, 2003 are not necessarily indicative of the results for the entire fiscal
year ending December 31, 2003. 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, 2003, 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 operations and development of our technology through the
plan described herein.

We are reporting as an operating company. For the first three quarters of 2002,
we reported as a development stage company. We transitioned to an operating
company during the fourth quarter of 2002 with the advent of direct sales and
the subsequent signing, in the first quarter of 2003, of five end-user agencies,
one service provider and three new distributors. During the first quarter of
2003, we also entered into a stock purchase agreement with Fusion Capital Fund
II, LLC that will provide us with capital for production of our tracking devices
and general corporate purposes.

2.    CURRENT STOCKHOLDERS' EQUITY TRANSACTIONS

For the  three-month  period ending March 31, 2003, we issued  779,563 shares of
our common  stock  valued at $299,500 to various  individuals  and  companies as
compensation  for  board  participation,  advisory  services  to the  board  and
consulting  agreements.  1,438,733  shares  of our  common  stock  were  also
issued as stock issuance costs in relation to our SB-2 registration  statement
accepted in April 2003.

We also issued 1,005,098 shares of common stock in exchange for $278,155 in cash
and the elimination of a $10,000 promissory note to a corporation by exercise of
outstanding warrants.

In  addition,  we  issued  150  Series  B  Convertible  Preferred  Shares  to an
individual for $150,000 cash.


                                                                          Page 5
<PAGE>


During the quarter ended March 31, 2003, we granted options to purchase 70,000
shares of common stock to two employees and one outside consultant 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 month to two years. We had 91,666
options forfeited during the quarter ended March 31, 2003.

iSECUREtrac Corp., at March 31, 2003, had 7,576,909 outstanding stock options,
1,532,722 outstanding warrants, 8,685,783, 500,100 and 6,600 shares issuable
upon conversion of Series A convertible preferred stock, Series B 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.

3.    STOCK-BASED COMPENSATION

Stock -based compensation: iST accounts for its various stock-based compensation
plans under the recognition and measurement principles of APB Opinion No. 25
(APB 25), Accounting for Stock Issued to Employee, and related interpretations,
which measures compensation as the difference between the fair value of the
stock at the date of award and the amount required to be paid for the stock.
Stock-based compensation of $36,077 and $83,583 has been reflected in net (loss)
for the three-month periods ended March 31, 2003 and 2002, respectively. The
following table illustrates the effect on net (loss) and (loss) per share for
the three-month periods ended March 31, 2003 and 2002, as if iST had applied the
fair value recognition provisions of SFAS No. 123 (FAS 123), Accounting for
Stock -Based Compensation, to stock-based compensation.

                                              Three-Months Ended March 31
                                                 2003               2002
                                                 ----               ----
Net (loss) available to common stockholders,
  as reported                                $(1,338,619)       $(1,997,546)
Add:  Stock-based employee compensation
  expense included in reported net (loss)         36,077             83,583

Deduct:  Total stock-based employee
  compensation expense determined under
  fair value based method for all awards         (84,803)          (460,445)
                                             -----------        -----------
Pro forma net (loss)                         $(1,387,345)       $(2,374,408)
                                             ===========        ===========

Basic and diluted (loss) per share:


                                                                          Page 6
<PAGE>

As reported                                 $(0.04)                $(0.08)
                                            ======                  =====
Pro forma                                   $(0.04)                $(0.09)
                                            ======                  =====

            In determining the pro forma amounts above during 2003 and 2002, the
value of each grant is estimated at the grant date using the fair value method
prescribed in FAS 123 with the following assumptions: no dividends, risk free
interest rate of 5%; expected life of 3 and 4 years and; expected price
volatility of 80.93% and 126.22%.

The fair value of stock options and warrants issued to non-employees is being
accounted for using FAS 123. Related compensation expense is charged to income
when incurred.

Warrants and common stock issued in consideration for notes payable and debt
guarantee fees are expensed in the period incurred due to the short term nature
of the related notes.

4.    MANAGEMENT'S PLANS

We plan to continue financing our technology and operations through external and
related party financing. We entered into a common stock purchase agreement on
March 7, 2003, as amended and restated on April 14, 2003, with Fusion Capital
Fund II, LLC, a Chicago based institutional investor. Under the agreement,
Fusion Capital will buy up to $12.0 million of our common stock over a period of
up to 40 months, subject to our right to extend the agreement for six months. We
have the right to control the timing and amount of stock sold to Fusion Capital
with the purchase price based upon the market price of the Company's common
stock at the time of sale without any discount. Under the common stock purchase
agreement, funding of the $12.0 million shall occur from time to time, and as
such, has already commenced as of April 23, 2003. In addition, we are working on
an additional private placement of $3,200,000 in equity financing to continue to
fund our operations and production of our tracking devices and related services

We are also in the process of obtaining additional bridge financing from a
financial institution to help cover some of our general operating expenses.

Management hired four professional sales and sales support staff in the third
and fourth quarters of 2002 and one sales professional in the first quarter of
2003 to expand iST's sales opportunities within the United States. We believe
that the addition of sales personnel will enable us to increase sales on an
accelerated basis.

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 the
outcome of these uncertainties.

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 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 31, 2003.


                                                                          Page 7
<PAGE>

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 have moved from a being developmental stage company to an operating company
during the fourth 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 completed the final
design and began production of our series 2100 tracking unit in the first
quarter of 2002. During 2002, we sold and shipped 350 PTUs to our then-only
distributor for deployment. During the first three months of 2003, we have sold
or leased 161 PTUs through our direct sales force.

We have developed our computerized center for communication and data management
(tracNET24(TM) platform), staffed only to maintain the system. We anticipate
revenues will increase significantly in the second and third quarter's of 2003
as we continue to aggressively deliver our new products to the criminal justice
market. The tracNET24(TM) 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 to 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. Our product 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.

In addition, management plans to hire additional sales and sales support staff
to expand iST's sales opportunities within the United States. We believe that
the addition of sales personnel will enable us to increase sales on an
accelerated basis.

Equipment Revenue

Equipment Revenue is derived from the sale and leasing of our products. For the
three months ended March 31, 2003, equipment revenues were $44,307 compared to
$16,400 during the same period in 2002. The reason for the increase in the
comparable period is the onset of the leasing of our Series 2100 PTUs, coupled
with additional direct sales, as opposed to units just being sold in the prior
year period.

Hosting Revenue

Hosting Revenue is the fees charged to our customers for hosting data that
encompasses units being active or in use, fax charges, pages, and phone
call-ins. For the three months ended March 31, 2003, hosting revenues were
$21,355 compared to none during the same period in 2002. The reason for the
increase in the comparable period is the increase in activity of both directly
sold and company leased Series 2100 PTUs.

Service Revenue

For 2003, Service Revenue consisted of sales of non-core product that included
various ancillary computer equipment and the maintenance associated with such
equipment. For the three months ended March 31, 2003, Service Revenue was $2,057
compared to $59,058 for the comparable period of 2002. The main reason for the
decrease in the comparable period was a slow down in projects associated with
this type of Service Revenue.

Cost of Equipment and Hosting Revenue


                                                                          Page 8
<PAGE>

Cost of Equipment and Hosting Revenue represents the direct costs associated
with the generation of equipment and hosting revenue, and includes cost of goods
for our equipment that is sold and leased. It also includes the direct variable
communications and hardware equipment expenses associated with the web centric
hosting services provided by iST. A portion of our cost of equipment and hosting
revenue, which began in March 2002, consists of product development cost
amortization of $78,715 for the three months ended March 31, 2003 compared to
$26,238 during the same period in 2002. This amortization is associated with our
tracNET24 and our Series 2100 tracking unit. For the quarter ending March 31,
2003, Cost of Equipment and Hosting Revenue was $126,098, compared to $51,556
during the same period in 2002. The primary reason for this increase in the cost
of equipment and hosting revenue during the quarter was due to the related
increase in sales and leasing of our Series 2100 tracking units, as well as
increased product development cost amortization.

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 and the maintenance expenses on equipment repaired under
service agreements. For the three-month period ended March 31, 2003, Cost of
Service Revenue decreased to $458, compared to $16,978 during the same period in
2002. The primary reason for the overall lower cost of service revenue for the
comparable period was due to the slow down of projects associated with this type
of service revenue.

Research and Development

Research and Development expenses are the direct costs associated with 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 increased to $180,487 for the
three months ended March 31, 2003, up from $126,767 for the same period in 2002.
The main reason for three-month increase was increases in salaries and wages due
to additional personnel added to iST for software development associated with
our 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 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, 2003, Sales, General and Administrative expense decreased
to $1,034,139, compared from $1,075,374 in the comparable period of 2002. The
main
reason for the decrease during the period was an increase in salaries and wages
due to additional sales personnel offset by decreases in stock option issue
expenses, legal expenses, board meeting expenses, office supplies and liability
insurance expenses.



Operating (Loss)

For the quarter ended March 31, 2003, operating (loss) was $(1,273,463),
compared to $(1,195,217) for the same period in 2002. The main reason for the
three-month increase was higher expenses in the period, as explained above.

Interest Expense

For the three months ended March 31, 2003, Interest expense totaled $65,265,
compared to interest expense of $61,444 in the comparable period of 2002. This
interest expense increase was due to larger outstanding balances in Company
borrowings in 2003 over 2002.


                                                                          Page 9
<PAGE>

Loan Acquisition Expense, Stockholders

For the quarter ended March 31, 2003, loan acquisition expense was $0, compared
to $536,734 for the comparable period of 2002. This expense in 2002 is due to
stock warrants issued to various stockholders or individuals for lending us
money. We raised more money in the latter part of 2002 and first three months of
2003 through equity financing than we did through personal loans and guarantees
on bank notes, thus keeping our loan acquisition expense at $0.

Net (Loss)

For the three months ended March 31, 2003, we had a Net Loss of $(1,338,619),
compared to a Net Loss of $(1,793,063), in the comparable period of 2002, for
the reasons described above.

Preferred Dividends

For the quarter ended March 31, 2003, preferred dividends totaled $203,463, as
compared to $204,483 for the comparable period of 2002. This decrease was due to
the conversion of 800 shares of our Series A Convertible Preferred Stock during
2002, coupled with an increase in preferred stock dividends.

Net (loss) Available to Common Stockholders

For the three months ended March 31, 2003, we had a net (loss) available to
common stockholders of $(1,542,082) compared to a net (loss) available to common
stockholders of $(1,997,546) in the comparable period of 2002. The reasons for
the difference are described above.

Liquidity and Capital Resources

For the quarter ended March 31, 2003, we used $(878,260) in cash in operating
activities, another $(5,600) in investing activities, and we generated
$877,919 in cash from financing activities. The total of all cash flow
activities resulted in a decrease in the balance of cash for the three months
ended March 31, 2003 of $(5,941). For the same period of 2002, we used
$(952,638) of cash in operating activities and $(212,035) in investing
activities. 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 of
$341,461.

In January 2003, we entered into a sale/leaseback agreement with a third party
leasing company. The sale of 100 series 2100 tracking units generated $120,000
of cash with a corresponding $120,000 capital legal obligation. We
are pursuing other sale/leaseback opportunities with various
third party leasing companies. We believe that lease funding of our tracking
units can be an additional source of cash to meet our financial needs.

We entered into a common stock purchase agreement on March 7, 2003, as amended
and restated on April 14, 2003, with Fusion Capital Fund II, LLC, a Chicago
based institutional investor. Under the agreement, Fusion Capital will buy up to
$12.0 million of our common stock over a period of up to 40 months, subject to
our right to extend the agreement for six months. We have the right to control
the timing and amount of stock sold to Fusion Capital with the purchase price
based upon the market price of the Company's common stock at the time of sale
without any discount. Under the common stock purchase agreement, funding of the
$12.0 million shall occur from time to time, and as such, has already commenced
as of April 23, 2003. In addition, 1,438,733 shares of our common stock were
issued in connection with the common stock purchase agreement. We are
also in the process of obtaining additional bridge financing from a financial
institution to help cover some of our general operating expenses. In addition,
we are working on an additional private placement of $3,200,000 in equity
financing to continue to fund the operations and production of our tracking
devices and related services.


                                                                         Page 10
<PAGE>

As of April 25, 2003, we had the following borrowing facilities in place, all of
which are guaranteed by various directors of iST:

We  have  a $750,000 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  due June 30, 2003. The interest rate is a variable rate
based  on  the  U.S. Bank N.A. Reference Rate (the "Index Rate") plus one-fourth
(0.25)  percent.  As  of  March  31, 2003, the Index Rate was currently four and
one-fourth  (4.25)  percent, and the outstanding loan balance was $360,140. This
loan is secured by a security interest in our tangible and intangible assets and
the personal guarantees of various stockholders. We intend to negotiate with the
bank  to  renew  and  extend  this  note  payable.

We  have a $1,000,000 note payable from Wells Fargo Bank. Interest only payments
are  due monthly. The note matures on July 31, 2003 and carries an interest rate
per  annum equal to the prime rate. As of March 31, 2003, the prime rate is four
and  one-fourth  (4.25)%.  This  loan  is  secured  by the personal guarantee of
various  stockholders.  We intend to negotiate with the bank to renew and extend
this  note  payable.

We have a $98,318 unsecured note payable from Nebraska State Bank of Omaha. This
short-term note matured on January 21, 2003 and has since been renewed until
June 5, 2003 and carries an interest rate of seven and one-fourth (7.25)% due at
maturity.

We have a $92,710 unsecured note payable from Merrill Corporation resulting from
the  Conversion  of  accounts  payable. This short-term note matures on July 30,
2003  and  requires monthly principal only payments. It carries an interest rate
of  zero  (0)%.  As of March 31, 2003, the outstanding loan balance was $89,710.

The majority of our remaining $1,685,000 in notes payable consists of amounts
owed to individuals, primarily directors of iST, which mature within one year
and carry interest rates ranging from 5.5% to 10%. We borrowed $625,000 during
the three months ended March 31, 2003 from Total Tech, LLC, an entity made up
of various board members and stockholders. This amount is included in the
$1,685,000 previously mentioned.

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, 2003, we did not have commitments for
either debt or share purchases to meet its planned 2003 operating capital
requirements.

ITEM  3. DISCLOSURE CONTROLS AND PROCEDURES

      An  evaluation  was  performed  of the  effectiveness  of the  design  and
operation of our disclosure controls and procedures as of November 6, 2002. This
evaluation was conducted under the supervision  and with the  participation  our
management,  including  our Chief  Executive  Officer  and our  Chief  Financial
Officer.  Based on that  evaluation,  our  Chief  Executive  Officer  and  Chief
Financial  Officer each concluded  that our  disclosure  controls and procedures
were effective as of November 6, 2002. There have been no significant changes in
our internal  controls or in other factors that could  significantly  affect our
internal controls subsequent to November 6, 2002.

                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

            We are subject to pending or threatened lawsuits that are ordinary
to our business. In the opinion of management, no material loss is expected from
any of such pending claims or lawsuits. We are also subject to a variety of
federal and state laws and regulations, especially those relating to electronic
devices and wireless


                                                                         Page 11
<PAGE>

communications.

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 2003.

1.    Board members were compensated in total with 25,396 shares of stock valued
      at $13,000 for attending (2) first quarter board meetings. The 25,396
      shares are comprised of seven board members receiving 2,500 shares each on
      02/13/03 and six board members receiving 1,316 shares each on 03/31/03.
      Ken Macke, retired Chairman and CEO of Dayton Hudson Corp., was also
      compensated for being an Advisor to the Board of Directors. He received
      20,833 shares on February 13th valued at $8,333 for attending (1) first
      quarter board meeting.

2.    On January 14th and February 13, 2003, we issued 16,667 shares of common
      stock on each date valued at $12,167 in total to an individual for
      services per his consulting agreement.

3.    On January 14th and February 19, 2003, we issued 25,000 and 250,000 shares
      of common stock valued at $5,000 and $50,000 respectively upon the
      exercise of outstanding warrants.

4.    On February 19, 2003, we issued 700,000 shares of common stock valued at
      $266,000 to a corporation for services per its consulting agreement.

5.    On February 19, 2003, we issued 25,602 shares of common stock valued at
      $10,000 to Electronic Manufacturing Technology for extinguishing its
      promissory note by exercising its warrants.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

Not Applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not Applicable

ITEM 5.  OTHER INFORMATION.

Not Applicable

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

(A) EXHIBITS


                                                                         Page 12
<PAGE>


   99.1     Certification of Chief Executive Officer and Chief Financial Officer
            pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section
            906 of the Sarbanes-Oxley Act of 2002.

(B) REPORTS ON FORM 8-K

Not Applicable


                                                                         Page 13
<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.

                                                    ISECURETRAC CORP


Date:       May 15, 2003                            By:   /s/ James E. Stark
                                                          ------------------
                                                          James E. Stark
                                                          President


                                                                         Page 14
<PAGE>

              CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael P. May, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of iSECUREtrac Corp.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

          a)  designed such disclosure controls and procedures to ensure that
              material information relating to the registrant, including its
              consolidated subsidiaries, is made known to us by others within
              those entities, particularly during the period in which this
              quarterly report is being prepared;

          b)  evaluated the effectiveness of the registrant's disclosure
              controls and procedures as of a date within 90 days prior to the
              filing date of this quarterly report (the "Evaluation Date"); and

          c)  presented in this quarterly report our conclusions about the
              effectiveness of the disclosure controls and procedures based on
              our evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

          a)  all significant deficiencies in the design or operation of
              internal controls which could adversely affect the registrant's
              ability to record, process, summarize and report financial data
              and have identified for the registrant's auditors any material
              weaknesses in internal controls; and

          b)  any fraud, whether or not material, that involves management or


                                                                         Page 15
<PAGE>

              other employees who have a significant role in registrant's
              internal controls; and

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

         Date     May 15, 2003          /s/ Michael P. May
                                        ------------------
                                            Michael P. May
                                            Chief Executive Officer


                                                                         Page 16
<PAGE>


              CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James E. Stark, certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of iSECUREtrac Corp.;

2.   Based on my knowledge, this quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officers and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

          a)  designed such disclosure controls and procedures to ensure that
              material information relating to the registrant, including its
              consolidated subsidiaries, is made known to us by others within
              those entities, particularly during the period in which this
              quarterly report is being prepared;

          b)  evaluated the effectiveness of the registrant's disclosure
              controls and procedures as of a date within 90 days prior to the
              filing date of this quarterly report (the "Evaluation Date"); and

          c)  presented in this quarterly report our conclusions about the
              effectiveness of the disclosure controls and procedures based on
              our evaluation as of the Evaluation Date;

5.   The registrant's other certifying officers and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

          a)  all significant deficiencies in the design or operation of
              internal controls which could adversely affect the registrant's
              ability to record, process, summarize and report financial data
              and have identified for the registrant's auditors any material
              weaknesses in internal controls; and

          b)  any fraud, whether or not material, that involves management or
              other employees who have a significant role in registrant's
              internal controls; and


                                                                         Page 17
<PAGE>

6.   The registrant's other certifying officers and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

         Date     May 15, 2003          /s/ James E. Stark
                                        ------------------
                                            James E. Stark
                                            Chief Financial Officer


                                                                         Page 18
<PAGE>