INSCI CORP
SC 13G/A, 1997-02-11
COMPUTER INTEGRATED SYSTEMS DESIGN
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934
             
                            (Amendment No._____1_____)*


                                   INSCI Corp. 
              -----------------------------------------------------
                                (Name of Issuer)

                        Common Stock, $.01 par value
          -------------------------------------------------------------
                         (Title of Class of Securities)

                                  45765T106
              -----------------------------------------------------
                                 (CUSIP Number)



Check the following box if a fee is  being paid with this statement [ ].

(A fee is not required only if the filing person:  (1) has a previous  statement
on file reporting beneficial ownership of more than five percent of the class of
securities  described  in Item 1;  and (2) has  filed  no  amendment  subsequent
thereto reporting  beneficial  ownership of five percent or less of such class.)
(See Rule 13d-7.)

*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).


<PAGE>

CUSIP No. 45765T106                  13G                    Page 2 of 7 Pages



- --------------------------------------------------------------------------------
   1   NAME OF REPORTING PERSON
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

       J. Morton Davis
       

- --------------------------------------------------------------------------------
   2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                             (a)  [  ]
                                                             (b)  [  ]


- --------------------------------------------------------------------------------
   3   SEC USE ONLY




- --------------------------------------------------------------------------------
   4   CITIZENSHIP OR PLACE OF ORGANIZATION


       United States

- --------------------------------------------------------------------------------
   NUMBER OF      5    SOLE VOTING POWER
     SHARES            237,000
  BENEFICIALLY    --------------------------------------------------------------
    OWNED BY      6    SHARED VOTING POWER
      EACH             0
   REPORTING      --------------------------------------------------------------
     PERSON       7    SOLE DISPOSITIVE POWER
      WITH             237,000
                  --------------------------------------------------------------
                  8    SHARED DISPOSITIVE POWER
                       0

- --------------------------------------------------------------------------------
   9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON


                       260,700
- --------------------------------------------------------------------------------
  10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

                     

- --------------------------------------------------------------------------------
  11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)


                       6.2%
- --------------------------------------------------------------------------------
  12   TYPE OF REPORTING PERSON*



                      IN
- --------------------------------------------------------------------------------
                     *SEE INSTRUCTIONS BEFORE FILLING OUT

<PAGE>
CUSIP No. 45765T106                  13G                    Page 3 of 7 Pages



- --------------------------------------------------------------------------------
   1   NAME OF REPORTING PERSON
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

       D.H. Blair Investment Banking Corp.
       

- --------------------------------------------------------------------------------
   2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
                                                             (a)  [  ]
                                                             (b)  [  ]


- --------------------------------------------------------------------------------
   3   SEC USE ONLY




- --------------------------------------------------------------------------------
   4   CITIZENSHIP OR PLACE OF ORGANIZATION


       Delaware

- --------------------------------------------------------------------------------
   NUMBER OF      5    SOLE VOTING POWER
     SHARES            0
  BENEFICIALLY    --------------------------------------------------------------
    OWNED BY      6    SHARED VOTING POWER
      EACH             237,000
   REPORTING      --------------------------------------------------------------
     PERSON       7    SOLE DISPOSITIVE POWER
      WITH             0
                  --------------------------------------------------------------
                  8    SHARED DISPOSITIVE POWER
                       237,000
- ----------------------------------------------------------------------------
   9   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                       237,000

- --------------------------------------------------------------------------------
  10   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

                     

- --------------------------------------------------------------------------------
  11   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)


                       5.7%
- --------------------------------------------------------------------------------
  12   TYPE OF REPORTING PERSON*

                     BD
- --------------------------------------------------------------------------------
                     *SEE INSTRUCTIONS BEFORE FILLING OUT

<PAGE>
                                                          Page 4 of 7 Pages


Item 1.     (a)   Name of Issuer:

                  INSCI Corp.

            (b)   Address of Issuer's Principal Executive Offices:

                  Two Westborough Business Park
                  Westborough, MA  01581
  
Item 2.     (a)   Name of Person Filing:

                    J. Morton  Davis  and D.H.  Blair  Investment  Banking
                    Corp. ("Blair Investment") (together, the "Reporting 
                    Parties") (1). See attached Exhibit A which is a copy of
                    their agreement  in  writing  to  file this statement on
                    behalf of each of them.

            (b)   Address of Principal Business Office:

                    Mr. Davis' and Blair Investment's business
                    address is 44 Wall Street, New York, New York 10005.

            (c)   Citizenship:

                    Mr. Davis is a United  States  citizen.  Blair Investment 
                    is incorporated in the State of Delaware.

            (d)   Title of Class of Securities:

                    Common Stock, $.01 par value ("shares")

            (e)   CUSIP Number:

                    45765T106


Item 3.     If this statement  is filed  pursuant to Rules  13d-1(b), or  
            13d-2(b), check whether the person filing is a:

            (a)   [X]   Broker or Dealer  registered under Section  15 of  the
                        Act 

            (b)   [ ]   Bank as defined in section 3(a)(6) of the Act

            (c)   [ ]   Insurance Company  as defined  in section  3(a)(19) of
                        the Act

            (d)   [ ]   Investment Company registered under  section 8 of  the
                        Investment Company Act

            (e)   [ ]   Investment Adviser registered under section 203 of the
                        Investment Advisers Act of 1940

            (f)   [ ]   Employee Benefit Plan,  Pension Fund which is  subject
                        to the  provisions of  the Employee Retirement  Income
                        Security Act of  1974 or Endowment  Fund; see  Section
                        240.13d-1(b)(1)(ii)(F)

            (g)   [ ]   Parent  Holding  Company, in  accordance  with Section
                        240.13d-1(b)(1)(ii)(G)

            (h)   ( )   Group,   in   accordance    with   Section    240.13d-
                        1(b)(1)(ii)(H)

______________________________________________________________________________
(1) J. Morton Davis is an investment banker and sole shareholder of Blair 
Investment, a broker-dealer registered under the Securities Exchange Act of 
1934.  Prior to May 1, 1996, Blair Investment was a wholely-owned subsidiary
of D.H. Blair Holdings, Inc. ("Blair Holdings"), which was solely owned by Mr.
Davis.  As of May 1, 1996, Blair Holdings merged into Blair Investment, with
Blair Investment being the surviving corporation.  

<PAGE>

                                                             Page 5 of 7 Pages
 


Item 4.     Ownership.

       (a) (b) As of December 31, 1996,  Mr. Davis may be deemed to
               beneficially  own  260,700 shares or 6.2% of the Issuer's
               shares issued and outstanding as follows: (i) 136,333 shares 
               owned by Blair Investment, (ii) 64,000 shares underlying 128,000 
               Warrants (2) owned by Blair Investment, (iii) 36,667 shares 
               underlying 36,667 Warrants (3) owned by Blair Investment,
               and (iv) 23,700 shares owned by Rosalind Davidowitz (4).

               As of December 31, 1996, Blair Investment may be deemed to 
               beneficially own 237,000 shares or 5.7% of the Issuer's
               shares issued and outstanding as indicated in (i) - (iii)
               above.

          (c)  Mr.  Davis has sole power to vote or to direct the vote,
               to dispose or to direct the  disposition of those shares owned by
               Blair Investment.  Rosalind  Davidowitz has sole power to vote or
               to direct the disposition of those shares owned directly by her.
               

Item 5.     Ownership of Five Percent or Less of a Class.

            Not applicable.


Item 6.     Ownership of More Than Five Percent on Behalf of Another Person.

            Not applicable.
 
 
Item 7.     Identification and Classification of the Subsidiary which Acquired
            the Security Being Reported on By the Parent Holding Company.

            Not applicable.  

___________________________________________________________________________
    
     (2) Each Warrant entitles the holder to purchase one half of one share
subject to adjustment until April 14, 1998.  Two Warrants may be exercised
at an aggregate exercise price of $9.00.
     (3) Each Warrant entitles the holder to purchase one share at $7.50 per 
share through February 9, 1997.
     (4) Rosalind Davidowitz is Mr. Davis' wife.  Filing of this statement 
shall not be deemed an admission by J. Morton Davis that he beneficially owns
the securities attributed to Rosalind Davidowitz for any purpose.  J. Morton
Davis expressly disclaims beneficial ownership of all securities held by 
Rosalind Davidowitz for any purpose.  


<PAGE>
                                                            Page 6 of 7 pages

Item 8.     Identification and Classification of Members of the Group.

            Not applicable.

Item 9.     Notice of Dissolution of Group.

            Not applicable.

Item 10.    Certification.

     By signing  below we certify that, to the best of our knowledge and belief,
the  securities  referred  to above  were  acquired  in the  ordinary  course of
business  and were not acquired for the purpose of and do not have the effect of
changing or  influencing  the control of the issuer of such  securities and were
not acquired in connection  with or as a participant in any  transaction  having
such purpose or effect.
                                   Signature.


            After reasonable inquiry and to the best of my knowledge and belief,
            we certify that the information set forth in this statement is true,
            complete and correct.




Date: February 10, 1997


      

By: /s/ J. Morton Davis
   -------------------------------
      J. Morton Davis





Date: February 10, 1997
      D.H. Blair Investment Banking Corp.



By:  /s/ David Nachamie
   -------------------------------
     David Nachamie
     Treasurer




                                                       Page 7 of 7 pages

                                   EXHIBIT A

                                   AGREEMENT

                          JOINT FILING OF SCHEDULE 13G



     The  undersigned  hereby agree to jointly  prepare and file with regulatory
authorities a Schedule 13G and any future  amendments  thereto reporting each of
the  undersigned's  ownership of securities of INSCI Corp. and  hereby affirm
that such Schedule 13G is being filed on behalf of each of the undersigned.




Date: February 10, 1997
      


 
By: /s/ J. Morton Davis
   -------------------------------
    J. Morton Davis


 




Date: February 10, 1997
      D.H. Blair Investment Banking Corp.



By:  /s/ David Nachamie
   -------------------------------
     David Nachamie
     Treasurer





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