```
**FORM 10-QSB**

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                        For Quarter Ended March 31, 2002

                                       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: 0-29329

                          **BIFS TECHNOLOGIES CORPORATION**
                 (formerly known as BIOFILTRATION SYSTEMS, INC.)
             (Exact Name of Registrant as Specified in its Charter)

                                    Florida
                                   65-0382549
                 State or other jurisdiction of I.R.S. Employer
                  incorporation or organization Identification
                                       No.

            2075 Fruitville Road, Suite 200, Sarasota, Florida 34237
               (Address of Principal Executive Office) (Zip Code)

                                 (941) 343-9300
               (Registrant's telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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 shares of registrant's Common Stock, $.00001 par value,
outstanding as of March 31, 2002 was 539,966,852 shares.

**BIFS TECHNOLOGIES CORP.**

                                      INDEX
                                                                        Page
PART I  - FINANCIAL INFORMATION:

     ITEM 1. FINANCIAL STATEMENTS

          Consolidated Balance Sheet - March 31, 2002 ..................1-2

          Consolidated Statements of Operations for the Three Months
          and Three Months Ended March 31, 2002 and 2000 ...............3-4

          Consolidated Statements of Cash Flows for the Three Months
          Ended March 31, 2002 and 2000 ................................5-6

          Notes to Consolidated Financial Statements ..................7-10

     ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS ....................11-13

PART II  - OTHER INFORMATION:

     ITEM 1. LEGAL PROCEEDINGS ..........................................14

     ITEM 2. CHANGES IN SECURITIES ......................................14

     ITEM 3. DEFAULTS UPON SENIOR SECURITIES ............................14

     ITEM 4. SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS .......14

     ITEM 5. OTHER EVENTS ...............................................14

     ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K ...........................14

SIGNATURES ..............................................................15

**PART I - FINANCIAL INFORMATION

 BIFS TECHNOLOGIES CORPORATION**

                        CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2002

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                           CONSOLIDATED BALANCE SHEET
                           --------------------------
                                 MARCH 31, 2002
                                 --------------

                                     ASSETS
                                     ------

CURRENT ASSETS

    Cash                                                          $   4,866
    Accounts receivable, net                                         17,688
    Other current assets                                             18,318
                                                                  ---------

        TOTAL CURRENT ASSETS                                         40,872
                                                                  ---------

FIXED ASSETS

    Internet access equipment                                       341,803
    Furniture and fixtures                                          106,589
                                                                  ---------

                                                                    448,392
    Accumulated depreciation                                       (110,789)
                                                                  ---------

                                                                    337,603
                                                                  ---------

OTHER ASSETS

    Patent, net                                                      33,014
    Goodwill, net                                                    94,196
    Advance to pre-acquisition company                               57,000
    Other                                                            33,341
                                                                  ---------

                                                                    217,551
                                                                  ---------

                                                                  $ 596,026
                                                                  =========

                The accompanying notes to consolidated financial
          statements are an integral part of this financial statement.

                                     

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                           CONSOLIDATED BALANCE SHEET
                           --------------------------
                                 MARCH 31, 2002
                                 --------------

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

CURRENT LIABILITIES

    Current portion of related party
        notes payable                                           $    34,675
    Due to related party                                             31,000
    Accounts payable and accrued expenses                           826,144
                                                                -----------

        TOTAL CURRENT LIABILITIES                                   891,819
                                                                -----------

OTHER LIABILITIES

    Notes payable to majority stockholder                           758,000
    Other stockholder notes payable                                 348,900
    Related party notes payable,
        less current portion                                         61,073
                                                                -----------

                                                                  1,167,973
                                                                -----------

COMMITMENTS AND CONTINGENCIES                                        -
                                                                -----------

STOCKHOLDERS' EQUITY

    Common stock $.00001 par value,
        800,000,000 shares authorized,
        539,966,852 shares issued and
        539,466,852 shares outstanding                                5,400
    Additional paid-in capital                                    8,665,719
    Subscription receivable                                      (  228,386)
    Deferred stock options                                       (  283,669)
    Accumulated deficit                                          (9,612,830)
                                                                -----------

                                                                 (1,453,766)

    Less treasury stock                                          (   10,000)
                                                                -----------

                                                                 (1,463,766)
                                                                -----------

                                                                $   596,026
                                                                ===========

                The accompanying notes to consolidated financial
          statements are an integral part of this financial statement.

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                           FOR THE THREE MONTHS ENDED
                             MARCH 31, 2002 AND 2001
                          --------------------------

                                                                                    Three-months ended
                                                                                --------------------------
                                                                                2002                   2001
                                                                            -----------            -----------
                                                                            (Unaudited)            (Unaudited)

REVENUES                                                                    $    43,365             $  119,676

COST OF REVENUES                                                                 83,464                137,237
                                                                            -----------            -----------

GROSS PROFIT (LOSS)                                                          (   40,099)            (   17,561)
                                                                            -----------            -----------

OTHER EXPENSES

    General and administrative                                                   75,838                111,243
    Salaries and related expenses                                                76,459                141,363
    Professional fees                                                            83,405                268,925
    Marketing                                                                    14,653                 83,399
    Depreciation and amortization                                                17,929                 73,140
    Interest                                                                     28,150                 36,977
                                                                            -----------            -----------

                                                                                296,434                715,047
                                                                            -----------            -----------

NET LOSS                                                                    $(  336,533)           $(  732,608)
                                                                            ===========             ===========

LOSS PER COMMON SHARE                                                       $(    .0006)           $(    .0014)
                                                                            ===========            ===========

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING (shares in 100's)                                             5,385,891              5,232,874
                                                                            ===========            ===========

                The accompanying notes to consolidated financial
         statements are an integral part of these financial statements.

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                           FOR THE THREE MONTHS ENDED
                             MARCH 31, 2002 AND 2001
                          -- ------------------------

                                                                                      Three months ended
                                                                                  -------------------------
                                                                                      2002              2001
                                                                                  ----------        ------------
                                                                                  (Unaudited)        (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

   Cash received from customers                                                    $  36,807          $  98,743
   Cash paid for expenses                                                           (134,676)          (856,975)
   Interest                                                                         (  1,273)             2,662
                                                                                   ---------          ---------

      Net cash used by operating activities                                         ( 99,142)          (755,570)
                                                                                    ---------          ---------

CASH FLOWS FROM INVESTING ACTIVITIES

   Advances to related companies                                                    (  7,000)              -
   Purchase of fixed assets                                                         (  2,550)          ( 75,500)
                                                                                   ---------          ---------

      Net cash used by investing
         activities                                                                 (  9,550)          ( 75,500)
                                                                                   ---------          ---------

CASH FLOWS FROM FINANCING ACTIVITIES

   Proceeds from sale of stock                                                        50,000            331,000
   Proceeds from stockholder note
      payable                                                                           -               250,000
                                                                                   ---------          ---------

      Net cash provided by financing activities                                       50,000            581,000
                                                                                   ---------           ---------

NET DECREASE IN CASH                                                                ( 58,692)          (250,070)

CASH, BEGINNING OF PERIOD                                                             63,558            682,803
                                                                                   ---------          ---------

CASH, END OF PERIOD                                                                $   4,866          $ 432,733
                                                                                   =========          =========

                The accompanying notes to consolidated financial
         statements are an integral part of these financial statements.

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                           FOR THE THREE MONTHS ENDED
                             MARCH 31, 2002 AND 2001
                          -- ------------------------

                                                                                         Three-months ended
                                                                                   -------------------------
                                                                                     2002                2001
                                                                                 -----------         ----------
                                                                                 (Unaudited)         (Unaudited)

                          RECONCILIATION OF NET LOSS TO
                      CASH FLOWS FROM OPERATING ACTIVITIES
                      ------------------------------------

NET LOSS                                                                           $(336,533)         $(732,608)

RECONCILING ADJUSTMENTS

   Depreciation and amortization                                                      17,930             73,140
   Increase in accounts receivable                                                  (  6,558)          ( 20,933)
   Decrease in inventory                                                                -                 1,137
   Increase in prepaid expenses                                                         -              (185,446)
   Increase (decrease) in accounts
      payable and accrued expenses                                                   153,312           (151,914)
   Decrease in other assets                                                             -                15,064
   Stock issued for services                                                          45,830            233,750
   Contribution of accrued interest
      to paid-in capital                                                              26,877             12,240
                                                                                   ---------          ---------

CASH FLOWS FROM OPERATING ACTIVITIES                                               $( 99,142)         $(755,570)
                                                                                   =========          =========

                   NONCASH INVESTING AND FINANCING ACTIVITIES
                   ------------------------------------------

DECREASE IN ACCRUED INTEREST
   PAYABLE THROUGH CONTRIBUTION
   TO PAID-IN CAPITAL                                                              $  26,877          $  12,240
                                                                                   =========          =========

ISSUE OF STOCK FOR SERVICES                                                        $  45,830          $ 233,750
                                                                                   =========          =========

                The accompanying notes to consolidated financial
         statements are an integral part of these financial statements.

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                                 MARCH 31, 2002
                                 --------------

The information presented herein as of March 31, 2002, and for the three months
ended March 31, 2002 and 2001, is unaudited.

NOTE A - BASIS OF PRESENTATION

The accompanying consolidated financial statements of BIFS Technologies
Corporation (the Company) have been prepared in accordance with generally
accepted accounting principles for interim financial information and with the
instructions to the Securities and Exchange Commission's Form 10-QSB and item
310(b) of Regulation S-B. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all adjustments
(consisting of normal required adjustments) considered necessary for a fair
presentation have been included.

Operating results for the three month period ended March 31, 2002, are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2002. For further information, refer to the December 31, 2001,
financial statements and footnotes included in the Company's annual filing with
the Securities and Exchange Commission.

NOTE B - REVENUE RECOGNITION

The Company's revenues are derived from the following sources:

- access charges to the internet, using various payment plans, through dial-up
means;

- sale or lease of pollution treatment equipment;

- sale of ice monitoring software and equipment.

Internet customers are charged a monthly fixed fee for access to the internet.
Revenues are recognized at standardized rates over the period the service is
provided.

Revenues from sale of pollution treatment equipment will be recognized in
accordance with contract or purchase order terms at the time the equipment is
either shipped or shipped and installed and accepted by the customer.

Revenues from lease of pollution treatment equipment will be based on contract
terms - typically as equipment is installed and treatment services commence.
Revenues will be recognized on either a flat monthly rate or at a measured price
per gallon basis, as services are provided.

Revenues from sale of ice monitoring software and hardware will be
recognized at the time the products are shipped and accepted by the customer.

NOTE C - NET LOSS PER COMMON SHARE

Net loss per common share is computed in accordance with the requirements of
Statement of Financial Accounting Standards No. 128.

NOTE D - SEGMENTS

The Company operates in three business segments; environmental services,
emerging technologies and government operations. For the three months ended
March 31, 2002 and 2001, information on reportable segments is as follows:

                          BIFS TECHNOLOGIES CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2002

NOTE D - SEGMENTS (continued)

March 31, 2002
                                   Environmental                Emerging                 Govermental                 Segment
                                     services                 technologies               operations                  totals
                               ----------------------     ----------------------     --------------------     ----------------------

  External revenue              $       -                  $    43,365                $      -                 $    43,365
                               ======================     ======================     ====================     ======================

  Intersegment revenue          $       -                  $       -                  $      -                 $       -
                               ======================     ======================     ====================     ======================

  Net loss                      $       -                  $  (137,530)               $      -                 $  (137,530)
                               ======================     ======================     ====================     ======================

March 31, 2001

  External revenue              $       -                  $   119,676                $      -                 $   119,676
                               ======================     ======================     ====================     ======================

  Intersegment revenue          $       -                  $       -                  $      -                 $       -
                               ======================     ======================     ====================     ======================

  Net loss                      $       -                  $  (402,694)               $  (20,002)              $  (422,696)
                               ======================     ======================     ====================     ======================

NOTE D - SEGMENTS (continued)

March 31, 2002
                                                             All                   Eliminating              Consolidated
                                                            other                  adjustments                 totals
                                                    ----------------------     --------------------     ---------------------

  External revenue                                   $       -                  $      -                 $       -
                                                    ======================     ====================     =====================

  Intersegment revenue                               $       -                  $      -                 $       -
                                                    ======================     ====================     =====================

  Net loss                                           $  (199,003)               $      -                 $  (199,003)
                                                    ======================     ====================     =====================

March 31, 2001

  External revenue                                   $       -                  $      -                 $       -
                                                    ======================     ====================     =====================

  Intersegment revenue                               $       -                  $      -                 $       -
                                                    ======================     ====================     =====================

  Net loss                                           $  (309,912)               $      -                 $  (309,912)
                                                    ======================     ====================     =====================

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                                 MARCH 31, 2002
                                 --------------

NOTE E - OPERATING RESULTS

As noted in the accompanying financial statements, the Company has sustained
substantial net operating losses. Its ability to continue as a going concern and
realize its assets is dependent upon generating sufficient profitable revenues
and obtaining funding to support operations and planned capital improvements.

Management is attempting to obtain funds to support continuing operations and
capital improvements. At March 31, 2002, and subsequently, management is
negotiating with funding sources to meet its projected needs. Management is
confident they will be successful in their negotiations and will obtain the
necessary funding. Through May 15, 2002, additional funding to support
operations has not been obtained.

NOTE F - LITIGATION

The Company is involved as a defendent in several lawsuits. At March 31, 2002,
and through May 15, 2002, management does not anticipate either an unfavorable
settlement or if unfavorably settled, any material impact on the Company.

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

Three Months Ended March 31, 2002 and 2001

     Net sales for the three months ended March 31, 2002 decreased 63% to
$43,365 from $119,676 during the same period the prior year. Net sales decreased
primarily as a result of a decrease in web development, hardware sales and
service operations at Beach Access.net as compared to the same period of the
previous year.

     Cost of sales for the three months ended March 31, 2002 decreased 39% to
$83,464 from $137,237 during the same period the prior year. The decrease is
primarily due to the reduction of technical costs required to support sales at
Beach Access.net.

     General and administrative expenses for the three months ended March 31,
2002 decreased (32%) to $75,838 from $111,243 in the same period during the
prior year primarily due to implementation of various cost control measures in
these areas.

     Salaries and related expenses for the three months ended March 31, 2002
decreased (46%) to $76,549 from $141,363 during the same period the prior year.
This is primarily due to staff reductions within the Myrtle Beach operation and
a decrease in upper management compensation.

     Professional fees for the three months ended March 31, 2002 decreased 69%
to $83,405 from $268,925 during the same period the prior year. This is
primarily due to the decrease in the requirement for technical consultant fees
for new ventures and professional fees related to due diligence matters that
were incurred during the same period of the previous year.

     Marketing costs for the three months ended March 31, 2002 decreased 82% to
$14,653 from $83,399 in the same period during the prior year. This reduction is
primarily due to selling and marketing costs incurred in 2001 were associated
with expansion of the Myrtle Beach operation and that the costs of marketing and
advertising currently being utilized were incurred in the previous year.

     Depreciation and amortization expenses for three months ended March 31,
2002 decreased 75% to $17,929 from $73,140 for the same period during the prior
year due to goodwill, which had been amortized during the previous period, was
recorded as an impairment loss at December 31, 2001.

**LIQUIDITY AND CAPITAL RESOURCES**

     During the three months ended March 31, 2002 the Company had a net loss of
$(336,533) compared to $(732,608) in the prior year. Cash used by operating
activities of continuing operations was $(99,142) during the three months ended
March 31, 2002 compared to $(755,570) in the prior year. The decrease in cash
used by operating activities of continuing operations during the three months
ended March 31, 2002 compared to the same period the prior year was primarily
due to it's Myrtle Beach operation cash requirements incurred in the previous
year and cost reduction measures that were deployed during the current period.
Investing activities used $(9,550) during three months ended March 31, 2002
compared to providing $75,500 during the same period the prior year. The
decrease resulted primarily from the expansion of its Myrtle Beach operation in
the same period of 2001.

     Financing activities generated $50,000 during the three months ended March
31, 2002 compared to $581,000 during the same period the prior year. This
decrease is due to the fact that there were more stock sales during the prior
year and that for the period ended March 31, 2002 there were no shareholder
loans issued.

     The Company's short-term and long-term liquidity is primarily dependant on
its ability to continue its various capital raising along with the successful
implementation of its acquisition and expansion plans.

     During the period ended March 31, 2002 the Company implemented a cost
reduction program within its Myrtle Beach operation that should generate a
substantial reduction to the Myrtle Beach losses.

     The Company continues to explore various ventures and opportunities in the
start up, acquisition and developmental stages in order to improve and the
Company's financial future.

     Material commitments as of March 31, 2002 were $87,000 for the Mid-America
project. Funding for this commitment will be met through consignment of
guaranteed contract through a financial institution.

     In April 2001, the Company signed a letter of intent to purchase all of the
outstanding stock of FireX2, Inc. The purchase will consist of exchanging
1,948,380 shares of BIFS restricted common stock for 1,948,380 shares of FireX2.
Additionally, BIFS will issue stock options for 655,000 shares to certain
existing shareholders of FireX2.

     The letter of intent contains various conditions that must be met before
closing, including, among others, satisfactory results from U.S. government
testing of FireX2's product.

     At March 31, 2002, the purchase of FireX2, Inc. has not closed.

     During the three month period ended March 31, 2002, the Company advanced
$57,000 to FireX2.

     The Company believes that it's capital raising efforts will continue
successfully until it's operating segments (with the new ventures) begin to
generate a positive internal cash flow.

                           PART II - OTHER INFORMATION

**ITEM 1.   LEGAL PROCEEDINGS**

     The Company is involved in certain claims and other legal actions arising
in the ordinary course of business. There can be no assurances that these
matters will be resolved on terms acceptable to the Company. In opinion of
management, based upon the advice of counsel and consideration of all facts
available at this time, the ultimate disposition of these matters will not have
a material adverse effect on the financial position, results of operations or
liquidity of the Company.

**ITEM 2.   CHANGES IN SECURITIES**

         None

**ITEM 3.   DEFAULTS UPON SENIOR SECURITIES**

         None

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

         None

**ITEM 5.  OTHER EVENTS**

     During the period ended March 31, 2002, the Company mutually terminated
its contract with the CFO. Also during this period Mr. Jim Feiler was appointed
as Chief Operating Officer.

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

         A. Exhibits - None

         B. Reports on Form 8-K - None

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                              BIFS TECHNOLOGIES CORP.

Date: May 20, 2002                      By:   ______________________________
                                              Alpha J. Keyser, President and CEO
                                              (Principal Executive Officer)
```