`FORM 10-QSB/A

                       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 September 30, 2001

                                       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 September 30, 2001 was 524,865,914 shares.


BIFS TECHNOLOGIES CORP.

                                      INDEX
                                                                        Page
PART I  - FINANCIAL INFORMATION:

     ITEM 1. FINANCIAL STATEMENTS

          Consolidated Balance Sheet _ September 30, 2001 ...............1-2

          Consolidated Statements of Operations for the Nine Months
          and Three Months Ended September 30, 2001 and 2000 ............3-4

          Consolidated Statements of Cash Flows for the Nine Months
          Ended September 30, 2001 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


 BIFS TECHNOLOGIES CORPORATION

                        CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001

                                  (Revised)



                         BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                           CONSOLIDATED BALANCE SHEET
                           --------------------------
                               SEPTEMBER 30, 2001
                               ------------------
                                    (Revised)


                                     ASSETS
                                     ------



CURRENT ASSETS

    Cash                                                             $     9,384
    Accounts receivable                                                   48,269
    Current portion of prepaid professional fees                         183,317
    Prepaid and other current assets                                      31,224
                                                                     -----------

        TOTAL CURRENT ASSETS                                             272,194
                                                                     -----------

FIXED ASSETS

    Contingent investment in joint venture                               787,650
    Wireless internet access system
        and equipment                                                    382,447
    Computer equipment                                                   386,759
    Other                                                                117,962
                                                                     -----------

                                                                       1,674,818
    Accumulated depreciation                                          (  142,406)
                                                                     -----------

                                                                       1,532,412
                                                                     -----------

OTHER ASSETS

    Patent, net                                                           35,058
    Prepaid professional fees, less
        current portion                                                  134,898
    Goodwill, net                                                        701,103
    Advance to pre-acquisition company                                    25,000
    Other                                                                 40,312
                                                                     -----------

                                                                         936,371
                                                                     -----------

                                                                     $ 2,740,977
                                                                     ===========


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

                                       -1-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                           CONSOLIDATED BALANCE SHEET
                           --------------------------
                               SEPTEMBER 30, 2001
                               ------------------
                                   (Revised)

                      LIABILITIES AND STOCKHOLDERS' DEFICIT
                      -------------------------------------


CURRENT LIABILITIES

    Current portion of related party
        notes payable                                                $    34,675
    Accounts payable and accrued expenses                                659,798
                                                                     -----------

        TOTAL CURRENT LIABILITIES                                        694,473
                                                                     -----------

OTHER LIABILITIES

    Notes payable to majority stockholder                              1,609,999
    Other stockholder notes payable                                      348,900
    Related party notes payable,
        less current portion                                              95,073
                                                                     -----------

                                                                       2,053,972
                                                                     -----------

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

STOCKHOLDERS' DEFICIT

    Common stock $.00001 par value,
        800,000,000 shares authorized,
        528,684,352 shares issued and
        528,184,352 shares outstanding                                     5,287
    Additional paid-in capital                                         7,175,892
    Deferred stock options                                            (  283,669)
    Accumulated deficit                                               (6,894,978)
                                                                     -----------

                                                                           2,532

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

                                                                      (    7,468)
                                                                     -----------

                                                                     $ 2,740,977
                                                                     ===========

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

                                       -2-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                   FOR THE NINE MONTHS AND THREE MONTHS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                      ------- ----------------------------
(Revised)
                                                                                 Nine-months ended
                                                                             ----------------------------
                                                                          2001                    2000
                                                                      ----------              -----------
                                                                      (Unaudited)             (Unaudited)

REVENUES                                                             $   411,961             $   288,623

COST OF REVENUES                                                         609,153                 113,641
                                                                     -----------             -----------

GROSS PROFIT (LOSS)                                                   (  197,192)                174,982
                                                                     -----------             -----------

OTHER EXPENSES

    General and administrative                                           356,007                 630,256
    Salaries and related expenses                                        437,365               1,059,438
    Professional fees                                                    569,100                 176,530
    Marketing                                                            168,531                  21,524
    Depreciation and amortization                                        234,676                 150,413
    Research and development                                             150,000                  17,775
    Interest                                                             131,161                  31,892
                                                                     -----------             -----------

                                                                       2,046,840               2,087,828
                                                                     -----------             -----------

NET LOSS FROM CONTINUING OPERATIONS                                   (2,244,032)             (1,912,846)
                                                                     -----------             -----------

DISCONTINUED OPERATIONS

    Loss from discontinued operations                                       -                 (  163,220)
    Loss on disposal of discontinued
        operations                                                          -                 (  210,349)
                                                                     -----------             -----------

                                                                            -                 (  373,569)
                                                                     -----------             -----------

NET LOSS                                                             $(2,244,032)            $(2,286,415)
                                                                     ===========             ===========

LOSS PER COMMON SHARE

    Loss from continuing operations                                  $(     .004)            $(     .005)
                                                                     ===========             ===========
    Loss from discontinued operations                                $      -                $      -
                                                                     ===========             ===========
    Loss from disposal of discontinued
        operations                                                   $      -                $      -
                                                                     ===========             ===========

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING (shares in 100's)                                      5,249,731               4,820,818
                                                                     ===========             ===========

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

                                       -3-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                   FOR THE NINE MONTHS AND THREE MONTHS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                      ------- ----------------------------
(Revised)

                                                                                Three-months ended
                                                                            ----------------------------
                                                                         2001                    2000
                                                                     -----------             -----------
                                                                     (Unaudited)             (Unaudited)

REVENUES                                                              $   43,962             $   122,191

COST OF REVENUES                                                         166,853                  61,001
                                                                     -----------             -----------

GROSS PROFIT (LOSS)                                                   (  122,891)                 61,190
                                                                     -----------             -----------

OTHER EXPENSES

    General and administrative                                           115,439                 559,832
    Salaries and related expenses                                        118,616                 300,130
    Professional fees                                                    128,549                  33,600
    Marketing                                                             41,637                    -
    Depreciation and amortization                                         82,218                  88,327
    Research and development                                             150,000                  17,775
    Interest                                                              50,891                   9,891
                                                                     -----------             -----------

                                                                         687,350               1,009,555
                                                                     -----------             -----------

NET LOSS FROM CONTINUING OPERATIONS                                   (  810,241)             (  948,365)
                                                                     -----------             -----------

DISCONTINUED OPERATIONS

    Recovery of loss from discontinued
        operations                                                          -                     67,500
    Loss on disposal of discontinued
        operations                                                          -                 (   40,024)
                                                                     -----------             -----------

                                                                            -                     27,476
                                                                     -----------             -----------

NET LOSS                                                             $(  810,241)            $(  920,889)
                                                                     ===========             ===========

LOSS PER COMMON SHARE

    Loss from continuing operations                                  $(     .002)            $(     .002)
                                                                     ===========             ===========
    Loss from discontinued operations                                $      -                $      -
                                                                     ===========             ===========
    Loss from disposal of discontinued
        operations                                                   $      -                $      -
                                                                     ===========             ===========

WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING (shares in 100's)                                      5,273,039               5,171,405
                                                                     ===========             ===========

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

                                       -4-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                            FOR THE NINE MONTHS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                           ---------------------------
(Revised)

                                                                           2001               2000
                                                                       -----------        -----------
                                                                       (Unaudited)        (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

   Cash received from customers                                      $   395,861             $   261,729
   Cash paid for continuing operating
      expenses                                                        (2,132,772)             (  740,865)
   Cash paid for discontinued operations                                    -                 (   65,592)
   Interest                                                                 -                 (    1,832)
                                                                     -----------             -----------

      Net cash used by operating activities                           (1,736,911)              ( 546,560)
                                                                     -----------              ----------

CASH FLOWS FROM INVESTING ACTIVITIES


   Repayment of advances to related company                                 -                    447,910
   Purchase of fixed and other assets                                 (  215,829)             (  134,979)
                                                                     -----------             -----------

      Net cash used by investing
         activities                                                   (  215,829)                312,931
                                                                     -----------             -----------

CASH FLOWS FROM FINANCING ACTIVITIES

   Net proceeds from related party
      notes payable                                                        9,000                    -
   Proceeds from sale of stock                                           610,322               1,125,362
   Proceeds from (repayment of) stockholder
      notes payable                                                      659,999              (   16,366)
                                                                     -----------             -----------

      Net cash provided by financing activities                        1,279,321               1,108,996
                                                                     -----------             -----------

NET INCREASE IN CASH                                                  (  673,419)                875,367

CASH, BEGINNING OF PERIOD                                                682,803                       6
                                                                     -----------             -----------

CASH, END OF PERIOD                                                  $     9,384             $   875,373
                                                                     ===========             ===========


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

                                       -5-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                            FOR THE NINE MONTHS ENDED
                           SEPTEMBER 30, 2001 AND 2000
                         - ----------------------------
(Revised)

                                                                           2001               2000
                                                                      -----------        -----------
                                                                        (Unaudited)        (Unaudited)

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

NET LOSS                                                             $(2,244,032)            $(2,286,415)

RECONCILING ADJUSTMENTS

   Depreciation and amortization                                         234,676                 150,413
   Loss from disposal of discontinued
      operations                                                            -                    373,569
   Increase in accounts receivable                                   (    16,100)             (   26,894)
   Decrease (increase) in prepaid expenses
      and other assets                                                    58,763              (   31,192)
   (Decrease) increase in accounts payable
      and accrued expenses                                           (    27,215)                 46,752
   Decrease (increase) in other assets                                      -                 (    1,150)
   Stock issued for services                                             233,750               1,268,607
   Contribution of accrued interest
      to paid-in capital                                                  23,247                  27,250
   Recovery of stock investment on
      subsidiary company                                                    -                 (   67,500)
                                                                     -----------             -----------

CASH FLOWS FROM OPERATING ACTIVITIES                                 $(1,736,911)            $(  546,560)
                                                                     ===========             ===========



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


DECREASE IN ACCRUED INTEREST
   PAYABLE THROUGH CONTRIBUTION
   TO PAID-IN CAPITAL                                                $    23,247             $    27,250
                                                                     ===========             ===========

ISSUE OF STOCK FOR ACQUISITION OF
   AND INVESTMENT IN SUBSIDIARY COMPANY                              $      -                $ 1,741,542
                                                                     ===========             ===========

ISSUE OF STOCK FOR SERVICES                                          $   233,750             $      -
                                                                     ===========             ============

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

                                       -6-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                               SEPTEMBER 30, 2001
                               ------------------
(Revised)

The information presented herein as of September 30, 2001, and for the nine
months and three months ended September 30, 2001 and 2000, 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 September 30, 2001, are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2001. For further information, refer to the December 31, 2000,
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
   either dial-up or wireless means;

-  sale or lease of pollution treatment equipment;

-  sale of ice monitoring software and equipment.

Internet customers are charged a daily or 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 - BUSINESS ACQUISITIONS

On January 26, 2001, the Company purchased 55% of the outstanding stock of GPS
Integrators, Inc., a Texas corporation, which provides products to improve
winter operations at airports. Currently, GPS is selling equipment and software
associated with a proprietary ice monitoring system used on airport runways.

The purchase price of this acquisition was 2,000,000 shares of the Company's
restricted common stock. This stock, which was valued at $477,700, was recorded
at the stock's average simple traded value over a defined period less a 15%
discount because of its restricted nature. Goodwill, amounting to $477,700, was
recorded in connection with this transaction.

                                       -7-

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                               SEPTEMBER 30, 2001
                               ------------------
(Revised)

NOTE C - BUSINESS ACQUISITIONS (continued)

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 29, 2002, the purchase of FireX2, Inc. has not closed.

During the three month period ended September 30, 2001, the Company advanced
$25,000 to FireX2.

During the quarter ended September 30, 2001, the Company entered into
negotiations with a company to co-market, share, co-develop and distribute
technologies. Preliminary terms of the arrangement were that the Company would
contribute assets from its emerging technologies segment to a joint venture
entity. The contribution of emerging technologies assets would be 50% matched,
in cash, by the joint venture partner.

At September 30, 2001, the Company reclassified certain emerging technology
fixed assets for contribution to the joint venture. These assets, amounting to
$787,650, were recorded as a contingent investment in joint venture in the
accompanying financial statements. Management recorded this investment in
anticipation of joint venture documents being executed and the joint venture
partner funding its contribution.

Subsequent to September 30, 2001, the joint venture partner was unable to obtain
the necessary funding and joint venture documents were not executed. Emerging
technology assets recorded as contingent investment in joint venture at
September 30, 2001, were subsequently reclassified to operating fixed assets.

NOTE D - PROFESSIONAL FEES

In February 2001, the Company issued 1,000,000 shares of restricted common stock
for consulting services. The consulting agreement is for a three year period.
The stock issued for these services, which was valued at $233,750, was recorded
at the stock's average simple traded value over a defined period less a 15%
discount because of its restricted nature. Prepaid professional services was
recorded in conjunction with this transaction and will be amortized over the
life of the consulting agreement. For the nine months ended September 30, 2001,
amortization of this consulting agreement amounted to $47,285.

NOTE E - 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.

                                       -8-

                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                               SEPTEMBER 30, 2001
                               ------------------
                                    (Revised)

NOTE F - SEGMENTS

The Company operates in three business segments; environmental services,
emerging technologies and government operations. Currently, the operating
segments are the emerging technologies and government operations groups. For the
nine months ended September 30, 2001, information on reportable segments is as
follows:

                                           Environmental        Emerging                Government
                                             services          technologies             operations                 Total
                                             ---------           ----------            -------------           -------------

Nine months ended
 September 30, 2001:

 External revenue                              $    -                $   245,879               $ 166,082          $   411,961
                                               =========             ===========               =========          ===========

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

 Loss from continuing
   operations                                  $(986,247)            $(1,181,605)              $( 76,180)         $(2,244,032)

 Loss from discontinued
   operations                                      -                        -                        -                   -
                                               ---------             -----------             -----------          -----------
                                                                                                     -
                                               $(986,247)            $(1,181,605)              $( 76,180)         $(2,244,032)
                                               =========             ===========               =========          ===========


Nine months ended
 September 31, 2000:

 External revenue                               $    -               $   288,623               $    -             $   288,623
                                               =========               =========              ==========            =========


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

  Loss from continuing
    operations                                 $(448,322)            $(1,464,524)              $    -             $(1,912,846)

  Loss from discontinued
    operations                                      -                 (  373,569)              $    -              (  373,569)
                                               ---------              ----------              ----------           ----------

                                               $(448,322)            $(1,838,093)              $    -             $(2,286,415)
                                               =========             ===========             ===========          ===========



Since December 31, 2000, the Company has added the operations of the government
operations segment. This segment was added on January 26, 2001. As of September
30, 2001, total assets of the government operations segment were $8,917.

NOTE G - OTHER COMMITMENTS AND CONTINGENCIES

In connection with development and construction of the wireless internet access
system, the Company has committed to purchase approximately $1,200,000 in
component parts used in the system. Through September 30, 2001, the Company has
received and recorded approximately $800,000 toward this purchase.

In November 2000, the Company signed a contract for deicer disposal services at
Mid-America St. Louis Airport. Based on Company estimates, approximately $87,000
will be required to acquire and install the necessary equipment. Through
September 30, 2001, there have been no costs incurred for equipment or
installation.
                                       -9-



                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                               SEPTEMBER 30, 2001
                               ------------------
                                    (Revised)

NOTE H - LITIGATION

At December 31, 2000, the Company had instituted legal action against a former
employee to void his employment contract. Under the terms of this employment
contract, if this employee was terminated for any reason, unexercised stock
options could be exercised at any time. At the date of termination there were
unexercised options on 12,000,000 shares of restricted common stock. If the
options were exercised on the termination date, the stock options would be
valued at $2,952,000.

Subsequent to June 30, 2001, the Court ruled against the Company. Management and
legal counsel disagree with the ruling of the Court and are appealing its
decisions. In the opinion of legal counsel, the Company will prevail in its
efforts to void this employment contract.

The Company is involved as a defendant in several other lawsuits. At September
30, 2001, and through March 29, 2002, management does not anticipate any
material financial impact on the Company in the event the lawsuits are
unfavorably settled.

NOTE I - RELATED PARTY ACTIVITY

The Company is related through its majority shareholder and other shareholders
to a company that provides research and development services. These shareholders
own a minority interest in this related company.

During the period ended September 30, 2001, the Company paid this company
$150,000 to assist in developing an emerging technology product.

In the accompanying financial statements, research and development costs of
$150,000 were recorded in connection with this transaction. At September 30,
2001, amounts due this related company amounted to $150,000 which is recorded in
accounts payable and accrued expenses in the accompanying financial statements.

NOTE J - 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 fund planned capital
improvements.

Management is attempting to obtain funds to support continuing operations and
fund capital improvements. At September 30, 2001, 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 March 29, 2002, additional funding to support
operations and capital improvements has not been obtained.

NOTE K - RESTATEMENT

Subsequent to September 30, 2001, the Company became aware of several errors in
the recording of certain transactions as reported in the original Form 10-QSB
for the quarter ended September 30, 2001.

The errors are as follows:

- A transaction involving a disposition of Company fixed assets intended to be
treated as a contingent investment in a joint venture was erroneously recorded
as a sale of inventory to the joint venture partner and reported as current
operating revenues;

                                      -10-


                          BIFS TECHNOLOGIES CORPORATION
                          -----------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                               SEPTEMBER 30, 2001
                               ------------------
                                    (Revised)


NOTE K - RESTATEMENT (continued)

- Amortization expenses were incorrectly recorded;

- Contributed capital was understated for contributed interest accruing on
shareholder notes payable;

- Product development costs and amounts due a related company were not recorded.

Summarized financial information illustrating the restatement on the Company's
financial statements is as follows:

                                                                                Nine months ended
                                                                                September 30, 2001
                                                                            ---------------------------
                                                                   As originally
                                                                     reported               As restated
                                                                   -------------           -------------

Financial position -

   Assets                                                            $ 3,043,033             $ 2,740,977
                                                                     ===========             ===========
   Stockholder's equity (deficit)                                    $   215,934             $(    7,468)
                                                                     ===========             ===========

Results of operations -

   Revenues                                                          $ 1,199,372             $   411,961
                                                                     ===========             ===========

   Cost of revenues                                                  $ 1,396,802             $   609,153
                                                                     ===========             ===========

   Other operating expenses                                          $ 1,786,391             $ 2,046,840
                                                                     ===========             ===========

   Net loss                                                          $(1,983,821)            $(2,244,032)
                                                                     ===========             ===========

   Loss per common share                                             $(     .004)            $(     .004)
                                                                     ===========             ===========

                                                                               Three months ended
                                                                               September 30, 2001
                                                                             ---------------------------

                                                                   As originally
                                                                     reported               As restated
                                                                   -------------           -------------


Results of operations -
Revenues                                                             $   831,373             $    43,962
                                                                     ===========             ===========

Cost of revenues                                                     $   954,502             $   166,853
                                                                     ===========             ===========

Other operating expenses                                             $   426,903             $   687,350
                                                                     ===========             ===========

Net loss                                                             $(  550,032)            $(  810,241)
                                                                     ===========             ===========

Loss per common share                                                $(     .001)            $(     .002)
                                                                     ===========             ===========



The restatement described above has no effect on the Company's financial
position and operating results on or before December 31, 2000.

                                      -11-


BIFS TECHNOLOGIES CORPORATION
(formerly Biofiltration Systems, Inc.)


Period-Type                                                             9-Months
Fiscal year end                                                December 31, 2001
Period start                                                     January 1, 2001
Period end                                                    September 30, 2001
Cash                                                                       9,384
Securities                                                                     0
Receivables                                                               48,269
Allowances                                                                     0
Inventory                                                                      0
Current assets                                                           272,194
PP&E                                                                   1,674,818
Depreciation                                                            (142,406)
Total assets                                                           2,740,977
Current liabilities                                                      694,473
Bonds                                                                          0
Preferred mandatory                                                            0
Preferred                                                                      0
Common                                                                     5,287
Other - SE                                                               (12,755)
Total liability and equity                                             2,740,977
Sales                                                                    411,961
Total revenues                                                           411,961
CGS                                                                      609,153
Total costs                                                            1,915,679
Other expenses                                                                 0
Loss provision                                                                 0
Interest expense                                                         131,161
Income pretax                                                         (2,244,032)
Income tax                                                                     0
Income continued                                                      (2,244,032)
Discontinued                                                                   0
Extraordinary                                                                  0
Changes                                                                        0
Net income                                                            (2,244,032)
EPS basic                                                                  (.004)
EPS diluted                                                                    0

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

RESULTS OF OPERATIONS

Nine Months Ended September 30, 2001 and 2000

     Net sales for the nine months ended September 30, 2001 increased 43% to
$411,961 from $288,623 during the same period the prior year. Net sales
increased primarily as a result of its acquisition of GPS Integrators, Inc.

     Cost of sales for the nine months ended September 30, 2001 increased 436%
to $609,153 from $113,641 during the same period the prior year. The increase is
primarily due to the increase in net sales and the GPS Integrators, Inc.
purchase and additional cost of sales incurred in the Myrtle Beach operations.

     General and administrative expenses for the nine months ended September 30,
2001 decreased (44)% to $356,007 from $630,256 in the same period during the
prior year primarily due to various cost controls in these areas.

     Salaries and related expenses for the nine months ended September 30, 2001
decreased (59)% to $437,365 from $1,059,438 during the same period the prior
year. This decrease is primarily due to the former owner and employees of the
Myrtle Beach operation receiving stock bonuses and other incentives during the
prior period last year.

     Professional fees for the nine months ended September 30, 2001 increased
222% to $569,100 from $176,530 during the same period the prior year. This
increase is primarily due to technical consulting fees for various new ventures
and professional fees related to due diligence matters.

     Marketing costs for the nine months ended September 30, 2001 increased 683%
to $168,531 from $21,524 in the same period during the prior year primarily due
to increases in selling and marketing costs associated with its expansion of the
Myrtle Beach operation.

     Depreciation and amortization expenses for nine months ended September 30,
2001 increased 56% to $234,676 from $150,413 for the same period during the
prior year due to 2001 was a full year of depreciation and amortization versus a
partial year in 2000.

     Research and development costs for nine months ended September 30, 2001
increased 743% to $150,000 from $17,775 for the same period the prior year due
to technological development costs incurred for the TV+Internet System.

     Net interest expense for nine months ended September 30, 2001 increased
311% to $131,161 from $31,892 for the same period the prior year. The increase
results primarily from the Company's additional debt for working capital,
acquisitions and fixed assets.

     Losses from discontinued operations and disposal of discontinued operations
for nine months ended September 30, 2001 decreased to $0 from $(373,569) for the
same period the prior year. The decrease results primarily from Managements'
decision in early July 2000 to discontinue and dispose of certain measurable
portions of its internet technology segment (PC Wholesale and Knight Design).

LIQUIDITY AND CAPITAL RESOURCES

     During the nine months ended September 30, 2001 the Company had a net loss
of $(2,244,032) compared to $(2,286,415) in the prior year. Cash used by
operating activities of continuing operations was $(1,736,911) during the nine
months ended September 30, 2001 compared to $(480,968) in the prior year. The
Company had deficit working capital of $422,279 at September 30, 2001 compared
to $10,985 in the prior year. The increase in cash used by operating activities
of continuing operations during the nine months ended September 30, 2001
compared to the same period the prior year was primarily due to it's Myrtle
Beach operation. Investing activities used $(215,829) during nine months ended
September 30, 2001 compared to providing $312,931 during the same period the
prior year. The decrease resulted primarily from an increase in capital
improvements to its wireless (SWOMI) systems in the Myrtle Beach area and
repayment of advances to related company in the prior year.

     Financing activities generated $1,279,321 during the nine months ended
September 30, 2001 compared to $1,108,996 during the same period the prior year.
The increase primarily results from the sale of stock and loans from its major
shareholders.

     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.

     In addition, the Company will be implementing a cost reduction program
which should generate a substantial reduction to the Myrtle Beach losses.

     The Company has various ventures in the start up, acquisition and
developmental stages that should create a positive impact on the Company's
future financially.

     On January 26, 2001, the Company purchased 55% of the outstanding stock of
GPS Integrators, Inc., a Texas corporation, which provides products to improve
winter operations at airports. Currently, GPS is selling equipment and software
associated with proprietary ice monitoring system used on airport runways.

     The purchase price of this acquisition was 2,000,000 shares of the
Company's restricted common stock. This stock, which was valued at $477,700, was
recorded at the stocks average simple traded value over a defined period less a
15% discount because of its restricted nature. Goodwill, amounting to $477,700
was recorded in connection with this transaction.

     Material commitments as of December 31, 2001 were $87,000 for the
Mid-America project. Funding for this commitment will be met through consignment
of guaranteed contract through a financial institution.

     The previously reported commitments for build-out of the wireless system in
Myrtle Beach are no longer valid due to the fact that the component parts for
the wireless system have failed to meet specifications and the purchase order
has been cancelled. Therefore, the $400,000 commitment for this capital
expenditure is no longer applicable.

     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 29, 2002, the purchase of FireX2, Inc. has not closed.

     During the three month period ended September 30, 2001, the Company
advanced $25,000 to FireX2.

     During the quarter ended September 30, 2001, the Company entered into
negotiations with a company to co-market, share, co-develop and distribute
technologies. Preliminary terms of the arrangement were that the Company would
contribute assets from its emerging technologies segment to a joint venture
entity. The contribution of emerging technologies assets would be 50% matched,
in cash, by the joint venture partner.

     At September 30, 2001, the Company reclassified certain emerging technology
fixed assets for contribution to the joint venture. These assets, amounting to
$787,650, were recorded as a contingent investment in joint venture in the
accompanying financial statements. Management recorded this investment in
anticipation of joint venture documents being executed and the joint venture
partner funding its contribution.

     Subsequent to September 30, 2001, the joint venture partner was unable to
obtain the necessary funding and joint venture documents were not executed.
Emerging technology assets recorded as contingent investment in joint venture at
September 30, 2001, were subsequently reclassified to operating fixed assets.

     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

     In December 2000, the former owner of the Myrtle Beach operation was
terminated by the Company. Subsequently, the former owner notified the Company
in writing of his intention to exercise the options on the remaining 12,000,000
shares of restricted stock. If exercised on the termination date, the stock
options would be valued at $2,952,000. This amount is based on valuing the stock
on the termination date using its averaged simple traded value over a defined
period, less a 15% discount because of its restricted nature.

     On December 31, 2000, the Company has instituted legal action to void the
employment contract and issuance of the 12,000,000 option shares. In the opinion
of management and legal counsel the Company will prevail in their legal
proceedings against the former employee and the employment agreement and
associated stock options will be voided.

     Subsequent to September 30, 2001, the South Carolina Court ruled in favor
of the former employee against BIFS Technologies Corp. It is the intention of
the Company to appeal this decision. An appeal was filed on August 20, 2001. It
is the opinion of the Company's legal counsel that the Company will prevail in
this legal case.

     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

         None

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: April 12, 2002                   By:   /s/ Alpha J. Keyser
                                             Alpha J. Keyser, President and CEO
                                             (Principal Executive Officer)`