`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 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: 000-29329

                          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











                         PART I - FINANCIAL INFORMATION


                          BIFS TECHNOLOGIES CORPORATION
                          =============================

                        CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001








BIFS TECHNOLOGIES CORPORATION
-----------------------------
CONSOLIDATED BALANCE SHEET
--------------------------
SEPTEMBER 30, 2001
------------------


ASSETS
------



CURRENT ASSETS

    Accounts receivable                                    $   907,921
    Inventory                                                   69,816
    Prepaid and other current assets                           328,326
                                                           ------------
        TOTAL CURRENT ASSETS                                 1,306,063
                                                           ------------
FIXED ASSETS

    Wireless internet access system
        and equipment                                          447,164
    Computer equipment                                         393,556
    Other                                                       68,609
                                                           ------------
                                                               909,329
    Accumulated depreciation                                (  142,406)
                                                           ------------
                                                               766,923
                                                           ------------
OTHER ASSETS

    Patent, net                                                 35,058
    Prepaid professional fees, less
        current portion                                        180,728
    Goodwill, net                                              699,615
    Other                                                       54,646
                                                           ------------
                                                               970,047
                                                           ------------
                                                           $ 3,043,033
                                                           ============


                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
------------------


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


CURRENT LIABILITIES

    Current portion of related party
        notes payable                                      $    34,675
    Accounts payable and accrued expenses                      683,252
                                                           ------------
        TOTAL CURRENT LIABILITIES                              717,927
                                                           ------------
OTHER LIABILITIES

    Notes payable to majority stockholder                    1,639,999
    Other stockholder notes payable                            354,100
    Related party notes payable,
        less current portion                                   115,073
                                                           ------------
                                                             2,109,172
                                                           ------------
COMMITMENTS AND CONTINGENCIES                                      -
                                                           ------------
STOCKHOLDERS' EQUITY

    Common stock $.00001 par value,
        800,000,000 shares authorized,
        525,365,914 shares issued and
        524,865,914 shares outstanding                           5,287
    Additional paid-in capital                               7,267,932
    Deferred stock options                                  (  283,669)
    Accumulated deficit                                     (6,763,616)
                                                           ------------
                                                               225,934

    Less treasury stock                                     (   10,000)
                                                           ------------
                                                               215,934
                                                           ------------
                                                           $ 3,043,033
                                                           ============


                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 THE THREE MONTHS ENDED
                 ----------------------------------------------
                           SEPTEMBER 30, 2001 AND 2000
                           ---------------------------

                                                      Nine-months Ended
                                                      -----------------
                                                 2001                   2000
                                            ------------------------------------
                                             (Unaudited)             (Unaudited)

REVENUES                                    $ 1,199,372             $   288,623

COST OF REVENUES                              1,396,802                 113,641
                                            ------------            ------------
GROSS PROFIT (LOSS)                          (  197,430)                174,982
                                            ------------            ------------
OTHER EXPENSES

    General and administrative                  293,810                 723,852
    Salaries and related expenses               439,039               1,012,087
    Professional fees                           526,271                 217,577
    Marketing                                   168,532                  17,775
    Depreciation and amortization               210,792                 107,869
    Interest                                    147,947                  31,892
                                            ------------            ------------
                                              1,786,391               2,111,052
                                            ------------            ------------
NET LOSS FROM CONTINUING OPERATIONS          (1,983,821)             (1,936,070)
                                            ------------            ------------
DISCONTINUED OPERATIONS

    Loss from discontinued operations              -                 (  163,220)
    Loss on disposal of discontinued
        operations                                 -                 (  172,939)
                                            ------------            ------------
                                                   -                 (  336,159)
                                            ------------            ------------
NET LOSS                                    $(1,983,821)            $(2,272,229)
                                            ============            ============
LOSS PER COMMON SHARE

    Loss from continuing operations         $(    .0038)            $(     .004)
                                            ============            ============
    Loss from discontinued operations       $      -                $(      -  )
                                            ============            ============
    Loss from disposal of discontinued
        operations                          $      -                $(         )
                                            ============            ============
WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING (shares in 100's)             5,261,071               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
                           ---------------------------


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

REVENUES                                    $   831,373             $   122,191

COST OF REVENUES                                954,502                  61,001
                                            ------------            ------------
GROSS PROFIT (LOSS)                          (  123,129)                 61,190
                                            ------------            ------------
OTHER EXPENSES

    General and administrative                   53,242               1,074,768
    Salaries and related expenses               120,290
    Professional fees                            85,720
    Marketing                                    41,638                  17,775
    Depreciation and amortization                58,334                  63,280
    Interest                                     67,679                   9,891
                                            ------------            ------------
                                                426,903               1,165,714
                                            ------------            ------------
NET LOSS FROM CONTINUING OPERATIONS          (  550,032)             (1,104,524)
                                            ------------            ------------
DISCONTINUED OPERATIONS
    Income from discontinued operations            -                     71,542
    Loss on disposal of discontinued
        operations                                 -                 (   27,941)
                                            ------------            ------------
                                                   -                     43,601
                                            ------------            ------------
NET LOSS                                    $(  550,032)            $(1,060,923)
                                            ============            ============
LOSS PER COMMON SHARE

    Loss from continuing operations         $(    .0011)            $(     .002)
                                            ============            ============
    Loss from discontinued operations       $      -                $      -
                                            ============            ============
    Loss from disposal of discontinued
        operations                          $      -                $      -
                                            ============            ============
WEIGHTED AVERAGE COMMON SHARES
    OUTSTANDING (shares in 100's)             5,236,992               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
                          ---------------------------

                                                    2001               2000
                                            ------------------------------------

                                               (Unaudited)        (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES

   Cash received from customers                $   323,620        $   261,729
   Cash paid for continuing operating
        Expenses                                (2,738,712)        (  195,866)
   Cash paid for discontinued operations                           (   65,592)
   Interest                                          1,892         (    1,832)
                                               ------------       ------------
      Net cash used by operating
           activities                           (2,413,200)        (  546,560)
                                               ------------       ------------
CASH FLOWS FROM INVESTING ACTIVITIES

   Advances to related company                        -            (  128,000)
   Repayment of advances to related company                           575,910
   (Purchase) Sale of fixed and other assets       449,095         (  134,979)
                                               ------------       ------------
      Net cash used by investing
        activities                                 449,095            312,931
                                               ------------       ------------
CASH FLOWS FROM FINANCING ACTIVITIES

   Proceeds from sale of stock                     610,302          1,125,362
   Proceeds from stockholder note
        payable                                    671,000               -
   Repayment of related party
        Notes payable                                              (   16,366)
                                               ------------       ------------
      Net cash provided by financing
         activities                              1,281,302          1,108,996
                                               ------------       ------------
NET INCREASE IN CASH                            (  682,803)           875,367

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


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

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

NET LOSS                                            $(1,983,821)    $(2,272,229)

RECONCILING ADJUSTMENTS

   Depreciation and amortization                        210,792         107,869
   Loss from disposal of discontinued
      operations                                            -           336,159
   Increase in accounts receivable                   (  875,752)     (   26,894)
      Increase in inventory                          (   41,319)     (   31,192)
   Increase in prepaid expenses                      (   72,021)
   Increase in accounts payable and
      accrued expenses                                  107,841          46,752
   Increase in other assets                          (  11,669)      (    1,150)
   Stock issued for services                            233,750       1,334,375
   Contribution of accrued interest
      to paid-in capital                                 18,999          27,250
   Recovery of stock investment in
      Subsidiary company                                             (   67,500)

CASH FLOWS FROM OPERATING ACTIVITIES                $(2,413,200)    $(  546,560)
                                                    ============    ============


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


DECREASE IN ACCRUED INTEREST
   PAYABLE THROUGH CONTRIBUTION
   TO PAID-IN CAPITAL                               $    18,999     $    27,250
                                                    ============    ============
ISSUE OF STOCK FOR ACQUISITION OF
   AND INVESTMENT IN SUBSIDIARY COMPANY             $       -       $ 1,589,757
                                                    ============    ============
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
                               ------------------


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 nine 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.



                                       -7-


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



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.

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 November 19, 2001, the purchase of FireX2, Inc. has not closed.

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 six months ended September 30, 2001,
amortization of this consulting agreement amounted to $27,805.

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.

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:

                                       -8-



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

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      $        -     $  1,033,182   $    166,190   $   1,199,372
                        ============   ============   ============   =============
  Intersegment revenue  $        -     $        -     $        -     $         -
                        ============   ============   ============   =============
  Loss from continuing
    operations          $  ( 726,037)  $ (1,181,604)  $   ( 76,180) $   (1,983,821)

  Loss from discontinued
    operations              (    -  )      (    -  )      (    -  )       (    -  )
                        ------------   ------------   ------------   -------------
                        $  ( 726,037)  $ (1,181,604)  $   ( 76,180)  $  (1,983,821)
                        ============   ============   ============   =============



Nine months ended
  September 30, 2000:

  External revenue      $        -     $    288,623   $        -     $     288,623
                        ============   ============   ============   =============
  Intersegment
    revenue             $        -     $        -     $        -     $         -
                        ============   ============   ============   =============
  Loss from continuing
    operations          $   (574,192)  $ (1,361,878)  $   (    -  )  $  (1,936,070)

  Loss from discontinued
    operations              (    -  )     ( 336,159)      (    -  )      ( 336,159)
                        ------------   ------------   ------------   -------------
                        $   (574,192)  $ (1,698,037)  $   (    -  )  $  (2,272,229)
                        ============   ============   ============   =============

Since December 31, 2000, the Company has added the operations of the government
operations division. This segment was added on January 26, 2001. As of June 30,
2001, total assets of the government operations segment were $167,174.


                                       -9-




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


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 June
30, 2001, there have been no costs incurred for equipment or installation.

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 September 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.

NOTE I - 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 in the process of obtaining 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. Therefore, the accompanying financial statements
have been prepared on the basis the Company will continue as a going concern.


                                      -10-




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

     This Form 10-QSB contains forward-looking statements within the meaning of
that term in Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Additional written or oral forward-looking
statements may be made by the Company from time to time, in filings with the
Securities and Exchange Commission or otherwise. Statements contained herein
that are not historical facts are forward looking statements made pursuant to
the safe harbor provisions described above. Forward-looking statements may,
include, but are not limited to, projections of revenues, income or losses,
capital expenditures, plans for future operations, the elimination of losses
under certain programs, financing needs or plans, compliance with financial
covenants in loan agreements, plans for sale of assets or businesses, plans
relating to products or services of the Company, assessments of materiality,
predictions of future events and the effects of pending and possible litigation,
as well as assumptions relating to the foregoing. In addition, when used in this
discussion, the words "anticipates," "estimates," "expects," "intends," "plans"
and variations thereof and similar expressions are intended to identify
forward-looking statements.

     Forward-looking statements are inherently subject to risks and
uncertainties, some of which can be predicted or quantified based on current
expectations. Consequently, future events and actual results could differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements contained herein. Statements in Quarterly Report,
particularly in "Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations" and Notes to Condensed Consolidated
Financial Statements, describe factors, among others, that could contribute to
or cause such differences. Other factors that could contribute to or cause such
differences include, but are not limited to, unanticipated increases in
operating costs, labor disputes, capital requirements, increases in borrowing
costs, product demand, pricing, market acceptance, intellectual property rights
and litigation, risks in product and technology development and other risk
factors detailed in the Company's Securities and Exchange Commission filings.

     Readers are cautioned not to place undue reliance on any forward-looking
statements contained herein, which speak only as of the date hereof. The Company
undertakes no obligation to publicly release the result of any revisions of
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of unexpected
events.

RESULTS OF OPERATIONS

Nine Months Ended September 30, 2001 and 2000

     Net sales for the nine months ended September 30, 2001 increased 315% to
$1,199,312 from $288,623 during the same period the prior year. Net sales
increased primarily as a result of its acquisition of GPS Integrators, Inc. and
a sale of wireless broadband equipment.

     Cost of sales for the nine months ended September 30, 2001 increased 1,129%
to $1,396,802 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.


                                      -11-


     General and administrative expenses for the nine months ended September 30,
2001 decreased (59)% to $293,810 from $723,852 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 (57)% to $439,039 from $1,012,087 during the same period the prior
year. This decrease is primarily due to the former owner of the Myrtle Beach
operation receiving over $700,000 in the form of stock bonuses and other
incentives during the prior period last year.

     Professional fees for the nine months ended September 30, 2001 increased
142% to $526,271 from $217,577 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 848%
to $168,532 from $17,775 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 95% to $210,792 from $107,869 for the same period during the
prior year due to the build out of its Myrtle Beach operation and beginning of a
revenue stream.

     Net interest expense for nine months ended September 30, 2001 increased
364% to $147,947 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 $(336,159) 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 $(1,983,821) compared to $(2,272,229) in the prior year. Cash used by
operating activities of continuing operations was $(2,738,712) during the nine
months ended September 30, 2001 compared to $(195,866) in the prior year. The
Company had working capital of 588,136 at September 30, 2001 compared to
$916,662 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 generated $449,095 during nine months ended
September 30, 2001 compared to $312,931 during the same period the prior year.
The increase resulted primarily from an increase in the sale of its wireless
(SWOMI) systems in the Myrtle Beach area.

     Financing activities generated $1,281,302 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.


                                      -12-



     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.

     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.




                                      -13-


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



                                      -14-



                                   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: November 27, 2001                   By:/s/ Alpha J. Keyser
                                             -------------------
                                        Alpha J. Keyser, President and CEO
                                           (Principal Executive Officer)








                                      -15-`