<PAGE>


                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[x]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
               SECURITIES EXCHANGE ACT OF 1934
      For the quarterly period ended December 31, 2001
                          or
[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934
      For the transition period from N/A to N/A

                           Commission File No. 0-30711

                            SECURITY BIOMETRICS, INC.
             (Exact name of Registrant as specified in its charter)

          Nevada, USA                    98-0209119
  (State of Incorporation)     (IRS Employer Identification No.)

                           1410-1030 West Georgia St.,
                   Vancouver, British Columbia, CANADA V6E2Y3
                    (Address of principal executive offices)

                    Issuer's Telephone Number, (604) 609-7749

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. []Yes[]No

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

       Class                       Outstanding at December 31, 2001
 Common Stock, $.001                        70,843,325 shares
      par value                        Outstanding Securities

Transitional Small Business Disclosure Format (check one): Yes[] No[x]


                                       1
<PAGE>

SECURITY BIOMETRICS, INC.

PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

A financial statement, unaudited and included herein, beginning on page F-1
(Exhibit 99.0), is incorporated herein by this reference.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

OVERVIEW

Security Biometrics, Inc. (the "Company") was incorporated in the State of
Nevada on March 12, 1999 as "Great Bear Resources, Inc." which name was changed
to "Great Bear Investments, Inc." on May 25, 1999. On August 25, 2000, the
Company changed its name to "Security Biometrics, Inc.". On August 25, 2000, the
Company acquired all outstanding shares of Biometrics Security in a share
exchange with its shareholders. On June 29, 2001, the Company acquired all of
the outstanding membership interests in NetFace LLC, ("NetFace") a Connecticut
limited liability company, in exchange for the issuance of 20,000,000 shares of
the Company's common stock.

NetFace's holds an option to acquire an exclusive worldwide perpetual,
royalty-free license to exploit the gesture recognition technology developed by
DSI Datotech Systems, Inc. for video games and Internet television. The exercise
price of the option is $5,000,000 plus a 20% Class B Membership interest in
NetFace. NetFace has paid $200,000 of the exercise price with the balance
payable by December 4, 2002.

The Company does not own but has applied for a method patent for its Short Loop
Identity Verification ("SLIV") which incorporates various biometric solutions,
including Dynamic Signature Verification ("DSV") technology. SLIV can verify the
identity of an individual by comparing his or her signature to a biometric code
embedded on a readable plastic card.

The Company does not have a license to use anyone else's patents or other
intellectual property rights. If the Company exercises its option to acquire the
license for DSI's Datotech's gesture recognition technology, the Company will
have the right to use and sublicense to others the intellectual property rights,
including patents, relating to the technology for video games and Internet
television. The Company does not presently have any products nor does it plan to
sell any products in the foreseeable future. The Company has yet to generate any
revenues and does not expect to generate any revenues during the current fiscal
year.


                                       2
<PAGE>

RESULTS OF OPERATIONS

The Company continues to be engaged in organizational activities, including
searching for capital, and organizing development of the license for gesture
recognition technology in the video game field and in Internet television.

For the three month period ended December 31, 2001, the Company had no revenue
but incurred general and administrative expenses of $414,624, resulting in a net
loss of ($414,624) for the period. For the three month period ended December 31,
2000, the Company had no revenue but incurred general and administrative
expenses of $125,487, resulting in a net loss of ($125,487) for the period. The
difference is the net operating loss between the two periods is primarily due to
an increase in general and administrative expenses and the beneficial conversion
feature of the convertible debentures. General and administrative expenses
increased by approximately $50,000 during the three month period ended December
31, 2001 compared to the three month period ended December 31, 2000. The net
loss per share for the three month periods ended December 31, 2001 and 2000 was
($.01) and nil, respectively.

For the six month period ended December 31, 2001, the Company had no revenues
but incurred expenses of $549,497, resulting in a net loss of ($549,497) for the
period. For the six month period ended December 31, 2000, the Company had no
revenues but incurred expenses of $173,518, resulting in a net loss of
($173,518) for the period. The difference is the net operating loss between the
two periods is primarily due to an increase in general and administrative
expenses and the beneficial conversion feature of the convertible debentures.
General and administrative expenses increased by approximately $140,000 during
the six month period ended December 31, 2001 compared to the six month period
ended December 31, 2000. The net loss per share for the six month periods ended
December 31, 2001 and 2000 was ($.01) and nil, respectively.

For the period ended December 31, 2001, the Company had assets of approximately
$254,000. These assets were comprised mainly of the Company's option to acquire
gesture recognition technology for which it paid $200,000, cash and cash
equivalents of approximately $5,100, property and equipment of approximately
$21,000, the Company's trademark, valued at approximately $14,000, deposits of
approximately $4,200 and a G.S.T. refund of approximately $6,700. At June 30,
2001, the Company had total assets of approximately $269,000, comprised mainly
of the gesture recognition technology option of $200,000, cash of approximately
$26,000, property and equipment of approximately $19,000, G.S.T. refund of
approximately $9,000, its trademark valued at approximately $6,000 and deposits
of approximately $4,800.

The Company's liabilities at December 31, 2001 were approximately $251,000. The
Company's current liabilities of approximately $146,000 was comprised of
accounts payable of approximately $101,000, accrued liabilities of $35,000, a
bank overdraft of approximately $6,700 and its capital lease of approximately
$3,600. The Company's long-term liabilities were approximately $104,000,
comprised of its Convertible debenture payable of $100,000 and the capital lease
payable, net of current portion of $4,451. The Company's liabilities at June 30,
2001 were approximately $159,000. These liabilities included accounts payable of
approximately $121,000, accrued liabilities of


                                       3
<PAGE>

approximately $25,000 and its capital lease of approximately $9,400. The
difference in liabilities from June 30, 2001 to December 31, 2001 is due
primarily to the Company's obligations arising from the issuance of convertible
debentures.

Total shareholders' equity decreased from approximately $109,000 at June 30,
2001 to approximately $3,500 at December 31, 2001.

The Company expects continuing operating losses in the near term as it seeks to
develop its technology and to raise capital or secure alternative financing.

LIQUIDITY AND CAPITAL RESOURCES

Since inception, the Company has experienced no significant change in liquidity,
capital resources or stockholders' equity other than the receipt of proceeds
from offerings of its common stock. For the three months ended December 31,
2001, the Company raised approximately $25,000 from sales of its common stock.
The Company's balance sheet as December 31, 2001 reflects negative working
capital of approximately ($133,000) based upon current assets of approximately
$13,000 and current liabilities of approximately $146,000. The Company's balance
sheet as of June 30, 2001 reflected negative working capital of approximately
($114,000) based upon current assets of approximately $36,000 and current
liabilities of approximately $150,000. The difference in working capital from
June 30, 2001 to December 31, 2001 is primarily attributable to the Company's
expenses in acquiring NetFace and increased general and administrative expenses.
The Company anticipates future sales of its capital stock or borrowing funds to
finance its operations until such time as the Company commences its operations.
However, there exist no agreements or understandings with regard to loan
agreements by or with the Officers, Directors, principals, affiliates or
shareholders of the Company to fund the Company's operations.

Even after commencing operations, the Company may continue to operate at a loss,
depending upon the performance of its products, the general economy and other
factors which may be beyond the Company's control.

The Company will attempt to carry out its plan of business as discussed above.
The Company cannot predict to what extent its lack of liquidity and capital
resources will hinder its business plan prior to commencement of its proposed
operations.

NEED FOR ADDITIONAL FINANCING

The Company's existing capital will not be sufficient to meet the Company's cash
needs in the near future. The Company intends to raise working capital through
sales of its securities or through borrowing. There can be no assurance that the
Company will be able to raise capital or secure loans in such amounts or upon
favorable terms.

FORWARD LOOKING STATEMENTS


                                       4
<PAGE>

The foregoing Management's Discuss and Analysis contains "forward looking
statements" within the meaning of Rule 175 of the Securities Act of 1933, as
amended, and Rule 3b-6 of the Securities Act of 1934, as amended, including
statements regarding, among other items, the Registrant's business strategies,
continued growth in the Registrant's markets, projections, and anticipated
trends in the Registrant's business and the industry in which it operates. The
words "believe", "expect", "anticipate", "intends", "forecast", "project", and
similar expressions identify forward-looking statements. These forward-looking
statements are based largely on the Registrant's expectations and are subject to
a number of risks and uncertainties, certain of which are beyond the
Registrant's control. The Registrant cautions that these statements are further
qualified by important factors that could cause actual results to differ
materially from those in the forward looking statements, including, among
others, the following: reduced or lack of increase in demand for the
Registrant's products or proposed products, competitive pricing pressures,
changes in the market price of ingredients used in the Registrant's products and
the level of expenses incurred in the Registrant's operations. In light of these
risks and uncertainties, there can be no assurance that the forward-looking
information contained herein will in fact transpire or prove to be accurate. The
Registrant disclaims any intent or obligation to update "forward looking
statements."

PART II

Items No. 1, 2, 3, 4 and 5 - Not Applicable.

Item No. 6 - Exhibits and Reports on Form 8-K


(a)  The Company filed one report on Form 8-K/A for the three month period ended
     December 30, 2001, on November 27, 2001.

(b)  Exhibits

99 Financial Statements for the periods ended December 30, 2001 and 2000

                                   SIGNATURES

In accordance with the requirements 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.

                                                     SECURITY BIOMETRICS, INC.
Date: February 15, 2001

                                                     By: /s/ Wayne Taylor
                                                       Wayne Taylor, CFO



                                       5