UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                                   Form 10-QSB

(Mark  One)
(X)     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15  (d)
        OF  THE  SECURTIES  EXCHANGE  ACT  OF  1934

For  the  quarterly  period  ended  March  31,  2004
                                    ----------------

(   )     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       0-30711
                     ------------------------     -------


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

              Nevada                                       98-0209119
-----------------------------------            ---------------------------------
State  or  other  jurisdiction                 (IRS Employer Identification No.)
of  incorporation  or  organization

                           500 5th Avenue, Suite 1650
                               New York, NY  10110
                    (Address of principal executive offices)
                    ----------------------------------------

                                 (212) 931-5760
              (Registrant's telephone number, including area code)
              ----------------------------------------------------


--------------------------------------------------------------------------------
  (Former Name, Former Address, and Former Fiscal Year, if changed since last
                                    report)

Check  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, and (2) has been subject to such filing requirements for the past 90
days.  Yes  [  X  ]  No  [    ]

Indicate  by  check  mark  whether  the  Registrant  is an Accelerated Filer (as
defined  in  Rule  12b-2  of  the  Exchange  Act).
Yes  [    ]  No  [  X  ]

State the number of shares outstanding of each of the issuer's classes of common
stock  as  of  March  31,  2004

Common Stock, $.001 par value             146,533,587
-----------------------------          ----------------
            Class                      Number of shares


<PAGE>

<TABLE>
<CAPTION>
                            SECURITY BIOMETRICS, INC.
                                      INDEX
                                      -----

PART  I

Item  1
Financial Information                                 Page No.
---------------------                                 --------
<S>                                                   <C>
Consolidated Balance Sheets as of March 31, 2004
(Unaudited) and June 30, 2003. . . . . . . . . . . .     3 - 4

Consolidated Statements of Comprehensive Loss for
the nine months ended March 31, 2004 & 2003
(Unaudited). . . . . . . . . . . . . . . . . . . . .         5

Consolidated Statements of Operations for the three
and nine months ended March 31, 2004 & 2003
(Unaudited). . . . . . . . . . . . . . . . . . . . .         6

Consolidated Statements of Stockholders'
Deficiency for the nine months ended March 31,
2004 (Unaudited) . . . . . . . . . . . . . . . . . .         7

Consolidated Statements of Cash Flows for the
three and nine months ended March 31, 2004 &
2003 (Unaudited) . . . . . . . . . . . . . . . . . .     8 - 9

Notes to Consolidated Financial Statements for the
period ended March 31, 2004. . . . . . . . . . . . .   10 - 22

Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . .   23 - 27

Item 3.
Controls and Procedures. . . . . . . . . . . . . . .        27

PART II. . . . . . . . . . . . . . . . . . . . . . .   27 - 32

Item  1.
Legal  Proceedings . . . . . . . . . . . . . . . . .        27

Item  2.
Changes  In  Securities. . . . . . . . . . . . . . .        27

Item  3.
Defaults  on  Senior  Securities . . . . . . . . . .        28

Item  4.
Submission of Matters to a Vote of Security Holders.        29

Item  5.
Other  Information . . . . . . . . . . . . . . . . .        29

Item  6.
Exhibits  and  Reports  on  Form  8-K. . . . . . . .        29
</TABLE>


                                        2
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  BALANCE  SHEETS

<TABLE>
<CAPTION>
                                              MARCH 31,    JUNE 30,
                                                 2004        2003
                                             (UNAUDITED)
                                             ------------  ---------
<S>                                          <C>           <C>
CURRENT ASSETS
Cash and cash equivalents . . . . . . . . .  $    259,293  $   4,092
Accounts receivable, net. . . . . . . . . .     2,021,306     94,634
Inventory . . . . . . . . . . . . . . . . .         3,884     19,064
Prepaid expenses and other current assets .        49,339    137,270
                                             ------------  ---------
                                                2,333,822    255,060
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED
 DEPRECIATION . . . . . . . . . . . . . . .       543,956     65,018

SECURITY DEPOSIT. . . . . . . . . . . . . .        56,916          -

LONG-TERM ASSETS OF DISCONTINUED OPERATIONS             -     23,783
                                             ------------  ---------

                                             $  2,934,694  $ 343,861
                                             ============  =========
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        3
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  BALANCE  SHEETS  (CONTINUED)

<TABLE>
<CAPTION>
                                                                  MARCH 31,      JUNE 30,
                                                                    2004           2003
                                                                 (UNAUDITED)
                                                                -------------  -------------
<S>                                                             <C>            <C>
CURRENT LIABILITIES
Accounts payable and accrued liabilities - non-related parties  $  2,148,944   $    686,762
Accounts payable and accrued liabilities - related parties . .     1,029,171      1,540,704
Billings in excess of costs and estimated earnings on
 uncompleted contracts . . . . . . . . . . . . . . . . . . . .     1,991,619              -
Corporate income taxes payable . . . . . . . . . . . . . . . .       424,542        424,542
Capital lease obligation . . . . . . . . . . . . . . . . . . .         2,638          5,230
Notes payable - related parties. . . . . . . . . . . . . . . .     2,056,495      2,000,000
Convertible debenture payable - related party. . . . . . . . .     1,517,792      1,780,000
Current liabilities of discontinued operations . . . . . . . .       100,893        719,955
                                                                -------------  -------------
TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . .     9,272,094      7,157,193
                                                                -------------  -------------
DEFERRED RENT EXPENSE. . . . . . . . . . . . . . . . . . . . .        16,185              -
                                                                -------------  -------------

CAPITAL LEASE - LONG TERM PORTION. . . . . . . . . . . . . . .             -            872
                                                                -------------  -------------

MINORITY INTEREST IN EQUITY OF CONSOLIDATED SUBSIDIARY . . . .             -            193
                                                                -------------  -------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIENCY
Common stock
Authorized - 300,000,000 shares $0.001 par value
Issued and outstanding - 146,533,587 shares and
124,296,257 shares, at March 31, 2004 and June 30, 2003,
respectively . . . . . . . . . . . . . . . . . . . . . . . . .       146,534        124,296
Additional paid-in capital . . . . . . . . . . . . . . . . . .    12,158,887      8,201,508
Accumulated other comprehensive loss . . . . . . . . . . . . .        (7,222)        (5,247)
Accumulated deficit. . . . . . . . . . . . . . . . . . . . . .   (18,651,784)   (15,134,954)
                                                                -------------  -------------
TOTAL STOCKHOLDERS' DEFICIENCY . . . . . . . . . . . . . . . .    (6,353,585)    (6,814,397)
                                                                -------------  -------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY . . . . . . . .  $  2,934,694   $    343,861
                                                                =============  =============
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        4
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  STATEMENTS  OF  COMPREHENSIVE  LOSS
(UNAUDITED)

<TABLE>
<CAPTION>
                               NINE MONTHS    NINE MONTHS
                                  ENDED          ENDED
                                MARCH 31,      MARCH 31,
                                  2004            2003
                              -------------  --------------
<S>                           <C>            <C>
NET LOSS . . . . . . . . . .  $ (3,516,830)  $(  1,304,142)
OTHER COMPREHENSIVE LOSS
Foreign currency translation
 adjustment. . . . . . . . .        (1,975)         (4,484)
                              -------------  --------------
COMPREHENSIVE LOSS . . . . .  $ (3,518,805)  $(  1,308,626)
                              =============  ==============
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        5
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(UNAUDITED)

<TABLE>
<CAPTION>
                                                 QUARTER ENDED               NINE MONTHS ENDED
                                                   MARCH 31,                    MARCH 31,
                                         ----------------------------  ----------------------------
                                             2004           2003           2004           2003
                                         -------------  -------------  -------------  -------------
<S>                                      <C>            <C>            <C>            <C>
REVENUE
Contract revenues earned. . . . . . . .  $  3,500,371   $    302,680   $  5,207,595   $  1,209,791
Other revenues. . . . . . . . . . . . .         4,769              -         16,836         56,561
                                         -------------  -------------  -------------  -------------
TOTAL REVENUE . . . . . . . . . . . . .     3,505,140        302,680      5,224,431      1,266,352
                                         -------------  -------------  -------------  -------------

COSTS AND EXPENSES
Cost of revenues earned . . . . . . . .     2,316,611        198,268      3,285,265        643,013
Interest expense. . . . . . . . . . . .       190,754        129,120        717,852        336,028
Charge relating to issuance of warrants     2,016,000              -      2,016,000              -
Selling, general and administrative . .     1,559,143        342,252      2,904,979      1,283,327
                                         -------------  -------------  -------------  -------------
TOTAL COSTS AND EXPENSES. . . . . . . .     6,082,508        669,640      8,924,096      2,262,368
                                         -------------  -------------  -------------  -------------

GAIN ON DECREASE IN OWNERSHIP
OF SUBSIDIARY . . . . . . . . . . . . .             -         36,638              -         36,638
                                         -------------  -------------  -------------  -------------

LOSS FROM CONTINUING
OPERATIONS BEFORE MINORITY
INTEREST IN LOSS OF SUBSIDIARY. . . . .    (2,577,368)      (330,322)    (3,699,665)      (959,378)
Minority interest in loss of subsidiary           121              -            121              -
                                         -------------  -------------  -------------  -------------
LOSS FROM CONTINUING
OPERATIONS. . . . . . . . . . . . . . .    (2,577,247)      (330,322)    (3,699,544)      (959,378)

INCOME (LOSS) FROM DISCONTINUED
OPERATIONS. . . . . . . . . . . . . . .      (177,219)      (109,835)       182,714       (344,764)
                                         -------------  -------------  -------------  -------------
NET LOSS. . . . . . . . . . . . . . . .  $ (2,754,466)  $   (440,157)  $ (3,516,830)  $ (1,304,142)
                                         =============  =============  =============  =============

BASIC AND DILUTED LOSS PER
COMMON SHARE
Continuing operations . . . . . . . . .  $      (0.02)  $          -   $      (0.03)  $      (0.01)
                                         =============  =============  =============  =============
Discontinued operations . . . . . . . .  $          -   $          -   $          -   $          -
                                         =============  =============  =============  =============
Net loss. . . . . . . . . . . . . . . .  $      (0.02)  $          -   $      (0.03)  $      (0.01)
                                         =============  =============  =============  =============

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic and diluted . . . . . . . . . . .   144,996,468    121,920,366    140,464,424    120,174,338
                                         =============  =============  =============  =============
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        6
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  STATEMENTS  OF  STOCKHOLDERS'  DEFICIENCY
FOR  THE  NINE  MONTHS  ENDED  MARCH  31,  2004
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                  ACCUMULATED
                              COMMON      STOCK    ADDITIONAL        OTHER
                            ---------------------    PAID IN     COMPREHENSIVE     ACCUMULATED
                              SHARES      AMOUNT     CAPITAL         LOSS            DEFICIT          TOTAL
                            -----------  --------  ------------  --------------  ---------------  --------------
<S>                         <C>          <C>       <C>          <C>              <C>              <C>
BALANCE, JUNE 30, 2003
(AUDITED). . . . . . . . .  124,296,257  $124,296  $ 8,201,508  $       (5,247)  $(  15,134,954)  $(  6,814,397)
ISSUANCE OF COMMON
 STOCK FOR:
Cash . . . . . . . . . . .   16,711,750    16,712    1,275,312               -                -       1,292,024
Services . . . . . . . . .    2,100,000     2,100      241,900               -                -         244,000
Acquisition of Datagility.    2,325,580     2,326      297,674               -                -         300,000
ISSUANCE OF SHARES TO
SETTLE DEBT. . . . . . . .    1,100,000     1,100       98,900               -                -         100,000

ISSUANCE OF COMMON
STOCK BY SUBSIDIARY. . . .            -         -       27,593               -                -          27,593

ISSUANCE OF WARRANTS TO
EDINBURGH TO EXTEND
CONVERTIBLE DEBENTURE. . .            -         -    2,016,000               -                -       2,016,000

OTHER COMPREHENSIVE
LOSS FOR THE NINE MONTH
PERIOD ENDED MARCH 31,
2004 . . . . . . . . . . .            -         -            -          (1,975)               -          (1,975)

NET LOSS FOR THE NINE
 MONTH PERIOD ENDED
 MARCH 31, 2004. . . . . .            -         -            -               -       (3,516,830)     (3,516,830)
                            -----------  --------  ------------  --------------  ---------------  --------------

BALANCE, MARCH 31, 2004. .  146,533,587  $146,534  $12,158,887  $       (7,222)  $  (18,651,784)  $  (6,353,585)
                            ===========  ========  ============  ==============  ===============  ==============
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        7
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
(UNAUDITED)

<TABLE>
<CAPTION>
                                                               NINE MONTHS ENDED
                                                                   MARCH 31,
                                                           -------------------------
                                                               2004         2003
                                                           ------------  -----------
<S>                                                        <C>           <C>
CASH FLOWS FROM OPERATING
 ACTIVITIES:
Net loss from continuing operations . . . . . . . . . . .  $(3,699,544)  $ (959,379)
Adjustments to reconcile net loss from continuing
operations to net cash provided by operating activities:
Depreciation and amortization . . . . . . . . . . . . . .       28,063       44,719
Deferred rent expense . . . . . . . . . . . . . . . . . .       16,185            -
Gain on settlement of debt. . . . . . . . . . . . . . . .      (35,139)           -
Issuance of stock for consulting services . . . . . . . .      244,000            -
Charge relating to issuance of warrants . . . . . . . . .    2,016,000            -
Changes in operating assets and liabilities:
Accounts receivable . . . . . . . . . . . . . . . . . . .   (1,923,762)    (253,524)
Inventory . . . . . . . . . . . . . . . . . . . . . . . .       12,805      (18,587)
Prepaid expenses and other current assets . . . . . . . .       87,931       86,178
Deposits. . . . . . . . . . . . . . . . . . . . . . . . .      (56,916)        (648)
Accounts payable and accrued liabilities -
  non-related parties . . . . . . . . . . . . . . . . . .    1,359,516      713,623
Corporation income taxes payable. . . . . . . . . . . . .            -        2,487
Costs and estimated earnings in excess of billings
  on uncompleted contracts. . . . . . . . . . . . . . . .            -     (154,124)
Billings in excess of costs and estimated
 earnings on uncompleted contracts. . . . . . . . . . . .    1,991,619     (476,913)
                                                           ------------  -----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES. . . . . . . . . . . . . . . . . . .       40,758    1,016,168
                                                           ------------  -----------

CASH FLOWS FROM INVESTING
 ACTIVITIES:
Purchase of property and equipment. . . . . . . . . . . .     (207,001)         136
Decrease in goodwill. . . . . . . . . . . . . . . . . . .            -       10,500
                                                           ------------  -----------

NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES. . . . . . . . . . . . . . . . . . .  $  (207,001)  $   10,636
                                                           ============  ===========
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        8
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS  (CONTINUED)
(UNAUDITED)

<TABLE>
<CAPTION>
                                                NINE MONTHS ENDED
                                                    MARCH 31,
                                             -----------------------
                                                2004         2003
                                             -----------  ----------
<S>                                          <C>          <C>
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase in bank overdraft. . . . . . . . .           -     191,917
Net proceeds from the issuance
  of common stock . . . . . . . . . . . . .   1,319,617     569,653
Repayments on capital lease obligations . .      (3,464)     (3,647)
Repayments on equipment note payable. . . .           -      (6,100)
Repayments on convertible debenture . . . .    (162,208)          -
Net payments to related parties . . . . . .    (461,828)   (222,033)
Repayments of notes payable -
  related parties . . . . . . . . . . . . .    (268,505)          -
Minority interest in equity of consolidated
  Subsidiary. . . . . . . . . . . . . . . .        (193)         77
                                             -----------  ----------
NET CASH PROVIDED BY FINANCING
 ACTIVITIES . . . . . . . . . . . . . . . .     423,419     529,867
                                             -----------  ----------

EFFECT ON EXCHANGE RATE
 CHANGES ON CASH AND CASH
 EQUIVALENTS. . . . . . . . . . . . . . . .      (1,975)     (4,483)
                                             -----------  ----------

NET INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS FROM
CONTINUING OPERATIONS . . . . . . . . . . .     255,201    (480,149)

DECREASE IN CASH FROM
DISCONTINUED OPERATIONS . . . . . . . . . .           -      (3,126)

CASH AND CASH EQUIVALENTS, AT
 BEGINNING OF PERIOD. . . . . . . . . . . .       4,092     483,275
                                             -----------  ----------
CASH AND CASH EQUIVALENTS, AT
 END OF PERIOD. . . . . . . . . . . . . . .  $  259,293   $       -
                                             ===========  ==========

SUPPLEMENTAL DISCLOSURE OF
 CASH FLOW INFORMATION
CASH PAID DURING PERIOD FOR:
Interest. . . . . . . . . . . . . . . . . .  $  723,107   $ 212,877
                                             ===========  ==========
Taxes . . . . . . . . . . . . . . . . . . .  $        -   $       -
                                             ===========  ==========
NON-CASH INVESTING AND
 FINANCING ACTIVITIES:
Issuance of common stock for:
Services. . . . . . . . . . . . . . . . . .  $  244,000   $ 104,550
                                             ===========  ==========
Settlement of convertible debentures. . . .  $  100,000   $       -
                                             ===========  ==========
Acquisition of Datagility Inc.. . . . . . .  $  300,000   $       -
                                             ===========  ==========
Conversion of accounts payable and
accrued liabilities - related parties to
notes payable - related parties . . . . . .  $  325,000   $       -
                                             ===========  ==========
</TABLE>

See  accompanying  notes  to  the  consolidated  financial  statements.


                                        9
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS


NOTE  1     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

ORGANIZATION  AND  NATURE  OF  BUSINESS
---------------------------------------
Security  Biometrics,  Inc. (together with its consolidated subsidiaries, unless
the  context  otherwise  requires,  "the  Company")  is  a  Nevada  corporation
incorporated  on  March  12,  1999.

On August 25, 2000, the Company acquired all of the issued and outstanding stock
of  Biometric  Security, Inc. (hereinafter referred to as "BSI") in exchange for
38,257,675  shares  of  the  Company's common stock. (37,500,000 of these shares
were  owned by a trust whose beneficiaries were the children of a officer of the
Company).  This  transaction had the effect of what is commonly referred to as a
"reverse  acquisition"  in  that the Company is the legal acquirer; however, BSI
was  the  accounting  acquirer.  In  connection  with  the  legal  form  of this
transaction,  BSI  became  a  wholly-owned  subsidiary  of  the  Company.  For
accounting  purposes,  the  acquisition was treated as a recapitalization of BSI
rather than a business combination. BSI was subsequently renamed eMedRx, Inc. on
December  2,  2002.

On October 1, 2003, the Company established a new subsidiary to sell, market and
implement  the  eMedRX  product  and  PenFlow application in the U.S. Healthcare
delivery  market.  In return for the rights to the product, the Company received
consideration  of  49%  of  the  stock  of the new subsidiary, eMedRX, USA.  The
Company  appointed  the  chairman, who owns 51% of eMedRX, USA.  The chairman of
eMedRX,  USA  is  also  a  director  of the Company.  The Company granted to the
chairman  of  eMedRX,  USA,  one million shares of the Company's common stock as
compensation  for  his  services.  eMedRX, USA has not generated any revenues to
date,  and its losses have been funded by the Company.  Accordingly, eMedRX, USA
is  considered  a  variable  interest  entity  and  has been consolidated in the
Company's  financial  statements.

On November 13, 2003, the Company established a subsidiary in the United Kingdom
to  sell and market the Company's products in Europe.  This subsidiary, Security
Biometrics  Limited  ("SBL"),  was  incorporated as a private limited company in
England  and Wales with 100,000 shares of authorized capital stock.  The Company
was  issued  60,000  shares  and  a  minority  interest holder was issued 10,000
shares.  On  May  24,  2004,  the  Board  of Directors approved the sale of this
subsidiary  to  its minority interest holder for consideration of one US dollar.
The  liabilities  will be assumed by the minority interest holder, pursuant to a
resolution  of  the  Board  of  Directors and an acknowledgement by the minority
stockholder.  The  expenses of SBL have been reported as discontinued operations
in  the  accompanying  financial statements for the period ended March 31, 2004.

On  February  18, 2004, the Company acquired Datagility Inc., a software company
specializing in anti-money laundering solutions and application service provider
services.  Its  assets  include primarily the CyberTrooper software application.
Datagility  Inc.  was  acquired  in  a Stock Purchase Agreement for initial cash
consideration  of $100,000 and 2,325,580 shares of the Company's stock valued at
$300,000,  using  the average closing price of the Company's common stock during
the  30 trading days subsequent to January 1, 2004.  Additional consideration of
$100,000 is due on or before December 31, 2004.  No revenues have been generated
by  Datagility  Inc.  to  date.

The  Company  and  its subsidiaries intend to develop, market under license, and
distribute  dynamic  biometric  technologies.


                                       10
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  1     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

BASIS  OF  PRESENTATION
-----------------------
The unaudited financial statements of the Company as at March 31, 2004 and 2003,
and  for  the  nine  and  three  months  ended March 31, 2004 and 2003 have been
prepared  in  accordance  with  accounting  principles generally accepted in the
United  States  for  interim reporting.  Accordingly, they do not include all of
the  disclosures  required  by  accounting  principles generally accepted in the
United  States  for  complete financial statements and notes thereto included in
the  Company's  Form 10-KSB for the year ended June 30, 2003.  In the opinion of
management,  all  adjustments  (consisting only of normal recurring adjustments)
considered  necessary  for  a  fair  presentation  of  the  interim  financial
information  have  been  included.  The  results  of  operations for any interim
period  are  not  necessarily  indicative  of  the results of operations for the
entire  year.

GOING  CONCERN
--------------
The  Company  has  experienced  significant operating losses since inception. In
addition,  as  at  March  31, 2004, the Company has a working capital deficit of
approximately  $6.9  million.  The  consolidated  financial statements have been
prepared  assuming the Company will continue to operate as a going concern which
contemplates  the realization of assets and the settlement of liabilities in the
normal course of business. No adjustment has been made to the recorded amount of
assets  or  the  recorded amount or classification of liabilities which would be
required  if  the Company were unable to continue its operations. Management has
initiated  a  financial  restructuring  plan  which  the Company believes should
address  some  or  all  of  its  present  financial  condition.

PRINCIPLES  OF  CONSOLIDATION
-----------------------------
The  consolidated  financial  statements  include  the  accounts  of  Security
Biometrics,  Inc.  and  the  following  subsidiaries:
eMedRX,  Inc.  (Nevada)
eMedRX,  USA  (Delaware)
eMedRx  Inc.  (Canada)
Lightec  Communications  Corp.
Datadesk  Technologies,  Inc.  (discontinued  on  August  20,  2003)
NetFace,  LLC  (Inactive)
Security  Biometrics  Limited  (effective  November  13,  2003)
Datagility  Inc.  (effective  February  18,  2004)

All  significant  inter-company  accounts and transactions have been eliminated.

VARIABLE  INTEREST  ENTITIES
----------------------------

In  January  2003, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation  No.  46,  "Consolidation  of  Variable  Interest  Entities,  an
Interpretation  of  ARB  No.  51"  which  was  replaced  in December 2003 by the
issuance  of  FIN  46R  ("FIN  46R").  FIN 46R explains how to identify variable
interest  entities  ("VIEs")  and how a company should assess its interests in a
variable  interest entity to decide whether to consolidate that entity.  FIN 46R
requires  existing  unconsolidated variable interest entities to be consolidated
by their primary beneficiaries if the entities do not effectively disperse risks
among parties involved.  The provisions of FIN 46R must be applied to VIEs as of
March  31,  2004.  The  Company is considered the primary beneficiary of eMedRX,
USA,  and  accordingly, has consolidated the assets, liabilities and the results
of  operations  of  eMedRX,  USA, as of and for the period ended March 31, 2004.


                                       11
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  1     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

CASH  AND  CASH  EQUIVALENTS
----------------------------
For  purposes  of  the statement of cash flows, the Company considers all highly
liquid  debt  instruments purchased with an original maturity of three months or
less  to  be  cash  equivalents.

ACCOUNTING  ESTIMATES
---------------------
Management  uses  estimates  and assumptions in preparing consolidated financial
statements  in  accordance  with generally accepted accounting principles in the
United  States.  Those  estimates and assumptions affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities, and
the  reported  revenues  and  expenses.  Actual  results  could  vary  from  the
estimates  that  were  used.  Significant  estimates  made by management include
revenue  recognition  and the fair values of property and equipment and warrants
issued.

REVENUE  RECOGNITION
--------------------
The  Company  recognizes  product  revenue  when  persuasive  evidence  of  an
arrangement exists, delivery has occurred, the fee is fixed or determinable, and
collectibility is reasonably assured.  In instances where the customer specifies
final  acceptance of the product, system, or solution, revenue is deferred until
all  acceptance  criteria  have been met.  Service revenue is generally deferred
and, in most cases, recognized ratably over the period during which the services
are  to be performed, which is typically from one to three years.  Cash payments
received  in  advance  of  product  or  service revenue are recorded as deferred
revenue.
When  a  sale involves multiple elements, such as sales of products that include
services,  the  entire  fee from the arrangement is allocated to each respective
element based on its relative fair value and recognized when revenue recognition
criteria  for  each element are met.  Fair value for each element is established
based  on  the  sales  price  charged  when the same element is sold separately.

Lightec  recognizes revenues from fixed-price and modified fixed-price contracts
on  the  percentage-of-completion  method,  measured  by  the percentage of cost
incurred to date to estimated total cost for each contract.  This method is used
because  management  considers  total  cost  to be the best available measure of
progress  on  the  contracts.  Because  of  inherent uncertainties in estimating
costs,  it  is  at least reasonably possible that the estimates used will change
within  the  near  term.

Revenue from time-and-materials contracts is recognized currently as the work is
performed.

Contract  costs  include  all direct material and labor costs and those indirect
costs  related to contract performance, such as indirect labor, supplies, tools,
repairs,  and  depreciation.  Selling,  general  and  administrative  costs  are
charged  to expense as incurred.  Provisions for estimated losses on uncompleted
contracts  are  made in the period in which such losses are determined.  Changes
in  job  performance,  job conditions, and estimated profitability may result in
revisions  to  costs and income, which are recognized in the period in which the
revisions are determined.  Changes in estimated job profitability resulting from
job  performance,  job  conditions,  contract  penalty  provision, claims change
orders and settlements, are accounted for as changes in estimates in the current
period.

The  asset,  "Costs  and estimated earnings in excess of billings on uncompleted
contracts",  represents  revenues  recognized  in excess of amounts billed.  The
liability,  "Billings  in  excess of costs and estimated earnings on uncompleted
contracts",  represents  billings  in  excess  of  revenues  recognized.

Revenue  from  claims  is recognized when realization is probable and the amount
can  be reliably estimated.  When realization is probable, but the amount cannot
be  reliably  estimated,  revenue is recognized to the extent of costs incurred.


                                       12
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  1     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

ACCOUNTS  RECEIVABLE
--------------------
Accounts  receivable  are reported net of an allowance for doubtful accounts, if
considered  necessary  by  management.  The  allowance  for doubtful accounts is
charged  to  income  in  amounts sufficient to maintain the allowance at a level
management  believes  is  adequate  to  cover any possible losses.  At March 31,
2004,  management  estimated  the Company's receivables to be fully collectible.
Accounts are written off when significantly past due after exhaustive efforts at
collection.

INVENTORY
---------
The  Company's  inventory  is  stated  at  the  lower of cost (determined on the
first-in,  first-out  method)  or  market.

SOFTWARE  DEVELOPMENT  COSTS
----------------------------

The Company accounts for software development costs in accordance with Statement
of  Financial Accounting Standards No. 86, "Accounting for the Costs of Computer
Software  to  be  Sold,  Leased,  or  Otherwise  Marketed."

PROPERTY  AND  EQUIPMENT
------------------------
Property  and equipment are stated at cost.  Major renewals and improvements are
charged to the asset accounts while replacements, maintenance and repairs, which
do  not  improve or extend the lives of the respective assets, are expensed.  At
the  time property and equipment are retired or otherwise disposed of, the asset
and  related  accumulated  depreciation  accounts are relieved of the applicable
amounts.  Gains  or  losses from retirements or sales are credited or charged to
income.

The  Company  depreciates  its  property  and  equipment for financial reporting
purposes using the straight-line method based upon the following useful lives of
the  assets:

     Furniture  and  fixtures        7-10  Years
     Machinery  and  equipment          5  Years
     Computer  equipment                5  Years
     Software                           3  Years

ACCOUNTING  FOR  CONVERTIBLE  DEBT  SECURITIES
----------------------------------------------
The  Company  has  issued  convertible  debt  securities  with  a non-detachable
conversion  feature  that were "in the money" at the date of issue.  The Company
accounts for such securities in accordance with Emerging Issues Task Force Topic
98-5.  The  Company  has  recorded  the  fair value of the beneficial conversion
feature  as  an  interest  expense  and  increase in Additional Paid-In Capital.

The  beneficial  interest  is computed by subtracting the stock conversion price
from  the  market  price  of  the  stock times the number of shares and warrants
eligible  for  conversion.

INCOME  TAXES
-------------
Provisions  for  income  taxes  are  based  on  taxes  payable or refundable and
deferred taxes on temporary differences between the amount of taxable income and
pretax  financial income and between the tax basis of assets and liabilities and
their  reported  amounts  in  the financial statements.  Deferred tax assets and
liabilities are included in the financial statements at currently enacted income
tax  rates  applicable  to  the  period  in  which  the  deferred tax assets and
liabilities are expected to be realized or settled as prescribed in Statement of
Financial  Accounting  Standards  ("SFAS")  SFAS No. 109, "Accounting for Income
Taxes."  As  changes  in  tax laws or rates are enacted, deferred tax assets and
liabilities  are  adjusted  through  the  provision  for  income  taxes.

The  Company is in the process of filing its tax returns for the current and all
applicable  prior  years.


                                       13
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  1     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

NET  EARNINGS  (LOSS)  PER  SHARE
---------------------------------
The  Company follows the provisions of SFAS No. 128, "Earnings Per Share," which
requires  the  reporting  of  both  basic and diluted earnings (loss) per share.
Basic  earnings  (loss)  per  share  is computed by dividing net earnings (loss)
available to common stockholders by the weighted average number of common shares
outstanding  for  the  period.  Diluted  earnings  (loss) per share reflects the
potential  dilution  that  could occur if securities or other contracts to issue
common  stock  were exercised or converted into common stock. In accordance with
SFAS  No. 128, any anti-dilutive effect on diluted earnings (loss) per share are
excluded.

LONG-LIVED  ASSETS
------------------
SFAS  No. 144, "Accounting for the Impairment or Disposal of Long-lived Assets,"
requires  that  long-lived  assets be reviewed for impairment whenever events or
changes  in  circumstances  indicate  that  the  carrying amount of the asset in
question  may  not  be  recoverable.  For  the nine month period ended March 31,
2004,  SFAS  No.  144 did not have a material effect on the Company's results of
operations,  cash  flows  or  financial  condition.

DISCLOSURES  ABOUT  FAIR  VALUE  OF  FINANCIAL  INSTRUMENTS
-----------------------------------------------------------
The  Company  estimates  that  the fair value of all financial instruments as of
March  31,  2004,  as  defined in SFAS No. 107, "Disclosures about Fair Value of
Financial  Instruments,"  does not differ materially from the aggregate carrying
values  of its financial instruments recorded in the accompanying balance sheet.
The  estimated  fair  value  amounts  have  been determined by the Company using
available  market  information  and  appropriate  valuation  methodologies.
Considerable  judgment  is  required  in interpreting market data to develop the
estimates  of  fair  value,  and  accordingly, the estimates are not necessarily
indicative  of  the  amounts  that the Company could realize in a current market
exchange.

EQUITY-BASED  COMPENSATION
--------------------------
The  Company  has  elected  to  account  for  equity-based  compensation  to its
employees  in  accordance  with  APB  No.  25  "Accounting  for  Stock Issued to
Employees," as allowed by SFAS No. 123 "Accounting for Stock-based Compensation"
(SFAS  No.  123).  SFAS  123  was  amended  by  SFAS  No.  148,  "Accounting for
Stock-based  Compensation  - Transition and Disclosure, an amendment of SFAS No.
123"  (SFAS No. 148).  Warrants issued to consultants and others are expensed in
accordance  with  SFAS  No.  123,  as  amended  by  SFAS  No.  148.

In  2002,  the Company's Board of Directors adopted an Incentive Stock Plan, the
effectiveness  of which was contingent upon the Plan's approval by the Company's
stockholders  at  the 2002 Annual Meeting.  The 2002 Annual Meeting was not held
and  approval  of  the  Plan  was neither sought nor obtained.  Accordingly, the
grants  made  pursuant  to  that  Plan  are  void.

STOCK  ISSUED  BY  SUBSIDIARY
-----------------------------
The issuance of stock by a subsidiary to third parties reduces the proportionate
ownership  interest  in  the  investee.  The  subsidiary's  plan  is to continue
raising funds through private placements and, as a result, the additional equity
raised  has  been  included  in  additional  paid-in  capital.

COMPREHENSIVE  INCOME
---------------------
The  Company  follows  the  provisions of SFAS No. 130, "Reporting Comprehensive
Income".  Comprehensive  income  is  comprised  of  foreign currency translation
adjustments.


                                       14
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  1     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONTINUED)

FOREIGN  CURRENCY  TRANSLATION
------------------------------
The  financial  statements  of  the Company are measured using the United States
dollar as the functional and reporting currency.  Assets, liabilities and equity
accounts  of  the  Company are translated from foreign currency to United States
currency  at  exchange  rates  as  of  the  balance  sheet  date  or  historical
acquisition date, depending on the nature of the account.  Revenues and expenses
are  translated  at  average  rates  of exchange in effect during the year.  The
resulting  cumulative  translation  adjustments have been recorded as a separate
component  of  stockholders'  equity.

RECLASSIFICATION
----------------
Certain  2003  amounts have been reclassified to conform with the 2004 financial
statement  presentation.

NOTE  2     DISCONTINUED  OPERATIONS

During  the  nine  month period ended March 31, 2004, the Company entered into a
Stock  and  Note Transfer Agreement (the "Transfer Agreement") with Pan Pacifica
Ltd.  ("Pan  Pacifica"), effective as of August 20, 2003, to transfer all of the
outstanding  shares of Datadesk, a wholly-owned subsidiary of the Company, and a
promissory  note payable to the Company made by Datadesk in the principal amount
of  $1,000,000,  together  with  the  related security interest in the assets of
Datadesk  to  Pan  Pacifica.   The  Transfer  Agreement  was  entered  into
simultaneously  with  a  settlement agreement between the Company and its former
officer.  In  connection  with the settlement, the Company transferred available
funds  in  the  amount  of $151,020 to Pan Pacifica.  The Company realized a net
gain  on the disposal of Datadesk subsidiary of $288,160 which was recognized at
the  date  of  disposition.  The  realized  gain is net of approximately $47,949
transaction  costs.

On May 24, 2004, the Company agreed to sell its ownership in Security Biometrics
Limited  to  the  minority  stockholder  for  consideration  of one dollar.  The
liabilities  of  this  UK  subsidiary at the date of sale will be assumed by the
minority  stockholder.

Loss  from  discontinued  operations  is  as  follows:

<TABLE>
<CAPTION>
                                       THREE MONTHS ENDED       NINE MONTHS ENDED
                                            MARCH 31,               MARCH 31,
                                     ----------------------  ----------------------
                                        2004        2003        2004        2003
                                     ----------  ----------  ----------  ----------
<S>                                  <C>         <C>         <C>         <C>
Revenue . . . . . . . . . . . . . .  $       -   $  31,687   $   6,431   $ 241,159
Direct expenses . . . . . . . . . .          -      10,800           -      95,720
                                     ----------  ----------  ----------  ----------

Gross profit. . . . . . . . . . . .          -      20,887       6,431     145,439

Administrative and general expenses     83,306     130,722     111,877     489,746
Interest expense. . . . . . . . . .          -           -           -         457
                                     ----------  ----------  ----------  ----------
Net operating loss. . . . . . . . .    (83,306)   (109,835)   (105,446)   (344,764)
Gain on disposition of subsidiary .    (93,913)          -     288,160           -
                                     ----------  ----------  ----------  ----------
Income (loss) from discontinued
 operations for the period. . . . .  $(177,219)  $(109,835)  $ 182,714   $(344,764)
                                     ==========  ==========  ==========  ==========
</TABLE>


                                       15
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  2     DISCONTINUED  OPERATIONS  (CONTINUED)

Cash  flows  from  discontinued  operations  are  as  follows:

<TABLE>
<CAPTION>
                                                                        NINE MONTHS ENDED
                                                                            MARCH 31,
                                                                     ----------------------
                                                                        2004        2003
                                                                     ----------  ----------
<S>                                                                  <C>         <C>
Cash Flows From Operating Activities:
Net income (loss) for the period. . . . . . . . . . . . . . . . . .  $ 182,714   $(344,763)
Items not involving cash:
Amortization of capital assets. . . . . . . . . . . . . . . . . . .          -       7,856
Gain on disposition of subsidiary . . . . . . . . . . . . . . . . .   (382,073)          -
Changes in non-cash working capital balances consist of:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . .     (2,910)     78,662
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,375     (16,825)
Accounts payable and accrued liabilities. . . . . . . . . . . . . .    (81,305)     24,188
                                                                     ----------  ----------
NET CASH USED IN OPERATING ACTIVITIES . . . . . . . . . . . . . . .   (281,199)   (250,882)
                                                                     ----------  ----------
Cash Flows From Investing Activity:
Purchase of capital assets. . . . . . . . . . . . . . . . . . . . .          -      (4,112)
                                                                     ----------  ----------
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . .          -      (4,112)
                                                                     ----------  ----------
Cash Flows From Financing Activities:
Proceeds from related party . . . . . . . . . . . . . . . . . . . .     76,326      23,483
Bank indebtedness . . . . . . . . . . . . . . . . . . . . . . . . .      5,904       6,352
Due to related party. . . . . . . . . . . . . . . . . . . . . . . .    198,969     222,033
                                                                     ----------  ----------
NET CASH USED IN FINANCING ACTIVITIES . . . . . . . . . . . . . . .    281,199     251,868
                                                                     ----------  ----------
Net decrease in cash from discontinued operations during the period  $       -   $  (3,126)
                                                                     ==========  ==========
</TABLE>

NOTE  3  -  ACQUISITION  OF  DATAGILITY

On  February  18,  2004,  the Company entered into a Stock Purchase Agreement to
purchase  all  of  the  outstanding  shares  of  Datagility Inc. ("Datagility").
Datagility  has  developed  a software application, CyberTrooper, which fulfills
the  scanning  requirements  of the USA Patriot Act and Office of Foreign Assets
Control  (OFAC).

The fair value of the assets acquired at the date of acquisition are as follows:

     Property  and  equipment          $  500,000
                                       ----------

     Total  assets  acquired              500,000
     Total  liabilities                         -
                                       ----------

     Net  assets  acquired             $  500,000
                                       ==========

Total  consideration:

     Cash                              $  200,000*
     Common stock - 2,325,580 shares      300,000
                                       ----------
                                       $  500,000
                                       ==========

*  $100,000  in  cash  is  due  by  December  31,  2004.


                                       16
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  3  -  ACQUISITION  OF  DATAGILITY  (CONTINUED)

Datagility's  operations  began  in  July  2003.  To date, no revenues have been
generated  by  Datagility.  The  company's  pro-forma  (unaudited)  results  of
operations as though the business combination with Datagility had been completed
at  the  beginning  of  fiscal  2004  is  as  follows:

     Revenues                             $   5,224,431
     Costs  and  expenses                     8,927,610
                                          --------------
     Loss from continuing operations         (3,703,179)
     Income from discontinued operations        182,714
                                          --------------

     Net  loss                            $  (3,520,465)
                                          ==============

NOTE  4     NOTES  AND  CONVERTIBLE  DEBENTURE  PAYABLE

<TABLE>
<CAPTION>
                                                                                    MARCH 31,
                                                                                      2004
                                                                                   ----------
<S>                                                                                <C>
MARYANNE RICHARD
On  June  13, 2002, the Company issued a note payable to MaryAnne Richard in the
amount  of  $1,000,000 as part of the consideration for the purchase of Lightec.
Included  in  accrued  liabilities at March 31, 2004 is approximately $23,000 of
accrued interest.  The note is secured by deposit accounts, investment property,
letters  of credit rights and letters of credit, rights to payments evidenced by
chattel  paper,  rights  to payments for money or funds advanced or sold and all
proceeds  of  any and all of the above.  On November 6, 2002, the Company agreed
to  grant  a warrant to Ms. Richard to purchase 8 million shares of common stock
at  a  price of $0.125 for a period of two years, in order to extend the initial
repayment  terms  of the note.  As of March 31, 2004, no warrants were issued to
Ms.  Richard.  On  May  7,  2004, the Company issued a warrant to Ms. Richard to
purchase  8 million shares of the Company's common stock at an exercise price of
$0.125,  exercisable  for  two  years  from  the  date  of  issuance.

Pursuant  to  an agreement dated October 29, 2003, the Company agreed to set the
principal  of the note at $1,105,000 ("new principal").  Interest accrues on the
new  principal  at  the rate of 9% per annum commencing on the date of the first
receipt of funds generated from the Lightec contract with the City of Bridgeport
Board of Education.  9% of the receipts from the Bridgeport School contract will
be  applied against the new principal and accrued interest.  Ms. Richard has not
received  9%  of all the Company's receipts from the Bridgeport School contract.
The  Company  was  in  default of its obligations to Ms. Richard as of March 31,
2004,  but  is  currently  negotiating a release and settlement agreement.         $1,105,000
</TABLE>


                                       17
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  4     NOTES  AND  CONVERTIBLE  DEBENTURE  PAYABLE  (CONTINUED)

<TABLE>
<CAPTION>
<S>                                                                                <C>
SYNERGEX  GROUP  LLC
On  June 11, 2002, Synergex Group LLC ("Synergex") loaned the Company $1,000,000
to  facilitate  the  acquisition  of  Lightec. The note bears interest at 9% and
originally matured on December 31, 2002.  The note is secured by certain Lightec
assets.  The Company agreed to grant a warrant to Synergex to purchase 8 million
shares  of common stock at a price of $0.125 for a period of two years, in order
to extend the initial repayment terms by three months.  As of March 31, 2004, no
warrants  were  granted  to  Synergex.  On  May  25, 2004, the Company granted a
warrant  to  Synergex to purchase 8 million shares of the Company's common stock
at  an  exercise  price  of  $0.125,  exercisable for two years from the date of
issuance.  A  director  and  stockholder  of  the  Company  also is the managing
director  and  member  of  Synergex.

Pursuant  to  an  agreement dated September 12, 2003, the Company is required to
pay  the  following:

i)  pay  the  principal  plus  all interest accrued in the outstanding principal
balance  at  the  rate  of  9%  per  annum from the date of receipt of the first
payment  related  to  the  Bridgeport  School  contract  until  paid  in  full;

ii)  pay  no  less  than 7.4% of all money received on account of the Bridgeport
School  contract  until paid in full.  As of March 31, 2004, the Company has not
paid  7.4%  of  all  its  receipts  from  the  Bridgeport  School  contract.

The  Company  was  in  default  of  this  agreement as of March 31, 2004, but is
currently  negotiating  a  settlement.                                                951,495
                                                                                   ----------
                                                      Total  notes  payable        $2,056,495
                                                                                   ==========
EDINBURGH  INVESTMENTS  LLC
On  June  30,  2002,  the  Company  issued  a convertible debenture to Edinburgh
Investments  LLC  ("Edinburgh").  The  debenture  is secured by a first priority
interest  in  the  revenues and assets of Lightec and originally matured on June
30,  2003.  Accrued  interest  at  10%  was  payable  quarterly.

On  August 29, 2003, Edinburgh obtained a court order for settlement against the
Company  requiring  the  Company  to  pay  the  following:

i)  $50,000  on  each  of  October  31, 2003, November 28, 2003 and December 31,
2003,  ($150,000  paid  as  penalty  has  been  included  in  interest expense);

ii)  principal plus all interest accrued on the outstanding principal balance at
the  rate  of  18%  per annum from June 28, 2002.  All outstanding principal and
accrued  interest  shall  be  paid to Edinburgh no later than December 31, 2004;

iii)  accrued  interest  at the rate of 18% from September 1, 2003 is payable on
January  5,  2004,  April  5,  2004,  July  5,  2004  and  October  5,  2004;

iv)  15%  of  all  funds  received from the Bridgeport School contract until the
principal  and  interest  is  fully  paid;
</TABLE>


                                       18
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  4     NOTES  AND  CONVERTIBLE  DEBENTURE  PAYABLE  (CONTINUED)

<TABLE>
<CAPTION>
<S>                                                                                <C>
Under  the  court order, the Company was also required to deliver to Edinburgh a
five-year  warrant  to purchase 13,440,000 shares of common stock at an exercise
price  of  $0.15  per  share.  On September 30, 2003, this warrant was issued as
consideration  for  extending  the  maturity  date  to  December  31,  2004.

As  of March 31, 2004, the Company has not paid 15% of all the receipts from the
Bridgeport  School  Contract.  The Company was notified by Edinburgh that it was
not in technical compliance with the terms of the settlement, but the Company is
currently  negotiating  a  settlement.
                                                                                   ----------
                                               Convertible  debenture  payable     $1,517,792
                                                                                   ==========
</TABLE>

Summary  of  Creditor  Repayment:

                                         PROPORTION OF GROSS
             CREDITOR                  LIGHTEC REVENUE PAYABLE
             --------                  -----------------------
     Edinburgh  Investments  LLC                 15%
     MaryAnne  Richard                            9%
     Synergex  Group  LLC                         7.4%
                                                ------
     Total                                       31.4%
                                                ======

NOTE  5     EQUITY-BASED  WARRANTS

As  of  March  31,  2004,  the  Company  had the following warrants outstanding:

        NUMBER       PRICE         EXPIRATION
      OF SHARES    PER SHARE          DATE
      ---------    ---------  --------------------
      7,083,333*     $0.15    June  13,  2005
     12,019,880       0.15    September  18,  2005
      2,757,500       0.15    November  19,  2005
      2,790,500       0.15    December  22,  2005
     13,440,000       0.15    September  29,  2008

*     The Company has the right to force the conversion of these warrants if the
stock  price  of  the  Company's  common  stock  exceeds  $1.20  per share for a
ninety-day  period.

During  the  nine  months  ended March 31, 2004, the Company settled $100,000 of
convertible debentures by issuing 1,100,000 shares and agreed to issue 1,100,000
warrants entitling the holder thereof the right to purchase one common share for
each  warrant  held  at  $0.15  per  share  for  a  period  of  two  years.


                                       19
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  5     EQUITY-BASED  WARRANTS  (CONTINUED)

During  the  nine  months  ended  March  31, 2004, the Company issued 13,440,000
warrants  to  Edinburgh  as  part of a settlement of its convertible debentures.
Each  warrant  entitles the holder thereof the right to acquire one common share
at $0.15 per share for a period of five years commencing September 30, 2003 (see
Note 4).  The fair value of each warrant is estimated on the date of grant using
the  Black-Scholes  binomial  pricing  model  with  the  following  assumptions:

     Expected  life            5  years
     Interest  rate            5%
     Volatility              199%
     Dividend  yield           -

In  May  2004,  the  Company  issued  additional warrants to purchase 16,000,000
shares  at  $0.125  per  share  for  a  period of two years in consideration for
extension  agreements  on  notes  payable  (see  Note  4)

NOTE  6     COMMITMENTS  AND  CONTINGENCIES

ACQUISITION  OF  DATAGILITY
---------------------------

In  accordance  with  the  Stock Purchase Agreement entered into on February 18,
2004, the Company must pay $100,000 in cash as fixed consideration to the former
stockholders  of  Datagility before December 31, 2004.  In addition, the Company
may  owe  the  former  stockholders  of Datagility the following additional cash
consideration  if,  on  or  before  the  following  dates,  revenues received in
connection  with  Datagility's  CyberTrooper  software  application  exceed  the
following  amounts:

<TABLE>
<CAPTION>

CYBERTROOPER      ACHIEVEMENT      CONTINGENT ADDITIONAL
  REVENUES           DATES          CASH CONSIDERATION
-------------  -----------------  ----------------------
<S>            <C>                <C>
$     500,000  December 31, 2004  $              100,000
      750,000  June 30, 2005 . .                 100,000
</TABLE>

LEASE
-----

On  January  23,  2004,  the  Company entered into a sublease for its new office
space  in  New  York  City.  The  annual fixed rent is $113,832 payable in equal
monthly installments of $9,486.  The lease expires on December 30, 2007.  Future
annual  minimum  payments  under  this  lease  are  as  follows:

          YEAR ENDING JUNE 30,
          --------------------
            2004  (Remaining)     $     28,458
            2005                       113,832
            2006                       113,832
            2007                       113,832
            2008                        56,916
                                  ------------
                                  $    426,870
                                  ============

NOTES  AND  CONVERTIBLE  DEBENTURE  PAYABLE
-------------------------------------------

The  Company  is  currently in default of its obligations under notes payable to
MaryAnne Richard and Synergex Group Partnership and a convertible debenture held
by  Edinburgh  Investments LLC, as further discussed in Note 4.  At present, the
Company  is  negotiating  a  settlement  agreement  with  these  parties.


                                       20
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  6     COMMITMENTS  AND  CONTINGENCIES  (CONTINUED)

WONDERNET
---------

In  September  2003, the Company entered into an agreement with WonderNet to pay
minimum  royalties of $120,000 per quarter against a 5% royalty on products sold
in  North  America,  the  Caribbean  and  Mexico.

PRIVATE  PLACEMENT
------------------

On  October  1,  2003, the Company initiated an offering of 10,000,000 shares of
common  stock  at  a  price  of
$0.10  per  share,  pursuant  to  a  Private  Placement Offering Memorandum (the
"Offering").  There  is no minimum subscription level to be obtained in order to
consummate the Offering.  Accordingly, if less than the maximum number of shares
is  sold, no funds will be returned to the subscribers.  Subsequent to March 31,
2004,  additional  shares  were  issued  pursuant  to  the  Offering.

NOTE  7     BUSINESS  SEGMENTS

SFAS  No.  131,  "Disclosure  about  Segments  of  an  Enterprise  and  Related
Information",  requires  companies  to  provide  certain information about their
operating  segments.  The  Company  has  three  reportable  segments:  Security
Biometrics,  Lightec,  and  eMedRx.

Summarized  financial  information, concerning the Company's reportable segments
for  nine  months  ended  March  31,  2004,  is  shown  on  the following table:

<TABLE>
<CAPTION>
                                    SECURITY
                                   BIOMETRICS    LIGHTEC      EMEDRX       TOTAL
                                  ------------  ----------  ----------  ------------
<S>                               <C>           <C>         <C>         <C>
Net sales to external companies.  $    17,073   $5,205,528  $   1,830   $ 5,224,431
Operating earnings (loss). . . .   (5,046,809)   1,665,553   (318,288)   (3,699,544)
Total assets . . . . . . . . . .      659,169    2,260,088     15,437     2,934,694
Depreciation and amortization. .       27,063          460          -        28,063
Capital expenditures . . . . . .      507,001            -          -       507,001
</TABLE>

NOTE  8     SUBSEQUENT  EVENTS

INCENTIVE  STOCK  PLAN
----------------------

On  April 30, 2004, the Company's stockholders approved the Security Biometrics,
Inc. 2004 Incentive Stock Plan (the "2004 Plan") which provides for the issuance
of  up  to 45,000,000 shares.  The 2004 Plan permits the grant of stock options,
stock  awards and restricted stock purchase awards.  Stock options granted under
the  2004  Plan  may  be  options intended to qualify as incentive stock options
("ISOs")  under  Section  422 of the Internal Revenue Code or nonqualified stock
options  ("NSOs"),  which  are options that are not intended to qualify as ISOs.
Stock options granted to a person who owns more than 10% of the Company's voting
power  shall  have  exercise prices of at least 110% of fair market value of the
Company's  stock on the date of the grant.  Stock options granted to others will
have  exercise  prices  of  not  less  than 100% of the fair market value of the
Company's  stock on the date of grant if they are ISOs, and not less than 85% of
the  fair  market  value of the Company's stock on the date of grant if they are
NSOs.  Stock  options  granted  under  the 2004 Plan will have terms of not more
than  10  years.


                                       21
<PAGE>

SECURITY  BIOMETRICS,  INC.
CONSOLIDATED  FINANCIAL  STATEMENTS
NOTES  TO  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS

NOTE  8     SUBSEQUENT  EVENTS  (CONTINUED)

REVERSE  STOCK  SPLIT
---------------------

On  April 30, 2004, the Company's stockholders approved a one-for-twenty reverse
stock  split.  The  effective  date  of this split shall be upon the filing of a
certificate  of  amendment  to  the Company's Articles of Incorporation with the
Nevada  Secretary  of  State.  To  date  the  Company  has  not  yet  filed this
certificate  of amendment. Accordingly, the accompanying financial statements do
not  reflect  the  reverse  stock  split.

Upon  the  effectiveness of the reverse stock split, the authorized shares would
decrease  to  15  million  from  300  million.

INCREASE  IN  AUTHORIZED  SHARES
--------------------------------

On  April  30,  2004,  the  Company's  stockholders  approved an increase in the
authorized  number  of  common  shares  to  50 million from 15 million to become
effective  at  the  same  time  as  the  reverse  stock  split.


                                       22
<PAGE>

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

When used in this Form 10-QSB, the words "anticipated," "estimate," "expect" and
similar  expressions  are intended to identify forward-looking statements.  Such
statements are subject to certain risks, uncertainties and assumptions including
the  possibility  that we will fail to generate planned revenues.  Should one or
more  of  these  risks  or  uncertainties  materialize,  or  should  underlying
assumptions  prove  incorrect,  actual  results  may  vary materially from those
anticipated,  estimated  or  projected.

In  this  section,  "Management's Discussion and Analysis of Financial Condition
and Results of Operations," references to "we," "us," "our," and "ours" refer to
Security  Biometrics,  Inc.  and  its  consolidated  subsidiaries.

We  believe  the  risks  include,  but  are  not  limited to, the failure of the
biometric  technology market to grow according to our expectations due to slower
adoption  of  biometric  technology than our forecasts, commercial risk from the
potential adoption of other biometric technologies as a substitute for biometric
signature authentication and commercial risk that a superior biometric signature
authentication  technology  could come to market before the Company's technology
has  realized  its  commercial  potential.

The  following  discussion  and  analysis of financial conditions and results of
operation  should  be  read  in  conjunction  with  our  consolidated  financial
statements  and  notes  thereto  included  elsewhere  in  this  Form  10-QSB.

Critical  Accounting  Policies
==============================

Our discussion and analysis of our financial condition and results of operations
are  based  upon  our  consolidated  statements,  which  have  been  prepared in
accordance  with  accounting principles generally accepted in the United States.
The  preparation of these financial statements requires us to make estimates and
judgments  that affect the reported amounts of assets, liabilities, revenues and
expenses.  In  consultation  with our Board of Directors and Audit Committee, we
have identified one accounting policy that we believe is key to an understanding
of  our  financial  statements.  This  is  an  important  accounting policy that
requires  management's  most  difficult,  subjective  judgment.

The  critical  accounting  policy relates to revenue recognition.  The choice of
revenue  recognition method is subjective.  License revenues are recognized when
earned,  in  accordance  with  contractual  provisions.  Royalty  revenues  are
recognized upon shipment of products incorporating the related technology by the
original  equipment  manufacturers  (OEMs)  and  foundries.  For  Lightec,  we
recognize  revenue  from  fixed  price and modified fixed price contracts on the
percentage-of-completion  method,  measured  by  the percentage of cost for each
contract.  This method is used because management considers total cost to be the
best  available  measure  of  progress  on  the  contracts.

History
=======

Security  Biometrics, Inc. was incorporated as Great Bear Resources, Inc. in the
State  of  Nevada  on  March  12,  1999  and  we  changed our name to Great Bear
Investments,  Inc.  on May 25, 1999.  On August 11, 2000, we changed our name to
Security  Biometrics,  Inc.  We were a development state company whose objective
was  to  develop  market  under  license  and  distribute  dynamic  biometric
technologies  specific  to  the  security  applications of banking and financial
transactions,  including  dynamic  gesture  recognition  technology,  dynamic
signature  verification  and  voice  recognition.

On  August  22,  2000,  we entered into an option agreement with DSI Datotech of
Vancouver,  Canada. The exercise price of the option was $8,000,000, of which we
paid  $320,000.  On June 29, 2001, we acquired all of the outstanding membership
interests  of NetFace, LLC, a Connecticut limited liability company, in exchange
for 20,000,000 shares of our common stock. NetFace holds an option to acquire an
exclusive  worldwide,  perpetual,  royalty-free license to exploit DSI's gesture
recognition  technology  for  video  games and Internet/television. The exercise
price  of  the option is $5,000,000 plus a 20% Class B Membership of NetFace. We
have decided not to exercise our options with DSI Datotech at this time as we do
not  believe  that the prototypes delivered to us are market ready at this time.
Consequently,  the  Company  expensed  $320,000  in  2001 and the balance of the
investment  of  $200,000  in  2002.


                                       23
<PAGE>

ITEM  2     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS  (CONTINUED)

On  April  20,  2002,  the  Company  entered  into  an  exclusive agreement with
WonderNet  Ltd.  of  Israel.  Under  this  agreement,  we  became  the exclusive
distributor for North America, the Caribbean and Mexico of WonderNet's Penflow()
patented  and  proprietary  Biometric  Signature Authentication ("BSA") software
engine,  which  consists  of  a  database of user profiles and enable remote and
local access to the database using the internet, smart cards, or LAN connections
to  verify  signatures by comparison to said database.  To acquire these rights,
we issued WonderNet 2,500,000 shares of common stock and agreed to pay WonderNet
a  5%  royalty  on  products  sold.

The  agreement  with  WonderNet allows us to commence sub-licensing, marketing a
proven  biometric  security  product.

A  revised  agreement  with  WonderNet was entered into in September 2003.  This
agreement  includes  a  minimum  payment  of  $120,000  per quarter against a 5%
royalty  on  products  sold.

WonderNet
=========

On  December  1, 2003, a letter of intent was signed between Security Biometrics
and WonderNet for Security Biometrics to buy the stock of WonderNet for cash and
Security  Biometrics stock.  However, we decided to put this acquisition on hold
and  continue  to  operate  under  our existing exclusive perpetual distribution
licensing  agreement  for  North  America,  the  Carribean  and  Mexico.

Management  Team
================

There  were  substantial  changes to the Company's management team subsequent to
March  31,  2004.  On May 13, 2004, Michel Berty resigned his positions as Chief
Executive  Officer  (CEO)  and  President  of Security Biometrics. William Moore
resigned as Chief Financial Officer (CFO) on April 7, 2004, and David Weiss, the
Company's  Controller,  was  appointed acting CFO. On May 14, 2004, the Board of
Directors  elected  Mr.  Wayne  Taylor, currently a director, to the position of
interim  CEO  to  replace  Mr.  Berty.  The  board also elected Mr. Weiss to the
position  of  CFO  on  May  14, 2004. After the termination of the employment of
David  Weiss on June 3, 2004, Mr. Taylor was appointed interim CFO by the board.

Board  of  Directors
====================

On May 12, 2004, Hon. David Angus resigned as a director of the Company.  On May
13,  2004,  Michel Berty resigned his position as Chairman of the board and also
resigned  as  a  director  of  the  Company.

On May 14, 2004, the Board of Directors appointed Rear Admiral Stuart Platt (USN
Ret.)  to fill the vacancy on the board created by the resignation of Mr. Angus.

Revised  Sales  Strategy
========================

The  executive management team continued to focus on sales on direct channels to
clients  rather  than using alternate channels like value added resellers.  This
resulted  in the hiring of additional sales staff in the third calendar quarter.
In  the  first  quarter  of calendar year 2004 Datagility Inc. was acquired (see
below) to utilize the sales resources of Datagility to serve both Datagility and
PenFlow  clients  in  the  financial  services  sector.

The  strategy of direct sales reflects a desire to maintain superior margins and
'customer  ownership.'  However,  Security  Biometrics  will  continue  to  use
indirect  channels  where  appropriate as a supplement to direct channels and to
ensure  as  much market breadth as possible given the resources available to the
business.

We  believe  that the sales cycle for the PenFlow product is relatively long due
to  the  potential impact on client's business processes where it is implemented
on  a  large  scale.  We  believe  that  the  length of the sales cycle for this
product  means  that  increased investment in sales and marketing is unlikely to
have  a  significant impact on revenue performance until at least the later half
of  our  financial  year.


                                       24
<PAGE>

ITEM  2     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS  (CONTINUED)

eMedRX
======

During  the  nine  months  ended March 31, 2004, the eMedRX business was managed
through  three  subsidiaries  of Security Biometrics Inc, eMedRX, Inc., a Nevada
company,  eMedRX, USA, a Delaware company, and eMedRX Inc. , a Canadian company,
in order to facilitate business in each country and to provide opportunities for
other  investors  to  participate  in  ownership  of  the  business.

We  believe  that  the  progress  made  in identifying pilot partners during the
quarter  was  significant.

Discussions  were  initiated by eMedRX Inc. in Canada to sell the U.S. rights to
sell,  market  and  implement  the eMedRX product and PenFlow application in the
U.S.  healthcare  delivery  market  to  eMedRX, Inc. a company only related by a
common  director.  EMedRX, Inc. is a company formed specifically for the purpose
of  selling,  marketing  and  implementing  and servicing the eMedRX and PenFlow
products  by  a  management  group  with strong links to the healthcare delivery
market.  In  return  for the rights to the product, Security Biometrics received
consideration  of  49% of the stock of eMedRX, Inc. and license fees for product
sales  and  transaction  revenues.  We  believe  that  this arrangement provides
excellent  access  to  the  vertical  market  for  the product while effectively
preserving  Security  Biometric's  sales  and marketing resources.  EMedRX, Inc.
subsequently  became  eMedRX, USA.  A third entity was established in the United
States  as  eMedRX,  Inc.  which  is  inactive.  Dr.  David  Dalton,  one of our
directors,  is  also  director  of and has an ownership interest in both eMedRX,
Inc.  USA  and  eMedRX,  Inc.

Lightec
=======

The  Lightec  Communications  business continued to be active during the period.
Lightec  recognized  revenues  of  $3.5 million for the quarter ending March 31,
2004,  compared  to  approximately  $300,000 recognized during the quarter ended
March 31, 2003.  We do not expect this rate of growth to be sustained because it
reflected  an  increased  level  of  contract  activity  with  education  sector
customers.  It  should  be  noted  that  the  revenue to be recognized in future
quarters  is  effected  by  the seasonality of contract activity.  We anticipate
that the quarter ending September 30, 2004, will see reduced activity coinciding
with  school  vacations.

Funds for the Bridgeport Board of Education projects continued to be released by
the  government agencies involved as anticipated. We expect that the anticipated
contract  revenues  of $7.9 million will be achieved in the contract year ending
August  30, 2004. Each school year, the funding for the Bridgeport contract must
be  approved  by  the  Schools  and  Libraries Division of the Universal Service
Administrative  Company,  a  not-for-profit  corporation  regulated  by the U.S.
Federal  Communications  Commission. Based upon its experience over the previous
years  of the contract, management believes that, for the school year 2004-2005,
such  approval,  although not automatic, is nevertheless highly likely. In order
to  perform  under  its  contract  to the Bridgeport Board of Education, Lightec
relies  on  a principal supplier that is the Company's principal trade creditor.

Penflow
=======

Additional  resources  have  been  applied to sales and marketing efforts of the
PenFlow  products.  We  believe  that the sales cycle for the PenFlow product is
relatively long due to the potential impact on client's business processes where
it  is  implemented  on  a large scale.  We believe that the length of the sales
cycle for this product means that increased investment in sales and marketing is
unlikely  to  have  a  significant impact on revenue performance until the later
half  of  our  financial  year.

UK  Subsidiary
==============

Security  Biometrics has entered into a contract with a marketing representative
in  the  United  Kingdom (UK) to assist in the selling and marketing of Security
Biometrics  products  in  the  UK and Europe.  A new entity, Security Biometrics
Limited  ("SBL"),  was  formed  during  the  nine months ended March 31, 2004 in
anticipation of future business activity.  The Company owns 60,000 of the 70,000
outstanding  shares  of  capital  stock  of  SBL.  Consistent with the Company's
ongoing  efforts  to  reduce  costs,  the  operations  in the UK were suspended,
effective  April  30,  2004.  On  May 24, 2004, the Company's Board of Directors
approved the sale of Security Biometrics Limited to its minority interest holder
for  consideration  one  dollar and assumption of its liabilities on the date of
sale,  since  SBL's operations have not reached its anticipated milestones.  The
sale  is  expected  to  be  completed  by  June  30,  2004.


                                       25
<PAGE>

ITEM  2     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS  (CONTINUED)

Datadesk
========

The divestiture of Datadesk was completed in August 2003 as previously described
in  our  annual  filing  on  form  10-KSB for the year ended June 30, 2003.  The
Datadesk  operation produced some of the core elements of the eMedRX application
but  going  forward it was decided to focus the resources of Security Biometrics
on  its Penflow technology and further development of the eMedRX application and
commercial  opportunities  in  the  healthcare  sector.

In  order  to  execute  the  divestiture  it  was  mutually  agreed  by Security
Biometrics and Robert Solomon, president of Datadesk and Chief Technical Officer
(CTO)  of Security Biometrics, to cancel Mr. Solomon's employment agreement with
Security  Biometrics  and  transfer  ownership  of Datadesk to Panpacifica for a
consideration of $1,000,000 .  The effective date of this agreement and transfer
of  the  ownership  was  August  20,  2003.

The  Company  realized  a  net  gain  in  the  disposal  of  the of the Datadesk
subsidiary  of  $382,073  which  was recognized at the time of disposition.  The
realized  gain  was  net  of  $47,949  transaction  costs.

The  transaction  constitutes a related party transaction because Robert Solomon
was  CTO  of  Security  Biometrics  and  President  and  director  of  Datadesk.

Purchase  of  Datagility
========================

Security  Biometrics purchased Datagility Inc. on February 18, 2004.  Datagility
is  a  software  company  specializing  in  anti-money  laundering solutions and
application  service  provider  (ASP)  services.  Its  CyberTrooper  software
application fulfills the scanning requirements of the USA Patriot Act and Office
of  Foreign  Assets  Control  (OFAC).

We  purchased  100%  of Datagility's outstanding stock for cash consideration of
$100,000  and  2,325,580 shares of Security Biometrics stock, valued at $300,000
using  the average closing price of our common shares during the 30 trading days
subsequent  to  January 1, 2004.  Additional consideration of $100,000 is due on
or  before  December  31,  2004.

Revenues
========

Contract  revenues rose to $5.2 million for the nine months ended March 31, 2004
from  $1.2  million  for  the  nine  months ended March 31, 2003 which reflected
increasing  activity in the Lightec business and pilot implementations of eMedRx
application.  Total  revenues for the nine months ended March 31, 2004 increased
by  $4 million over the same period ended March 30, 2003.  This increase largely
reflects  activity  levels on certain Lightec contracts which are seasonal.  The
activity  is  expected  to  decrease in the third calendar quarter due to summer
vacations  in  the  school  districts.

Current  Liabilities
====================

Amounts  due  to non-related parties increased to $2.1 million at March 31, 2004
from  less than $1 million at June 30, 2003.  This reflects liabilities incurred
associated  with  the  Lightec  hardware  and  software  re-selling  business.

Liquidity  and  Capital  Resources
==================================

At March 31, 2004, the working capital deficit totaled $6.9 million, an increase
of  $0.7  million during the quarter, primarily because we used cash to fund new
ventures.  In  our  effort  to  expand our operations in the UK and to enter new
industries, we incurred more expenses this quarter.  The nine months ended March
31,  2004 saw decreased cash flow from operations compared to the same period in
2003.

Due  to  debt  service  obligations  and  the management's strategy to invest in
activities and operations that will provide long term strength to our liquidity,
we  do not believe that we will be cash flow positive over the short term and we
will  continue  to  need  additional  financing  from  sales  of stock and other


                                       26
<PAGE>

ITEM  2     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS  (CONTINUED)

sources.  Should  this  be unattainable our ability to continue the operation of
these  businesses  and  expand  our other biometric security activities would be
severely  impaired.

For the three month period ending March 31, 2004 cash in-flows from the issuance
of  stock  totaled  $90,000  before  finders'  fees,  as a result of our private
placement  offering.

Edinburgh Investments LLC's convertible Debentures and Notes Payable to MaryAnne
Richard  and  Synergex  Group  (a  related  party)  are secured by the assets of
Lightec and required Security Biometrics to generate significant cash flows from
operations or financing to meet our obligations.  We are currently in default of
these  notes  and  debentures.  Settlement  and  release  agreements  are  being
negotiated,  and  these  may require cash.  Cash flows would also be impaired on
account of acceleration of debt repayment by Edinburgh Investments LLC, MaryAnne
Richard  and  Synergex  Group  LLC.

Off-Balance  Sheet  Arrangements
================================

We  have no off-balance sheet arrangements that have or are reasonably likely to
have  a  current  or  future  effect  on  us  that  is  material  to  investors.

ITEM  3     CONTROLS  AND  PROCEDURES

An  evaluation  was  performed,  as of March 31, 2004, under the supervision and
with  the participation of our management, including our Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of
our  disclosure  controls  and  procedures.  Based  on  such  evaluation,  our
management  has  concluded  that  our  disclosure  controls  and procedures were
effective  as  of March 31, 2004.  There have been no significant changes in our
internal  controls or other factors that could significantly affect our internal
controls  subsequent  to  March  31,  2004.

We  do  not  expect that our disclosure controls and procedures will prevent all
error  and  all  fraud.  A  control  procedure, no matter how well conceived and
operated,  can  provide  only  reasonable,  not  absolute,  assurance  that  the
objectives  of  the  control  procedure  are  met.  Because  of  the  inherent
limitations  in  all  control  procedures, no evaluation of controls can provide
absolute  assurance  that  all  control  issues  and instances of fraud, if any,
within  the  Company  have been detected. These inherent limitations include the
realities  that  judgments in decision-making can be faulty, and that breakdowns
can  occur  because  of  simple  error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more
people,  or  by  management  override  of the control. The design of any control
procedure also is based in part upon certain assumptions about the likelihood of
future  events,  and  there  can be no assurance that any design will succeed in
achieving  its  stated  goals  under all potential future conditions; over time,
controls  may  become inadequate because of changes in conditions, or the degree
of  compliance  with  the policies or procedures may deteriorate. Because of the
inherent limitations in a cost-effective control procedure, misstatements due to
error  or  fraud  may  occur  and  not  be  detected.

PART  II

ITEM  1     LEGAL  PROCEEDINGS

Edinburgh  Investments LLC contacted us to notify us that the Company was not in
technical compliance with stipulations under the court approved settlement. Such
requirements  are currently being remedied.  In addition, Synergex Group LLC and
MaryAnne  Richard  contacted  us to notify us that the Company was in default of
its  agreements  with  them.  We  are  currently  negotiating  settlements.

Neither  we,  nor  any  of  our  subsidiaries,  is a party to any material legal
proceeding, nor, to our knowledge, is any material litigation threatened against
us  or  our  subsidiaries,  unless a settlement is not consummated with MaryAnne
Richard.

ITEM  2     CHANGES  IN  SECURITIES

During  the  three month period ended March 31, 2004, we entered into agreements
to  issue  900,000 shares of our common stock for gross cash proceeds of $90,000
pursuant  to a private placement offering which began during earlier quarters as
follows:  250,000 shares on January 5, 2004, 200,000 shares on January 23, 2004,
50,000  shares on February 3, 2004, 200,000 shares on February 10, 2004, 100,000
shares  on  March  1, 2004 and 100,000 shares on March 12, 2004. In addition, we
entered  into an agreement to issue 2,325,580 shares of common stock on February
18,  2004 as consideration for the purchase of Datagility Inc., and the board of
directors  authorized  the  issuance  of  1,000,000 and 300,000 shares of common
stock  to Dr. David Dalton and Jeff Maynard, on September 10, 2003 and September
2,  2003,  respectively,  as  compensation  for  services  rendered.  All of the
aforementioned  shares  of  common stock were issued on May 10, 2004. We believe
that  the  issuance  of  such  shares  did  not  require  registration under the
Securities  Act  of 1933, as amended, pursuant to exemptions available under the
provisions  of  Sections  4(2) and 4(6) of the Securities Act, as the securities
were  not  sold  in  a  public offering transactions or were sales to accredited
investors  for  which  there  was  no  advertising  or  public  solicitation.


                                       27
<PAGE>

ITEM  2     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL CONDITION AND
RESULTS  OF  OPERATIONS  (CONTINUED)

ITEM  3     DEFAULTS  ON  SENIOR  SECURITIES

The  Company  is  currently in default of its obligations under notes payable to
MaryAnne Richard and Synergex Group Partnership and a convertible debenture held
by  Edinburgh  Investments  LLC,  as further discussed in Note 4 of the Notes to
Consolidated  Financial Statements for the period ended March 31, 2004 in Item 1
of  this  quarterly  report.


                                       28
<PAGE>

PART  II  (CONTINUED)
ITEM  4     SUBMISSION  OF  MATTERS  TO  A  VOTE OF SECURITY HOLDERS (SUBSEQUENT
EVENT)

The  Company  held  its  2004  annual meeting of stockholders on April 30, 2004.
Matters  voted  on  at  the meeting and the results of each vote are as follows:

<TABLE>
<CAPTION>
Proposals:                                                             For:      Withhold:
----------                                                         ----------    ---------
<S>                                                                <C>           <C>
1.  To elect eight (8) Directors to serve for the ensuing year     78,333,351        0
</TABLE>

<TABLE>
<CAPTION>
                                                                   For:      Against:   Abstain:
                                                                ----------  ----------  --------
<S>                                                             <C>         <C>         <C>
2.  To amend the Articles of Incorporation to effect a one-
for-twenty reverse stock split of the Company's common
stock, thereby decreasing the authorized shares from
300,000,000 to 15,000,000, and to increase the share capital
from 15,000,000 shares to 50,000,000 shares. . . . . . . . . .  78,333,351           0         0

3.  To authorize the issuance of up to 30,000,000 shares of
preferred stock with a par value of $0.001 per share (or
1,500,000 if Proposal No. 2 were approved) . . . . . . . . . .  32,098,350  46,235,001         0

4.  To approve our 2004 Long-Term Performance Plan.. . . . . .  60,623,351  17,710,000         0
</TABLE>

Proposal No. 3, to amend the Articles of Incorporation to authorize the issuance
of  up  to  30,000,000  shares of preferred stock with a par value of $0.001 per
share,  was  not  approved  by  the  stockholders  at  this  meeting.  The other
proposals  were  approved  by  the  stockholders.

ITEM  5     OTHER  INFORMATION

None

ITEM  6      EXHIBITS  AND  REPORTS  ON  FORM  8-K

(a)     Exhibits

Exhibit  Description
Number

3.1      Amended  and  Restated  By-Laws  of  the  Registrant

10.1     Datagility  Inc.  Stock  Purchase  Agreement (to be filed by amendment)

31.1     Certificate  of  Wayne  Taylor  pursuant  to  Section  302  of  the
         Sarbanes-Oxley  Act  2002

32.1     Certificate  of  Wayne  Taylor  pursuant  to  18 U.S.C.1350, as adopted
         pursuant  to  section  906  of  the  Sarbanes-Oxley  Act  of  2002.

(b)      Reports  on  Form  8-K


                                       29
<PAGE>

PART  II  (CONTINUED)

ITEM  6      EXHIBITS  AND  REPORTS  ON  FORM  8-K  (CONTINUED)

On  March 26, 2004, the Company filed a Report on Form 8-K regarding a change in
its  certifying  public  accountants.

                                   SIGNATURES


In  accordance  with  Section  13  or 15 (d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                  Security Biometrics, Inc.
                                  -------------------------
                                          Registrant

                                  By:  /s/  Wayne  Taylor
                                  -----------------------
                                  Name:  Wayne  Taylor
Date:     June  3,  2004          Title: Interim Chief Executive Officer and
                                         Interim Chief Financial Officer


                                       30
<PAGE>

<TABLE>
<CAPTION>
                                          Index of Exhibits
                                          -----------------
Number    Description
<S>       <C>
3.1       Amended and Restated By-Laws of the Registrant

10.1      Datagility Inc  Stock Purchase Agreement (to be filed by amendment)

31.1      Certificate of Wayne Taylor pursuant to Section 302 of the Sarbanes-Oxley Act 2002

32.1      Certificate of Wayne Taylor pursuant to 18 U.S.C.1350, as adopted pursuant to section 906
          of the Sarbanes-Oxley Act of 2002.
</TABLE>


                                       31
<PAGE>