<PAGE>


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

                                     FORM 10-QSB
           ( X )  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF
                     THE SECURITIES EXCHANGE ACT OF 1934
                     For the quarterly period ended March 31, 1999

                                           OR

           (   ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934


                 For the transition period from           to

                        Commission File Number 1-9043


                 B.H.I.T. Inc. Formerly Banyan Hotel Investment Fund
                (Exact Name of registrant as specified in its charter)

                  DELAWARE                                36-3361229
                  --------                                ----------
     (State or other jurisdiction of                    (I.R.S. Employer
     incorporation or organization)                   Identification Number)
     875 Avenue of the Americas, Suite 1808,
     New York, New York                                          10001
       (Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code (212) 736-7880

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days. Yes X. No

Shares of Common Stock outstanding as of May 5, 1999: 12,338,051
Transitional Small Business Disclosure Format  Yes   No X


<PAGE>




                                B.H.I.T. Inc. 
                       Formerly BANYAN HOTEL INVESTMENT FUND
                         QUARTERLY REPORT ON FORM 10-QSB
                    FOR THE THREE MONTHS ENDED MARCH 31, 1999

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

INDEX                                                                                             PAGE
                                                                                                  ----
<S>        <C>                                                                                    <C>


PART I      FINANCIAL INFORMATION

Item 1.     Financial Statements

            Consolidated Balance Sheets as of March 31,
              1999 (unaudited) and December 31, 1998................................................3

            Consolidated Statements of Income and Expenses
              for the three months ended March 31, 1999 and
              1998 (unaudited) .....................................................................4

            Consolidated Statement of Stockholders' Equity
              for the three months ended March 31, 1999
              (unaudited)...........................................................................5

            Consolidated Statement of Cash Flows for the
              three months ended March 31, 1999 and 1998
              (unaudited) ..........................................................................7

            Notes to Consolidated Financial Statements
              (unaudited)...........................................................................8

Item 2.     Management's Discussion and Analysis of
             Financial Condition and Results of
             Operations ...........................................................................11


PART II     OTHER INFORMATION

Item 6.     Exhibits and Reports on Form 8-K.......................................................13


SIGNATURES ........................................................................................14

</TABLE>


<PAGE>



                                               B.H.I.T. Inc.
                                   Formerly BANYAN HOTEL INVESTMENT FUND
                                       CONSOLIDATED BALANCE SHEETS
                                    MARCH 31, 1999 AND DECEMBER 31, 1998

                                          PART 1 FINANCIAL INFORMATION
<TABLE>
<CAPTION>

ITEM 1. FINANCIAL STATEMENTS

ASSETS                                                                          1999             1998
                                                                                ----             ----
                                                                            (Unaudited)
<S>                                                                         <C>                  <C>

Cash and Cash Equivalents ................................................  $   263,304         $   193,710

Interest Receivable on Mortgages
   And Miscellaneous Receivables .........................................        3,284               3,147

Mortgage Loans Receivable:
 Related Party ...........................................................           --             106,189
 Other ...................................................................      300,000             300,000

Investment in Joint Venture ..............................................      856,939             905,283

Prepaid Insurance ........................................................        7,082              15,593

Other Assets .............................................................        3,198               7,635
                                                                           ------------         -----------
                                                                           $  1,433,807         $ 1,531,557
                                                                           ------------         -----------
                                                                           ------------         -----------

LIABILITIES & STOCKHOLDERS' EQUITY

Accounts Payable and Accrued Expenses ...................................  $     19,235         $    38,279
                                                                           ------------         -----------
Stockholders' Equity
Shares of Common Stock $0.01 Par Value
20,000,000 Shares Authorized
12,338,051 Shares Outstanding ...........................................    87,477,847          87,477,847

Accumulated Deficit .....................................................   (86,055,086)        (85,976,380)

Treasury Stock, At Cost
  for 32,757 Shares of Common Stock .....................................        (8,189)             (8,189)
                                                                           ------------         -----------

Total Stockholders' Equity ..............................................     1,414,572           1,493,278
                                                                           ------------         -----------

Total Liabilities and
  Stockholders' Equity ..................................................   $ 1,433,807          $1,531,557
                                                                            -----------          ----------
                                                                            -----------          ----------

</TABLE>




                                       See Accompanying Notes


<PAGE>


                                          B.H.I.T. Inc.
                              Formerly BANYAN HOTEL INVESTMENT FUND
                         CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES
                       FOR THE THREE MONTHS ENDED MARCH 31, 1999 and 1998 
                                              (UNAUDITED)

<TABLE>
<CAPTION>

                                            1999             1998
                                            ----             ----

<S>                                     <C>               <C>

INCOME
Interest Income on Cash
  and Cash Equivalents ................   $  1,734         $  2,038
Interest Income on
 Mortgages Receivable .................      9,000           43,206
Interest Income from
 Related Parties ......................      1,770            1,770
                                          --------         --------

Total Income ..........................     12,504           47,014
                                          --------         --------

Equity in Net Loss of Unconsolidated
 Joint Venture                             (48,344)             --
                                          --------        --------


EXPENSES
Stockholder Expenses ..................      1,754            2,039
Other Professional Fees ...............         --           30,826
General and Administrative ............     41,112           53,606
                                          --------         --------

TOTAL EXPENSES ........................     42,866           86,471

Net Loss ..............................   $(78,706)        $(39,457)
                                          --------         --------
                                          --------         --------

Net Loss Per Share of
  Common Stock (Based
  on Number of Shares Outstanding
  of 12,338,051)                          $  (0.01)        $  (0.00)
                                          --------         --------
                                          --------         --------
</TABLE>


                                       See Accompanying Notes


<PAGE>


                                           B.H.I.T. Inc.
                               Formerly BANYAN HOTEL INVESTMENT FUND
                     CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR THE
                                  THREE MONTHS ENDED MARCH 31, 1999
                                             (UNAUDITED)
<TABLE>
<CAPTION>



                                      SHARES OF COMMON STOCK
                                      ----------------------
                                      SHARES          AMOUNT
                                      ------          ------
<S>                              <C>                   <C>

Stockholders'
Equity (Deficit)
December 31, 1998 .................  12,338,051     $87,477,847

Net Loss ..........................      --              --
                                     -----------    -----------


Stockholders'
Equity (Deficit)
March 31, 1999 ....................  12,338,051     $87,477,847
                                     ----------      ----------
                                     ----------      ----------
</TABLE>



<PAGE>


                                   B.H.I.T. Inc.
                     Formerly BANYAN HOTEL INVESTMENT FUND
                  CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
              FOR THE THREE MONTHS ENDED MARCH 31, 1999 (continued)
                                   (UNAUDITED)





<TABLE>
<CAPTION>

                                                        ACCUMULATED                  TREASURE                        
                                                          DEFICIT                     STOCK                   TOTAL
                                                        -----------                  --------                 -----
<S>                                                     <C>                          <C>                      <C>


Stockholders' Equity
(Deficit)
December 31, 1998...................................... $(85,976,380)                $(8,189)            $1,493,278

Net Loss ..............................................      (78,706)                    --                 (78,706)
                                                        ------------                 -------             ----------
Stockholders' Equity
(Deficit)
March 31, 1999 ........................................ $(85,976,380)                $(8,189)            $1,414,572
                                                       -------------                 -------             ----------
                                                       -------------                 -------             ----------
</TABLE>

                                       See Accompanying Notes



<PAGE>


                                           B.H.I.T. Inc.
                               Formerly BANYAN HOTEL INVESTMENT FUND
                               CONSOLIDATED STATEMENTS OF CASH FLOWS
                        FOR THE THREE MONTHS ENDED MARCH 31, 1999 and 1998 
                                            (UNAUDITED)

<TABLE>
<CAPTION>

                                                                                   1999               1998
                                                                                 ---------         ---------
<S>                                                                              <C>                <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:

Net Loss ....................................................................    $ (78,706)        $ (39,457)

Adjustments to Reconcile Net Loss to Net
 Cash Flows Used in Operating Activities

Equity in Net Loss of Unconsolidated
 Joint Venture ..............................................................       48,344                --

Net Change in:
Interest Receivable on Cash
  and Cash Equivalents ......................................................         (137)             (138)
Prepaid Insurance ...........................................................        8,511             5,319
Other Assets ................................................................        4,437                --
Accounts Payable and
   Accrued Expenses ........................................................       (19,044)             (502)
                                                                                 ---------         ---------

Net Cash Used in
 Operating Activities ......................................................       (36,595)          (34,778)
                                                                                 ---------         ---------

CASH FLOW FROM
INVESTMENT ACTIVITIES:

Principal collections on Mortgage Loans ....................................       106,189            13,261
                                                                                 ---------         ---------

Net Cash Provided by
 Investment Activities ......................................................      106,189            13,261
                                                                                 ---------         ---------

Net Increase (Decrease)
  in Cash and Cash Equivalents ..............................................       69,594           (21,517)

Cash and Cash Equivalents
  at Beginning of Period ...................................................       193,710           238,077
                                                                                 ---------         ---------

Cash and Cash Equivalents
  at End of Period .........................................................     $ 263,304         $ 216,560
                                                                                 ---------         ---------
                                                                                 ---------         ---------

</TABLE>


                                       See Accompanying Notes


<PAGE>


                               B.H.I.T. Inc.
                  Formerly BANYAN HOTEL INVESTMENT FUND
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              MARCH 31, 1999
                                (UNAUDITED)


BASIS OF PRESENTATION

    The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim 
financial information and with the instructions to Form 10-QSB and Item 310 
of Regulation S-B. Accordingly, they do not include all of the information 
and footnotes required by generally accepted accounting principles for 
complete financial statements. In the opinion of management, all adjustments 
(consisting of normal recurring accruals) considered necessary for a fair 
presentation have been included. Operating results for the three month period 
ended March 31, 1999 are not indicative of the results that may be expected 
for the year ended December 31, 1999.

    The balance sheet at December 31, 1998 has been derived from the
audited financial statements at that date but does not include all of the 
information and footnotes required by generally accepted accounting 
principles for complete financial statements.

    For further information, refer to the financial statements and footnotes
thereto included in the Company's annual report on Form 10-KSB for the year 
ended December 31, 1998.

    The business of the Company is not seasonal and the Company does no
foreign or export business. The Company does not segregate revenue or assets 
by geographical region, and such presentation is not applicable and would not 
be material to an understanding of the Company's business taken as a whole.

MORTGAGE LOANS RECEIVABLE

    On October 10, 1995, the Company made a first mortgage loan in the
amount of $375,000 which is secured by a commercial property in New York 
City, as well as by a personal guaranty of one of the principals of the 
borrower. The loan calls for interest at 12% per annum with monthly payments 
based on a ten (10) year amortization schedule and a balloon payment of the 
total balance in five (5) years. The loan was sold to a company controlled by 
Mr. Polly during the third quarter of 1998 for its then principal balance.

     On February 13, 1996, the Company made a first mortgage loan in the
amount of $150,000 which is secured by a commercial property in New York 
City. The loan represents less than 17% of the appraised value of the 
property, bears interest at the rate of 10% per annum and calls for monthly 
payments on a five year self-liquidation basis. This loan was prepaid in full 
during the second quarter of 1998.


<PAGE>

     On February 29, 1996, the Company had a first mortgage loan in the 
approximate amount of $106,000 which is secured by an industrial property in 
Lake Worth, Florida. The property securing the mortgage is controlled 
MORTGAGE LOANS RECEIVABLE by Mr. Harvey Polly, who has personally guaranteed 
the mortgage. The loan calls for 10% interest per annum, payable monthly, 
with a balloon payment of principal after five (5) years. This loan was fully 
paid on March 1,1999.

     On August 20, 1997, the Company made a first mortgage loan in the
amount of $1,000,000, which was secured by one commercial and one residential 
property located in the Dallas, Texas area. The loan bears interest at the 
rate of 12% and calls for monthly payments of interest only. The loan was 
originally due on April 1, 1998. The principals of the Corporate owners of 
both properties have personally guaranteed the loan. In April of 1998, this 
loan was paid down by $700,000 to $300,000 and the residential property was 
released from the lien. The mortgage is now due on July 1, 1999.

     The carrying amount of the above mortgage loans approximate their fair
values.

INVESTMENT IN JOINT VENTURE

     On May 28, 1998, the Company made an investment of $1,005,000 in Metro
Franchising Commissary, LLC (the "Venture"), resulting in a 50% interest in 
the Venture by paying $655,000 in cash upon closing, and issuing a 
non-interest bearing note in the amount of $350,000. The note was due on the 
date which was earlier of (i) September 30, 1998 or (ii) 10 days after the 
date on which demand was made by the holder of the note. This due date was 
subsequently extended to November 2, 1998, at which time the note was paid.

     The business of the Venture is to open Dunkin' Donuts Quick Service
Restaurant locations in Exxon Service Stations in the New York, New Jersey 
and Connecticut areas. The venture has leased property in Long Island City, 
New York, where Dunkin' Donuts products are baked for delivery to various 
locations. It is expected that this facility will have the capacity to 
service 20 to 25 retail locations.

     The individual retail locations are selected by the Venture with
Dunkin' Donuts' and Exxon's approval. Each site is renovated and equipped by 
the Venture and operated by the station operator. All baked products are 
purchased from the Venture and the station operator also pays the Venture a 
royalty fee based on sales, a portion of which is remitted to Dunkin' Donuts.

     As of December 31, 1998, the Venture's baking facility was fully
operational. The first retail location commenced operations in December, 
1998. One additional retail location opened in January, 1999 and two 
additional retail locations opened in February, 1999. in April, 1999 two 
additional locations were opened, bringing the total to six locations.


<PAGE>


INVESTMENT IN JOINT VENTURE (continued)

     A summarized statement of operations is as follows for the Venture:

<TABLE>
<CAPTION>

                                                          FOR THE THRE MONTH
                                                             PERIOD ENDED
                                                            MARCH 31, 1999
                                                          ------------------

     <S>                                                      <C>
       INCOME
       Net Sales and Royalties .............................    $ 124,851
       Interest Income .....................................        2,045
                                                                ---------
                                                                  126,896

       EXPENSES
       Total Expenses ......................................      175,240
                                                                ---------
       Net Loss ............................................      (48,344)
       Net Loss Allocated to the Company ...................    $ (48,344)
                                                                ---------
                                                                ---------

</TABLE>


INVESTMENT IN LIQUIDATING TRUST

    The Company has an interest in a liquidating Trust which was received
as final settlement of guarantees of VMS Realty Partners of loans made by the 
Company in prior years. No funds have been received by the Company, from the 
Trust in 1999 or 1998.

OTHER INVESTMENT

     As of March 31, 1999, the Company owned a 50% partnership interest in
the Santa Barbara Biltmore Hotel. The fair value of the interest at March 31, 
1999 and December 31, 1998 is $0.

TRANSACTIONS WITH AFFILIATES

     During the first quarter 1998, the Company reimbursed an affiliated
company $5,319 for Health Insurance premiums paid on behalf of the Company. 
During the first quarter of 1999, this reimbursement amounted to $5,051.

INCOME TAXES

     Prior to January 1, 1995, the Company elected to be treated as a Real
Estate Investment Trust (REIT) under sections 856-860 of the Internal Revenue 
Code of 1986. However, management of the Company discontinued its REIT status 
effective January 1, 1995. Accordingly, the Company has subsequently been 
treated as a C--Corporation in accordance with the Internal Revenue Code.

     As of March 31, 1999, the Company had a net operating loss carry
forward of approximately $75,300,000 which expires between 2005 and 2018. The 
utilization of the net operating losses may be subject to limitations 
contained in the Internal Revenue Code.



<PAGE>



INCOME TAXES (continued)

     A summary of the components of deferred taxes is as follows:

<TABLE>
<CAPTION>


                                                                     MARCH 31, 1999       DECEMBER 31, 1998
                                                                     --------------       -----------------
<S>                                                                  <C>                   <C>
Deferred Tax Asset - Non Current ..............................       $ 30,129,464          $ 30,092,235
Net Operating Loss Carry Forward ..............................        (30,129,464)          (30,092,235)
                                                                      ------------          ------------
Valuation Allowance ...........................................       $      -0-            $      -0-
                                                                      ------------          ------------
                                                                      ------------          ------------
</TABLE>


LEGAL PROCEEDINGS

     The Registrant is not aware of any material pending legal proceedings
as of May 5, 1999 nor were any proceedings terminated during the quarter 
ended March 31, 1999.


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

LIQUIDITY AND CAPITAL RESOURCES

     Cash and cash equivalents consist of cash and short--term investments.
The Company's cash and cash equivalents balance at March 31, 1999 and 
December 31, 1998 was $263,304 and $193,710 respectively.

     At this time, there are no material commitments for capital
expenditures. The Company's cash and cash equivalents are sufficient to meet 
its needs for anticipated operating expenses. The Company deems its liquidity 
to be adequate.

     As of March 31, 1999, the Company's mortgage loan portfolio consisted
of one loan, as detailed above.

     The Company's ultimate return of cash to its stockholders is dependent
upon, among other things: (i) the activities undertaken by the Company; (ii) 
interest earned from the investment of cash and cash equivalents, and 
mortgages; (iii) the Company's ability to control its operating expenses; 
(iv) possible recoveries from the Santa Barbara Biltmore Hotel and the 
liquidating trust, if any; and (v) operating results of the Joint Venture.

RESULTS OF OPERATIONS

     Total income for the three months ended March 31, 1999 and 1998 was
$12,504 and $47,014 respectively. The decrease is due primarily to principle 
prepayments on the Company's mortgage loans receivable.

     Operating expenses for the three months ended March 31, 1999 were lower
than those for the same period in 1998. The decrease is due primarily to 
reductions in Professional fees and General and Administrative expenses. In 
addition, the Company incurred a loss of $48,344 as a result of its equity 
investment for the three month period


<PAGE>

RESULTS OF OPERATIONS (continued)

ended March 31, 1999.

     The above changes for the three months ended March 31, 1999, when
compared to the same period in 1998, resulted in an increase in the net loss 
to $78,706 ($(0.01) per share) from $39,457 ($0.00 per share).

IMPACT OF YEAR 2000

     The year 2000 issue is the result of computer programs being written
using two digits rather than four to identify the applicable year. Any 
computer programs that have time-sensitive software may recognize "00" as the 
year 1900 rather than the year 2000. This could result in a system failure or 
miscalculations causing disruptions of operations, including, among other 
things, a temporary inability to process transactions, send invoices, or 
engage in similar normal business activities.

     The Company does not use a computer for any of its business activities.
Based on a recent assessment, the Company determined that none of its 
operations will be impacted by the Year 2000 Issue except to the extent that 
its significant borrowers and its joint venture partners are unable to 
remediate their own Year 2000 Issues. Discussions with these borrowers, and 
with the managing member of the joint venture in which the Company has a 50% 
interest has convinced Management that alternative procedures would enable 
these borrowers, and the joint venture to continue normal operations should 
they encounter Year 2000 problems.



<PAGE>



                                        PART II


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


           No exhibits are included with this Report.



<PAGE>





                                         SIGNATURES


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


BANYAN HOTEL INVESTMENT FUND



<TABLE>
<CAPTION>


<S>            <C>                                          <C>



By:            /s/ Harvey Polly
               ----------------                               Date: May 5, 1999
               Harvey Polly, Director, President
               and Chief Executive Officer


By:           /s/ Morton I. Kalb
              ------------------                              Date: May 5, 1999
               Morton I. Kalb, Director, Vice Pres.
               and Chief Financial Officer

</TABLE>