United States Securities and Exchange Commission
                             Washington, D.C. 20549
                                   Form 10-QSB

                                   (Mark One)
              [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2002

                                       OR
             [ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
                              EXCHANGE ACT OF 1934
                        For the transition period from to

                        Commission file number 000-31779

                    SECURITY INTELLIGENCE TECHNOLOGIES, INC.
        (Exact name of small business issuer as specified in its charter)

 Florida                                                    65-0928369
 --------                                                   ----------
(State or other jurisdiction of                           (IRS Employer
incorporation or organization)                          Identification No.)


                145 Huguenot Street, New Rochelle, New York 10801
                    (Address of principal executive offices)

                                 (914) 654-8700
                           (Issuer's telephone number)


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


The number of shares of common stock $.0001 par value, of the Registrant issued
and outstanding as of February 14, 2003 was 17,470,417.



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            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                                   FORM 10QSB

                         PERIOD ENDED DECEMBER 31, 2002

                                TABLE OF CONTENTS

PART I -          FINANCIAL INFORMATION

ITEM 1.  Condensed Financial Statements:

<S>                                                                                                                        <C>
                  Consolidated Balance Sheets                                                                              3

                  Statements of Operations for the three and six months ended December 31, 2002
                     (consolidated basis) and December 31, 2001 (combined basis)                                           4

                  Statements of Cash Flow for the six months ended December 31, 2002
                    consolidated basis) and December 31, 2001 (combined basis)                                             5

                  Condensed Notes to Financial Statements                                                                  6

Item 2.           Management's Discussion and Analysis of Financial Condition                                              9
                     and Results of Operations

Item 3.           Controls and Procedures                                                                                 11
11

PART II -         OTHER INFORMATION

Item 6.           Exhibits and Reports on Form 8-K                                                                        12

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                    SECURITY INTELLIGENCE TECHNOLOGIES, INC.
                           CONSOLIDATED BALANCE SHEETS

                                                             December 31,
                                                                2002          June 30,
                                                              (Unaudited)       2002
                                                             ------------- --------------
ASSETS
Current Assets:
<S>                                                               <C>             <C>
   Cash                                                           $23,875         $32,344
  Inventory                                                     2,081,524       2,190,187
  Other current assets                                            227,546         185,515
                                                             ------------- ---------------
     Total current
      assets                                                    2,332,945       2,408,046

Property and Equipment, at cost less accumulated depreciation
   and amortization of $427,750 and $390,938                      190,301         227,113

Other assets                                                       47,733          47,733
                                                             ------------- ---------------

 Total assets                                                  $2,570,979      $2,682,892
                                                             ============= ===============


LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Note payable - bank                                                  $-        $200,000
  Accounts payable and accrued expenses                         2,766,970       2,030,866
  Note payable - CEO/stockholder                                1,205,634         876,554
  Customer deposits                                             1,062,873       1,049,772
  Deferred revenue                                                692,028         346,191
  Deferred rent payable                                            54,761          48,255
                                                             ------------- ---------------
     Total current
      liabilities                                               5,782,266       4,551,638
                                                             ------------- ---------------

Commitments and contingencies - See Notes

Stockholders' deficit:
  Preferred stock, $.0001 par value, 10,000,000 shares
   authorized:
     Series A Convertible-$1.00 per share liquidation
      preference, 3,500,000 shares authorized, issued
      and outstanding                                                 350             350
     Series B Convertible-$1.00 per share liquidation
      preference, 1,500,000 shares authorized, issued
      and outstanding                                                 150             150
  Common stock, $.0001 par value, 100,000,000 shares
   authorized, 17,470,417 and 16,992,346 issued and
   outstanding at December 31,  2002, and June 30, 2002
   respectively                                                     1,747           1,699

  Additional paid in capital                                      523,006         418,417
  Accumulated deficit                                          (3,736,540)     (2,289,362)
                                                             -------------  ---------------
    Total stockholders' deficit                                (3,211,287)     (1,868,746)
                                                             -------------  ---------------

Total liabilities and stockholders' deficit                     $2,570,979      $2,682,892
                                                             =============  ===============

   The accompanying notes are an integral part of these financial statements.
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            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                              Three Months Ended        Six Months Ended
                                          --------------------------- ---------------------------
                                                December 31,                December 31,
                                          --------------------------- ---------------------------
                                               2002         2001           2002         2001
                                          -------------- ------------ -------------- ------------
                                          (Consolidated)  (Combined)  (Consolidated)  (Combined)


<S>                                          <C>          <C>            <C>          <C>
Sales                                        $1,065,637   $1,333,560     $2,082,848   $2,813,506
                                          -------------- ------------ -------------- ------------

Costs and expenses:
   Cost of sales                                421,554      536,183        822,744    1,140,527
   Compensation and benefits                    648,486      499,711      1,220,067    1,083,797
   Professional fees and legal settlements      114,637       41,376        196,831      130,049
   Selling, general and administrative
    expenses                                    558,494      568,898      1,086,765    1,050,666
   Unrealized loss on
    derivatives                                   7,970            -        123,360            -
   Depreciation and amortization                 17,760       23,466         36,812       45,716
                                          -------------- ------------ -------------- ------------
                                              1,768,901    1,669,634      3,486,579    3,450,755
                                          -------------- ------------ -------------- ------------

Operating
 loss                                          (703,264)    (336,074)    (1,403,731)    (637,249)

Interest expense                                 27,133       16,093         43,447       30,500
                                          -------------- ------------ -------------- ------------

Loss before income tax benefit                 (730,397)    (352,167)    (1,447,178)    (667,749)

Income tax benefit                                    -            -              -      (33,000)
                                          -------------- ------------ -------------- ------------

Net loss                                      $(730,397)   $(352,167)   $(1,447,178)   $(634,749)
                                          ============== ============ ============== ============


Loss per share, basic and
 diluted                                         $(0.04)      $(0.03)        $(0.08)      $(0.05)
                                          ============== ============ ============== ============

Weighted average number of
 shares                                      17,245,738   11,900,000     17,149,265   11,900,000
                                          ============== ============ ============== ============

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

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            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                         Six Months Ended
                                                                ----------------------------------
                                                                             December 31,
                                                                ----------------------------------
                                                                    2002                2001
                                                                -------------- -------------------
                                                                (Consolidated)     (Combined)
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                               <C>                   <C>
 Net loss                                                         $(1,447,178)          $(634,749)
 Adjustments to reconcile net loss to net cash used in operating
  activities:
  Depreciation and amortization                                        36,812              45,716
  Unrealized loss on derivatives                                      123,360                   -
  Amortization of deferred compensation                                11,190                   -
  CHANGES IN OPERATING ASSETS AND LIABILITIES:
   (Increase) decrease in inventory                                   108,663            (260,297)
   (Increase)  in other current assets                                (42,031)            (38,763)
   Increase in accounts payable and accrued expenses                  706,191             475,649
   Increase in customer deposits                                       13,101             781,984
   Increase (decrease) in deferred revenue                            345,837            (447,151)
   Increase in deferred rent payable                                    6,506              13,200
                                                                -------------- -------------------
Net cash (used in) operating activities                              (137,549)            (64,411)
                                                                -------------- -------------------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Purchase of property and equipment                                         -              (3,256)
                                                                -------------- -------------------
Net cash used in investing activities                                       -              (3,256)
                                                                -------------- -------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Repayments of notes payable - bank                                  (200,000)                  -
 Borrowings under note payable - CEO/stockholder                      343,299              67,548
 Repayments of note payable - CEO/stockholder                         (14,219)                  -
                                                                -------------- -------------------
Net cash provided by financing activities                             129,080              67,548
                                                                -------------- -------------------

Net (decrease) in cash                                                 (8,469)               (119)

Cash, beginning of period                                              32,344              18,222
                                                                -------------- -------------------
Cash, end of period                                                   $23,875             $18,103
                                                                ============== ===================


Supplemental Disclosures of Cash Flow Information:
 Interest paid                                                        $22,265             $28,280
                                                                ============== ===================

 Taxes paid                                                            $2,839              $9,947
                                                                ============== ===================

Non-cash financing and investing activities:
 Common stock issued to settle accounts payable                       $93,447                  $-
                                                                ============== ===================

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

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                                       5
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            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                           DECEMBER 31, 2002 AND 2001
                                   (Unaudited)


Note 1 - Interim Financial Statements

The accompanying unaudited financial statements of Security Intelligence
Technologies, Inc. and subsidiaries (the "Company") have been prepared pursuant
to generally accepted accounting principles for interim financial statements and
the rules and regulations of the Securities and Exchange Commission.
Accordingly, certain information and note disclosures normally included in
annual financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to those rules and
regulations. These financial statements should be read in conjunction with the
financial statements and the notes thereto included in the Company's latest
audited financial statements for the year ended June 30, 2002 filed on Form
10-KSB. The accounting policies followed by the Company are set forth in Note 1
to the Company's audited consolidated financial statements for the year ended
June 30, 2002.

In the opinion of management, all adjustments (consisting of normal recurring
adjustments) necessary for a fair presentation of the Company's financial
condition, results of operations and cash flows for the periods presented have
been included. The Company's quarterly results presented herein are not
necessarily indicative of results for a full year.


Organization and Nature of Business

CCS International, Ltd. and its wholly-owned subsidiaries ("CCS") are engaged in
the design, manufacture and sale of security and surveillance products and
systems. CCS is a Delaware corporation, organized in 1992. The Company purchases
finished items for resale from independent manufacturers, and also assembles
off-the-shelf electronic devices and other components into proprietary products
and systems at its own facilities. The Company generally sells to businesses,
distributors, government agencies and consumers through five retail outlets
located in Miami, Florida; Beverly Hills, California; Washington, DC; New York
City, and London, England and from its showroom in New Rochelle, New York. On
April 17, 2002, CCS merged with Security Intelligence Technologies, Inc., a
Florida corporation ("SIT") (collectively the "Company") and became a wholly
owned subsidiary of SIT. The merger has been accounted for as a reverse
acquisition, since the management and stockholder of CCS obtained control of the
merged entity after the transaction was completed. Under reverse acquisition
accounting, CCS is considered the accounting acquirer and SIT (then known as
Hipstyle.com, Inc.) is considered the acquired company. Inasmuch as SIT had no
substantive assets or operations at the date of the transaction, the merger has
been recorded as an issuance of CCS stock to acquire SIT, accompanied by a
recapitalization, rather than as a business combination.


Basis of Financial Statement Presentation

Prior to January 31, 2002, the Company's CEO, Ben Jamil, owned all of the
outstanding stock of CCS International, Ltd. and five other affiliated companies
of CCS. Accordingly, the accompanying financial statements for the three and six
months ended December 31, 2001 have been presented on a combined basis and
include the accounts of CCS International, Ltd., and the following Affiliated
Companies: Spy Shop, Ltd. d/b/a Counter Spy Shop of Delaware, a Delaware
corporation (retail store); Security Design Group, Inc., a New York corporation
(formerly a manufacturing operation, currently inactive); Counter Spy Shop of
Mayfair London, Ltd., a District of Columbia corporation (retail store); CCS
Counter Spy Shop of Mayfair London, Ltd., a California corporation (retail
store); and Counter Spy Shop of Mayfair, Ltd., a Florida corporation (retail
store). During fiscal 2002, CCS recapitalized and became a consolidated group.
Accordingly, the financial statements for the three month and six ended December
31, 2002 have been presented on a consolidated basis and include the operations
of Counter Spy Shop of Mayfair Limited, a United Kingdom corporation (retail
store), that commenced operations on July 1, 2002.


                                       6
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            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                           DECEMBER 31, 2002 AND 2001
                                   (Unaudited)


Basis of Financial Statement Presentation Continued:

The financial statements of the Company have been prepared assuming the Company
will continue as a going concern, which contemplates the realization of assets
and the satisfaction of liabilities in the normal course of business. The
Company incurred net losses of $1,447,178 for the six months ended December 31,
2002 and $2,399,659 for the year ended June 30, 2002. In addition, at December
31, 2002, the Company had a working capital deficit of $3,449,321 and a
deficiency in stockholders' equity of $3,211,287. The Company is also a
defendant in material and costly litigation, which has significantly impacted
liquidity. The Company requires additional financing which may not be readily
available. The Company's bank facility has terminated, and the only source of
funds other than operations has been loans from the Company's chief executive
officer. See Notes 2 and 3. These factors raise substantial doubt about the
Company's ability to continue as a going concern. Management's plans with
respect to these matters include to settle vendor payables wherever possible, a
reduction in operating expenses, and continued financing from the chief
executive officer in the absence of other sources of funds. Management cannot
provide any assurance that its plans will be successful in alleviating its
liquidity concerns and bringing the Company to the point of sustained
profitability. The accompanying financial statements do not include any
adjustments that might result from the outcome of these uncertainties.

Revenue recognition

The Company recognizes revenue from store sales upon the delivery of merchandise
to a customer. Non-refundable advance payments received under marketing and
distribution arrangements are deferred and either applied as payments towards
customer purchases made pursuant to the terms of the respective agreements, or
recognized as income at the termination of the agreement if specified purchase
quotas have not been met by the customer. Customer deposits are initially
recorded as liabilities and recognized as revenue when the related goods are
shipped.

Derivatives

Certain shares issued by the Company to settle debt obligations contain a price
guarantee that requires the Company to settle in cash any difference between the
original face amount of the debt and proceeds from the creditor's subsequent
sale of the shares. The Company accounts for these transactions by recording the
debt at fair value with periodic mark-to-market adjustments until the guarantee
is settled. Unrealized gains or losses resulting from changes in fair value are
included in earnings and accrued expenses.

2.  Note Payable Bank

Prior to June 1, 2002, the Company had a bank credit agreement  pursuant to
which it could borrow up to $400,000 with interest at the bank's prime rate plus
1%. On June 1, 2002,  the  available  credit was  reduced  to  $200,000  and the
interest  rate was  increased to the bank's  prime rate plus 2.5%.  The Note was
secured by substantially  all of the assets of the Company,  and personal assets
and a  guaranty  of the chief  executive  officer.  The bank also  required  the
Company to  maintain  average  monthly  compensating  balances  of  $60,000  and
assessed  additional  interest  at the prime  rate plus 2.5%  (7.25% at June 30,
2002) on any shortfall.  The credit  facility  expired on November 1, 2002, when
all unpaid  principal and interest  became due. On November 1, 2002, the Company
reduced the  outstanding  balance of the note to $100,000 and paid the remaining
balance of $100,000 on December 9, 2002.  To date,  the Company does not have an
agreement  with  respect  to a new  credit  agreement  with  this  lender or any
agreement with any replacement lender.


                                       7
<PAGE>

            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                           DECEMBER 31, 2002 AND 2001
                                   (Unaudited)



3. Note Payable - CEO/stockholder

This amount represents a note payable to the Company's chief executive officer
and bears interest at the rate of 5% per annum. The note is secured by
substantially all of the assets of the Company.

4. Loss Per Share

The Company calculates loss per share in accordance with SFAS No. 128, Earnings
Per Share, and SEC Staff Accounting Bulletin No. 98. Accordingly, basic loss per
share is computed using the weighted average number of shares of common stock
outstanding and diluted loss per share is computed based on the weighted average
number of shares of common stock and all dilutive common stock equivalents
outstanding during the period. Common stock equivalents consist of shares
issuable upon the exercise of stock options and warrants using the treasury
stock method. Stock options and preferred stock that are convertible into common
stock based on the Company's attainment of performance goals are not includible
in the calculation of earnings per share until the specified targets are met.
The following securities have been excluded from the diluted computation because
they are contingently issuable and/or antidilutive:

Series A Convertible Preferred Stock      3,500,000
Series B Convertible Preferred Stock      1,500,000
Stock options                             1,999,000
Warrants                                    400,000


5. Stockholders' Equity:

Common Stock

On July 10, 2002, the Company and Shenzhen Newtek, a former product distributor
of the Company, entered into a Settlement Agreement under which the Company
issued 67,000 restricted shares of its common stock in full settlement, subject
to certain terms, of a $67,000 claim. If the market price of the Company's
common stock on July 10, 2003 is less than $1.00 per share, the Company is to
pay the plaintiff the difference between $67,000 and the value of the stock. At
December 31, 2002, the closing price of the Company's common stock was $.16 per
share.

On October 21, 2002, the Company and Allan L. Dunterman Jr. entered into a
Settlement Agreement under which the Company issued 110,000 restricted shares of
its common stock in full settlement, subject to certain terms, of a $88,750
claim. If the market price of the Company's common stock on October 21, 2003 is
less than $.81 per share, the Company is to pay the plaintiff the difference
between $88,750 and the value of the stock. At December 31, 2002, the closing
price of the Company's common stock was $.16 per share.

During the six months ended December 31, 2002 the Company issued 171,071
restricted shares of common stock to Rubenstein Investor Relations, Inc. for
investor relations consulting services of $25,000.

During the six months ended December 31, 2002 the Company issued 80,000
restricted shares of common stock in full payment of trade payables of $18,267.


                                       8
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            SECURITY INTELLIGENCE TECHNOLOGIES, INC. AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                           DECEMBER 31, 2002 AND 2001
                                   (Unaudited)




5. Stockholders' Equity (continued):

Stock Options

During the six months ended December 31, 2002, the Company granted options to
purchase 300,000 shares of its common stock to an officer and director. All
options granted during the period were at an exercise price equal to the fair
market value of the underlying stock at the date of grant. As of December 31,
2002 there were 1,000 shares of common stock available for future grant under
the Company's 2002 Stock Plan.


6.  Income taxes

The Company did not incur any income tax liabilities during the six month
periods ended December 31, 2002 and 2001 due to operating losses. During 2001,
the Company recorded a $33,000 tax benefit relating to refundable federal taxes
expected to be recovered through tax loss carryback claims. As of December 31,
2002, the Company has increased its tax valuation allowance to offset the
deferred tax benefits of net operating losses and other temporary differences
arising during the six month period ended December 31, 2002 because management
is uncertain as to their ultimate realization. In February 2003 the Company
received approximately $157,000 of income tax refunds that had been previously
accrued.

7.  Investment Banking Agreement

On October 7, 2002, the Company  entered into an agreement with Wien Group,
Inc.  ("Wien")  under  which Wien was  retained  to provide  investment  banking
services on a non-exclusive  basis for a term of three years. The Company issued
50,000 restricted shares of common stock to Wien pursuant to that agreement.

8.  Legal Matters

The Company is a defendant in litigation brought by various parties. For a
detailed discussion of these cases see Note 14 to the Company's audited
consolidated financial statements for the year ended June 30, 2002 filed on Form
10-KSB.


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


The following discussion should be read in conjunction with the financial
statements and notes thereto of the Company. Such financial statements and
information have been prepared to reflect the Company's financial position as of
December 31, 2002 and June 30, 2002.

Historical results and trends should not be taken as indicative of future
operations. Management's statements contained in this report that are not
historical facts are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Actual results may differ materially from
those included in the forward-looking statements. The Company intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, and is including this statement for purposes of complying with
those safe harbor provisions. Forward-looking



                                       9
<PAGE>


statements,  which are based on certain  assumptions  and  describe  future
plans, strategies and expectations of the Company, are generally identifiable by
use  of the  words  "believe,"  "expect,"  "intend,"  "anticipate,"  "estimate,"
"project," "prospects" or similar expressions.  The Company's ability to predict
results  or the  actual  effect  of future  plans or  strategies  is  inherently
uncertain.  Information  concerning the Company and its business,  including the
risks faced by us described  herein and in our most recent annual report on Form
10-KSB/A could materially affect the Company's  financial  results.  The Company
disclaims any obligation to update or announce revisions to any  forward-looking
statements to reflect actual events or developments.

RESULTS OF OPERATIONS - Six Months Ended December 31, 2002 and 2001

Revenues.  Revenues for the six months  ended  December 31, 2002 (the "2002
Period")  were  $2,082,848  a decrease of $730,658  or 26.0%,  from  revenues of
$2,813,506 for the six months ended December 31, 2001 (the "2001  Period").  The
decrease is  primarily a result of a decreased  marketing  effort  caused by our
limited resources.  In particular,  we decreased our advertising and promotional
expenditures and attended fewer  international trade shows. As long as we do not
have the resources to market our products effectively,  we will have a difficult
time increasing our revenues.  In addition,  our financial  condition and losses
may have affected the willingness of customers to purchase products from us.

Cost of Sales. Cost of sales decreased by $317,783 or 27.9%, to $822,744 in the
2002 Period from $1,140,527 in the 2001 Period. Cost of sales as a percentage of
product sales decreased to 39.5% in the 2002 Period from 40.4% in the 2001
Period reflecting an improvement in product mix.

Compensation and benefits. Compensation and benefits increased by $136,270, or
12.6% to $1,220,067 in the 2002 Period from $1,083,797 in the 2001 Period
primarily due to expenses in the Company's new London retail store that
commenced operations on July 1, 2002.

Professional  fees and  legal  settlements.  Professional  fees  and  legal
settlements  increased by $66,782,  or 51.4% to $196,831 in the 2002 Period from
$130,049  in  the  2001  Period  primarily  due to (i)  services  regarding  the
dismissal of all criminal  charges  filed  against our  employees,  including an
officer  and   director,   and  the  related   representation   in  a  potential
investigation  by  the  United  States  Customs  Service,   and  (ii)  increased
litigation.  Because of our  financial  problems,  it is  possible  that we will
continue to incur significant litigation expense arising from creditor actions.

Selling,  general  and  administrative   expenses.   Selling,  general  and
administrative  expenses increased by $36,099, or 3.4% to $1,086,765 in the 2002
Period from  $1,050,666  in the 2001 Period.  This increase was primarily due to
expenses in the Company's new London retail store that  commenced  operations on
July 1, 2002.

Unrealized loss on derivatives. Unrealized loss on derivatives of $123,360 in
the 2002 Period is attributable to the decrease in market value relating to our
price guarantees on common stock that we issued during Fiscal 2002 and the 2002
Period in payment of trade payables. There were no similar transactions in the
2001 Period.

Depreciation and amortization. Depreciation and amortization decreased by
$8,904, or 19.5% to $36,812 in the 2002 Period from $45,716 in the 2001 Period
primarily as a consequence of certain assets becoming fully-depreciated in
fiscal 2002.

Interest expense. Interest expense increased by $12,947, or 42.4% to $43,447 in
the 2002 Period from $30,500 in the 2001 Period as a result of a continued
increase in the ordinary course of business of the Company's outstanding debt
obligations.

Income tax benefit. The Company did not incur any income tax liabilities during
the 2002 Period or 2001 Period due to operating losses. The Company recorded a
$33,000 tax benefit in the 2001 Period relating to refundable federal taxes
expected to be recovered through tax loss carryback claims. As of December 31,
2002, the Company has increased its tax valuation allowance to offset the
deferred tax benefits of net operating losses and other temporary differences
arising during the 2002 Period because management is uncertain as to their
ultimate realization.

                                       10
<PAGE>

Net Loss. As a result of the forgoing, our net loss increased by $812,429, or
128.0% to $1,447,178, or $.08 per share, in the 2002 Period from $634,749, or
$.05 per share, in the 2001 Period.

LIQUIDITY AND CAPITAL RESOURCES

We require significant working capital to fund our operations. At December 31,
2002 we had cash of $23,875 and a working capital deficit of $3,449,321. Our
accounts payable and accrued expenses at December 31, 2002 was $2,766,970. As a
result of our continuing losses, our working capital deficiency has increased.

We funded our operations using vendor credit, including delays in paying
accounts payable, and customer deposits. Because we have not been able to pay
some of our trade creditors in a timely manner, we have been subject to
litigation and threats of litigation from our trade creditors and we have used
common stock to satisfy some of our obligations to trade creditors. In certain
instances when we issued common stock, we provided that if the stock does not
reach a specified price level one year from issuance, we will pay the difference
between that price level and the actual price. As a result, we have contingent
obligations to some of these creditors. With respect to 577,000 shares of common
stock issued during the six months ended December 31, 2002 and the fiscal year
ended June 30, 2002, the market value of the common stock on December 31, 2002
was approximately $274,313 less than the guaranteed price. We have accounted for
these charges as unrealized loss on derivatives in our statement of operations
for the six months ended December 31, 2002 and the fiscal year ended June 30,
2002.

Our accounts payable and accrued expenses increased from $2,030,866 at June 30,
2002 to $2,766,970 at December 31, 2002 reflecting our inability to pay
creditors currently. We also had customer deposits and deferred revenue of
$1,754,901 at December 31, 2002 that relate to payments on orders which had not
been filled at that date. We have used our advance payments to enable us to
continue our operations. If our vendors do not extend us necessary credit we may
not be able to fill current or new orders, which may affect the willingness of
our clients to continue to place orders with us.

Since the completion of the merger in April 2002 we have sought, and been
unsuccessful, in our efforts to obtain funding for our business. Because of our
losses, we are not able to increase our borrowing. Our bank facility terminated
on November 1, 2002. To date, we do not have an agreement with respect to a
renewal of a credit facility with this lender or any agreement with any
replacement lender. Our failure to obtain a credit facility could materially
impair our ability to continue in operation, and we cannot assure you that we
will be able to obtain the necessary financing. Our main source of funds other
than the bank facility has been from vendor credit and loans from our chief
executive officer. Because of both our low stock price and our losses, we have
not been able to raise funds through the sale of our equity securities. We may
not be able to obtain any additional funding, and, if we are not able to raise
funding, we may be unable to continue in business. Furthermore, if we are able
to raise funding in the equity markets, our stockholders will suffer significant
dilution and the issuance of securities may result in a change of control.
Management's plans with respect to these matters include its attempts to settle
claims with vendors where possible, a reduction in operating expenses, and
financing from the chief executive officer in the absence of other sources of
funds. Management cannot provide any assurance that its plans will be successful
in alleviating its liquidity concerns and bringing the Company to the point of
sustained profitability.

Item 3.  Controls and Procedures

Our chief executive officer and chief financial officer have supervised and
participated in an evaluation of the effectiveness of our disclosure controls
and procedures as of a date within 90 days of the date of this report, and,
based on their evaluations, they believe that our disclosure controls and
procedures (as defined in Rule 13a-14(c) of the Securities Exchange Act of 1934,
as amended) are designed to ensure that information required to be disclosed by
us in the reports that we file or submit under the Securities Exchange Act of
1934 is recorded, processed, summarized and reported, within the time periods
specified in the Commission's rules and forms. As a result of the evaluation,
there were no significant changes in our internal controls or in other factors
that could significantly affect these controls subsequent to the date of their
evaluation.


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                            PART II OTHER INFORMATION


Item  6.     EXHIBITS  AND  REPORTS  OF  FORM  8K

(a)     Exhibits

None

(b) Reports on Form 8-K

None



                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                    SECURITY INTELLIGENCE TECHNOLOGIES, INC.


                                    By: /s/ Ben Jamil
                                    -------------------------------------
                                    Ben  Jamil, chief executive officer



                                    By:  /s/  Chris R. Decker
                                    -----------------------------------
                                    Chris R. Decker, chief financial officer

Date:  February 19, 2003






            CERTIFICATIONS OF CHIEF EXECUTIVE AND FINANCIAL OFFICERS

The undersigned chief executive officer and chief financial officer of the
Registrant do hereby certify that this Quarterly Report on Form 10-QSB fully
complies with the requirements of Section 13(a) or 15(d) of the Securities Act
of 1934, as amended, and that the information contained in this report fairly
presents, in all material respects, the financial condition and results of
operations of the Registrant at the dates and for the periods shown in such
report.

                                    By:  /s/ Ben Jamil
                                    -----------------------
                                    Ben Jamil
                                    Chief Executive Officer

                                    By: /s/ Chris R. Decker
                                    -----------------------
                                    Chris R. Decker
                                    Chief Financial Officer


                                       12
<PAGE>


I, Ben Jamil, chief executive officer of Security Intelligence Technologies,
Inc. (the "registrant"), certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of the registrant;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:


a)   designed such  disclosure  controls and  procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

b)   evaluated the  effectiveness  of the registrant's  disclosure  controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

c)   presented in this quarterly report our conclusions  about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

a)   all  significant  deficiencies  in the  design  or  operation  of  internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

b)   any fraud,  whether or not  material,  that  involves  management  or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


Date: February 19, 2003
                                                  By:  /s/ Ben Jamil
                                                  -----------------------
                                                  Ben Jamil
                                                  Chief Executive Officer

I, Chris R. Decker, chief financial officer of Security Intelligence
Technologies, Inc. (the "registrant"), certify that:

1.   I have reviewed this quarterly report on Form 10-QSB of the registrant;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   The  registrant's  other  certifying  officers  and I are  responsible  for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a)   designed such  disclosure  controls and  procedures to ensure that material
     information   relating  to  the  registrant,   including  its  consolidated
     subsidiaries,  is  made  known  to  us by  others  within  those  entities,
     particularly  during  the period in which  this  quarterly  report is being
     prepared;

b)   evaluated the  effectiveness  of the registrant's  disclosure  controls and
     procedures  as of a date  within 90 days prior to the  filing  date of this
     quarterly report (the "Evaluation Date"); and

c)   presented in this quarterly report our conclusions  about the effectiveness
     of the disclosure controls and procedures based on our evaluation as of the
     Evaluation Date;

5.   The registrant's other certifying  officers and I have disclosed,  based on
     our most recent  evaluation,  to the  registrant's  auditors  and the audit
     committee of  registrant's  board of directors (or persons  performing  the
     equivalent function):

a)   all  significant  deficiencies  in the  design  or  operation  of  internal
     controls which could adversely affect the  registrant's  ability to record,
     process,  summarize and report  financial data and have  identified for the
     registrant's auditors any material weaknesses in internal controls; and

b)   any fraud,  whether or not  material,  that  involves  management  or other
     employees  who  have  a  significant  role  in  the  registrant's  internal
     controls; and

6.   The  registrant's  other  certifying  officers and I have indicated in this
     quarterly report whether or not there were significant  changes in internal
     controls  or in other  factors  that could  significantly  affect  internal
     controls  subsequent to the date of our most recent  evaluation,  including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.

Date: February 19, 2003
                                                  By:  /s/ Chris R. Decker
                                                  ----------------------------
                                                  Chris R. Decker
                                                  Chief Financial Officer




                                       13
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