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 June 30, 2001

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

                        Commission file number 333-72975

                             Technest Holdings, Inc.
        (Exact name of small business issuer as specified in its charter)

          Nevada                                          88-0357272
(State or other jurisdiction of               (IRS Employer Identification No.)
incorporation or organization)


                3350 Peachtree Road, Suite 1050, Atlanta, GA 30326
                    (Address of principal executive offices)

          Issuer's telephone number, including area code: 404-995-9996

                            Financial Intranet, Inc.
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the issuer (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

The number of shares of issuer's Common Stock, $.001 par value, outstanding as
of June 30, 2001 was 12,433,296


<PAGE>


                             Technest Holdings, Inc.


                                      INDEX

PART 1.  FINANCIAL INFORMATION

Item 1.  Financial Statements (unaudited)

         Consolidated Balance Sheet - June 30, 2001                        3

         Consolidated Statements of Operations (unaudited)
         for the Three and Six Months Ended
         June 30, 2001 and 2000                                            4

         Consolidated Statements of Cash Flows (unaudited)
         for the Six Months Ended June 30, 2001 and 2000                   5

         Notes to Consolidated Financial Statements                        6

Item 2.  Management's Discussion and Analysis or Plan of
         Operation                                                         7

PART II. OTHER INFORMATION

Item 6.   Exhibits and reports on Form 8-K                                 8

Signatures                                                                 9



                                       2
<PAGE>
Part I.  Financial Information
Item 1.   Financial Statements (unaudited)

                     FINANCIAL INTRANET, INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET

                                  JUNE 30, 2001
                                   (Unaudited)

                                     ASSETS

CURRENT ASSETS:
 Cash                                                        $   958,388
 Note receivable - related party                                 299,256
 Accounts receivable                                              29,473
 Prepaid insurance and other                                      93,876
                                                              -----------
    TOTAL CURRENT ASSETS                                       1,380,993

EQUIPMENT                                                        764,021

CAPITALIZED SOFTWARE DEVELOPMENT COSTS, net                      250,000

INVESTMENTS                                                    4,312,808

OTHER ASSETS                                                      30,021
                                                               ----------

                                                             $ 6,737,843
                                                               ==========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
 Accounts payable and accrued expenses                       $   554,027
 Note payable                                                    990,000
 Convertible note payable                                         95,015
 Deferred revenue                                                 18,675
                                                               ----------
    TOTAL CURRENT LIABILITIES                                  1,657,717
                                                               ----------

NOTE PAYABLE                                                      10,000

STOCKHOLDERS' EQUITY:
 Preferred stock, $.001 par value; 5,000,000 shares
  authorized, 0 issued and outstanding                                 -
 Common stock, $.001 par value; 495,000,000 shares
  authorized, 35,883,240 issued and outstanding                   35,883
 Additional paid-in capital                                   14,841,139
 Due from shareholders                                            (7,035)
 Accumulated deficit                                          (9,799,861)
                                                              -----------
    TOTAL STOCKHOLDERS' EQUITY                                 5,070,126
                                                              -----------

                                                             $ 6,737,843
                                                              ===========




                 See notes to consolidated financial statements.

                                        3
<PAGE>
                     FINANCIAL INTRANET, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)


                                     Three Months Ended       Six Months Ended
                                     -------------------------------------------
                                          June 30,                June 30,
                                     ---------------------- --------------------
                                       2001         2000      2001       2000
                                     ----------   -------  ---------   ---------


REVENUE                              $ 998,785  $  19,000  $1,037,096 $  19,000
                                     ----------   -------  ----------  ---------

OPERATING COSTS AND EXPENSES:
 Selling, general and administrative   681,644    209,376   1,018,016   209,376
 Depreciation and amortization          71,193     12,852     120,998    12,852
                                     ----------   -------  ----------  ---------
                                       752,837    222,228   1,139,014   222,228
                                     ----------   -------  ----------  ---------
INCOME (LOSS) FROM OPERATIONS          245,948   (203,228)   (101,918) (203,228)
                                     ----------   -------  ----------  ---------

OTHER INCOME (EXPENSES):
 Interest income                        33,143     26,476      33,143    26,476
 Interest expense                       (4,033)       -       (23,533)     -
                                     ----------   -------  ----------  ---------
    TOTAL OTHER EXPENSES                29,110     26,476       9,610    26,476
                                     ----------   -------  ----------  ---------

NET INCOME (LOSS) BEFORE
 EXTRAORDINARY GAIN                    275,058   (176,752)    (92,308) (176,752)

EXTRAORDINARY GAIN -
 FORGIVENESS OF DEBT                   100,000        -       100,000      -
                                     ----------   -------   ---------  ---------

NET INCOME (LOSS)                    $ 375,058  $(176,752) $    7,692 $(176,752)
                                     ==========   =======   =========  =========

BASIC NET INCOME (LOSS)
 PER COMMON SHARE                    $    0.01  $  (0.00)  $     0.00 $   (0.00)
                                     ==========   =======   =========  =========
NUMBER OF SHARES USED IN
 CALCULATING BASIC
 NET LOSS PER SHARE                 35,883,240 35,883,240  35,883,240 35,883,240
                                    ==========  ========== ========== ==========
DILUTED NET INCOME (LOSS)
 PER COMMON SHARE                    $    0.01  $  (0.00)  $     0.00 $   (0.00)
                                     ==========   =======   =========  =========
NUMBER OF SHARES USED IN
 CALCULATING DILUTED
 NET LOSS PER SHARE                 37,161,447 35,883,240  37,161,447 35,883,240
                                    ==========  ========== ========== ==========


                 See notes to consolidated financial statements.

                                        4
<PAGE>
                     FINANCIAL INTRANET, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)



                                                  Six Months Ended June 30,
                                            ------------------------------------
                                                   2001              2000
                                             ---------------    ----------------

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss) from continuing
  operations                                  $     7,692       $    (176,752)
                                             ---------------    ----------------
 Adjustments to reconcile net income
  (loss) to net cash used in operating
  activities:
  Depreciation and amortization                   120,998              12,852

Changes in assets and liabilities:
 Accounts receivable                               (1,624)               -
 Prepaid expenses                                 (16,041)               -
 Other assets                                         242                -
 Accounts payable and accrued expenses           (242,294)            108,585
 Deferred revenue                                 (37,750)            132,000
                                             --------------     ----------------
                                                 (176,469)            253,437
                                             --------------     ----------------
NET CASH (USEDIN) PROVIDED BY
 OPERATING ACTIVITIES                            (168,777)             76,685
                                             --------------     ----------------

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchase of property and equipment                  -               (493,215)
 Purchase of investments                             -             (1,251,000)
 Sale of investments                              584,215                -
 Cash acquired upon acquisition                     5,734                -
 Notes receivable advances                       (199,256)               -
                                             --------------     ----------------
NET CASH PROVIDED BY (USED IN)
 INVESTING ACTIVITIES                             390,693          (1,744,215)
                                             --------------     ----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of preferred stock           -              4,375,000
 Proceeds from convertible notes payable           20,015                -
                                             --------------     ----------------
NET CASH PROVIDED BY FINANCING ACTIVITIES          20,015           4,375,000
                                             --------------     ----------------

INCREASE  IN CASH                                 241,931           2,707,470

CASH - BEGINNING OF PERIOD                        716,457                -
                                             --------------     ----------------

CASH - END OF PERIOD                          $   958,388       $   2,707,470
                                             ==============     ================


                 See notes to consolidated financial statements.

                                        5
<PAGE>


                             TECHNEST HOLDINGS, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1-Basis of Interim Financial Statement Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in  accordance  with  generally  accepted  accounting   principles  for  interim
information.  Accordingly,  they  do not  include  all of  the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. The results of operations for the interim periods shown in
this report are not  necessarily  indicative of expected  results for any future
interim  period or for the entire  fiscal year.  Financial  Intranet,  Inc. (the
"Company"),  believes  that the  quarterly  information  presented  includes all
adjustments  (consisting only of normal,  recurring adjustments) necessary for a
fair presentation in accordance with generally accepted  accounting  principles.
The accompanying consolidated financial statements should be read in conjunction
with the  Company's  Annual  Report  filed  with  the  Securities  and  Exchange
Commission on April 16, 2001.

Note 2 Contingencies

Litigation

On July 23, 1998, H & H Acquisition  Corp.("H & H"),  individually and on behalf
of H & H,  commenced an action in federal court in the Southern  District of New
York against the Company, the founder of the Company and certain officers, among
others.  The  complaint  is an action to recover  shares of common  stock of the
Company  previously sold to the  founder/stockholder  and  unspecified  damages.
Management believes that the claims against the Company and certain officers are
without merit,  and in fact relate solely to the founder of the Company,  and is
vigorously  defending the action.  No provision has been made in these financial
statements for any possible losses arising from this litigation.

Note 3 - Acquisition

In July  2001 the  Company  issued  23,450,000  shares  of  common  stock to the
shareholders  of  Technest.com,  Inc. This  transaction  was completed under the
terms of an  Agreement and Plan of  Reorganization  dated  March 21, 2001, among
Financial   Intranet,   Inc.,   Technest.com,   Inc.  and  the  Stockholders  of
Technest.com,  Inc. This represented  approximately 90% of Financial  Intranet's
outstanding  common stock in exchange for all the outstanding  shares or 100% of
the common stock of Technest.com, Inc. The transaction became effective April 5,
2001. The acquisition has been accounted for as a reverse  acquisition under the
purchase method for business combinations.  The combination of the two companies
is recorded as a  recapitalization  of Technest,  pursuant to which  Technest is
treated as the continuing entity.

Note 4 - Subsequent Events

In July 2001, the Company changed its name to Technest Holdings, Inc.

In July 2001, the Company changed its OTCBB symbol to THNS.


Note 5 - Future Effects of Recently Issued Accounting Pronouncements

In June 2001,  the Financial  Accounting  Standards  Board issued  Statements of
Financial  Accounting  Standards No. 141,  Business  Combinations,  and No. 142,
Goodwill and Other Intangible Assets, effective for fiscal years beginning after
December 15, 2001. Under the new rules, goodwill and intangible assets deemed to
have indefinite  lives will no longer be amortized but will be subject to annual
impairment tests in accordance with the Statements. Other intangible assets will
continue to be amortized over their useful lives. The Company will apply the new
rules on accounting for goodwill and other  intangible  assets  beginning in the
first quarter of 2002.  Application  of the  non-amortization  provisions of the
Statement are not expected to have a material effect on the Company's  financial
position or operations.


                                       6

<PAGE>

Item 2. - Management's Discussion and Analysis of the Plan of Operations

THE FOLLOWING  ANALYSIS OF THE PLAN OF OPERATIONS OF THE COMPANY  SHOULD BE READ
IN CONJUNCTION WITH THE CONSOLIDATED  FINANCIAL STATEMENTS,  INCLUDING THE NOTES
THERETO, OF THE COMPANY CONTAINED ELSEWHERE IN THE FORM 10-QSB.

Technest  Holdings,  Inc.  is a Georgia  based  company  that has its  executive
offices in Atlanta,  Ga and Ridgefield,  CT and currently holds a 100% ownership
interest in a Chinese  Internet  content  provider and a Technology  development
company in Georgia.

In  April  2001  the  company  acquired  Technest.com,  Inc.  a  privately  held
development  company based in Atlanta,  GA. Technest has a corporate strategy of
identifying  and  accelerating  the growth and  maturity of talented  technology
companies with innovative  ideas. This business model fit into the restructuring
of Technest  Holdings,  Inc  formally  Financial  Intranet,  Inc. as an emerging
growth and development Company. The acquisition was for 100% of Technest for 90%
of Financial  Intranet common stock. The acquisition has been accounted for as a
reverse  acquisition  under the purchase method for business  combinations.  The
combination of the two companies is recorded as a recapitalization  of Technest,
pursuant to which Technest is treated as the continuing entity.

Results of operations

Revenue

Revenues for the six months ended June 30, 2001 were  $1,037,096  as compared to
$19,000  for the six months  ended June 30,  2000.  Revenues  for the six months
ended June 30,  2001  included  realized  gains from  security  transactions  of
approximately  $875,000.  The  increase  was a result  of  realized  gains  from
security transactions.

Selling, general and administrative expenses

Selling,  general and administrative  expenses for the six months ended June 30,
2001 were  $1,018,016  as compared to $209,376 for the six months ended June 30,
2000. The June 30, 2000 period represented a shorter period of operations as the
Company began operations during May 2000. Extraordinary Gain

The extraordinary gain of $100,000 for the six months ended June 30, 2001
represents settlement of accounts payable.

Liquidity and capital resources

Cash was $958,388 and $160,749 at June 30, 2001 and December 31, 2000,
respectively.

Net cash used in operating activities was $168,777 for the six months ended June
30, 2001.  Cash used in operating  activities  was primarily  attributable  to a
decrease  in  accounts  payable  and  accrued  expenses  of  $242,294.  This was
partially  offset by non-cash items such as  depreciation  and  amortization  of
$120,998.  Net cash  provided by operating  activities  for the six months ended
June 30,  2000 was  $76,685,  which  was  principally  due to the net loss  from
continuing  operations  offset  primarily by an increase in accounts payable and
accrued expenses of $108,585 and an increase in deferred revenue of $132,000.

Net cash  provided by investing  activities of $390,693 for the six months ended
June 30 2001,  increased  $2,134,908 from  ($1,744,215) for the six months ended
June 30, 2000.  Investing  activities for the six months ended June 30, 2000 was
primarily  attributable  to the  purchase  investments.  Net  cash  provided  by
financing  activities  for the six months  ended June 30,  2001 was  $20,015 and
consisted of proceeds  from  convertible  notes.  Net cash provided by financing
activities  for the six months  ended  June30  2000 was  $4,375,000,  which were
proceeds from the issuance of preferred stock.

We anticipate that we can continue, in the ordinary course of business from
funds provided from operations.

Forward-looking statements in this report may prove to be materially inaccurate.
In addition to  historical  information,  this report  contains  forward-looking
information  that involves  risks and  uncertainties.  The words "may",  "will",
"expect", "anticipate",  "continue", "estimate", "project", "intend" and similar
expressions are intended to identify forward-looking statements.  Actual results
may differ materially from those included within the forward-looking  statements
as a result  of  factors,  including  the  risks  described  above  and  factors
described elsewhere in this report.

                                       7
<PAGE>




                           PART II - OTHER INFORMATION

Item 1.           Legal Proceedings

                  Not applicable.

Item 2.           Change in Securities

                  Not applicable.

Item 3.           Defaults Upon Senior Securities

                  Not applicable.

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


                  None.

Item 5.           Other Information

                  Not applicable.

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

                  A.    None

                  B.    On April 19, 2001, the Company filed a current report on
                        Form 8-K dated  April  5,  2001,  reporting under Item 2
                        thereof the acquisition of Technest.com, Inc.

                        On June 18, 2001, the Company filed a current report  on
                        Form  8-K  updating  its  earlier  report  on  Form  8-K
                        concerning the acquisition of Technest.com, Inc.


                                       8
<PAGE>




                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                     Technest Holdings, Inc.
                                                     --------------------------
                                                     (Registrant)



Date: August 20, 2001                             /s/ Michael Sheppard
                                                      -------------------------
                                                      Michael Sheppard
                                                      President







9