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

                                   FORM 10-QSB


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

                For the quarterly period ended September 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: 203-431-1611


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the last 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, $.001 par value, outstanding as of
September 30, 2001 was 36,282,277

Transitional Small Business Disclosure Format (Check one): Yes [  ] No [X]

<PAGE>




Part I.  Financial Information

Item1.   Financial Statements (Unaudited)



<PAGE>

                     TECHNEST HOLDINGS, INC. AND SUBSIDIARY
                      (Formerly "Financial Intranet, Inc.")

                           CONSOLIDATED BALANCE SHEET

                               SEPTEMBER 30, 2001
                                   (Unaudited)

                                     ASSETS

CURRENT ASSETS:
     Cash                                                     $         626,128
     Accounts receivable                                                 23,962
     Prepaid insurance and other                                         25,000
                                                                ----------------
         TOTAL CURRENT ASSETS                                           675,090

EQUIPMENT                                                               714,985

CAPITALIZED SOFTWARE DEVELOPMENT COSTS, net                             225,000

INVESTMENTS                                                           4,725,023

OTHER ASSETS                                                             25,000
                                                                ----------------

                                                              $       6,365,098
                                                                ================

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Accounts payable and accrued expenses                    $         292,685
     Note payable                                                       500,000
                                                                ----------------
         TOTAL CURRENT LIABILITIES                                      792,685
                                                                ----------------

NOTE PAYABLE                                                             10,000

STOCKHOLDERS' EQUITY:
     Preferred stock                                                      1,488
     Common stock, $.001 par value;
         500,000,000 shares authorized,
         36,282,221 issued and outstanding                               36,282
     Additional paid-in capital                                      14,938,997
     Due from shareholders                                               (7,035)
     Accumulated deficit                                             (9,407,319)
                                                                ----------------
         TOTAL STOCKHOLDERS' EQUITY                                   5,562,413
                                                                ----------------

                                                              $       6,365,098
                                                                ================




                 See notes to consolidated financial statements.

                                        3


<PAGE>

                     TECHNEST HOLDINGS, INC. AND SUBSIDIARY
                      (Formerly "Financial Intranet, Inc.")

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)



<TABLE>
<CAPTION>
                                           Three Months Ended September 30,         Nine Months Ended September 30,
                                        --------------------------------------   ------------------------------------
                                                2001                 2000             2001               2000
                                         ------------------    ---------------   ---------------   ------------------


<S>                                     <C>                   <C>              <C>               <C>
REVENUE                                 $         1,165,751   $        (6,794) $      2,202,847  $            12,206
                                         ------------------    ---------------   ---------------   ------------------

OPERATING COSTS AND EXPENSES:
 Selling, general and administrative                643,689           228,996         1,661,705              438,372
 Depreciation and amortization                       78,000            23,449           198,998               36,301
                                         ------------------    ---------------   ---------------   ------------------
                                                    721,689           252,445         1,860,703              474,673

INCOME (LOSS) FROM OPERATIONS                       444,062          (259,239)          342,144             (462,467)
                                         ------------------    ---------------   ---------------   ------------------

OTHER INCOME (EXPENSES):
 Interest income                                      6,982            11,937            40,125               38,413
 Interest expense                                   (58,502)             -              (82,035)                -
                                         ------------------    ---------------   ---------------   ------------------
  TOTAL OTHER EXPENSES                              (51,520)           11,937           (41,910)              38,413
                                         ------------------    ---------------   ---------------   ------------------

NET INCOME (LOSS)
 BEFORE EXTRAORDINARY GAIN                          392,542          (247,302)           300,234            (424,054)

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

NET INCOME (LOSS)                       $           392,542   $      (247,302) $         400,234  $         (424,054)
                                         ===================   ===============   ================  ===================


BASIC AND DILUTED NET INCOME
 (LOSS) PER COMMON SHARE                $          0.01       $      (0.01)    $         0.01     $          (0.01)
                                         ===================   ===============   ================  ===================

NUMBER OF SHARES USED
 IN CALCULATING BASIC AND
 DILUTED 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       $      (0.01)    $          0.01    $           (0.01)
                                         ====================  ================  ================  ===================

NUMBER OF SHARES USED IN
 CALCULATING DILUTED
 NET LOSS PER SHARE                              36,016,234         35,883,240        35,927,571           35,883,240
                                         ===================== ================  ================  ====================


</TABLE>


                 See notes to consolidated financial statements.

                                        4
<PAGE>

                     TECHNEST HOLDINGS, INC. AND SUBSIDIARY
                      (Formerly "Financial Intranet, Inc.")

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)



                                                Nine Months Ended September 30,
                                           -------------------------------------
                                                  2001                 2000
                                           -----------------    ----------------

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income (loss) from
  continuing operations                   $         400,234   $        (424,054)
                                           -----------------    ----------------
 Adjustments to reconcile net income
  (loss) to net cash used in operating
  activities:
   Depreciation and amortization                    201,794              36,053
   Write-off of note receivable                     299,256                -

 Changes in assets and liabilities:
  Accounts receivable                                 3,887              (2,830)
  Prepaid expenses                                   52,835                -
  Other assets                                        5,263              (2,179)
  Accounts payable and accrued expenses            (469,299)            294,644
  Deferred revenue                                  (56,425)             94,750
  Other liabilities                                 (37,381)               -
                                           -----------------    ----------------
                                                        (70)            420,438
                                           -----------------    ----------------

NET CASH PROVIDED BY (USED IN)
 IN OPERATING ACTIVITIES                            400,164              (3,616)
                                           -----------------    ----------------

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchase of property and equipment                 (21,461)           (790,604)
 Increase in note receivable                       (199,256)               -
 Purchase of investments                               -             (2,926,350)
 Sale of investments                                172,000             117,000
 Cash acquired upon acquisition                      28,224                -
                                           ------------------   ----------------
NET CASH PROVIDED BY (USED IN)
 INVESTING ACTIVITIES                               (20,493)         (3,599,954)
                                           ------------------   ----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of preferred stock             -              4,375,000
 Payment of notes payable                          (490,000)               -
 Proceeds from notes payable                         20,000                -
                                           ------------------   ----------------
NET CASH PROVIDED BY (USED IN)
 FINANCING ACTIVITIES                              (470,000)          4,375,000
                                           ------------------   ----------------

NET INCREASE (DECREASE) IN CASH                     (90,329)            771,430

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

CASH - END OF PERIOD                      $         626,128   $         771,430
                                           ==================   ================


SUPPLEMENTAL DISCLOSURE OF CASH FLOW
 INFORMATION:

The following noncash transactions occurred during the nine months ended
September 30, 2001:

     Conversion of note payable into
      common stock                        $          95,000    $           -
                                           ==================   ================




                 See notes to consolidated financial statements.

                                        5





                             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  and  with  the  instructions  to  Form  10-QSB  and  Article  10 of
Regulation  S-X.  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. Technest Holdings,  Inc., formerly
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 - Stockholders' Equity

During the quarter  ended  September  30, 2001,  the Company  converted  $95,000
principal  amount and  $4,745 of accrued  interest  into  398,981  shares of the
Company's common stock.



Note 4 - Subsequent Events

On November 13, 2001, the Company  settled it's  obligations  under a Consulting
Agreement with the issuance of 800,000 shares of common stock.

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 these new rules, goodwill and intangible assets deem 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 of operations.



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

THE FOLLOWING  DISCUSSION AND ANALYSIS OF OUR FINANCIAL CONDITION AND RESULTS OF
OPERATIONS  SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL  STATEMENTS AND THE
RELATED NOTES INCLUDED IN THIS form 10-QSB. THIS QUARTERLY REPORT OF FORM 10-QSB
CONTAINS FORWARD-LOOKING STATEMENTS BASED UPON CURRENT EXPECTATIONS THAT INVOLVE
RISKS  AND  UNCERTAINTIES,  SUCH  AS OUR  PLANS,  OBJECTIVES,  EXPECTATIONS  AND
INTENTIONS. THESE FORWARD-LOOKING STATEMENTS INCLUDE ALL STATEMENTS THAT ARE NOT
STATEMENTS OF HISTORICAL  FACT. YOU CAN IDENTIFY THESE  STATEMENTS BY OUR USE OF
WORDS  SUCH AS "MAY,"  "EXPECT,"  "BELIEVE,"  "ANTICIPATE,"  "INTEND,"  "COULD,"
"ESTIMATE,"  CONTINUE,"  `PLANS," OR THEIR NEGATIVES OR COGNATES.  SOME OF THESE
STATEMENTS  INCLUDE  DISCUSSIONS  REGARDING OUR FUTURE BUSINESS STRATEGY AND OUR
ABILITY TO GENERATE REVENUE, INCOME AND CASH FLOW. WE WISH TO CAUTION THE READER
THAT ALL  FORWARD-LOOKING  STATEMENTS  CONTAINED  IN THIS FORM  10-QSB  ARE ONLY
ESTIMATES AND PREDICTIONS. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE
ANTICIPATED  AS A RESULT  OF RISKS  FACING US OR ACTUAL  EVENTS  DIFFERING  FROM
ASSUMPTIONS UNDERLYING SUCH FORWARD-LOOKING  STATEMENTS. SOME FACTORS THAT COULD
AFFECT OUR  RESULTS  INCLUDE  THOSE  THAT WE DISCUSS IN THIS  SECTION AS WELL AS
ELSEWHERE IN THIS FORM 10-QSB.

READERS  ARE  CAUTIONED  NOT TO  PLACE  UNDUE  RELIANCE  ON ANY  FORWARD-LOOKING
STATEMENTS   CONTAINED   IN  THIS   PROSPECTUS.   WE  WILL  NOT   UPDATE   THESE
FORWARD-LOOKING STATEMENTS UNLESS THE SECURITIES LAWS AND REGULATIONS REQUIRE US
TO DO SO.


Technest  Holdings,  Inc.  is a Georgia  based  company  that has its  executive
offices in Atlanta,  GA and one satellite  office in Connecticut  and one in New
York.  Technest  Holdings,  Inc.  currently holds a 100% ownership interest in a
Chinese Internet content provider.

In April 2001, the Company acquired  Technest.com,  Inc ("Technest") 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. formerly ("Financial Intranet,  Inc.") as an emerging
development and growth 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 was recorded as a recapitalization of Technest,
pursuant to which Technest is treated as the continuing entity.




Results of operations


Revenue

Revenues  for the nine  months  ended  September  30,  2001 were  $2,202,847  as
compared to $12,206 for the nine months ended  September 30, 2000.  Revenues for
the nine months ended  September 30, 2001 included  realized gains from security
transactions  of  $1,673,958.This  increase  also  included  rental  revenue  of
$337,942.




Selling, general and administrative expenses

Selling, general and administrative expenses for the nine months ended September
30, 2001 were  $1,661,705  as compared  to  $438,372  for the nine months  ended
September 30, 2000. The September 30, 2001 period  included a write-off of notes
receivable  of  $266,000.  The other  increases  are  attributable  to increased
business  activities  in fiscal  2001 as  compared  to fiscal  2000 as  Technest
commenced business in April 2000.




Depreciation and amortization

Depreciation  and  amortization  consists  primarily of depreciation of computer
equipment,  furniture,  amortization of software development costs. Depreciation
and  amortization  was $198,998 for the nine months ended September 30, 2001 and
$36,301  for  the  nine  months  ended  September  30,  2000.  The  increase  in
depreciation and amortization is due to significant  capital  expenditures  made
during the third and fourth quarters of fiscal 2000.

Extraordinary gain - Forgiveness of debt

The extraordinary gain of $100,000 represents settlement of accounts payable.

Income taxes

No provision  for federal and state income taxes has been  recorded in the third
quarter of 2000 and 2001.  The net operating  losses will be available to offset
any future taxable income. Given the Company's limited operating history, losses
incurred to date and the difficulty in accurately  forecasting  future  results,
management  does  not  believe  that the  realization  of the  potential  future
benefits  of these  carry  forwards  meets the  criteria  for  recognition  of a
deferred  tax  asset  required  by  generally  accepted  accounting  principles.
Accordingly, a full 100% valuation allowance has been provided.


Liquidity and capital resources

Cash and cash  equivalents  were $626,128 and $160,749 at September 30, 2001 and
December 31, 2000, respectively.

The Company had a working capital  deficiency of $117,595 at September 30, 2001.
Net cash provided by operating activities was $400,164 for the nine months ended
September  30,  2001.  Cash  provided  by  operating  activities  was  primarily
attributable to net income off set by a decrease in accounts payable and accrued
expenses  of  $469,299  offset  by  non-cash  items  such  as  depreciation  and
amortization  of $201,794.  Net cash used in operating  activities  for the nine
months ended  September 30, 2000 was $(3,616),  which was principally due to the
net loss of $(424,054)  offset  primarily by an increase in accounts payable and
accrued expenses of $294,644 and an increase in deferred revenue of $94,750.

Net cash used in investing  activities  of  $(20,493)  for the nine months ended
September 30, 2001, decreased $(3,579,461) from $(3,599,954) for the nine months
ended  September  30,  2000.  Investing  activities  for the nine  months  ended
September 30, 2001 was primarily attributable to the sale of $172,000, offset by
a  decrease  in notes  receivable  by  $(199,256).  Net cash  used in  financing
activities for the nine months ended  September 30 2000  consisted  primarily of
purchase of  investments  of  $(2,926,350)  and the  purchase  of  property  and
equipment  for  $(790,604),  offset  by sale of  investments  in the  amount  of
$117,000.

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


<PAGE>

                           PART II - OTHER INFORMATION

Item 1.           Legal Proceedings

                  We are not currently a party to any legal proceedings other
                  than various claims and lawsuits arising in the normal course
                  of business. We do not believe that these lawsuits would,
                  individually or in aggregate, have a material adverse effect
                  on our business, financial condition, or results of
                  operations.

Item 2.           Change in Securities

                  During the quarter ended September 30, 2001, the Company
                  converted $95,000 principal amount and $4,745 of accrued
                  interest into 398,981 shares of the Company's common stock.

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.

                  None



<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: November 19, 2001         /s/ Michael Sheppard
                 --------------------       ------------------------
                                              Michael Sheppard, President