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 June 30, 2002

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

                        Commission file number 000-27023

                             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)

                90 Grove Street, Suite 205, Ridgefield, CT 06877
                    (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 outstanding of each of the issuers classes of common stock
as of August 15, 2002 is 37,082,277 shares, all in one class of common stock,
$.001 par value.

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

<PAGE>

Part I.  Financial Information

Item 1.   Financial Statements (Unaudited)

                    TECHNEST HOLDINGS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2002
                                   (Unaudited)


                                     ASSETS
                                     ------
Current assets:
  Cash                                                             $     99,394
  Other receivables                                                       4,002
  Prepaid expenses                                                       27,125
                                                                    ------------
   Total current assets                                                 130,521

Property and equipment                                                    2,337

Investments                                                             703,560
                                                                    ------------

                                                                   $    836,418
                                                                    ============

                      LIABILITIES AND STOCKHOLDERS' DEFICIT
                      -------------------------------------
Current liabilities:
  Accounts payable and accrued expenses                            $  2,348,272
  Note payable                                                           40,000
                                                                    ------------
   Total current liabilities                                          2,388,272
                                                                    ------------

Stockholders' Deficit:
  Common stock, $.001 par value,
    authorized 495,000,000 shares, issued and
    outstanding 37,082,277 shares                                        37,082
  Subscription receivable                                                (7,035)
  Additional paid in capital                                         15,003,375
  Accumulated deficit                                               (16,585,276)
                                                                    ------------
   Total stockholders' deficit                                       (1,551,854)
                                                                    ------------

                                                                   $    836,418
                                                                    ============


                 See notes to consolidated financial statements

<PAGE>

                    TECHNEST HOLDINGS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)


                          Three Months Ended June 30,  Six Months Ended June 30,
                          ---------------------------  -------------------------
                                   2002       2001          2002         2001
                                ---------   --------      --------     -------

Revenues:
 Realized gain (loss) on
  sales of investments      $  (351,000)  $  806,114    $ (237,539) $   806,114
 Change in unrealized loss
  on investments                (55,870)         -         404,925          -
 Rental and other income          9,925      192,671        81,908      230,982
                             ----------   ----------    ----------   -----------

Total revenues                 (396,945)     998,785       249,294    1,037,096

General and administrative
 expenses                     2,786,933      752,837     3,256,243    1,139,014
                             ----------   ----------    ----------   -----------

Income (loss) from           (3,183,878)     245,948    (3,006,949)    (101,918)
 operations                  ----------   ----------    ----------   -----------


Other (income) expenses:
       Interest income              (79)     (33,143)       (1,302)     (33,143)
       Interest expense             615        4,033           615       23,533
                             ----------   ----------    ----------   -----------

Total other (income) expenses       536      (29,110)         (687)      (9,610)
                             ----------   ----------    ----------   -----------


Net income (loss) before
 extraordinary gain          (3,184,414)     275,058    (3,006,262)     (92,308)
Extraordinary gain -
 Forgiveness of debt                -        100,000           -        100,000
                             ----------   ----------    ----------   -----------

Net income (loss)           $(3,184,414) $   375,058   $(3,006,262) $     7,692
                             ==========   ==========    ==========   ===========

BASIC NET INCOME (LOSS) PER
   COMMON SHARE             $     (0.09) $      0.01         (0.08)        0.00
                             ==========   ==========    ==========   ===========

NUMBER OF SHARES USED
 IN CALCULATING BASIC NET
 INCOME (LOSS) PER SHARE     37,082,277   35,883,240    37,082,277   35,883,240
                             ==========   ==========    ==========   ===========
DILUTED NET INCOME (LOSS)
 PER COMMON SHARE           $     (0.09) $      0.01   $     (0.08) $      0.00
                             ==========   ==========    ==========   ===========
NUMBER OF SHARES USED
 IN CALCULATING DILUTED NET
 INCOME (LOSS) PER SHARE     37,082,277   37,161,447    37,082,277   37,161,447
                             ==========   ==========    ==========   ===========


                 See notes to consolidated financial statements

<PAGE>

                    TECHNEST HOLDINGS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                     Six Months Ended June 30,
                                                  ------------------------------

                                                        2002             2001
                                                   -------------    ------------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss) from operations               $  (3,006,262)   $      7,692
                                                   -------------    ------------

  Adjustments to reconcile net income (loss)
    to net cash used in operating activities:
      Depreciation and amortization                     101,818         120,998
      Unrealized gain on securities                    (404,925)             -
      Loss on sale of property and equipment            402,448              -
      Loss on abandonment of leasehold                  155,324              -
      Realized loss on sale of securities               351,000              -

  Changes in assets and liabilities:
      Certificate of deposit                            466,192              -
      Accounts receivable                                 1,566          (1,624)
      Prepaid expenses                                   34,555         (16,041)
      Other receivables                                 121,604              -
      Other assets                                          -               242
      Accounts payable and accrued expenses           1,842,742        (242,294)
      Due to broker                                    (187,500)            -
      Deferred revenue                                      -           (37,750)
                                                   -------------    ------------

                                                      2,884,824        (176,469)
                                                   -------------    ------------

NET CASH USED IN OPERATING ACTIVITIES                  (121,438)       (168,777)
                                                   -------------    ------------

CASH FLOWS FROM INVESTING ACTIVITES:
    Proceeds from sale of property and equipment         18,000             -
    Purchase of property and equipment                   (2,337)            -
    Sale of investments                                  50,000         584,215
    Cash acquired upon acquisition                          -             5,734
    Notes receivable advances                               -          (199,256)
                                                   -------------    ------------

NET CASH USED IN INVESTING ACTIVITIES                    65,663         390,693
                                                   -------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from convertible notes payable              40,000          20,015
                                                   -------------    ------------

NET CASH PROVIDED BY FINANCING ACTIVITIES                40,000          20,015
                                                   -------------    ------------

NET INCREASE (DECREASE) IN CASH                         (15,775)        241,931

CASH - BEGINNING OF PERIOD                              115,169         716,457
                                                   -------------    ------------

CASH - END OF PERIOD                              $      99,394    $    958,388
                                                   =============    ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
  INFORMATION:
     Reduction in cost of investment due
     to cancellation of note payable              $     634,584    $         -
                                                   =============    ============
     Reduction in cost of investment due
     to cancellation of accrued interest          $      88,715    $         -
                                                   =============    ============



                 See notes to consolidated financial statements
<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 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 15, 2002.

Note 2 - Going Concern

The Company had a working capital deficiency at June 30, 2002 of approximately
$2,758,000, and recorded net losses for the first six months of 2002 of
approximately $3,000,000. This raises substantial doubt about the Company's
ability to continue as a going concern. The Company's continued existence is
dependent on its ability to obtain additional debt or equity financing and to
generate profits from operations. The Company is continuing to pursue additional
equity and debt financing. There are no assurances that the Company will receive
additional equity and debt financing. The accompanying consolidated financial
statements do not include any adjustments that might result from the outcome of
these uncertainties.

Note 3 - Subsequent Events

In July 2002, the Company was served with a demand notice to for payment of the
balance of the lease of its subsidiary in Atlanta in the amount of $1,950,000.

In July 2002, the Company sold some of its portfolio holdings for $50,000.

In August 2002, the Company converted 8% promissory notes of $40,000 into
equity.

On April 15, 2002 the counsel for the Plaintiff, H & H Acquisition Corporation
petitioned and was approved by the Judge to resign from the legal proceedings
against the Company, Michael Sheppard and Maura Marx. The Judge gave H & H
Acquisition 30 days to find new counsel and on July 10, 2002 Plaintiff engaged
new counsel and is proceeding against Michael Sheppard and Maura Marx
individually and as officers of the Company, and is planning to drop the
proceeding against the Company.

Note 4 - Effects of Recently Issued Accounting Pronouncements

In July 2001, the Financial  Accounting  Standards Board (FASB) issued SFAS 141,
Business  Combinations.  SFAS 141 supersedes APB 16,Business  Combinations,  and
SFAS 38, Accounting for Preacquisition  Contingencies of Purchased  Enterprises.
SFAS  141  requires  the  purchase   method  of  accounting   for  all  business
combinations    initiated    after   June   30,   2001   and    eliminates   the
pooling-of-interests  method.  The Company  does not expect the adoption of SFAS
141 to  have a  material  effect  on  its  financial  condition  or  results  of
operations.

In July 2001, the FASB issued SFAS 142,  Goodwill and Other  Intangible  Assets.
SFAS 142 supersedes APB 17, Intangible  Assets,  and requires the discontinuance
of goodwill  amortization.  In addition,  SFAS 142 includes provisions regarding
the  reclassification  of certain existing  recognized  intangibles as goodwill,
reassessment   of  the  useful   lives  of  existing   recognized   intangibles,
reclassification  of certain intangibles out of previously reported goodwill and
the testing for impairment of existing goodwill and other intangibles.  SFAS 142
is required to be applied for fiscal years  beginning  after  December 15, 2001,
with certain  early  adoption  permitted.  The Company  adopted SFAS 142 for its
first fiscal quarter of 2002.


<PAGE>

In August  2001,  the FASB  issued  SFAS 143,  Accounting  for Asset  Retirement
Obligations.   SFAS  143  addresses  financial   accounting  and  reporting  for
obligations associated with the retirement of tangible long-lived assets and the
associated  retirement  costs.  The Company does not expect the adoption of SFAS
143  to  have  a  material  effect  on  the  Company's   consolidated  financial
statements.

In October  2001,  the FASB issued SFAS 144,  Accounting  for the  Impairment or
Disposal of Long-Lived  Assets,  which  supersedes SFAS 121,  Accounting for the
Impairment of Long-Lived Assets to be Disposed Of. SFAS 144 addresses  financial
accounting  and  reporting  for the  impairment  of  long-lived  assets  and for
long-lived  assets to be disposed of. However,  SFAS 144 retains the fundamental
provisions of SFAS 121 for: 1) recognition  and measurement of the impairment of
long-lived  assets to be held and used; and 2) measurement of long-lived  assets
to be disposed of by sale.  SFAS 144 is  effective  for fiscal  years  beginning
after December 15, 2001. The Company does not expect the adoption of SFAS 144 to
have a material effect on the Company's consolidated financial statements.



<PAGE>


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., ("Technest Holdings" or the "Company") is a Nevada
Corporation that is a Business Development Company and continues to monitor its
investments in its investment Portfolio and wholly owned subsidiary. The company
has its executive offices in Ridgefield, CT and one satellite office in New
York. The company plans to withdraw it certificate to do business as a Business
Development company.

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.

In January 2002 the Company's subsidiary defaulted on its lease provisions and
the certificate of deposit was liquidated to satisfy the amounts of back rent
that were outstanding under the lease Agreement through March 2002. The balance
of $1,950,000 is still due based on the provisions of the lease which represents
the life of the term of the lease.

Results of operations

Revenue

Realized loss on sales of investments was  ($237,539)during the six months ended
June 30, 2002 as compared to a gain  $806,114  for the six months ended June 30,
2001.  Change in  unrealized  loss on  investments  was $404,925  during the six
months ended June 30, 2002 as compared to $-0- for the six months ended June 30,
2001.  Rental and other income was $81,908  during the six months ended June 30,
2002 as compared to $230,982 for the six months ended June 30, 2001.

<PAGE>

Selling, general and administrative expenses

Selling, general and administrative expenses for the six months ended June 30,
2002 were $3,256,243 as compared to $1,139,014 for the six months ended June 30,
2001.

The remaining lease payments of the existing lease in the amount of $1,950,000
was accrued during the six months ended June 30, 2002.

Depreciation and amortization

Depreciation and amortization consists primarily of depreciation of computer
equipment, furniture, amortization of software development costs. Depreciation
and amortization was $101,818 for the six months ended June 30, 2002 and
$120,998 for the six months ended June 30, 2001. The decrease in depreciation
and amortization is due to no capital expenditures made during the second
quarter of fiscal 2002.

Income taxes

No provision for federal and state income taxes has been recorded in the second
quarter of 2002 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 $99,394 and $115,169 at June 30, 2002 and
December 31, 2001, respectively.

The Company had a working capital deficiency of $2,257,751 at June 30, 2002. Net
cash used in operating activities was $(121,438) for the six months ended June
30, 2002. Cash used in operating activities was primarily attributable to net
loss of $(3,006,949) off set by a decrease in accounts payable and accrued
expenses of $1,842,742 and non-cash items such as depreciation and amortization
of $101,818.

Net cash provided by investing activities of $65,663 for the six months ended
June 30, 2002, decreased $(325,030) from $390,693 for the six months ended June
30, 2001. Investing activities for the six months ended June 30, 2002 was
primarily attributable to the sale of property and equipment for $18,000 and
investments of $50,000, offset by the purchase of property and equipment for
$(2,337).

Net cash provided by financing activities for the six months ended June 30 2002
consisted primarily of proceeds from convertible notes payable of $40,000.

We currently have no assured sources for additional financing, and our success
may depend on our ability to obtain further financing.

Critical Accounting Policies

A summary of significant accounting policies is included in Note 3 to the
audited consolidated financial statements included in the Company's Annual
Report on form 10-KSB for the year ended December 31, 2001. Management believes
that the application of these policies on a consistent basis enables the Company
to provide useful and reliable financial information about the Company's
operating results and financial condition.


<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.

                  Exhibit 99.1 - Certification of Officer


<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 19, 2002             /s/ Michael Sheppard
                                       ------------------
                                       Michael Sheppard, President