SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20459

                                   FORM 10-KSB

   (Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

                  For the fiscal year ended September 30, 2003
                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 Commission File Number 0-17580

                SYNERGX SYSTEMS INC (Formerly, Firetector Inc.)
              (Exact name of Small Business Issuer in its charter)

Delaware                                                      11-2941299
(State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                            Identification No.)

                  209 Lafayette Drive, Syosset, New York 11791

               (Address of principal executive offices) (zip code)

Issuer's telephone number, including area code:  (516) 433-4700

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

                     Common Stock, $.001 par value per share
                                (Title of Class)

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

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best  of  the  Registrant's   knowledge,  in  definitive  proxy  or  information
statements by reference in Part III of this Form 10-KSB ( )

State issuer's revenues for its most recent fiscal year: $19,814,000

The  aggregate  market value of the voting stock held by  non-affiliates  of the
Registrant,  based upon the  average  bid and ask  prices  for the  Registrant's
Common Stock, $.001 par value per share, as of December 18, 2003 was $6,220,176.

As of December 18, 2003,  the  Registrant  had 4,681,144  shares of Common Stock
outstanding.

Documents Incorporated by Reference: Definitive Proxy Statement to be filed.


<PAGE>




                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS

The Company

     Synergx Systems Inc.  formerly known as Firetector  inc.  ("Synergx" or the
"Company")  is a  Delaware  corporation  organized  in  October  1988 to acquire
controlling   interests  in  companies  engaged  in  the  design,   manufacture,
distribution,   sale  and  servicing  of  fire,  life  safety  security,  energy
management,  intercom, audio-video communication and other systems. Reference to
Synergx or the Company  include  operations of each of its  subsidiaries  except
where the context otherwise  requires.  Synergx's  business is conducted through
subsidiaries the in New York City metropolitan area and Dallas, Texas.

     Synergx conducts its business in New York principally through Casey Systems
Inc., its wholly owned subsidiary located in Long Island, New York ("Casey") and
in Texas through  General Sound (Texas)  Company its wholly owned  subsidiary in
Dallas, Texas ("General Sound").

Synergx  Products

     Synergx designs,  manufactures,  markets and sells its own proprietary life
safety and communication  systems and also engineers,  distributes,  markets and
sells systems and products manufactured by other parties.  Synergx's proprietary
product  line  features  the COMTRAK  1720 and 2000 Life Safety  Systems and the
TELTRAK Communications System.

     In 1973,  New York  City  passed  Local  Law 5  requiring  that all  office
buildings  of 100 feet or more be  outfitted  with smoke  detectors,  manual and
audio  communicating  systems for life safety and fire  reporting  purposes.  In
anticipation of the demand that this legislation  would create for equipment and
systems employing  improved  technology and design features,  Synergx engaged in
extensive  research and development  which led to its  proprietary  COMTRAK 1720
Life Safety  System which has been  installed  in scores of buildings  since the
early 1980's.

     To meet the challenges of more stringent code  requirements  and a sluggish
market for new construction,  Synergx  developed its new generation  proprietary
COMTRAK 2000 Life Safety System which utilizes the latest technology to not only
meet the  current  code  requirements,  and  satisfy  the "wish list" of current
COMTRAK customers,  but many likely future code requirements as well. One of the
improvements  incorporated into the COMTRAK 2000 is a Fire Command Station which
offers a color CRT display  system along with three  sectional  displays.  These
features  provide the operator  with a wide  variety of  pertinent  information,
allowing for quicker response,  which is critical in an emergency.  In addition,
the expanded memory  capability of the new Fire Command Station enables a single
station to control  multi-building  projects and permits  simplified  operation.

     COMTRAK 1720 and 2000 Systems are operating in approximately  100 buildings
in New York City.  Synergx has approvals  from FM Approvals and various New York
City  agencies  for the  COMTRAK  1720 and  COMTRAK  2000  System.  Synergx  has
contracts or otherwise supports numerous  additional  buildings  featuring third
party  systems.  Casey is  strategic  partner with  Edwards  Systems  Technology
("EST"), a leading manufacturer of fire and security systems.

     FM Approvals is an independent testing and certification laboratory similar
to  Underwriters  Laboratory.  In order for Synergx to sell and  maintain  their
proprietary  fire alarm  systems,  certification  from an  approved  independent
testing  agency is required.  Without this  certification,  Synergx would not be
allowed to produce and maintain its fire systems for its existing customer base,
as well as new customers.

     Neither Synergx,  nor its officers or directors has any affiliation with FM
Approvals.

     TELTRAK   Communications   Systems.  In  the  early  1980s,  Synergx  began
investigating  the  intercom  market  and the  possibilities  of  utilizing  its
computerized multiplex technology for this market.  Significant  construction of
new  high-rise  housing  occurred  in the  1970s and  1980s  and  increased  the
potential demand for  technologically  advanced intercom  systems.  To meet this
demand,  Synergx  developed a  micro-processor-based  combination  intercom  and
security system using Casey's multiplex  technology.  The TELTRAK I intercom and
security  system is capable of a variety of  accessory  functions in addition to
its basic intercom and security  function.  Synergx added video  capabilities to
its TELTRAK I technology and created the TELTRAK II, for  installation in luxury
condominium,  cooperative and apartment buildings.  Over 16,000 TELTRAK I and II
units have been sold.  In 1991,  the  redesigned  TELTRAK III  intercom/security
station  was  introduced,   with  enhanced   features  to  expand  its  use  and
competitiveness  in the face of the  reduced  market  for  these  products.  New
features,  such as public  address,  enable  important  messages  to be given to
building occupants either locally or by groups in case of emergency.

     Multiplex  technology  is a term that is used in the industry to define the
systems  architecture of the Company's  equipment.  All multiplex technology has
basically the same concept with variation for specific equipment.

Other Products

     In the past seven years  Synergx has sought to diversify  its product lines
to establish a greater base to absorb product support,  R & D and other overhead
and to provide product and customer  diversification.  To that end,  Synergx has
augmented its established  position in marketing  engineered life safety systems
(proprietary and third party) by developing a significant business in engineered
sound  systems  for  application  to a  variety  of users  including  hospitals,
educational  facilities and transit  facilities (e.g. subway stations).  Synergx
has developed a focused unit with a high level of  experience to penetrate  this
niche  market with  significant  success as a  substantial  portion of Synergx's
order  position  derives from this effect.  In addition,  Synergx  organized new
marketing  units to focus on marketing,  engineering  and servicing  systems and
products  manufactured by third parties,  particularly  national  manufacturers.
These marketing units are service  oriented  organizations  which focus on close
relationships  with  customers and key  suppliers.  During the last three years,
Synergx has added  marketing  personnel  and new  security  products  from other
manufacturers  to accelerate its focus into the security  market for the sale of
products and services in the New York Metropolitan area.

     In 1993,  Synergx  acquired  assets of a  company  which  manufactured  and
marketed  sophisticated  products and  on-board  information  and  communication
systems  with  applications  for  municipal   transit  carriers,   long-distance
passenger  carriers  and bus and train  builders.  Synergx has  integrated  this
operation  into its New  York  division  and has to date  supplied  products  to
customers such as Bombardier,  Nippon Sharyo, Sumitomo,  Kawasaki, Motive Power,
Siemens,  the New York City Transit  Authority and AMTRAK.  These customers have
supplied  Synergx's  equipment to the  Baltimore  MTA, the Bi-State  Development
Agency  (St  Louis),  the  Boston  MBTA,  CONRAIL,  the San Diego  Trolley,  the
Washington   Metropolitan  Transit  Authority  (Washington,   D.C.),  and  METRA
(Chicago).  Recently  Synergx  began to  integrate  its on  board  communication
products  with  products  supplied  by  other  manufacturers.  These  integrated
products include electronic signage and automatic announcement systems.

Service

     Synergx  continues to put an increasing  priority on the  development of an
integrated  and  efficient  service  organization.  Sales  personnel  have  been
dedicated to securing service  contracts and are intensifying  efforts to market
service to COMTRAK and other  Synergx  projects  coming out of warranty  and the
renewal of such contracts. To improve efficiencies and productivity.  To improve
customer service,  Synergx maintains an office in New York City which houses its
New York service management.

General Sound (Texas) Company

     Synergx  conducts  business in Texas through its subsidiary,  General Sound
(Texas) Company, which distributes,  services, installs and designs a variety of
sound, fire alarm, intercom and security systems in the Dallas/Ft.  Worth, Texas
area.  General Sound  concentrates its sales effort on the commercial market and
schools. General Sound provides its customers, primarily electrical contractors,
with  engineered  systems,   assistance  in  design,  installation  support  and
post-installation service.

     General Sound has non-exclusive  distribution agreements for the Dallas/Ft.
Worth area with Notifier,  Dukane, and other manufacturers.  The product mix and
dependence  on  individual  suppliers  varies  from  year to year  depending  on
customer requirements and market trends.

Secure 724 LP

     Synergx  has  recently  made a 25%  investment  in Secure 724 LP a Canadian
research,  development  and marketing  group which has  developed  technology to
transmit  alarm and other  data from a secured  site to a command  center and to
multiple  Blackberry  wireless  handheld  devices and/or  cellular phones and to
transmit  commands or  programming  instructions  to a wide  variety of building
systems.  Casey is evaluating  methods of integrating  this  technology into its
existing  products  and  systems to offer  customers  a  wireless  communication
solution.

RePort Business Solutions

     The Company's  Board of Directors  approved  entering in to an agreement to
organize a new Ontario  limited  partnership to acquire and operate the business
of RePort Business  Solutions  ("RePort") in partnership  with NSC Holdings Inc.
("NSCH") and Nafund Inc. ("Nafund")

     The  agreement  is subject to  approval by NSHC's  bank and  completion  of
definitive documentation.  The Company, through a subsidiary, would acquire from
Nafund,  25% of the  Class B equity  units of  RePort  in  consideration  of the
issuance  to Nafund of  150,000  shares of Common  Stock.  Under the  agreement,
Nafund  will not retain any Class B units,  will invest  Cdn$125,000  in Class A
units and will guaranty up to Cdn$375,000 of NSCH's bank loan.

     RePort  which is  currently  a division of NSCH,  provides  software to the
independent  international  investment  counseling,   portfolio  management  and
brokerage  community.  Located in  Toronto,  Ontario,  RePort's  software  links
external or outsourced trading,  custodian,  broker and bank systems in internal
diverse security and asset management  systems and contact  information  systems
and electronic filing and documentation  systems.  RePort will provide these and
related  back office  services to NSCH (which is an  investment  counselor/money
manager) and to other third party investment counselors,  money managers,  funds
and similar entities.

     Two directors of Synergx are directors of Nafund and one is also a director
and  principal of NSHC.  Nafund is a private  investment  fund based in Toronto,
Canada.

     There is no assurance that this transaction will be consummated.

Research and Development

     During the fiscal years ended  September  30, 2003 and 2002,  Synergx spent
approximately $155,000 and $149,000,  respectively, for research and development
of Synergx's life safety and communication systems.

Customers and Suppliers

     For the  fiscal  years  ended  September  30,  2003 and 2002,  no  customer
accounted for more than 10% of Synergx's  revenues.  One supplier  accounted for
11% of Synergx's cost of sales.



Regulations

     Synergx  believes that it is in compliance with applicable  building codes,
zoning ordinances,  occupational, safety and hazard standards and other Federal,
state and local ordinances and regulations governing its business activities.

Competition

     Synergx  business is  competitive;  some of Synergx's  competitors may have
greater financial resources and may offer a broader line of fire and life safety
products.  Synergx also faces  competition  in the servicing of systems which it
sells.  Accordingly,  even  though  Synergx may sell and install a fire and life
safety  control and  communications  system,  it may not receive the contract to
service that system. Synergx,  however, believes that it can effectively compete
with any entity which conforms with applicable rules and regulations.

Employees

     Synergx and its subsidiaries have 123 full time employees, including 38 New
York hourly  employees  that are covered by a  Collective  Bargaining  Agreement
expiring July 2005.

Business Conditions

     Synergx  believes that its labor and material  sources are  sufficient  and
that other than normal competitive factors, and what is discussed above or under
"MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF FINANCIAL  CONDITION  AND RESULTS OF
OPERATION",   Synergx's   operations  and  industry  do  not  have  any  special
characteristics  which may have a  material  impact  upon its  future  financial
performance.


Patents and Trademarks

     The  Company  does  not have  any  patents  on its  systems,  but,  it uses
proprietary  technology  which  it  seeks  to  protect  as  trade  secrets.  The
"Firetector",  "Casey Systems" and "COMTRAK"  trademarks are registered with the
United States Patent and Trademark Office.


ITEM 2. DESCRIPTION OF PROPERTY

     The   Company   leases   approximately   15,700   square  feet  of  office,
manufacturing and warehouse space in Syosset,  New York under a seven year lease
expiring  June 2007.  The rental  schedule  provides for monthly rent of $13,966
during  the first and  second  years of the  initial  term and with 3.3%  yearly
increases for the third thru seventh years.

     The Company has a lease for its service center in New York City that became
effective  August 2002 and runs thru December 31, 2009.  The lease is for office
and warehouse  space and provides for yearly rental of $84,000  during the first
year plus expenses with yearly escalation of 2% each year thereafter. Total cost
of space over the life of the lease will approximate $631,000.

     The Company  leases a 7,700  square foot office and  warehouse  facility in
Richardson,  Texas, a suburb of Dallas, pursuant to a lease that was extended in
October,  1997 and  extended  again in August,  2002 to expire on June 30,  2010
providing  for annual  rent on a net basis of  $50,152  escalating  annually  to
$64,016 in the final year of the lease.

     Management  believes there is sufficient  space at these facilities for its
current and intended business.

ITEM 3. LEGAL PROCEEDINGS

     In the normal course of its operations,  the Company has been or, from time
to time,  may be named in legal  actions  seeking  monetary  damages.  While the
outcome of these matters cannot be estimated with certainty, Management does not
expect,  based  upon  consultation  with  legal  counsel,  that they will have a
material effect on the Company's business or financial condition.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS.

    None

                                     PART II

ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

     Synergx's  Common  Stock has been  traded on the  National  Association  of
Securities  Dealer's Inc. Automated  Quotation System ("NASDAQ") since April 11,
1989 under the "FTEC"  symbol  and since May 2002 under the "SYNX"  symbol.  The
following  table shows the high and low bid and ask  quotations  for each fiscal
quarter from December 31, 2001 through  September 30, 2003 which quotations were
obtained from the National  Association of Securities Dealers Inc. (adjusted for
a 2 for 1 stock split in July 2003)

  Common Stock                    Bid                          Ask
  Quarter Ended             High        Low             High         Low

December 31, 2001           1.000       .600            1.045       .630
March 31, 2002              1.475       .735            1.275       .750
June 30, 2002                .925       .625             .950       .650
September 30, 2002           .775       .580             .775       .600
December 31, 2002            .725       .500             .750       .565
March 31, 2003              1.225       .570            1.275       .580
June 30, 2003               1.500      1.100            1.550      1.125
September 30, 2003          4.175      2.550            4.350      2.650



     The above  quotations  represent  prices  between  dealers,  do not include
retail  markups,   markdowns  or  commissions  and  may  not  represent   actual
transactions.  As of  December  18,  2003,  there  were 472  record  holders  of
Synergx's Common Stock.

     On December 18,  2003,  the closing bid and ask prices for the Common Stock
were $3.450 and $3.720, respectively.

     The Company has not paid any cash dividends on its Common Stock. Payment of
cash dividends in the  foreseeable  future is not  contemplated  by the Company.
Whether dividends are paid in the future will depend on the Company's  earnings,
capital  requirements,  financial  condition  along  with  economic  and  market
conditions,  industry  standard  and other  factors  considered  relevant to the
Company's  Board of  Directors.  Payment of dividends is  restricted  in certain
cases by the Company's credit facilities. Accordingly, no assurance can be given
as to the amount or timing of future dividend payments, if any.

     On September  30,  2002,  the Company  sold  340,000  units  ("Units") in a
private  placement  to an  unaffiliated  investor  for $.70 per Unit.  Each Unit
consists  of one  share of Common  Stock  and one  warrant  (the  "Warrant")  to
purchase an  additional  share of Common Stock at $.70 for a period of 24 months
from September 30, 2002.

     The Units, Common Stock,  Warrants and Common Stock issueable upon exercise
of the warrants will be restricted  and may not be sold or  transferred  without
registration  under or exemption from applicable  securities laws. The purchaser
was granted one-time piggyback registration rights.

     On May 29,  2003 the  Company  aquired  25% of Secure  724 LP by issuing to
Nafund 300,000 shares of Common Stock and warrants to purchase  50,000 shares of
Common Stock at $1.15 share until May 29, 2005. The  acquisition  also calls for
the issuance of an  additional  150,000  shares of Common Stock if Secure 724 LP
satisfies certain development milestones and Nafund provides certain funding.

Registration of Shares of Common Stock

     The Company filed a Form S-3 registration statement, which became effective
June 27, 2003. The registration  statement  provided for the registration of the
340,000  shares in the private  placement  noted above and for 100,000 shares in
connection the investment in Secure 724 LP.

     The Company filed a Form S-8 registration statement, which became effective
July 22, 2003.  The  registration  statement  provided for the  registration  of
404,885 shares issueable under the 1997 Non-Qualified Stock Option Plan.

<PAGE>



ITEM 6. MANAGEMENT'S  DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

LIQUIDITY AND CAPITAL RESOURCES

     The Company had a $3 million credit facility with Citizens Business Credit
of Boston (the "Credit Facility") that was due to expire in December, 2004. The
Credit Facility had an interest rate of prime plus 1/4% on outstanding balances.
Advances under the Credit Facility are measured against a borrowing base
calculated on eligible receivables and inventory. The Credit Facility is secured
by all assets of the Company and all of its operating subsidiaries.

     The Credit  Facility  included  various  covenants and the Company was also
required to maintain  certain  financial  ratios.  At September  30,  2003,  the
Company was not in default  with any of its  financial  covenants  or  financial
ratios and at such time owed approximately $1,256,000 under the Credit Facility.

     In October 2003, the Company entered into a new $3 million revolving credit
facility with Hudson United Bank.  This credit  facility has an interest rate of
prime plus 1/4% and  expires  in October  2005.  Initial  proceeds  from the new
credit facility were used to pay off the Credit Facility with Citizens  Business
Credit. (See footnote 4 - Long term Debt and footnote 14 - Subsequent Event)

     Net cash provided by operations  for the twelve months ended  September 30,
2003 amounted to $57,000 as compared to $312,000 for the  comparable  prior year
period.  The  primary  reason  for a lower  amount  of cash  being  provided  by
operations was due to an increase in working capital  requirements  from funding
$2.9  million  of higher  sales in 2003.  The net cash  inflow of  $57,000  from
operations  during 2003 less the outflow for  equipment  purchases of ($164,000)
and advances to Secure 724 LP of ($143,000)  where funded by an increase in bank
borrowing.  The Company  anticipates  continuation of the negotiation of certain
terms with its customers prior to the beginning of a project,  the monitoring of
its terms during a project and completing projects in timely fashion,  resulting
in faster final payments.  It is the intention of the Company to closely monitor
this program throughout fiscal 2004.

     The ratio of the Company's current assets to current  liabilities  improved
to  approximately  2.65 to 1 at September 30, 2003 compared to 2.60 at September
30, 2002.

     Synergx's  terms of sale are net 30 days.  However,  the normal  receivable
collection  period is 60-120  days,  exclusive  of  retainage,  because  certain
governmental  regulations  and the Company's  frequent status as a subcontractor
(entitled to pro rata payments as the general project is completed)  extends the
normal collection period. Synergx believes this is a standard industry practice.
Synergx's  receivable  experience is consistent with the industry as a whole and
will likely  continue.  This could be  considered  an area of risk and  concern.
However,  due to the  proprietary  nature of Synergx's  systems,  many  projects
require  Synergx's  cooperation to secure a certificate  of occupancy  and/or to
activate/operate a life safety system, thus assisting Synergx's  collection of a
significant portion or even total payment, even when Synergx's immediate account
debtor's  (contractor)  creditors have seized a project.  Many large public work
projects are performed under bonding arrangements between the project contractor
(customer)  and an  insurance  company,  which  can  also  aid  in the  ultimate
collectability of the Company's receivable.

RESULTS OF OPERATIONS

Revenues and Gross Profit

                             For the years ended September 30,
                                2003        2002
                                  (In thousands)
Product Sales                  $14,720       $10,672
Subcontract Sales                  643         1,763
Service Revenue                  4,451         4,508
                               -------       -------
Total Revenue                  $19,814       $16,943

Product Gross Margin           $ 5,081       $ 3,484
Subcontract Gross Margin           116           307
Service Gross Margin             1,298         1,328
                               -------       -------
Total Gross Margin             $ 6,495       $ 5,119

Gross Profit Product %              35%           33%
Gross Profit Subcontractor %        18%           17%
Gross Profit Service %              29%           29%
                               --------       -------
Total Gross Profit %                33%           30%



Revenues

     The increase in product  revenues  resulted from a gradual  improvement  in
economic  activity in the Company's  principal New York City market during 2003.
The 2002 year was impacted by the events of September 11th which delayed work on
several  projects  involving New York City Transit  Authority and reduced tenant
revenue as tenants  relocated out of New York City or consolidated into existing
space  uptown.  The  product  revenue  improvement  in 2003 in the New York City
market area  relates to the  following:  1) release of  projects  that have been
delayed by the events of  September  11th,  2) a gradual  improvement  in tenant
activity, 3) higher sales of railcar  communication  products as we began to see
the release of new orders for shipment.  Product  revenues in our Dallas,  Texas
market area were below 2002  levels but  improved in the second half of the 2003
fiscal year.

     Subcontract  revenue  decreased  during 2003 as the Company was responsible
for a smaller amount of electrical  installation as one large fire alarm project
was completed  and another was at a reduced  level of activity in 2003.

     Service  revenues  decreased 2% during 2003  primarily due to lower call-in
service  on fire  alarm  systems  (replacement  parts and  service  required  by
buildings).  The previous year was favorably impacted by revenues from buildings
that were required to correct systems that were  contaminated from the events of
September 11th.

Gross Profit

     Gross profit margin from product  revenues  increased 46% to $5,081,000 due
to higher  product sales (noted  above) and related  gross margin.  Gross profit
margin as a percentage  of product  revenues was 35% in 2003  compared to 33% in
2002.  This  improvement  in gross  profit  percentage  was due to the effect of
higher sales in which to absorb certain fixed overhead costs. In addition,  2003
benefited from certain purchase discounts received from a supplier.

     Gross profit margin related to  subcontract  revenues for 2003 decreased in
absolute terms as the Company was responsible for a smaller amount of electrical
installation  as one fire alarm project was completed in 2003 and another was at
a reduced level.

     Gross profit  margin from  service  revenues  decreased  during 2003 due to
lower call-in service revenue. The gross profit was higher during the prior year
period because of significantly higher call in maintenance service on fire alarm
systems as  replacement  parts and  service  were  needed in  certain  buildings
affected by contamination from the events of September 11th.

Selling, General and Administrative Expenses

     Selling,  General and Administrative Expenses ("S G &A") increased by 7% in
2003 over 2002 primarily as a result of the Company's continued expansion of its
marketing programs for new products and from higher insurance costs. During 2002
additional  staffing  was made to  address  the  markets  for  audio/visual  and
security  products.  During 2001 the Company  increased  staffing in the railcar
transit  communication group as it addressed a marketing  opportunity for future
business over the next several  years.  These  marketing  initiatives  helped to
improve total sales in 2003.  Consequently,  S G & A expenses as a percentage of
sales  decreased 3% to 29% in 2003 due to higher  sales  volume  compared to the
relative  fixed  nature of these costs.  The Company will  continue to invest in
staff to secure and support sales of new products in future years.

Income Before Tax

     The  improvement in income before income taxes during 2003 is primarily due
to the  increase in gross  profit  caused by higher  product  revenues  and from
improved  margins due to the  relative  fixed nature of certain  overhead  costs
(noted above).  This  improvement in product gross profit was mitigated by lower
gross profit from subcontract revenues.  Partially offsetting the improvement in
overall  gross  profit was an increase in  selling,  general and  administrative
expenses of 7% during  2003 in order to support  higher  product  sales and from
higher  insurance  costs.  Favorably  affecting  income before income taxes were
declines in interest expense of 27% in 2003 due to lower interest rates and from
lower  borrowing  levels during 2003. For 2003, the Company also recorded a loss
of $35,000 on its equity in the operating loss of Secure 724 LP.

Tax Provision

     The Company's current income tax provision  represents  federal,  state and
local income  taxes.  Deferred  taxes  represent  the net change in deferred tax
assets and non current  deferred tax  liability as it related to certain  timing
differences of book and tax deductions.

Order Position

     Synergx's order position,  excluding service, increased to $16.5 million at
September  30, 2003  compared to the $12.1  million level at September 30, 2002.
The Company  expects to fulfill a  significant  portion of its backlog  over the
next twelve months.  This high level of backlog reflects recent large new orders
for several subway  complexes,  which will be deliverable  over several years as
the projects are released,  and reflects recent new orders in the Dallas,  Texas
market area. The backlog includes $2.6 million of orders for  communication  and
announcement  systems  from  several  transit  car  manufacturers,  that will be
shippable  over the next 24 month  period.  While  quotation  activity is brisk,
there is no  assurance  when  orders  will be  received  and  whether  the order
position will increase.  Due to the fact that some of the Company's products are
sold and  installed as part of larger  construction  or mass  transit  projects,
there is  typically a delay  between the booking of the contract and its revenue
realization.  The order  position  from time to time  includes,  and the Company
continues to bid on,  projects  that include  significant  subcontractor  labor,
(electrical  installation performed by others). The Company expects to be active
in  seeking  orders  where  the  Company  would  act as a prime  contractor  and
responsible for management of the project as well as electrical installation.

Plan of Operations

     During  fiscal  2004,  management  intends  to  continue  to  focus  on its
intensified  marketing  programs  that  were  begun in 1998 and to  continue  to
contain or monitor fixed  overhead as well as to reduce  variable  costs through
improved efficiency and productivity. Management anticipates improved demand for
products  in 2004 and some  improved  performance.  Specifically  management  is
pursuing a strategy of  aggressive  costs  marketing  of products and systems to
drive more revenue through established  channels of distribution.  Management is
analyzing how to integrate the Secure 724 technology into its marketing  efforts
by offering a wireless  feature to augment  existing  new  products and systems.
However,  competition remains severe in many of the Company's product categories
and demand  remains  quite low in the Dallas market area due to  contraction  of
computer,  communication and internet related companies. Longer term, management
expects  increased  demand  for  the  Company's  audio-visual,  public  address,
security  and other  communication  products.  Enhancements  in recent  years to
Synergx's management information systems and methods of approving and monitoring
project costs have improved  management's ability to pinpoint waste and/or third
party (supplier or customer) cost responsibility.

 Inflation

     The impact of inflation on the Company's  business  operations has not been
material in the past.  Casey's  labor  costs are  normally  controlled  by union
contracts  covering a period of three years and its material costs have remained
relatively stable.  However in July of 2002, the Company and its union agreed to
a  new  three  year  contract  that  provides  for  wage/benefits  increases  of
approximately  5% in each year.  During 2001,  under terms of the previous union
contract,  certain union members, upon passing certain test requirements,  began
moving up to higher paying  categories  that have multiple salary steps per year
in excess of the 5%  contractual  level.  In  addition,  the  demand  for highly
skilled  professionals has resulted in the need to assess salary levels in order
to remain  competitive.  It is expected that required  salary  adjustments  will
exceed normal  increases given in the past. The Company will try to mitigate the
effect of these increases in labor costs by price  increases,  if possible,  and
expense reductions.



<PAGE>




ITEM 7.  FINANCIAL STATEMENTS

     Our financial  statements,  together with accompanying notes and the report
of Marcum & Kliegman LLP, our independent  auditors,  are set forth on the pages
indicated below.

Independent Auditors' Report ................................................F1

Audited Consolidated Financial Statements

Consolidated Balance Sheet September 30, 2003 ..........................F2 - F3

Consolidated Statements of Operations
 Years Ended September 30, 2003 and 2002 ....................................F4

Consolidated Statements of Stockholders' Equity
 Years Ended September 30, 2003 and 2002 ....................................F5

Consolidated Statements of Cash Flows
 Years Ended September 30, 2003 and 2002 ....................................F6

Notes to Consolidated Financial Statements ............................F7 - F22



ITEM  8.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
FINANCIAL DISCLOSURE.

                                      None


ITEM 8A. Controls and Procedures

Evaluation of disclosure controls and procedures. At the period end of this
Annual Report on Form 10-KSB, the Company's management, including the Company's
Chief Executive Officer and Chief Financial Officer evaluated the effectiveness
of the design and operation of the Company's disclosure controls and procedures.
Based on that evaluation, the Company's Chief Executive Officer and Chief
Financial Officer have concluded, as of the end of the fiscal year covered by
this report, that:

The Company's disclosure controls and procedures are designed to ensure that
information required to be disclosed by the Company in the reports it files or
submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified.

That Company's disclosure controls and procedures are effective to ensure that
such information is accumulated and communicated to the Company's management,
and made known to the Company's Chief Executive Officer and Chief Financial
Officer, to allow timely decision regarding the required disclosure.

There have been no changes in the Company's internal controls over financial
reporting that have materially affected , or is reasonably likely to materially
affect the Company's internal controls over financial reporting during the
period covered by the Annual Report.

<PAGE>



                                    PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons: Compliance
with Section 16(a) of the Exchange Act.

The information required by this Item is incorporated by reference from our
definitive Proxy Statement for the 2004 Annual Meeting of Stockholders.

Item 10.   Executive Compensation

The information required by this Item is incorporated by reference from our
definitive Proxy Statement for the 2004 Annual Meeting of Stockholders.

Item 11.   Security Ownership of Certain Beneficial Owners and Management

The information required by this Item is incorporated by reference from our
definitive Proxy Statement for the 2004 Annual Meeting of Stockholders.

Item 12.   Certain Relationships and Related Transactions

The information required by this Item is incorporated by reference from our
definitive Proxy Statement for the 2004 Annual Meeting of Stockholders

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

Exhibit No.            Description of Exhibit
--------------------------------------------------------------------------------
3.1  Certificate of Incorporation of the Company, as amended *

3.2  By-Laws of the Company (2)

4.1  Specimen Common Stock Certificate (2)

10.1 Credit  Facility  dated  October 9, 2003  between  Synergx  Systems Inc. as
     borrower and Hudson United Bank as lender*.

10.8 Form of Lease dated  February,  2000  between  Casey  Systems as Tenant and
     First Industrial L.P. as Landlord (3)

10.9 Form of Lease dated July 23rd, 2002 between Systems Service Technology Corp
     as Tenant and Balbo Realty LLC as Landlord(4)

10.10Form of  Subscription  Agreement and Investment  Letter dated September 30,
     2002 between Synergx Systems and Investors Money Management (4)

10.11Form of Limited  Parnership  Agreement  dated May 29, 2003 between  3077118
     Nova Scotia ULC (a Synergx Systems owned company) and Secure 724 LP*

22.1 Subsidiaries of the Registrant (Exhibit 22.1)(1)

31.1 Certification  of Daniel S. Tamkin  pursuant to 18 U.S.C.  Section 1350, as
     adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

31.1 Certification  of John A. Poserina  pursuant to 18 U.S.C.  Section 1350, as
     adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1 Certifications of Daniel S. Tamkin and John A. Poserina pursuant to Section
     906 of the Sarbanes-Oxley Act of 2002*


- --------
         * filed herewith

(1)  Reference is made to the correspondingly  numbered Exhibit to Amendment No.
     1 to the Company's  Registration  Statement on Form S-2,  Registration  No.
     33-51472,  filed  with  the  Commission  on  December  23,  1992,  which is
     incorporated herein by reference.

(2)  Reference is made to the correspondingly  numbered Exhibit to Amendment No.
     1 to the Company's  Registration  Statement on Form S-1,  Registration  No.
     22-26050,  filed  with  the  Commission  on  January  23,  1989,  which  is
     incorporated herein by reference.

(3)  Reference is made to the correspondingly  numbered Exhibit to the Company's
     Report on Form 10-KSB for the Fiscal Year Ended  September 30, 2001,  which
     Exhibit is incorporated herein by reference.

(4)  Reference is made to the correspondingly  numbered Exhibit to the Company's
     Report on Form 10-KSB for the Fiscal Year Ended  September 30, 2002,  which
     Exhibit is incorporated herein by reference.


(b) Reports on Form 8-K

                None

<PAGE>




<PAGE>

                                   SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this Report to be signed on
its behalf by the undersigned, hereunto duly authorized.

                                           SYNERGX SYSTEMS INC.
                                           (Registrant)
                                           By: /s/ Daniel S. Tamkin
                                           Daniel S. Tamkin,
                                           Chief Executive Officer and Director

Dated: December 23, 2003

     In accordance with the Exchange Act, this report has been signed below by
the following persons on behalf of the Company and in the capacities and on the
dates indicated.

SIGNATURE                              TITLE                        DATE

                                      Chairman,                December 23, 2003
 /s/ Daniel S. Tamkin        Chief Executive Officer
 Daniel S. Tamkin                    and Director

/s/ Joseph Vitale            President, Chief Operating
Joseph Vitale                     Officer and Director         December 23, 2003

/s/ John A. Poserina         Chief Financial Officer           December 23, 2003
--------------------
John A. Poserina             (Principal Accounting and
                             Financial Officer), Secretary,
                                     and Director

/s/ Henry Schnurbach                 Director                  December 23, 2003
--------------------
Henry Schnurbach

/s/ Dennis P. McConnell              Director                  December 23, 2003
-----------------------
Dennis P. McConnell

/s/ Mark Litwin                      Director                  December 23, 2003
---------------
Mark Litwin

/s/ J. Ian Dalrymple                 Director                  December 23, 2003
--------------------
J. Ian Dalrymple


<PAGE>


Index to Consolidated Financial Statements

                   Synergx Systems Inc. and Subsidiaries


Independent Auditors' Report ................................................F1

Audited Consolidated Financial Statements

Consolidated Balance Sheet September 30, 2003 ..........................F2 - F3

Consolidated Statements of Operations
 Years Ended September 30, 2003 and 2002 ....................................F4

Consolidated Statements of Stockholders' Equity
 Years Ended September 30, 2003 and 2002 ....................................F5

Consolidated Statements of Cash Flows
 Years Ended September 30, 2003 and 2002 ....................................F6

Notes to Consolidated Financial Statements ............................F7 - F22



<PAGE>


                          Independent Auditors' Report

To the Audit Committee of the Board of Directors of
Synergx Systems Inc. and Subsidiaries

We have audited the accompanying  consolidated  balance sheet of Synergx Systems
Inc. and its subsidiaries as of September 30, 2003 and the related  consolidated
statements of  operations,  stockholders'  equity,  and cash flows for the years
ended  September  30,  2003  and  2002.  These  financial   statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain reasonable  assurance about whether the consolidated
financial  statements  are free of  material  misstatement.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  consolidated  financial  statements.  An audit also includes  assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall  consolidated  financial  statement  presentation.  We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated statements referred to above present fairly, in
all material  respects,  the consolidated  financial position of Synergx Systems
Inc. and its subsidiaries as of September 30, 2003 and the consolidated  results
of their  operations and their cash flows for the years ended September 30, 2003
and 2002, in conformity with  accounting  principles  generally  accepted in the
United States of America.


December 4, 2003                      /s/ MARCUM & KLIEGMAN LLP
New York, NY
<PAGE>
                         Part I - FINANCIAL INFORMATION

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET




                                                                September 30,
                                                                    2003
                                                                 -------------
ASSETS

CURRENT ASSETS
Cash and cash equivalents                                       $   293,000
Accounts receivable, principally trade, less allowance
for doubtful accounts of $411,000                                 5,794,000
Inventories                                                       2,449,000
Deferred taxes                                                      295,000
Prepaid expenses and other current assets                           309,000
                                                                  ---------
TOTAL CURRENT ASSETS                                              9,140,000
                                                                  ---------


PROPERTY AND EQUIPMENT -at cost, less
accumulated depreciation and amortization of $1,359,000             418,000

OTHER ASSETS                                                        700,000

                                                                 ----------
TOTAL ASSETS                                                    $10,258,000
                                                                 ==========

See accompanying Notes to the Consolidated Financial Statements


<PAGE>
                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEET


                                                                 September 30,
                                                                      2003
                                                               ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Notes and capital leases payable - current portion              $    88,000
Accounts payable and accrued expenses                             2,926,000
Deferred revenue                                                    435,000
                                                                 ----------
TOTAL CURRENT LIABILITIES                                         3,449,000



Note payable to bank                                              1,256,000
Notes and capital leases payable - less current portion              69,000
Deferred taxes                                                       18,000
                                                                 ----------
TOTAL LIABILITIES                                                 4,792,000
COMMITMENTS AND CONTINGENCIES                                    ----------

STOCKHOLDERS' EQUITY

Preferred stock, 2,000,000 shares authorized-
none issued and outstanding                                               -
Common stock, 10,000,000 shares authorized, $.001
par value; issued and outstanding 4,061,144 shares                    4,000
Capital in excess of par                                          5,971,000
Accumulated deficit                                                (509,000)
                                                                 ----------
TOTAL STOCKHOLDERS' EQUITY                                        5,466,000
                                                                 ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $10,258,000
                                                                 ==========

See accompanying Notes to the Consolidated Financial Statements

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>


                                                    For the Year Ended September 30,
                                                            2003         2002
                                                        ----------     ----------
<S>                                                     <C>            <C>
Product sales                                          $14,720,000    $10,672,000
Subcontract sales                                          643,000      1,763,000
Service revenue                                          4,451,000      4,508,000
                                                       -----------    -----------
Total revenues                                          19,814,000     16,943,000
                                                       -----------    -----------


Cost of product sales                                    9,639,000      7,188,000
Cost of subcontract sales                                  527,000      1,456,000
Cost of service                                          3,154,000      3,180,000
Selling, general and administrative                      5,729,000      5,374,000
Interest expense                                            64,000         89,000
Depreciation and amortization                              154,000        149,000
Loss on equity investment                                   35,000
                                                       -----------    -----------
                                                        19,302,000     17,436,000
                                                       -----------    -----------
Income (loss) before provision for
(benefit from) income taxes                                512,000       (493,000)
                                                       -----------    -----------
Provision for (benefit from) income taxes:
Current                                                    180,000       (184,000)
Deferred                                                    50,000        (16,000)
                                                       -----------    -----------
                                                           230,000       (200,000)

                                                       -----------    -----------
Net Income (Loss)                                      $   282,000    $  (293,000)
                                                       ===========    ===========
Earnings Per Common Share
Basic Earnings (Loss) Per Share                        $      0.07    $     (0.09)
                                                       ===========    ===========
Diluted Earnings (Loss) Per Share                      $      0.06    $     (0.09)
                                                       ===========    ===========

Weighted average number of common shares outstanding     3,850,811      3,409,794

Weighted average number of common and dilutive
common shares outstanding                                4,433,735      3,409,794
</TABLE>

See accompanying Notes to the Consolidated Financial Statements

<PAGE>
                      SYNERGX SYSTEMS INC. and SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY

                 FOR THE YEARS ENDED SEPTEMBER 30, 2003 and 2002

<TABLE>
<CAPTION>
                                            TOTAL                                       CAPITAL
                                         STOCKHOLDERS'           COMMON STOCK           IN EXCESS       ACCUMULATED
                                            EQUITY          SHARES           AMOUNT      OF PAR          (DEFICIT)
                                         -----------      ----------        -------    ----------       ----------
<S>                <C>                   <C>              <C>               <C>         <C>             <C>
Balance at October 1,2001                $4,783,000       3,408,860         $4,000     $5,277,000       $(498,000)

Issuance of shares from
private placement                           238,000         340,000              -        238,000

Stock option compensation                     6,000           6,000

Net Loss                                   (293,000)                                                    (293,000)
                                          ----------      ----------     ----------     ----------      ----------
Balance at September 30, 2002             4,734,000       3,748,860          4,000      5,521,000       (791,000)

Issuance of shares for
investment in Secure 724                    405,000         300,000               -        405,000

Issuance of warrants for
investment in Secure 724                     28,000                                         28,000

Exercise of employee stock options            6,000          12,284               -          6,000

Tax benefit of stock option exercsie         11,000                                         11,000

Net earnings                                282,000                                                      282,000
                                         ----------      ----------      ----------     ----------      ----------
Balance at September 30, 2003            $5,466,000       4,061,144         $4,000     $5,971,000      $(509,000)
                                         ==========      ==========      ==========     ==========      ==========
</TABLE>

See accompanying Notes to the Consolidated Financial Statements

<PAGE>

             SYNERGX SYSTEMS INC. AND SUBSIDIARIES

        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                       For the Year Ended September 30,
                                                                          2003           2002
                                                                        ---------      -----------
<S>                                                                    <C>             <C>
OPERATING ACTIVITIES
Net income (loss)                                                      $ 282,000       $(293,000)
Adjustments to reconcile net income (loss) to net cash
(used in) provided by operating activities:
Depreciation and amortization                                            154,000         149,000
Deferred tax (benefit)                                                    49,000         (16,000)
Provision for doubtful accounts                                          (17,000)        101,000
Loss on equity investment                                                 35,000
Stock option compensation                                                                  6,000
Changes in operating assets and liabilities:
Accounts receivable                                                     (747,000)      1,326,000
Inventories                                                              (11,000)       (146,000)
Prepaid expenses and other current assets                                 85,000        (156,000)
Other assets                                                             (41,000)         (4,000)
Accounts payable and accrued expenses                                    279,000        (647,000)
Deferred revenue                                                         (11,000)         (8,000)
                                                                      ----------      ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES                                 57,000         312,000
                                                                      ----------      ----------
INVESTING ACTIVITIES
Notes receivable from Secure 724 LP                                     (143,000)
Purchases of property and equipment                                     (164,000)       (118,000)
                                                                      ----------      ----------
NET CASH USED IN INVESTING ACTIVITIES                                   (307,000)       (118,604)
                                                                      ----------      ----------
FINANCING ACTIVITIES


Principal payments on notes payable and capital lease obligations       (149,000)       (166,000)
Proceeds from notes payable                                               79,000          98,000
Proceeds from (repayment of) revolving line of credit - net              407,000        (461,000)
Proceeds from private placement                                                          238,000
Proceeds from exercise of stock options                                    6,000
                                                                      ----------      ----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                      343,000        (291,000)
                                                                      ----------      ----------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                      93,000         (98,000)

Cash and cash equivalents at beginning of period                         200,000         298,000
                                                                      ----------      ----------
Cash and cash equivalents at end of period                             $ 293,000       $ 200,000
                                                                      ==========      ==========
SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for:
Income taxes                                                           $  94,000       $ 151,000
Interest                                                               $  67,000       $  96,000
</TABLE>

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

During the years ended September 30, 2003 and 2002, the Company incurred no
capital lease obilgations for the acquisition of equipment.

During the year ended September 30, 2003, Synergx purchased from Nafund Inc. a
25% investment in Secure 724 in exchange for 300,000 shares of Common Stock and
warrants to purchase 50,000 shares of Common Stock, with an aggregate market
value of $432,500, which is included in OTHER ASSETS (See Note 7)

See accompanying Notes to the Consolidated Financial Statements
<PAGE>

                     Synergx Systems Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements

1. Summary of Significant Accounting Policies

Business

The  Company  operates  in  one  industry  segment:  the  design,   manufacture,
distribution,  marketing and service of a variety of data communications product
and systems with applications in the fire alarm, life safety, transit,  security
and communications  industry.  The Company conducts its business  principally in
the New York Metropolitan area and in Dallas, Texas.

Principles of Consolidation

The consolidated  financial  statements  include the accounts of Synergx Systems
Inc.  (formerly  Firetector Inc.) and its subsidiaries,  all of which are wholly
owned (the "Company").  The principal operating  subsidiaries are: Casey Systems
Inc. ("Casey"), General Sound (Texas) Company ("GenSound"),  and Systems Service
Technology Corp. ("SST").  Significant  intercompany items and transactions have
been  eliminated in  consolidation.  The Company is a subsidiary of  Mirtronics,
Inc. ("Mirtronics"), an Ontario publicly-held corporation.

Revenue Recognition

Product sales include sale of systems, which are similar in nature, that involve
fire alarm,  life safety and security (CCTV and card access),  transit (on board
systems) and  communication  (paging,  announcement and  audio/visual).  Product
sales  represent  sales of  product  along  with the  integration  of  technical
services at a fixed price under a contract with an electrical  contractor or end
user customer (building owner or tenant),  or customer agent.  Product sales are
allocated using a constant gross profit percentage over the entire contract, and
is recognized,  using the  percentage-of-completion  method of  accounting.  The
Company  utilizes a units-of-work  performed  method to measure progress towards
completion  of the  contract.  The  effects  of changes  in  contract  terms are
reflected in the  accounting  period in which they become known.  Contract terms
provide for billing schedules that differ from revenue recognition and give rise
to costs and  estimated  profits in excess  billings,  and billings in excess of
costs and estimated  profits.  Costs and estimated  profits in excess of billing
were not  material  at  September  30,  2003 and 2002 and have been  included in
accounts  receivable.  There was no  billing  in  excess of costs and  estimated
profits at September 30, 2003 and 2002.

Subcontract   sales  principally   represent   revenues  related  to  electrical
installation  of wiring and piping  performed by others for the Company when the
Company  acts  as the  prime  contractor  and  sells  its  products  along  with
electrical installation. Subcontract sales are also recognized during the entire
project  using the  percentage-of-completion  method of accounting as electrical
installation is performed at the job site.

Revenue Recognition (continued)

Service  revenue  from  separate  maintenance   contracts  is  recognized  on  a
straight-line  basis  over  the  terms  of the  respective  contract,  which  is
generally  one year.  The  unearned  service  revenue  from these  contracts  is
included  in current  liabilities  as  deferred  revenue.  Non-contract  service
revenue is recognized when services are performed.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities and disclosure of contingent assets and liabilities at September 30,
2003,  and reported  amounts of revenues  and  expenses  during the fiscal year.
Actual results could differ from those estimates.

Inventories

Inventories are priced at the lower of cost (first-in,  first-out) or market and
consist primarily of raw materials.

Property and Equipment

Property  and  equipment  are stated at  historical  cost.  Leases  meeting  the
criteria for  capitalization  are recorded at the present  value of future lease
payments.

Depreciation  and  amortization  of machinery  and  equipment  and furniture and
fixtures are provided primarily by the straight-line method over their estimated
useful lives. The Company depreciates  machinery and equipment over periods of 3
to 10 years and  amortizes  leasehold  improvements  and assets  acquired  under
capitalized leases utilizing the straight line method over the life of the lease
or their economic useful life, whichever is shorter.

Other Assets

Other assets consists  principally of the 2003 investment in Secure 724 LP which
is comprised of notes  receivable of $143,000 and 25% ownership in Secure 724 LP
of $397,500  (net of loss on equity  investment  of  $35,000).  This  investment
includes  the excess of cost over the fair value of the assets  acquired  on the
date of acquisition of $359,500. (see Note 3 - Investment in Secure 724 LP) Also
included in other assets is the excess of cost over the fair value of the assets
acquired in the 1990 acquisition of General Sound of approximately $103,000.

The Company does not amortize  goodwill but evaluates whether the carrying value
of  goodwill  has  become  impaired.  The pro forma  effects  of not  amortizing
goodwill as it relates to FAS 142 is immaterial.

Advertising Costs

Advertising  Costs are expensed as incurred during the year.  Advertising  Costs
for the years ended September 30, 2003 and 2002 amounted to $27,000 and $23,000,
respectively.

Research and Development Cost

Research  and  development  costs are  expensed  as  incurred  during  the year.
Research and  development  costs for the years ended September 30, 2003 and 2002
amounted to $155,000 and $149,000, respectively.

Income Taxes

The Company  accounts for income taxes under  Statement of Financial  Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes". Under SFAS No. 109, the
asset  and  liability  method  is used to  determine  deferred  tax  assets  and
liabilities based on differences  between  financial  reporting and tax bases of
assets and  liabilities  and are  measured  using the enacted tax rates and laws
that will be in effect when the differences are expected to reverse.

Earnings Per Share

SFAS No. 128 "Earnings Per Share" requires companies to report basic and diluted
earnings per share  ("EPS")  computations.  Basic EPS  excludes  dilution and is
based on the  weighted-average  common shares  outstanding and diluted EPS gives
effect to potential  dilution of securities  that could share in the earnings of
the Company. Diluted EPS reflects the assumed issuance of shares with respect to
the Company's employee stock options, non-employee stock options, and warrants.

Potentially  dilutive  options and warrants of - 0 - and  1,163,582  exist as of
September  30,  2003 and 2002,  respectively,  which  were not  included  in the
calculation of diluted earnings per share because they were antidilutive.


Cash Equivalents

The Company  considers all highly liquid  investments  with  maturities of three
months or less when purchased to be cash equivalents.

Concentration of Credit Risk

The Company's  operations  are located in two large U.S.  cities (New York City,
New York and Dallas, Texas), each of which is an independent market. The Company
grants  credit  to its  customers,  principally  all of  which  are  general  or
specialized construction  contractors,  none of which individually constitutes a
significant  portion  of  outstanding  receivables.  Approximately  85% of  such
outstanding  receivables  at  September  30, 2003 are due from  customers in New
York.

At September 30, 2003, the Company had approximately  $124,000,  that is subject
to insured  amount  limitations.  The  Company  does not require  collateral  to
support financial instruments subject to credit risk.

Stock Options and Similar Equity Instruments

The Company adopted the disclosure requirements of SFAS No. 123, "Accounting for
Stock Based  Compensation,"  for stock  options and similar  equity  instruments
(collectively,  "Options")  issued  to  employees;  however,  the  Company  will
continue to apply the  intrinsic  value based method of  accounting  for options
issued to employees  prescribed by Accounting  Principles  Board ("APB") Opinion
25, "Accounting for Stock Issues to Employees," rather than the fair value based
method of  accounting  prescribed  by SFAS No. 123. SFAS No. 123 also applies to
transactions  in which an entity issues its equity  instruments to acquire goods
or services from  non-employees.  Those transactions must be accounted for based
on the fair value of the consideration  received or the fair value of the equity
instruments issued, whichever is more reliably measured.

On December 31, 2002, the FASB issued SFAS No. 148 ("SFAS 148"),  Accounting for
Stock Based  Compensation-Transition  and  disclosure.  SFAS 148 amends SFAS No.
123, to provide an  alternative  method of  transition  to SFAS 123's fair value
method of accounting for stock based employee compensation. SFAS 148 also amends
the disclosure  provisions of SFAS 123 and Accounting  Principles  Board ("APB")
Opinion No. 28,  "Interim  Financial  Reporting",  to require  disclosure in the
summary  of  significant  accounting  policies  of the  effects  of an  entity's
accounting policy with respect to stock based employee  compensation on reported
net income and  earnings per share in annual and interim  financial  statements.
While the statement does not amend SFAS 123 to require  companies to account for
employee stock options using the fair value method, the disclosure provisions of
SFAS 123 are applicable to all companies with stock based employee compensation,
regardless  of whether they account for that  compensation  using the fair value
method of SFAS 123,  or the  intrinsic  value  method of APB Opinion No. 25. The
adoption  of SFAS 148 did not have an  impact  on net  income  or pro  forma net
income  applying  fair value  method as the  Company  did not have  stock  based
compensation for the year ended September 30, 2003. Pro forma net income and pro
forma net income  per share  applying  the fair value  method for the year ended
September 30, 2002 is summarized in the following table.

If the Company had elected to recognize compensation expense based upon the fair
value at the grant date for awards under these stock option plans consistent
with the methodology prescribed by SFAS 123, the Company's net income (loss) and
net income (loss) per share for 2003 and 2002 would be reduced to the pro forma
amounts.:
<TABLE>
<CAPTION>

                                                                     2003                        2002
<S>                                                                <C>                        <C>
Net Income (Loss):
  As reported                                                      $282,000                   $(293,000)
  Deduct: Total stock based employee compensation
          expense determined under the fair value-based method
          for all awards                                                                          7,000
  Pro forma                                                         282,000                    (300,000)

Earnings (Loss) per common share:

  As reported
    Basic                                                              $.07                      ($0.09)
    Diluted                                                            $.06                      ($0.09)
                                                                      ======                      ======

  Pro forma

    Basic                                                              $.07                      ($0.09)
    Diluted                                                            $.06                      ($0.09)
                                                                      ======                     =======
</TABLE>

These pro forma amounts may not be  representative  of future  disclosures since
the  estimated  fair value of stock  options is  amortized  to expense  over the
vesting  period for  purposes of future pro forma  disclosures,  and  additional
options  may be granted in future  years.  The fair value of these  options  was
estimated at the date of grant using the Black-Scholes option-pricing model with
the following  weighted  average  assumptions for 2002:  dividend yield of zero;
expected  volatility  45% and expected life of 3.25 year.  The weighted  average
risk fee interest rates for 2002 was 3.22%.  The weighted  average fair value of
options granted (extended) in 2002, was $.56.

The Black-Scholes option valuation model was developed for use in estimating the
fair value of traded  options which have no vesting  restrictions  and are fully
transferable.  In addition,  option valuation models require the input of highly
subjective  assumptions  including the expected  price  volatility.  Because the
Company's employees' stock options have characteristics  significantly different
from  those of traded  options,  and  because  changes in the  subjective  input
assumptions  can materially  affect the fair value  estimate,  in  management's'
opinion,  the  existing  models do not  necessarily  provide a  reliable  single
measure of the fair value of employee stock options.

2. Property and Equipment

Property and equipment (including those arising from capital leases) are
summarized as follows:

                                                             September 30,
                                                                 2003
                                                            -------------
  Machinery and equipment                                     $1,566,000
  Furniture and fixtures                                         166,000
  Leasehold improvements                                          45,000
                                                               ----------
                                                               1,777,000
  Less accumulated depreciation and amortization
                                                               1,359,000
                                                               ----------
                                                                $418,000
                                                               ==========

Annual   amortization  of  equipment  under  capital  leases  is  included  with
depreciation and amortization expense.

Depreciation and amortization  expense related to these assets were $138,000 and
$133,000 for the years ended September 30, 2003 and 2002, respectively.

3. Investment in Secure 724 L.P.

On May 29, 2003, the Company (through a special purpose Nova Scotia  subsidiary)
acquired  25% of the  equity of Secure  724 LP  ("Secure  724 LP"),  an  Ontario
limited partnership, from Nafund Inc. ("Nafund") in consideration of (a) 300,000
shares of Common Stock;  (b) warrants to purchase  50,000 shares of Common Stock
at $1.15 per share for 24 months; (c) agreeing to provide secured loans of up to
Cdn$300,000  (which was  approximately  $220,000  U.S. at September 30, 2003) to
Secure 724 LP pro rata with  equity/loans  to be  provided by Nafund and tied to
certain  development  milestones  and (d) 150,000  shares of Common  Stock to be
issued in the future upon Secure 724 LP  satisfying  the  milestones  and Nafund
providing the funding. Either the Company and/or Nafund can elect not to provide
all or any part of the above funding  (regardless  of whether the milestones are
attained).  If  milestones  are  attained and either the Company  and/or  Nafund
elects not to provide all or part of the above  funding it would have its equity
reduced based on a formula.

The 25%  investment  in Secure 724 L.P.  for 300,000  shares of Common Stock and
warrants to purchase 50,000 shares of Common Stock was valued at $432,500.  This
investment is accounted for utilizing the equity method and is included in OTHER
ASSETS.  The underlying equity of this investment on the date of the transaction
was  approximately  $73,000;  resulting in goodwill of  approximately  $359,500;
which  will not be  amortized  but will be tested for  impairment.  For the year
ended  September  30, 2003, a $35,000  adjustment to the equity  investment  was
recorded to reflect the Company's  25% portion of the  operating  loss of Secure
724 LP.

In connection with initial capital  contribution per the partnership  agreement,
the Company advanced $18,158  (Cdn$25,000) to Secure 724 LP in May 2003 and upon
reaching milestones advanced $125,089  (Cdn$175,000) in August 2003. These notes
receivable bear interest at a rate of 4% and mature in May 2006 and August 2006,
respectively.

This  transaction was submitted to the stockholders of Synergx (as two directors
of Synergx are directors of Secure 724 LP) and approved at its Annual Meeting on
March 26, 2003.

There can be no assurance that the investment in Secure 724 LP will be
profitable.

4.  Long-Term Debt

In 1998,  the Company  entered into a revolving  credit  facility  with Citizens
Business Credit Company of Boston,  Massachusetts (the "Credit  Facility").  The
Credit  Facility  was revised in  September  2000 and  provides for a $3,000,000
revolving line of credit  through  December 2004 and carries an interest rate of
prime plus 1/4% on outstanding balances (4.5% at September 30, 2003). The Credit
Facility limits capital  expenditures  to $250,000 in each year.  Advances under
the Credit Facility are measured against a borrowing base calculated on eligible
receivables and inventory.  At September 30, 2003 the amount available under the
borrowing  base  was  $2,700,000  and  $1,256,000  was  outstanding  under  this
facility. The Credit Facility is secured by all of the assets of the Company and
all of its operating subsidiaries.

The Credit Facility includes certain  restrictive  covenants,  which among other
things,  impose  limitations on declaring or paying dividends,  acquisitions and
capital  expenditures.  At September 30, 2003, the Company was not in default of
any of its  financial  covenants  and in October  2003 this Credit  Facility was
replaced  with a new credit  facility  with  Hudson  United  Bank (see Note 14 -
Subsequent events).

Annual maturities of Loans and Notes and Capital Leases Payable are as follows:
<TABLE>
<CAPTION>


                                    Bank                  Other Notes and             Total
                                                    Loan Capital Leases Payable
                           ------------------------ ----------------------------- -------------------

        <S>                      <C>                           <C>                   <C>
        2004                     $                             $88,000                  $88,000
        2005                       1,256,000                    50,000                1,306,000
        2006                                                    19,000                   19,000
                           ------------------------ ----------------------------- -------------------
        Total                     $1,256,000                  $157,000               $1,413,000
                           ======================== ============================= ===================
</TABLE>

5.  Leases

The Company  leases  certain  office and  warehouse  space  under  noncancelable
operating  leases  expiring at various times through 2010. In February 2000, the
Company signed a lease for office, manufacturing and warehouse space in Syosset,
New York.  The rental  schedule  provides for monthly rent of $13,966 during the
first and second  years of the initial term and with 3.3% yearly  increases  for
the third thru seventh years. This lease expires in June 2007.

The  Company  has a lease for its  service  center in New York City that  became
effective  August 2002 and runs thru December 31, 2009.  The lease is for office
and warehouse  space and provides for yearly rental of $84,000  during the first
year plus expenses with yearly escalation of 2% each year thereafter. Total cost
of space over the life of the lease will approximate $631,000.

The Company  leases an office and warehouse  facility in  Richardson,  Texas,  a
suburb of Dallas,  pursuant  to a lease  that was  extended  in August,  2002 to
expire on June 30,  2010  providing  for  annual  rent on a net basis of $50,152
escalating annually to $64,016 in the final year of the lease.

The  following  is a schedule  of future  minimum  payments,  by year and in the
aggregate, under operating leases with initial or remaining terms of one year or
more at September 30, 2003:

                                           Total Operating
                                               Leases

2004                                             323,000
2005                                             333,000
2006                                             343,000
2007                                             300,000
2008                                             155,000
2009                                             159,000
2010                                              24,000
                                          ------------------
Total minimum lease payments                  $1,637,000
                                          ==================

Rental   expense   amounted  to  $314,000   and  $366,000  for  2003  and  2002,
respectively.

6. Significant Customers and Suppliers

During fiscal 2003 and 2002,  no customer  accounted for more than 10% of sales.
One supplier accounted for 11% of Synergx's cost of sales during fiscal 2003.



7. Income Taxes

During the year ended  September 30, 2003, the Company  recorded a tax provision
of $230,000 compared to a tax benefit of $(200,000) for the year ended September
30, 2002.  A  reconciliation  of such with the amounts  computed by applying the
statutory federal income tax rate is as follows:

<TABLE>
<CAPTION>

                                                                 Year ended September 30,
                                                                 2003              2002
                                                           ----------------------------------
                                                           ----------------------------------
<S>                                                           <C>              <C>
Statutory federal income tax rate                                   34%               34%
Computed expected tax from income                             $174,000         ($168,000)
(Decrease)Increase in taxes resulting from:
 State and local income taxes, net of Federal tax benefit       47,000           (22,000)
 Nondeductible expenses                                         11,000             8,000
(Decrease) in taxes resulting from
   benefit of future tax deductible items                       (2,000)          (18,000)
                                                           -------------------------------
Provision (Benefit)                                           $230,000         ($200,000)
                                                           ===============================
</TABLE>

The Company  provided  $13,000 and  $13,000  for state and local  franchise  and
capital  taxes for the years ended  September  30, 2003 and 2002,  respectively.
These  expenses  have been  included  in  selling,  general  and  administrative
expenses for each of the years presented.

The Company has recorded a current deferred tax asset and a non current deferred
tax liability at September 30, 2003 and 2002 related to certain  accelerated tax
deductions or book  provisions to be deducted in future tax returns.  Management
anticipates profitable operations to continue at a level that will result in the
utilization of the entire deferred tax asset.

The components of deferred tax assets and  liabilities at September 30, 2003 and
2002 consist of the following:

Deferred Tax Assets                              2003                  2002
-------------------                            -------              ---------
Allowance for doubtful accounts               $165,000              $172,000
Inventory reserve                              112,000               120,000
Net operating loss carryforward                 18,000                47,000
                                                ------              --------
Total deferred tax asset                      $295,000              $339,000
                                              ========              ========

Deferred Tax Liabilities
Depreciation and amortization                  $18,000               $11,000
                                               -------               -------
Total deferred tax liability                   $18,000               $11,000
                                               =======               =======

8. Earnings Per Share

Shown below is a table that presents for 2003 and 2002 the  computation of basic
earnings per share, diluted earnings per share, weighted shares outstanding, and
weighted average shares after potential dilution.

                                                          Year Ended
Basic EPS Computation                              2003               2002
    Net income (loss) available to common
       stockholders                             $ 282,000          $(293,000)
    Weighted average outstanding shares         3,850,811          3,409,794

    Basic earnings (loss) per share                  $.07              $(.09)
                                                     =====             ======
Diluted EPS Computation
    Income (loss) available to common
         stockholders                           $ 282,000          $(293,000)
    Weighted-average shares                     3,850,811          3,409,794
      Plus:  Incremental shares from
                assumed conversions
        Employee Stock Options*                   106,453
        Warrants*                                 476,471
Dilutive  common shares                           582,924                N/A
                                                ---------          ---------
    Adjusted weighted-average shares            4,433,735          3,409,794
                                                ---------          ---------
    Diluted earnings (loss) per share                $.06              $(.09)
                                                     ====              ======

*All warrants and options were antidilutive in 2002.

9.  Stockholders' Equity

On September  30, 2002,  the Company sold 340,000  units  ("Units") in a private
placement to an  unaffiliated  investor for $.70 per Unit. Each Unit consists of
one share of  Common  Stock and one  warrant  (the  "Warrant")  to  purchase  an
additional  share  of  Common  Stock  at $.70 for a  period  of 24  months  from
September 30, 2002.

On July 7, 2003, the Company's Board of Directors declared a 2-for-1 stock split
of its outstanding  stock.  The stock split took the form of a dividend  whereby
the Company  issued on July 25th to each  stockholder  of record at the close of
business  on July 18,  2003 one  additional  share for every  share held on that
date. The financial  statements  and footnotes for the year ended  September 30,
2002, have been adjusted retroactively to reflect this stock split.

The Units,  Common Stock,  Warrants and Common Stock  issueable upon exercise of
the warrants  were  restricted  and were not to be sold or  transferred  without
registration  under or exemption from applicable  securities laws. The purchaser
was granted one-time piggyback registration rights (see below).

The Company filed a Form S-3 registration statement, which became effective June
27,  2003.  The  registration  statement  provided for the  registration  of the
340,000  shares in the private  placement  noted above and for 100,000 shares in
connection the investment in Secure 724 LP (see footnote 4).

The Company filed a Form S-8 registration statement, which became effective July
22, 2003. The  registration  statement  provided for the registration of 404,885
shares issueable under the 1997 Non-Qualified Stock Option Plan.

<PAGE>




10.  Employee Stock Options, Options, and Warrants

On April 30, 1997, the Company and its stockholders adopted a nonqualified stock
option plan ("1997 Plan"),  which was to expire September 30, 2002, except as to
options  outstanding  under the 1997  Plan.  Under the 1997  Plan,  the Board of
Directors  may grant options to eligible  employees at exercise  prices not less
than 100% of the fair market  value of the common  shares at the time the option
is granted.  The number of shares of Common  Stock that may be issued  shall not
exceed an aggregate of up to 10% of its issued and outstanding  shares from time
to time.  Options vest at a rate of 20% per year  commencing one year after date
of grant. Issuances under the 1997 Plan are to be reduced by options outstanding
under a 1990  nonqualified  stock option plan  (replaced  by the 1997 Plan).  In
September  2002,  the stock  option plan was  extended to expire on December 31,
2005.

The Company  applies the intrinsic  value base method of accounting  for options
issued to employees  rather than the fair value based method of  accounting.  On
September  19, 2002,  options on 48,166  shares of common stock were extended to
December 31, 2005 and the option price remained at $.50 per share.  Stock option
compensation  expense of $6,743 for year ended  September 30, 2002, was recorded
to General and Administrative  expense in connection with the extension of these
options.

Transactions involving stock options are summarized as follows:
                                                                    Weighted
                                                                    Average
                                                                    Exercise
                                      Stock Options                Price of
                                       Outstanding         Options Outstanding
Balance September 30, 2001               215,916                     .52
 Options granted (extended)               48,166                     .50
 Option expired                          (60,500)                    .50
Balance September 30, 2002               203,582                     .53
 Options exercised                       (12,284)                    .52
Balance September 30, 2003               191,298                     .52

There  were  178,073  exercisable  options at  September  30,  2003 and  189,582
exercisable options at September 30, 2002.

The following table summarizes information concerning currently outstanding and
exercisable stock options.
<TABLE>
<CAPTION>

                           Outstanding at          Weighted Average        Exercisable at
Exercise Price            September 30, 2003      Contractual Life       September 30, 2003
    <S>                       <C>                     <C>                      <C>
    .56                       66,134                  1.0 years                52,907
    .52                       80,330                  2.3 years                80,330
    .50                       44,834                  2.3 years                44,834
</TABLE>

In 1998, the Company granted  Mirtronics  warrants to purchase 620,000 shares of
the Company's Common Stock which are exercisable at a price of $.51 per share at
any time until December 31, 2003. In December 2003,  Mirtronics  exercised these
warrants. (See Note 14 - Subsequent Event)

On September 30, 2002, the Company issued 340,000  warrants in connection with a
private  placement that are  exercisable at $.70 per share of Common Stock until
September 30, 2004. (See Note - 9 Stockholders Equity)

In May 2003,  the Company  issued  50,000  warrants in  connection  with its 25%
investment in Secure 724 LP. The warrants are  exercisable at $1.15 per share of
Common  Stock until May 29, 2005.  (Also see Note 13 - Investment  in Secure 724
LP)

Transactions involving non-employee stock options and warrants are summarized as
follows:
                                                               Weighted
                                                                Average
                               Options and Warrants        Exercise Price of
                                        Outstanding      Options Outstanding
Balance September 30, 2001              653,334                $ .60
   Warrants expired                      33,334                 2.25
   Warrants issued                      340,000                  .70
Balance September 30, 2002              960,000                  .58
   Warrants issued                       50,000                 1.15
Balance September 30, 2003            1,010,000                  .61

All of these options and warrants were exercisable at the end of the periods
indicated in the above schedule.

The following table summarizes information concerning currently outstanding and
exercisable non-employee warrants.
<TABLE>
<CAPTION>

                        Outstanding at       Weighted Average            Exercisable at
Exercise Price        September 30, 2003     Contractual Life          September 30, 2003
    <S>                    <C>                   <C>                       <C>
    .51                    620,000               .3 years                  620,000
    .70                    340,000              1.0 years                  340,000
   1.15                     50,000              1.7 years                   50,000

</TABLE>


11. Contingencies

In the normal  course of its  operations,  the Company has been or, from time to
time, may be named in legal actions seeking  monetary  damages.  Management does
not expect,  based upon consultation with legal counsel,  that any material item
exists that will affect the Company's business or financial condition.

12. Other

Approximately  32%  of  the  Company's   employees  are  covered  by  collective
bargaining agreements. On July 20, 2002, the union representing hourly employees
and the Company  ratified a Collective  Bargaining  Agreement  expiring  July 9,
2005, providing for an increase in salaries and benefits averaging approximately
4 1/2% per year over the life of the contract.

Effective  January 1, 1996,  the Board of  Directors  instituted a 401K plan for
nonunion  employees.  The  plan  includes  a  profit  sharing  provision  at the
discretion of the Board of Directors.  In 2003 a profit sharing  contribution of
$29,000 was  authorized and charged to expense.  No profit sharing  contribution
was authorized in 2002.

13. Fair Value of Financial Instruments

SFAS No. 107, "Disclosures about Fair Values of Financial Instruments", requires
disclosing fair value to the extent practicable for financial  instruments which
are  recognized  or  unrecognized  in the balance  sheet.  The fair value of the
financial instruments disclosed herein is not necessarily  representative of the
amount  that  could be  realized  or  settled,  nor does the fair  value  amount
consider the tax consequences of realization or settlement.

For certain financial  instruments,  including cash and cash equivalents,  trade
receivables and payables,  and short-term debt, it was assumed that the carrying
amount  approximated  fair  value  because of the near term  maturities  of such
obligations.  The fair value of long-term debt was  determined  based on current
rates at which the Company could borrow funds with similar remaining maturities,
which amount approximates its carrying value.


14.  Subsequent Events

Long term debt

On October 9, 2003, the Company entered into a new $3 million  revolving  credit
facility with Hudson United Bank.  This credit  facility has an interest rate of
prime plus 1/4% and expires in October 2005. Advances under this credit facility
are measured  against a borrowing based  calculated on eligible  receivables and
inventory.  The new credit  facility is secured by all assets of the Company and
all of its operating subsidiaries. Initial proceeds from the new credit facility
were used to pay off the Credit Facility with Citizens Business Credit. This new
credit  facility  has certain  restrictive  covenants  which among other  things
impose limitations on declaring or paying dividends,  acquisitions,  and capital
expenditures.  The Company is also required to maintain certain financial ratios
and tangible net worth covenants.

Report Business Solutions

On November 20, 2003, the Company's Board of Directors  approved entering into a
revised  agreement to organize a new Ontario limited  partnership to acquire and
operate the business of RePort Business Solutions ("RePort") in partnership with
NSC Holdings Inc. ("NSCH") and Nafund Inc. ("Nafund")

This  transaction  was originally  submitted to the  stockholders of Synergx for
approval  at its Annual  Meeting on March 26,  2003  because  two  directors  of
Synergx are  directors  of Nafund and one is also a director  and  principal  of
NSCH.  Management  believes  that the revised  structure and  consideration  are
within the scope of the stockholder approval.

Pursuant to the revised  agreement  (which is subject to approval by NSCH's bank
and completion of definitive documentation),  the Company, through a subsidiary,
would  acquire  from  Nafund,  25% of the  Class B  equity  units of  RePort  in
consideration of the issuance to Nafund of 150,000 shares of Common Stock.

RePort  which  is  currently  a  division  of  NSCH,  provides  software  to the
independent  international  investment  counseling,   portfolio  management  and
brokerage  community.  Located in  Toronto,  Ontario,  RePort's  software  links
external or outsourced trading,  custodian,  broker and bank systems in internal
diverse security and asset management  systems and contact  information  systems
and electronic filing and documentation  systems.  RePort will provide these and
related  back office  services to NSCH (which is an  investment  counselor/money
manager) and to other third party investment counselors,  money managers,  funds
and similar entities.

There can be no assurance however that this transaction will take place.

Transactions with Related Parties

Mirtronics the largest  stockholder of the Company had  outstanding  warrants to
purchase  620,000  shares of the Company's  Common  Stock,  which were issued in
1998,  and were  exercisable  at any time until December 31, 2003 at an exercise
price of $.51 per share.  Mirtronics  exercised  these warrants in December 2003
for a total consideration of $316,200.

15.  Authoritative Pronouncements

In July 2001,  the FASB  issued  SFAS No. 142,  "Goodwill  and Other  Intangible
Assets",  which was effective for the Company  commencing  October 1, 2002. SFAS
No.  142  requires,   among  other  things,   the   discontinuance  of  goodwill
amortization.   In  addition,   the  standard   includes   provisions   for  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 identification of reporting units for purposes of assessing potential future
impairment  of goodwill.  The impact of the adoption of SFAS No. 142 resulted in
the Company discontinuing goodwill amortization.

In August 2001,  the FASB issued SFAS No. 144,  Accounting for the Impairment or
Disposal  of  Long-Lived  Assets.  SFAS  No.  144  changes  the  accounting  for
long-lived assets to be held and used by eliminating the requirement to allocate
goodwill  to  long-lived  assets to be tested for  impairment,  by  providing  a
probability  weighted cash flow  estimation  approach to deal with situations in
which  alternative  courses of action to recover the carrying amount of possible
future cash flows and by establishing a primary-asset  approach to determine the
cash  flow  estimation  period  for a  group  of  assets  and  liabilities  that
represents  the unit of accounting  for  long-lived  assets to be held and used.
SFAS No. 144  changes the  accounting  for  long-lived  assets to be disposed of
other than by sale by requiring that the depreciable  life of a long-lived asset
to be abandoned  be revised to reflect a shortened  useful life and by requiring
the impairment loss to be recognized at the date a long-lived asset is exchanged
for a similar  productive  asset or  distributed  to owners in a spin-off if the
carrying  amount of the asset  exceeds its fair value.  SFAS No. 144 changes the
accounting  for  long-lived  assets to be disposed of by sale by requiring  that
discontinued  operations no longer be recognized on a net realizable value basis
(but at the lower of  carrying  amount or fair  value  less  costs to sell),  by
eliminating  the  recognition  of  future   operating   losses  of  discontinued
components  before they occur and by broadening the presentation of discontinued
operations  in the income  statement to include a component of an entity  rather
than a segment of a business.  A component of an entity comprises operations and
cash flows that can be clearly distinguished,  operationally,  and for financial
reporting purposes, from the rest of the entity. The effective date for SFAS No.
144 is for fiscal years  beginning after December 15, 2001. The adoption of SFAS
No 144 did not have a significant impact on the Company's financial statements.

SFAS  No.  146,   "Accounting  for  Costs   Associated  with  Exit  or  Disposal
Activities", provides guidance on the recognition and measurement of liabilities
for cost  associated  with exit or disposal  activities.  The  provisions of the
Statement are effective for exit or disposal activities that are initiated after
December  31,  2002.  The  adoption  of SFAS No. 146 did not have a  significant
impact on the Company's financial statements.

In May 2003,  the FASB issued SFAS No. 150,  "Accounting  for Certain  Financial
Instruments with  Characteristics  of both Liabilities and Equity." SFAS No. 150
addresses certain financial instruments that, under previous guidance,  could be
accounted for as equity, but now must be classified as liabilities in statements
of financial  position.  These  financial  instruments  include:  1) mandatorily
redeemable  financial  instruments,  2)  obligations  to repurchase the issuer's
equity shares by  transferring  assets,  and 3)  obligations to issue a variable
number  of  shares.  SFAS No.  150  generally  is  effective  for all  financial
instruments entered into or modified after May 31, 2003, and otherwise effective
at the beginning of the first interim period  beginning after June 15, 2003. The
adoption of SFAS 150 did not have a significant impact on the Company' financial
statements.