<PAGE>

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

                                   Form 10-QSB

                                   (MARK ONE)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2002

                                       OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934
     FOR THE TRANSITION PERIOD FROM  _________ TO ________.

                         Commission File Number 33-30743

                            Emergisoft Holding, Inc.
           (Name of small business issuer as specified in its charter)

              Nevada                                    84-1121360
  (State or other jurisdiction            (IRS Employer Identification Number)
 of incorporation or organization)

   2225 Avenue J, Arlington, Texas                        76006
(Address of principal executive offices)                (Zip Code)

Issuer's telephone number, including area code:      (817) 633-6665


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 (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes     X      No


Number of shares outstanding as of May 15, 2002:

Class:   Common Stock, par value $.001       Shares outstanding: 10,954,854


Transitional Small Business Disclosure Format
(check one)

Yes      No   X

                                       1

<PAGE>

                    EMERGISOFT HOLDING, INC. AND SUBSIDIARIES
                                      INDEX

Facing Sheet
Index

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheets
         March 31, 2002 (unaudited) and December 31, 2001

         Consolidated Statements of Operations
         Three months ended March 31, 2002 and 2001 (unaudited)

         Consolidated Statements of Cash Flows Three months ended March 31, 2002
         and 2001 (unaudited)

         Notes to Consolidated Financial Statements (unaudited)

Item 2.  Management's Discussion and Analysis of Financial Condition and Plan
         of Operation

PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

Item 2.  Changes in Securities

Item 3.  Defaults Upon Senior Securities

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

Item 5.  Other Information

Item 6.  Exhibits and Reports on Form 8-K

Signatures

                                       2

<PAGE>

                         PART I. - FINANCIAL INFORMATION

                    Emergisoft Holding, Inc. and Subsidiaries
                           Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                    March 31, 2002        December 31, 2001
                                                                     (Unaudited)
Assets
Current assets:
<S>                                                                      <C>                         <C>
      Cash and cash equivalents                                          $ 1,477,796               $   661,509
      Trade accounts receivable, net of allowance for
           doubtful accounts of $26,000                                       82,952                   104,880
                                                                --------------------- -------------------------
Total current assets                                                       1,560,748                   766,389

Equipment and fixtures, net                                                  420,533                   442,152
Other assets                                                                  30,004                    42,417
                                                                --------------------- -------------------------
Total assets                                                             $ 2,011,285               $ 1,250,958
                                                                ===================== =========================

Liabilities and Stockholders' Equity
Current liabilities:
      Accounts payable and accrued expenses                              $   485,828               $   363,340
      Notes payable - current, net of discounts                              260,161                   328,564
      Deferred revenue                                                       113,212                   153,803
                                                                --------------------- -------------------------
Total current liabilities                                                    859,201                   845,707

Notes payable with Related Parties - long-term, net
         of discounts                                                        612,705                   410,536
                                                                --------------------- -------------------------
Total liabilities                                                          1,471,906                 1,256,243

Commitments and contingencies                                                      -                         -

Stockholders' equity (deficit):
      Common Stock, $.001 par value, 37,500,000 shares
        authorized, 9,954,854 and 6,193,891 issued and
        outstanding at March 31, 2002 and December 31,
        2001, respectively                                                     9,955                     6,194
      Additional capital                                                  22,519,263                20,515,733
      Deferred compensation                                                  (39,497)                 (428,620)
      Accumulated deficit                                                (21,950,342)              (20,098,592)
                                                                --------------------- -------------------------
Total stockholders' equity (deficit)                                         539,379                    (5,285)
                                                                --------------------- -------------------------
Total liabilities and stockholders' equity                               $ 2,011,285               $ 1,250,958
                                                                ===================== =========================
</TABLE>

See accompanying notes

                                       3

<PAGE>

                    Emergisoft Holding, Inc. and Subsidiaries
                      Consolidated Statements of Operations


                                                   Three Months Ended March 31
                                                       2002           2001
                                                       ----           ----
                                                   (Unaudited)    (Unaudited)

Revenue                                            $    80,091    $   109,441

Cost of revenue                                          2,978              -
General and administrative                           1,302,351        973,748
Product development                                    389,577        953,379
                                                   --------------------------
Total operating expenses                             1,694,906      1,927,127
                                                   --------------------------


Loss from operations                                (1,614,815)    (1,817,686)
Interest expense                                       241,106          7,097
Interest income                                         (4,171)       (23,799)
                                                   --------------------------

Net loss                                           $(1,851,750)   $(1,800,984)
                                                   ==========================

Basic and diluted net loss per share               $      (.23)          (.74)
                                                   --------------------------

Weighted average shares used to compute
      basic and diluted net loss per share           8,033,559      2,434,728
                                                   ==========================

See accompanying notes














                                       4

<PAGE>

                    Emergisoft Holding, Inc. and Subsidiaries
                      Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>

                                                             Three Months Ended March 31
                                                               2002                 2001
                                                            -----------          -----------
                                                            (Unaudited)          (Unaudited)
<S>                                                  <C>                   <C>

Operating Activities

Net loss                                                   $  (1,851,750)    $   (1,800,984)
Adjustments to reconcile net loss to net cash used in
  operating activities:
   Depreciation and amortization                                  22,520             15,000
   Amortization of debt discount                                 203,512              6,692
   Amortization of deferred compensation                         389,123            342,019
   Stock-based expenses for equity issued to
       vendors for services                                            -            197,781
Changes in assets and liabilities:
   Accounts receivable                                            21,928             27,135
   Other assets                                                   12,413             (1,766)
   Deferred revenue                                              (40,591)            (1,097)
   Accounts payable and accrued expenses                         122,488            (83,916)
                                                      -------------------------------------------
Net cash used in operating activities                         (1,120,357)        (1,299,136)

Investing Activity
Purchase of equipment and fixtures                                  (901)           (20,564)
                                                      -------------------------------------------
Cash used in investing activity                                     (901)           (20,564)

Financing Activities
Repayment of notes payable and line of credit                    (62,455)           (69,259)
Proceeds from issuance of common stock and exercise
   of options                                                  2,000,000              3,600
                                                      -------------------------------------------
Net cash (used in) provided by financing activities            1,937,545            (65,659)
                                                      -------------------------------------------

Net increase (decrease) in cash and cash equivalents             816,287         (1,385,359)
Cash and cash equivalents, beginning of year                     661,509          3,415,040
                                                      -------------------------------------------

Ending cash and cash equivalents                           $   1,477,796     $    2,029,681
                                                      ===========================================
Supplemental cash flow information:
   Non-cash activities:
   Stock-based expenses for equity issued to vendors
     for services                                                     -             197,781
   Common stock issued in connection with conversion
     of convertible note                                          7,291                   -

</TABLE>

             See accompanying notes





                                       5

<PAGE>

Notes to Consolidated Financial Statements (Unaudited)

1.   Basis of Presentation

     The accompanying unaudited consolidated financial statements of Emergisoft
Holding, Inc. and Subsidiaries (the Company) for the three months ended March
31, 2002 and 2001 have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for the
three month period ended March 31, 2002 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2002. The balance
sheet at December 31, 2001 has been derived from the audited consolidated
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.

     On March 13, 2002 the Company declared a 20-for-1 reverse stock split
effective March 31, 2002. The effect of this reverse stock split has been
retroactively reflected throughout the financial statements.

2.   Liquidity and Capital Resources

     We have historically financed our operations primarily through private
placements of our common stock and advances from stockholders. On April 1, 2002
we issued 1,000,000 shares in exchange for $100,000 to one of our major
stockholders. In February of 2002, we issued 3,750,000 shares of common stock to
the same stockholder in exchange for $2,000,000. On October 24, 2001, we issued
3,750,000 shares of common stock to the same stockholder in exchange for
$2,000,000.

     In 2001, lines of credit totaling $1,500,000 were made available to us by
two of our stockholders. Throughout 2001 we requested and received advances
totaling $1,500,000 against the lines of credit. In connection with these
advances, warrants were issued allowing the stockholders to purchase in total
300,000 shares of common stock at prices ranging from $15 to $30 per share.
These warrants terminate on dates ranging from April 30, 2006 to August 3, 2011.
The warrants contain a cashless exercise feature and the warrant holders have
registration rights. Under the terms of the promissory notes all outstanding
principal and interest was originally due on April 30, 2002. On October 24, 2001
the two stockholders agreed to extend the maturity on the $1,500,000
indebtedness one year to April 30, 2003. In consideration for the extension, we
reduced the exercise price per share on the warrants issued in connection with
the advances from a weighted average exercise price of $18.00 to $0.534.

     As of May 14, 2002 we had approximately $1,015,000 in cash and cash
equivalents.

     We have also historically issued common stock and stock options to vendors
as consideration for goods and services received. During the first three months
of 2002 we did not issue common stock or stock options to vendors for services.

     Other than funding our ongoing operations, including the development of our
software products, our primary uses of cash have been to acquire fixed assets
and repay our indebtedness. During the first three months of 2002 we acquired
$901 in fixed assets and we repaid $62,455 of our indebtedness.

     On March 28, 2002, a current shareholder of ours committed to provide
financing to us of up to $2,500,000. We may draw on the financing commitment in
whole or in part, from time to time and at any time

                                       6

<PAGE>

prior to June 30, 2003, by giving the shareholder five days advance written
notice. Upon receipt of a draw request from us, the shareholder will fund the
request in exchange for an issuance of our common stock at a per share price of
$.533332. Shares issued to the shareholder under the financing commitment will
be subject to a right of repurchase at $2.40 per share for a period of one year
following the date of issuance. In consideration for the financing commitment by
the shareholder and a further commitment by the shareholder to participate on a
one-third basis with other third parties in a possible future financing, we
agreed to issue 1,000,000 post split shares of our common stock to the
shareholder on April 1, 2002 for $100,000.

     We utilize significant capital to design, develop and commercialize our
products. During 2002, we may need additional capital to further develop or
enhance our current planned product offerings, introduce new products and
services, and to address unanticipated competitive threats, technical problems,
economic conditions or for other requirements. In addition, we may enter into
discussions to merge with or acquire other companies. This additional capital
financing may include the issuance of convertible debt, convertible preferred
stock, common stock or other equity securities in exchange for a cash investment
in us. There can be no assurance that any such additional financing will be
available to us on acceptable terms, or at all. Additional equity financing may
involve substantial dilution to our then existing stockholders. In the event we
are unable to raise additional capital, we may be required to substantially
reduce or curtail our activities

     At May 14, 2002, we had no material commitments for capital expenditures.

3.   Subsequent Events

     On April 1, 2002 Berlwood Five, Ltd. (Berlwood), a current shareholder of
ours, made an additional $100,000 equity investment in exchange for common
stock. Berlwood received 1,000,000 newly issued shares of our common stock in
the transaction.

     The share issuance to Berlwood Five, Ltd. increases the total number of our
issued and outstanding shares of common stock from 9,954,854 to 10,954,854 and
increases Berlwood's percentage ownership interest in our outstanding shares of
capital stock from 83.26% to 84.79%.









                                       7

<PAGE>

                      Management's Discussion and Analysis

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

     This report contains forward-looking statements. Forward-looking statements
include statements concerning plans, objectives, goals, strategies, future
events or performance and underlying assumptions and other statements that are
other than statements of historical facts.

     Words such as, "expects," "anticipates," "estimates," "believes" and
similar expressions are intended to identify forward-looking statements. Such
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. Such risks and uncertainties
are set forth below.

     Our expectations, beliefs and projections are expressed in good faith and
are believed to have a reasonable basis, including, without limitation, our
examination of historical operating trends, data contained in our records and
other data available from third parties, but there can be no assurance that our
expectations, beliefs or projections will result, be achieved or be
accomplished.

     In addition to other factors and matters discussed elsewhere in this
document, the following are important factors that, in our view, could have
material adverse effects on our financial condition and results of operations:
the risk factors discussed in this document; general economic, market or
business conditions; changes in laws or regulations; acceptance of our principal
software product, Emergisoft Modus ED(TM) formerly, CareLyncED(TM), by the
marketplace; competition from developers of software products which perform
functions similar to the functions performed by Emergisoft Modus ED(TM); the
successful implementation of Emergisoft Modus ED(TM) in hospital emergency rooms
who choose to utilize it; and our ability to raise capital in sufficient amounts
and on acceptable terms.

Overview

     We were incorporated under the laws of the State of Colorado in 1989 but
became inactive in July 1997. In 2001, we created and later merged with a Nevada
subsidiary and became a Nevada corporation.

     In May 2001, we changed our name from Pierce International Discovery, Inc.
to Emergisoft Holding, Inc. In addition, on May 25, 2001, EMS Acquisition Corp.,
a Delaware corporation and our wholly-owned subsidiary, merged with and into
Emergisoft Holding, Inc., a Delaware corporation (Emergisoft Delaware). In
accordance with an Agreement and Plan of Merger, we issued one share of our
common stock in exchange for each one share of Emergisoft Delaware common stock
outstanding immediately prior to the closing of the transaction. Pursuant to a
Share Cancellation Agreement by and between us, Emergisoft Delaware and Robert
Kropf, our primary stockholder prior to the merger, 1,168,236 of Robert Kropf's
shares were canceled effective upon the consummation of the merger. The former
stockholders of Emergisoft Delaware owned approximately 94.6% of our common
stock upon consummation of the merger.

     As a result of the Merger, we are now a holding company with Emergisoft
Delaware as a wholly-owned subsidiary. Emergisoft Delaware also has a
wholly-owned subsidiary, Emergisoft Corporation, a Delaware corporation. We and
our direct and indirect subsidiaries operate from our principal offices in
Arlington, Texas. In the remainder of this document the terms "we," "our," and
"us" refer to Emergisoft

                                       8

<PAGE>

Holding, Inc., a Nevada corporation, and, where appropriate, to our direct and
indirect subsidiaries. The term "Emergisoft" refers to Emergisoft Holding, Inc.,
a Delaware corporation and its direct subsidiary.

Business of Emergisoft

     Emergisoft develops and markets software products directly to the emergency
departments of hospitals in the United States. The products automate the pen and
paper-based process of moving patients through the emergency department (ED).
The software is intuitive and is designed by physicians and clinicians to
emulate the systems currently in use. Additionally, it is designed to be faster,
reduce medical errors, increase hospital revenue through improved reimbursement
and improve patient care due to more accurate charting.

Results of Operations for the Quarter Ended March 31, 2002 Compared to the
Quarter Ended March 31, 2001

     Revenues

     We recognize software license revenues consistent with Financial Accounting
Standards Board (FASB) Statement of Position 97-2, SOFTWARE REVENUE RECOGNITION
and Staff Accounting Bulletin 101, REVENUE RECOGNITION IN FINANCIAL STATEMENTS.
These statements provide guidance on applying generally accepted accounting
principles in recognizing revenue.

     During 2001, our revenues were generated by, deferred license fees,
maintenance fees and equipment sales related to our ICUS based product. We have
replaced the ICUS based product called Emergisoft with a newly developed product
called Emergisoft Modus ED(TM) and no longer sell the ICUS based product. We
continue to provide software support to our existing customer base using the
ICUS based product. In 2002 we expect to generate revenue primarily through the
sale and support of Emergisoft Modus ED(TM) and SearchLyncPF(TM). There can be
no assurances that we will be successful in our efforts to sell Emergisoft Modus
ED(TM) and SearchLyncPF(TM).

     We plan to aggressively market our products through direct sales utilizing
our sales staff, advertising campaigns and attendance at tradeshows for
emergency department physicians, nurses and hospital information technology
professionals. No assurances can be given that any of the marketing efforts will
result in revenue.

     We have insignificant revenues under contract and no assurances can be
given that our revenues will increase to a level that would allow us to achieve
profitability.

     Revenues for the quarter ended March 31, 2002 were $80,091 compared to
$109,441 for the quarter ended March 31, 2001. The decrease was due primarily to
license revenue recognized in 2001 of $26,000 compared to none in 2002.
Contracted maintenance and support revenue was $76,921 in 2002 compared to
$82,383 in 2001. We currently have seven clients contracted for support and
maintenance of the ICUS based system. We intend to "sunset" the ICUS based
product within two years and migrate our existing clients to Emergisoft Modus
ED(TM). No assurances can be given that our existing clients will choose to
install Emergisoft Modus ED(TM).

     General and Administrative Expenses

     General and administrative expenses include salaries and benefits,
professional services fees, facilities costs, advertising, and other expenses
related to operations of our executive, sales and financial functions.

     Our general and administrative expenses increased to $1,302,351 in the
first quarter of 2002 from $973,748 in the same period of 2001, an increase of
$328,603. The difference is primarily due to increased salary expenses of
$69,644 which was mostly related to our sales and business development staff,
increases of

                                       9

<PAGE>

$36,277 in legal and professional fees, an increase in insurance expense of
$71,746, an increase in advertising expense of $21,912 and an increase in stock
based compensation expense of $44,470.

     Development Expenses

     Development expenses consist primarily of costs related to the development
and testing of our core product Emergisoft Modus ED(TM) and to a lesser extent
SearchLyncPF. Development expenses were $389,577 in the first quarter of 2002
compared to $953,379 in the same period of 2001, a decrease of $563,802. The
decrease was primarily due to lower outside development costs. Outside
development costs in the first quarter of 2002 were $52,848 compared to $811,698
in the first quarter of 2001, a $758,850 reduction. The decrease reflects
significantly lower resources needed for our product Emergisoft Modus ED(TM).
The reduction in outside development was offset by higher salary and related
personnel expenses in the first three months of 2002 of $171,266. We will
continue to incur development costs related to enhancements to our current
products. We expect the trend toward reduced outside development costs to
continue in 2002.

     Legal Proceedings

     In December 1999, a stockholder and former officer of Emergisoft filed suit
in federal court alleging that we were infringing on a copyright for the ICUS
database and tool set that he claims to own personally. Our current service
offering uses ICUS at all current customer sites. We believe we have an existing
license to use and sublicense ICUS.

     In January 2000, the court issued a preliminary injunction allowing us to
keep one copy of the ICUS source code for purposes of providing support to our
current customers, but prohibiting us from selling and/or marketing the current
ICUS-based product.

     On January 8, 2001, the federal court granted our motion for summary
judgment, dismissing all of the former officer's claims and dissolving the
preliminary injunction. The court is now reviewing the plaintiff's motion to set
aside that summary judgment and our motion for attorney's fees.

     The former officer also has made us a party in his divorce action, which is
pending in a Tarrant County, Texas district court. Many of the claims asserted
in this action are the same or essentially the same as the claims, which were
dismissed by the federal court. We will seek dismissal of those claims at the
appropriate time and contest the remainder of the plaintiff's claims vigorously.

     Liquidity and Capital Resources

     We have historically financed our operations primarily through private
placements of our common stock and advances from stockholders. On April 1, 2002
we issued 1,000,000 shares in exchange for $100,000 to one of our major
stockholders. In February of 2002, we issued 3,750,000 shares of common stock to
the same stockholder in exchange for $2,000,000. On October 24, 2001, we issued
3,750,000 shares of common stock to the same stockholder in exchange for
$2,000,000.

     In 2001, lines of credit totaling $1,500,000 were made available to us by
two of our stockholders. Throughout 2001 we requested and received advances
totaling $1,500,000 against the lines of credit. In connection with these
advances, warrants were issued allowing the stockholders to purchase in total
300,000 shares of common stock at prices ranging from $15 to $30 per share.
These warrants terminate on dates ranging from April 30, 2006 to August 3, 2011.
The warrants contain a cashless exercise feature and the warrant holders have
registration rights. Under the terms of the promissory notes all outstanding
principal and interest was originally due on April 30, 2002. On October 24, 2001
the two stockholders agreed to extend the

                                       10

<PAGE>

maturity on the $1,500,000 indebtedness one year to April 30, 2003. In
consideration for the extension, we reduced the exercise price per share on the
warrants issued in connection with the advances from a weighted average exercise
price of $18.00 to $0.534.

     As of May 14, 2002 we had approximately $1,015,000 in cash and cash
equivalents.

     We have also historically issued common stock and stock options to vendors
as consideration for goods and services received. During the first three months
of 2002 we did not issue common stock or stock options to vendors for services.

     Other than funding our ongoing operations, including the development of our
software products, our primary uses of cash have been to acquire fixed assets
and repay our indebtedness. During the first three months of 2002 we acquired
$901 in fixed assets and we repaid $62,455 of our indebtedness.

     On March 28, 2002, a current shareholder of ours committed to provide
financing to us of up to $2,500,000. We may draw on the financing commitment in
whole or in part, from time to time and at any time prior to June 30, 2003, by
giving the shareholder five days advance written notice. Upon receipt of a draw
request from us, the shareholder will fund the request in exchange for an
issuance of our common stock at a per share price of $.533332. Shares issued to
the shareholder under the financing commitment will be subject to a right of
repurchase at $2.40 per share for a period of one year following the date of
issuance. In consideration for the financing commitment by the shareholder and a
further commitment by the shareholder to participate on a one-third basis with
other third parties in a possible future financing, we agreed to issue 1,000,000
post split shares of our common stock to the shareholder on April 1, 2002 for
$100,000.

     We utilize significant capital to design, develop and commercialize our
products. During 2002, we may need additional capital to further develop or
enhance our current planned product offerings, introduce new products and
services, and to address unanticipated competitive threats, technical problems,
economic conditions or for other requirements. In addition, we may enter into
discussions to merge with or acquire other companies. This additional capital
financing may include the issuance of convertible debt, convertible preferred
stock, common stock or other equity securities in exchange for a cash investment
in us. There can be no assurance that any such additional financing will be
available to us on acceptable terms, or at all. Additional equity financing may
involve substantial dilution to our then existing stockholders. In the event we
are unable to raise additional capital, we may be required to substantially
reduce or curtail our activities

     At May 14, 2002, we had no material commitments for capital expenditures.

Risk Factors

     We have had a history of losses, we expect losses in the future, and there
can be no assurance that we will be profitable in the future.

     For our fiscal year ended December 31, 2001, we incurred net losses of
$6,648,379. As of March 31, 2002, we had an accumulated deficit of $21,950,342.
Management expects these losses to continue in 2002. If our revenues do not
increase substantially, we may never become profitable. Even if we do achieve
profitability, we may not sustain profitability on a quarterly or annual basis
in the future.

     We will require additional financing, but we may be unable to obtain it on
favorable terms or at all.

We will require additional funding to continue operations through 2002. Beyond
2002 we may continue to require additional financing to fund our operations. We
are maintaining an on-going effort to locate sources of

                                       11

<PAGE>

additional financing. However, there can be no assurance that we will be
successful in locating such sources.

     Our ability to obtain additional financing will be subject to a number of
factors, including our operating performance, the terms of existing
indebtedness, and general economic and market conditions. We cannot be certain
that we will be able to obtain additional financing on acceptable terms, if at
all. If we issue additional equity securities to raise capital, our stockholders
may experience significant dilution and the new securities may have rights,
preferences or privileges greater than those of our existing stockholders. If we
cannot obtain additional financing when needed, we may not be able to fund our
operations or to remain in business, which could result in a total loss of your
investment.

     Dependence on Principal Product

     We will expect to derive a significant percentage of our revenue from sales
of our core system, Emergisoft Modus ED(TM). As a result, any event adversely
affecting expected sales of the product could have a material adverse effect on
our results of operations, financial condition or business. Revenue associated
with Emergisoft Modus ED(TM) could fail to materialize as a result of several
factors, including price competition and sales practices. There can be no
assurance that we will be successful in marketing our current products or any
new or enhanced products.

     Dependence on Proprietary Software

     Our success is dependent to a significant extent on our ability to protect
the proprietary and confidential aspects of our software technology. Our
software technology is not patented and existing copyright laws offer only
limited practical protection. We rely on a combination of trade secret,
copyright and trademark laws, license agreements, nondisclosure and other
contractual provisions and technical measures to establish and protect our
proprietary rights in our products. There can be no assurance that the legal
protections afforded to us or the steps taken by us will be adequate to prevent
misappropriation of our technology. In addition, these protections do not
prevent independent third-party development of competitive products or services.
We believe that our products, trademarks and other proprietary rights do not
infringe upon the proprietary rights of third parties. There can be no
assurance, however, that third parties will not assert infringement claims
against us in the future or that any such assertion will not require us to enter
into a license agreement or royalty arrangement with the party asserting the
claim. As competing healthcare information systems increase in complexity and
overall capabilities and the functionality of these systems further overlap,
providers of such systems may become increasingly subject to infringement
claims. Responding to and defending any such claims may distract the attention
of our management and otherwise have a material adverse effect on our results of
operations, financial condition or business.

     Risks Related to Technological Change and New Product Development

     The market for our products is characterized by rapid change and
technological advances requiring ongoing expenditures for research and
development and the timely introduction of new products and enhancements of
existing products. Our future success will depend in part upon the ability to
enhance our current products, to respond effectively to technological changes,
to sell additional products to our existing client base and to introduce new
products and technologies that address the increasingly sophisticated needs of
our clients. We will devote significant resources to the development of
enhancements to our existing products and the migration of existing products to
new software platforms. There can be no assurance that we will successfully
complete the development of new products or the migration of products to new
platforms or that our current or future products will satisfy the needs of the
market for ED software systems. Further, there can be no assurance that products
or technologies developed by others will not adversely affect our competitive
position or render our products or technologies noncompetitive or obsolete.

                                       12

<PAGE>

     Quality Assurance and Product Acceptance Concerns

     Healthcare providers demand the highest level of reliability and quality
from their information systems. Although we devote substantial resources to
meeting these demands, our products may, from time to time, contain errors. Such
errors may result in loss of, or delay in, market acceptance of our products.
Delays or difficulties associated with new product introductions or product
enhancements could have a material adverse effect on our results of operations,
financial condition or business.

     Many healthcare providers are consolidating to create integrated healthcare
delivery systems with greater market power. These providers may try to use their
market power to negotiate price reductions for our products and services. As the
healthcare industry consolidates, our client base could be eroded, competition
for clients could become more intense and the importance of acquiring each
client is likely to become greater.

     Reliance on Third Party Vendors

     We depend on third-party suppliers to provide data related to our online
patient demographic and insurance eligibility verification tool and hardware and
software suppliers related to our other products. We cannot be sure that our
suppliers will continue to sell or lease their products and services to us at
commercially reasonable prices or at all. Difficulties in developing alternative
sources of supply, if required, could adversely affect our business.

     We Depend on Protection of Our Proprietary Rights

     We rely on a combination of copyright, trademark and trade secret laws to
protect our proprietary rights. We cannot be certain that the steps we have
taken will be adequate to prevent the misappropriation of our technology or that
third parties, including competitors, will not independently develop
technologies that are substantially equivalent or superior to our proprietary
technology.

     Risk of Product-Related Claims

     Certain of our products provide applications that relate to patient medical
records and treatment plans. Any failure of the products to provide accurate,
confidential and timely information could result in product liability or breach
of contract claims against us by our clients, their patients or others. We
intend to maintain insurance to protect against claims associated with the use
of our products, but there can be no assurance that such insurance coverage will
be available at a reasonable cost or, if available, will adequately cover any
claim asserted against us. A successful claim brought against us in excess of
our insurance coverage could have a material adverse effect on our results of
operations, financial condition or business. Even unsuccessful claims could
result in the expenditure of funds in litigation, as well as diversion of
management time and resources. There can be no assurance that we will not be
subject to product liability or breach of contract claims, that such claims will
not result in liability in excess of our insurance coverage, that our insurance
will cover such claims or that appropriate insurance will continue to be
available to us in the future at commercially reasonable rates. Emergisoft has
had actual claims related to the premature release of its Windows based product
in 1997. These claims have currently been settled; however, we can give no
assurance that we will not have similar or other product related claims, or that
we could settle other similar product related claims.

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<PAGE>

     Risks Associated with Government Regulation

     The healthcare industry in the United States is subject to changing
political, economic and regulatory influences that may affect the procurement
practices and operations of healthcare organizations. During the past several
years, the healthcare industry has been subject to increasing levels of
government regulation of, among other things, reimbursement rates and certain
capital expenditures. From time to time, certain proposals to reform the
healthcare system have been considered by Congress. These proposals, if enacted,
may increase government involvement in healthcare, lower reimbursement rates and
otherwise change the operating environment for our clients. Healthcare
organizations may react to these proposals and the uncertainty surrounding such
proposals by curtailing or deferring investments, including those for our
products and services. We cannot predict with any certainty what impact, if any,
such proposals or healthcare reforms might have on our results of operations,
financial condition or business.

     Control by Existing Management and Stockholders

     Our directors, executive officers and holders of more than 5% of our shares
beneficially own approximately 87% of the outstanding shares of our common
stock. An agreement or understanding to act in concert would allow them to
continue to exercise control over our affairs, to elect the entire Board of
Directors and to control the disposition of any matter submitted to a vote of
stockholders.

     Reliance on Management and Key Personnel

     Management decisions of our business will be made exclusively by our
directors and officers. Our stockholders will have no right or power to take
part in management other than their right to vote for the election of our
directors. Our operations are dependent on the continued efforts of our
executive officers and senior management. Furthermore, we will likely be
dependent on the senior management of any businesses acquired in the future. If
any of these persons becomes unable or unwilling to continue in his or her role
with us, or if we are unable to attract and retain other qualified employees,
our business or prospects could be adversely affected. Although we have entered
into an employment agreement, which includes confidentiality and non-compete
provisions, with each of our key executive officers, there can be no assurance
that any individual will continue in his present capacity with us for any
particular period of time. Our success is also dependent to a significant degree
on our ability to attract, motivate and retain highly skilled sales, marketing
and technical personnel, including software programmers and systems architects
skilled in the computer language with which our products operate. The loss of
key personnel or the inability to hire or retain qualified personnel could have
a material adverse effect on our results of operations, financial condition or
business. Although we have been successful to date in attracting and retaining
skilled personnel, there can be no assurance that we will continue to be
successful in attracting and retaining the personnel we require to successfully
develop new and enhanced products and to continue to grow and operate
profitably.

     Possible Volatility of Stock Price

     The market price of our common stock may be subject to significant
fluctuations in response to numerous factors, including variations in our annual
or quarterly financial results or our competitors, changes by financial research
analysts in their estimates of our earnings, conditions in the economy in
general or in the healthcare or technology sectors in particular, announcements
of technological innovations or new products or services by us or our
competitors, proprietary rights development, unfavorable publicity or changes in
applicable laws and regulations (or judicial or administrative interpretations
thereof) affecting us or the healthcare or technology sectors. Moreover, from
time to time, the stock market experiences significant price and volume
volatility that may affect the market price of the common stock for reasons
unrelated to our performance.

                                       14

<PAGE>


     Competition

     We experience significant competition in conducting our business, and we
expect such competition to continue to increase. A number of our competitors
offer a broader variety of services and products and may have done so for longer
periods of time. Our current and prospective competitors include large
companies, some of which may be better known than us and may have greater
financial, technical and marketing resources than we do.

     As a result of increased competition in our industry, we expect to
encounter significant pricing pressure. We cannot be certain that we will be
able to offset the effects of any required price reductions through an increase
in the volume of our sales, higher revenues from other business services, cost
reduction or otherwise, or that we will have the resources to continue to
compete successfully. You should read "Description of Business; Competition" for
further discussion of the competitors in our industry and competing products.

                          PART II. - OTHER INFORMATION

Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         Berlwood Five, Ltd., a current shareholder of ours, made an additional
$2,000,000 equity investment in us on February 15, 2002. Berlwood received
3,750,000 newly issued shares of our common stock in the transaction.

         The Company declared a 20-for-1 reverse stock split effective March 31,
2002.

Item 3.  Defaults Upon Senior Securities

         NONE

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

         NONE

Item 5.  Other Information

         NONE

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<PAGE>

Item 6.  Exhibits and Reports on Form 8-K

(a) The exhibits listed on the accompanying Exhibit Index are filed as part of
this quarterly report.

      Exhibit No.       Sequential Description

     2.1  Agreement and Plan of Merger, dated March 28, 2001, among Emergisoft
          Holding, Inc., a Nevada corporation (f/k/a Pierce International
          Discovery, Inc.), EMS Acquisition Corp. and Emergisoft Holding, Inc.,
          a Delaware corporation (filed as Exhibit 2.1 to Emergisoft's Form 8-K
          filed June 4, 2001 and incorporated herein by reference).

     3.1  Articles of Incorporation of Emergisoft Holding, Inc. (filed as
          Exhibit 3.1 to Emergisoft's Form 8K-A filed August 2, 2001 and
          incorporated herein by reference).

     3.2  Articles of Amendment to the Articles of Incorporation, dated May 9,
          1999 (filed as Exhibit 3.2 to Emergisoft's Form 8K-A filed August 2,
          2001 and incorporated herein by reference).

     3.4  Articles of Amendment to the Articles of Incorporation, dated January
          17, 2001 (filed as Exhibit 3.4 to Emergisoft's Form 8K-A filed August
          2, 2001 and incorporated herein by reference).

     3.5  Bylaws of Emergisoft Holding, Inc. (filed as Exhibit 3.5 to
          Emergisoft's Form 8K-A filed August 2, 2001 and incorporated herein by
          reference).

     4.1  Investment Letter and Grant of Repurchase Right, dated October 24,
          2001 (filed as Exhibit 4.1 to Emergisoft's Form 8-K filed November 8,
          2001 and incorporated herein by reference).

     4.2  Letter Agreement between Berlwood Five, Ltd. and Emergisoft Holding,
          Inc., dated October 24, 2001 (filed as Exhibit 4.2 to Emergisoft's
          Form 8-K filed November 8, 2001 and incorporated herein by reference).

     4.3  Letter Agreement between Woodcrest Capital LLC, Westpoint Investors
          Limited Partnership and Emergisoft Holding, Inc., dated October 24,
          2001 (filed as Exhibit 4.3 to Emergisoft's Form 8-K filed November 8,
          2001 and incorporated herein by reference).

     +10.1 Emergisoft Holding, Inc. 2001 Stock Incentive Plan (filed as exhibit
          10.1 to Emergisoft's Form 10K-SB filed on April 1, 2002 and
          incorporated herein by reference).

     +10.2 Emergisoft Holding, Inc. 2001 Non-Employee Director Stock Option Plan
          (filed as exhibit 10.2 to Emergisoft's Form 10K-SB filed on April 1,
          2002 and incorporated herein by reference).

          +Identifies management contracts and compensatory plans or
          arrangements

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<PAGE>

(b) We filed the following reports on form 8-K during the fiscal quarter ended
March 31, 2002

     On February 15, 2002 we reported that Berlwood Five, Ltd., a current
shareholder of ours, made an additional $2,000,000 equity investment in us on
February 15, 2002. Berlwood Five, Ltd received 3,750,000 newly issued shares of
our common stock in the transaction. It used private funds to pay the
consideration for the shares. We have the right, but not the obligation, to
repurchase all or any portion of the 3,750,000 shares at a repurchase price per
share of $1.20, exercisable at any time prior to October 24, 2002. On or after
October 24, 2002, we have the right, but not the obligation, to repurchase all
or any portion of the 3,750,000 shares at a repurchase price per share of $2.40,
exercisable at any time prior to February 15, 2003.

                                   Signatures

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

                                          Emergisoft Holding, Inc.




Date: May 14, 2002                        By: /s/ Dan Witte
                                             -----------------------------------
                                              Dan Witte
                                              Chairman of the Board
                                              and Chief Executive Officer

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