<PAGE>



                  SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB


Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

For the quarterly period ended       December 31, 1998

                    -------------------------
                  COMMISSION FILE NUMBER O-17580
                    -------------------------

                          FIRETECTOR  INC.
               -----------------------------------
(Exact name of small business issuer as specified in its charter)


               Delaware                       11-2941299
     ---------------------------     -----------------------------
      (State or jurisdiction of      (IRS Employer identification
   incorporation or organization)               Number)


262 Duffy Avenue, Hicksville, New York               11801
---------------------------------------             ---------
(Address of principal executive offices)           (Zip Code)

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


     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the Exchange  Act during the  preceding 12 months (or for
such shorter period that Registrant was required to file such reports),  and (2)
has been subject to such filing  requirements for the past 90 days. Yes [X] No [
]


     State the number of shares  outstanding of each of the issuer's  classes of
common  equity,  as of the latest  practicable  date:  As of February  10, 1998,
1,571,097 shares of Registrant's Common Stock were issued and outstanding.

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





                                        1

<PAGE>
                                      INDEX

                                                                            Page
Part I - Financial Information (unaudited)

         Item 1.  Financial Statements.

          Consolidated Balance Sheet as at December 31, 1998                   4

          Consolidated Statements of Operations for the Three Month            6
            Periods Ended December 31, 1998 and 1997

          Consolidated Statements of Cash Flows for the Three                  7
            Month Periods Ended December 31, 1998 and 1997


          Notes to Consolidated Financial Statements                           8

         Item 2.  Management's Discussion and Analysis of Financial           11
                  Condition and Results of Operations

Part II - Other Information

         Item 1.    Legal Proceedings.                                        13

         Item 2.    Changes in Securities.                                    13

         Item 3.    Defaults Upon Senior Securities.                          13

         Item 4.    Submission of Matters to a Vote of Security.              13
                     Holders.

         Item 5.    Other Information.                                        13

         Item 6.    Exhibits and Reports on Form 8-K                          13

         Signatures                                                           14
























                                        2


<PAGE>



                         Part I - FINANCIAL INFORMATION

                  Beginning on the following  page is the financial  information
required to be filed as part of Part I of this Report.























































                                       3


<PAGE>

                      Part I - FINANCIAL INFORMATION

                   Firetector Inc. and Subsidiaries
                       Consolidated Balance Sheet
                               Unaudited


                                                 December 31,
                                                    1998
                                              ----------------
ASSETS
Current assets:
  Cash and cash equivalents                    $     18,785
  Accounts receivable, principally
   trade, less allowance for
    doubtful accounts of  $208,441                4,584,296
  Inventories                                     2,113,580
  Deferred taxes                                    168,000
  Prepaid expenses and other current assets         156,805
                                                -------------
TOTAL CURRENT ASSETS                              7,041,466
                                                -------------

Property, Plant and Equipment at cost, less
 accumulated depreciation and
 amortization of $856,347                           318,958
Software Development Costs, net                       2,322
Other Assets                                        268,958
Deferred Taxes                                      171,000
                                               -------------
Total assets                                     $7,802,704
                                               =============


See accompanying Notes to the Consolidated Financial Statements.


























                                        4

<PAGE>



                   Firetector Inc. and Subsidiaries
                 Consolidated Balance Sheet (continued)
                            Unaudited


                                                      December 31,
                                                         1998
                                                   ------------------
  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable to Mirtronics                           $  402,797
  Notes payable-principally to affiliate                   63,139
  Accounts payable and accrued expenses                 1,702,964
  Unearned service revenue                                275,911
  Current portion of capital lease obligations             24,797
                                                      ------------
TOTAL CURRENT LIABILITIES                               2,469,608

  Note payable to bank                                  1,566,378
  Other notes payable,  less current portion              208,393
  Capital lease  obligations,  less current portion        12,351
                                                      ------------
TOTAL LIABILITIES                                       4,256,730
                                                      ------------


STOCKHOLDERS' EQUITY:
  Convertible preferred stock, 2,000,000
    shares authorized - none issued
    and outstanding
  Common stock, 25,000,000 shares authorized,
    $.001 par value; issued and outstanding
    1,571,097 shares                                        1,571
  Capital in excess of par                              5,158,624
  Deficit                                              (1,614,221)
                                                      -----------
TOTAL STOCKHOLDERS' EQUITY                              3,545,974
                                                      -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $7,802,704
                                                      ===========


See accompanying Notes to the Consolidated Financial Statements.
















                                        5

<PAGE>
                  Firetector Inc. and Subsidiaries
           Consolidated Statements of Operations (Unaudited)


                           For The Three Months Ended
                                  December 31,
                                    1998 1997
                                        -----------      ----------
Net sales                               $2,559,069       $1,719,812
Service revenues                         1,001,247        1,127,541
                                        -----------      ----------
Total revenues                           3,560,316        2,847,353
                                        -----------      ----------

Cost of sales                            1,614,488        1,109,366
Cost of service                            675,477          669,276
Selling, general and administrative      1,016,790          961,319
Interest expense                            51,271           55,239
Depreciation and amortization expense       51,804           52,076
Other (income) net                                          (10,055)
                                        -----------       ----------
                                         3,409,830        2,837,221
                                        -----------       ----------
Income from operations before
 provision for income taxes                150,486           10,132

Provision for income taxes:
 Current                                    15,000            4,000
 Deferred                                   35,000
                                         ----------       ----------
                                            50,000            4,000
                                         ----------       ----------
Net income                               $ 100,486       $    6,132
                                         =========        ==========

Earnings per common share
  Basic earnings per share                $   0.06       $      nil
  Diluted earnings per share              $   0.06       $      nil
                                         =========        ==========
Weighted average number of common
  shares outstanding                      1,571,097       1,176,522

Weighted average number of common
  and potential dilutive
  common shares outstanding               1,913,790       2,224,803



See accompanying Notes to the Consolidated Financial Statements.











                                        6
<PAGE>

                   Firetector Inc. and Subsidiaries
               Consolidated Statements of Cash Flows (Unaudited)

                                                For The Three Months Ended
                                                      December 31,
                                                    1998          1997
                                                 ---------     ---------
OPERATING ACTIVITIES
Net income                                       $100,486      $  6,132
Adjustments to reconcile net income to
 net cash provided by (used in)
 operating activities:
  Depreciation and amortization                    51,804        60,885
  Provision for doubtful accounts                  18,000        18,000
Changes in operating assets and liabilities:
  Accounts receivable                             266,146       (79,101)
  Inventories, prepaid expenses and other
   current assets                                (243,026)       19,723
  Accounts receivable from affiliated
   companies                                                    (28,394)
  Other assets                                     37,823        45,735
  Accounts payable and accrued expenses           (34,935)     (155,968)
  Unearned service revenue                        (67,024)       25,206
  Due to affiliated companies                                     1,751
                                                 ---------     ---------
NET CASH PROVIDED (USED IN) BY OPERATING
  ACTIVITIES                                      129,274       (86,031)
                                                 ---------     ---------
INVESTING ACTIVITIES
 Purchases of property and equipment              (17,995)      (13,552)
                                                 ---------     ---------
NET CASH (USED IN) INVESTING ACTIVITIES           (17,995)      (13,552)
                                                 ---------     ---------
FINANCING ACTIVITIES
 Principal payments on revolving line of
  credit, long term debt, notes payable
  and capital lease obligations                  (207,228)      (43,604)
 Proceeds from revolving line of credit,
  notes payable and capital
  lease obligations                                 9,824         1,841
                                                 ---------     ---------
NET CASH (USED IN)FINANCING ACTIVITIES           (197,404)      (41,763)
                                                 ---------     ---------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                (86,125)     (141,346)
Cash and cash equivalents at beginning
  of period                                       104,914       579,052
                                                 ---------     ---------
Cash and cash equivalents at end of period       $ 18,789      $437,706
                                                 =========     =========


See accompanying Notes to the Consolidated Financial Statements.









                                        7
<PAGE>

                        FIRETECTOR INC. AND SUBSIDIARIES

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 1998

                                   (UNAUDITED)


1. BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information.
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.
Results  for the  three  months  ended  December  31,  1998 are not  necessarily
indicative  of the  results  that may be  expected  for the fiscal  year  ending
September 30, 1999. For further information, refer to the consolidated financial
statements and footnotes thereto included in Firetector Inc. ("the Company") and
Subsidiary's annual report on Form 10-KSB for the year ended September 30, 1998.


2. INVENTORY

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

3. LONG TERM DEBT

The  Company has a revolving  credit  facility  with  Citizens  Business  Credit
Company of Boston,  Mass, (the "Credit Facility").  The credit facility provides
for a $3,000,000  revolving line of credit for the three year period ending June
2001.  The Credit  Facility  provides  for  interest  at prime rate plus 3/4% on
outstanding balances. At December 31, 1998 $1,556,378 was outstanding under this
facility.  Advances under the credit  facility are measured  against a borrowing
base calculated on eligible  receivables  and inventory.  The credit facility is
secured  by  all  of  the  assets  of the  Company  and  all  of  its  operating
subsidiaries,  as well as a $300,000  letter of credit  provided  by  Mirtronics
Inc., the Company's largest stockholder ("Mirtronics"),

The Credit Facility includes 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.  At  December  31,  1998,  the  Company was not in default of any of its
covenants.


     4.       NOTE PAYABLE TO MIRTRONICS

At December 31, 1998, the note payable to Mirtronics totaled $402,797.  The note
may be converted into 310,000 shares of the Company's  common stock at $1.02 per
share until  December 31, 2003.  While this note is payable on demand,  they are
subordinate to and subject to a payment  restriction  under the Company's Credit
Facility with it's bank.







                                        8


<PAGE>
                        FIRETECTOR INC. AND SUBSIDIARIES

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 1998

                                   (UNAUDITED)

5. TRANSACTIONS WITH RELATED PARTIES

In  consideration  of collateral  support for a previous credit facility for the
Company  and  various  loans over  several  years,  the  Company  had granted to
Mirtronics  options to purchase the Company's  Common Stock.  Mirtronics had the
right to acquire up to an  aggregate  of  613,333  shares of common  stock at an
exercise  price of $.90 per share,  a portion of which were held for the benefit
of the  Company's  Chairman.  These  options were to expire on December 31, 1998
(See  Note  12).  In  addition,  the  Company  had  previously  entered  into  a
Debt/Equity Agreement with Mirtronics,  that provided for the retirement of debt
and the issuance to Mirtronics of $675,000 of Preferred Stock,  which could also
be converted into 450,000 shares of common stock.

In February 1998, the Company and Mirtronics  reached an agreement to reorganize
the options,  convertible  debt and preferred  stock held by Mirtronics so as to
reduce the potential  dilution of these  securities by 366,667  shares of common
stock.  Under this  agreement,  Firetector  redeemed the $675,000 of Convertible
Preferred  Stock and  $170,000 of  convertible  debt for an  aggregate  price of
$845,000. These securities were convertible into 563,333 shares of common stock.
In satisfaction  thereof,  Firetector  issued a $620,000  Convertible  Note with
interest at 10% (payable  upon demand and  convertible  into  413,333  shares of
common stock at a conversion  price of $1.50 per share until December 31, 2002),
and a $225,000  Note  (without a  convertible  feature),  with  interest at 10%,
payable upon demand.  The foregoing notes are limited as to repayment based upon
covenant  requirements  and  borrowing  availability  under  the  terms  of  the
Company's  Credit  Facility.   Also  in  connection  with  this  reorganization,
Mirtronics   exercised  613,333  options  for  common  stock  for  an  aggregate
consideration of $552,000 and Firetector simultaneously  repurchased and retired
216,667 of the newly issued shares for $552,000.

In September  1998,  the Company  entered into a Debt  Matching  Agreement  with
Mirtronics  whereby an aggregate of $508,619 due to Firetector by Mirtronics was
applied  to  reduce  the  notes  payable  and  interest  due  by  Firetector  to
Mirtronics.  As a  consequence  of this debt  matching  agreement,  the $225,000
Non-Convertible  note with  interest  of $13,870 was  satisfied  in full and the
$620,000  Convertible Note with interest of $38,219 was reduced to a new balance
of $392,973. In addition,  the right to convert this note into 413,333 shares of
common  stock was  surrendered  in  consideration  for a new warrant to purchase
310,000  shares of common stock (the "1998  warrants").  These 1998 warrants are
exercisable at anytime until December 31, 2003 at an exercise price of $1.02 per
share.

In  consideration  of collateral  support for the Company's  Credit  Facility in
1994, the Company granted Genterra Capital Corporation,  an Ontario Corporation,
("GCC"  formerly  known as First  Corporate  Capital  Inc.)  options for 166,667
unregistered  shares of the  Company's  common  stock at $.90 per share  through
December 31, 1999. In July 1996,  GCC exercised  33,334 of these options at $.90
per share. An officer of GCC is also a director of Mirtronics.

At the  termination of employment of an  officer/director  of the Company (other
than for  cause),  the  officer  was  granted  the right to cause the Company to
repurchase  up to 8,437  shares of common stock from the  officer/director  at a
price of $38.88 per share by means of a seven year  installment  promissory note
bearing interest of 4% per annum. On December 1, 1996 the officer  exercised the
option and,  commencing January 1, 1997, the Company repurchased 8,437 shares at
a price of $38.88 payable monthly over seven years at an interest rate of 4% per
annum.  In  October  1991,  the  Company,  as a  provision  of a  new  four-year
employment  agreement  with the  officer/director,  granted  options to purchase
2,917 shares of common stock at $1.00 per share  exercisable  through  March 15,
2001.



                                     9
<PAGE>
                        FIRETECTOR INC. AND SUBSIDIARIES

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 1998

                                   (UNAUDITED)
6.  EARNINGS PER SHARE

The  Financial  Accounting  Standards  Board issued SFAS No. 128  "Earnings  Per
Shares" which requires  companies to report basic and diluted earnings per share
("EPS")  computations  effective with the Company's  quarter ending December 31,
1997. 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,  warrants  and  convertible  notes  and
preferred  stock.  The computation for the three months ending December 31, 1997
has been restated to conform to the requirements of SFAS N0. 128. Shown below is
a table that sets forth the respective calculations for basic and diluted EPS:


                                         For the Three Months ended December 31,
 Basic EPS Computation                                 1998               1997
                                                       ----               ----
  Net Income available to common shareholders       $100,486           $6,132
  Weighted average outstanding shares              1,571,097        1,176,522

  Basic EPS                                             $.06          $.nil
                                                       =====          ======

Diluted EPS Computation                  For the Three Months ended December 31,

                                                       1998             1997
                                                       ----             ----
  Income available to common stockholders
    and assumed  conversions                        $107,363           $6,132
                                                    --------           ------

  Weighted-average shares                          1,571,097        1,176,522
                                                   ---------       ----------
  Plus:  Incremental shares from assumed
            conversions
         Non Employee Stock Option                    26,061          520,208
         Convertible preferred stock                                  450,000
         Convertible debt                            310,000           78,073
         Employee Stock Options*                       6,633

          Warrants*                                _________      ___________
        Dilutive potential common shares             342,694        1,048,281
                                                     -------        ---------
  Adjusted weighted-average shares                 1,913,790        2,224,803

  Diluted EPS                                           $.06             $nil
                                                   =========      ============

*Warrants and employee stock options  convertible into 33,334 and 106,292 shares
were  antidilutive for the three month periods ended December 31, 1998 and 1997,
respectively.











                                        10

<PAGE>


Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
(Unaudited)


Liquidity and Capital Resources

In June 1998, the Company  signed a three-year  revolving  credit  facility with
Citizens Business Credit Company of Boston, (the "Credit Facility").  The Credit
Facility  provides  for a $3,000,000  revolving  line of credit for a three year
period through June,  2001. The Credit  Facility  provides for interest at prime
plus 3/4% 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,  as well as a $300,000 letter of credit provided
by Mirtronics.

The Credit Facility includes various 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.
At December 31, 1998,  the Company was not in default with any of its  financial
covenants.

Initial  proceeds from the Credit Facility  amounting to $1,716,415 were used to
pay off principal and interest due on the Company's previous loan agreement with
another bank. The Company owed $1,566,378  under the credit facility at December
31, 1998.

Net cash  provided by  operations  for the three months ended  December 31, 1998
amounted to $129,274 as compared to cash being used by operations of $86,031 for
the comparable prior year period.  The primary reason for the improved cash flow
from operations was the increase in income from operations.

The ratio of the Company's  current assets to current  liabilities  increased to
approximately 2.85 to 1 at December 31, 1998 from 2.09 to 1 at December 31, 1997
due to the non-current classification of the Credit Facility.

Results of Operations

The Company's  product  revenues during the three months ended December 31, 1998
were $2,559,069 as compared to $1,719,812 for the comparable  prior year period.
This represents a 49% increase in product revenues  resulting from certain large
NYC projects where the Company acts as prime contractor, increased sales from an
audio  project,  and  increased  business in the Dallas  market  area. A portion
($263,000)  of the  product  revenue  increase  was  derived  from work that was
completed by subcontractors for the Company and involves lower than normal gross
margin.

Service  revenues  decreased  10%  during  the  current  three  month  period to
$1,001,247  from  $1,127,541 in the comparable  prior year period.  The decrease
reflects lower call-in maintenance service on fire systems,  reduced pricing due
to  competition  and from the fact  that  personnel  were  diverted  to  certain
critical installation projects.

Gross profit on product  revenues  for the three months ended  December 31, 1998
increased 55% to $944,581 as compared to $610,446 in the  comparable  prior year
period. This increase is due to the 49% increase in product revenues noted above
and the resulting overhead absorption.




                                    11
<PAGE>


2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations
(Unaudited)

Gross profit on service  revenues  for the three months ended  December 31, 1998
declined  to 32% as  compared  with 41% for the  comparable  1997  period.  This
decline is attributed to decreased  revenues on essentially  fixed overhead cost
structure.

Income from  operating  activities for the three month period ended December 31,
1997  increased to $150,486 as compared to  operating  income of $10,132 for the
comparable  1997  period.   This  increase  in  operating  income  is  primarily
attributed  to the 49%  increase  in  product  revenues.  This  contribution  to
operating income was mitigated to some extent by increased selling,  general and
administrative  expenses.  During  the  last  twelve  months,  the  Company  has
intensified  its  marketing  efforts and  expanded its product  territory.  As a
result the Company has  experienced  an improvement  in new order  bookings,  as
noted below.  During the 1997 period,  other income represents interest on notes
receivable from Mirtronics.  These obligations  where  extinguished in September
1998  through a Debt  Matching  agreement  that  reduced a like  amount of notes
payable due to Mirtronics.

The Company  had a deferred  income tax  provision  in 1998 which  reflects  the
reduction of the deferred  tax asset due to  utilization  of that portion of its
net operating loss that was recorded in prior years.  The deferred tax provision
will not require the outlay of cash as the Company has a net operating  loss for
tax  purposes of  approximately  $730,000 at December 31,  1998.  The  Company's
current  income  tax  provision   represents  state  and  local  taxes  and  the
alternative minimum tax for federal income purposes.

The Company order position,  excluding service, at December 31, 1998 amounted to
$9,300,000 as compared to  $9,600,000  at September  30, 1998 and  $5,100,000 at
December  31,  1997.  The  higher  level of order  position  during the last two
quarters reflects in part the Company's recent  intensified  marketing  efforts.
The higher order position  reflects the receipt of  significant  new orders from
several major subway complexes,  an auction house and a museum.  Due to the fact
that  the  Company's   products  are  sold  and  installed  as  part  of  larger
construction  on mass transit  projects,  there is typically a delay between the
booking of the  contract  and its revenue  realization.  The Company  expects to
fulfill  the  majority of its backlog  over the next  twelve  months.  The order
position  includes,  and the Company  continues  to bid on  projects  that might
include  significant  subcontractor  labor,  involving  low margin but setting a
platform  for  future  product  additions,   tenant  installations  and  service
revenues.
















                                       12
<PAGE>



                        Part II - OTHER INFORMATION

Item 1.   Legal Proceedings.

               Not Applicable

Item 2.   Changes in Securities.

               Not Applicable

Item 3.   Defaults Upon Senior Securities.

               Not Applicable

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

               Not Applicable

Item 5.   Other Information.


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

          a. Exhibits.

             Ex-27  Financial data Schedule                            15


          b. Reports on Form 8-K.

          No Reports on Form 8-K were filed  during the quarter  ended  December
31, 1998.


                                       13
<PAGE>



                                SIGNATURES

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


                                   FIRETECTOR, INC.
                                   (Registrant)


Date: February 10, 1999            /S/JOHN A. POSERINA
                                  -----------------------------
                                  John A. Poserina, Chief Financial Officer, and
                                  Secretary






































                                       14