U.S. SECURITIES AND EXCHANGE
                             COMMISSION Washington,
                                   D. C. 20549

                                   FORM 10-QSB

(Mark One)
[X]    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
       OF 1934
             For the fiscal quarter ended      June 30, 2003
                                              -------------

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

             Commission file number       0-17580
                                         -------

                              SYNERGX SYSTEMS INC.
                          (formerly, Firetector, Inc.)
                    -----------------------------------------
        (Exact name of small business issuer as specified in its charter)

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


                  209 Lafayette Drive, Syosset, New York 11791
               (Address of Principal Executive Offices) (Zip code)


                                 (516) 433-4700
                           ---------------------------
                           (Issuer's telephone number)

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 August 13, 2003, 4,048,850
shares of Registrant's Common Stock were issued and outstanding.

Transitional Small Business Disclosure Format (check one)  Yes[    ] No[ X ]
<PAGE>

                                      INDEX


Part I - Financial Information (unaudited)                             Page

    Item 1.  Financial Statements.

    Condensed Consolidated Balance Sheet at June 30, 2003                 3

    Condensed Consolidated Statements of Operations for the Three Month
         Periods Ended June 30, 2003 and 2002                             5

    Condensed Consolidated Statements of Operations for the Nine Month
         Periods Ended June 30, 2003 and 2002                             6

    Condensed Consolidated Statements of Cash Flows for the Nine Month
         Periods Ended June 30, 2003 and 2002                             7

    Notes to Condensed Consolidated Financial Statements                  8

    Item 2.  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                    13

    Item 3.   Controls and Procedures                                    17

Part II - Other Information

    Item 1.  Legal Proceedings.                                          18

    Item 2.  Changes in Securities.                                      18

    Item 3.  Defaults Upon Senior Securities.                            18

    Item 4.  Submission of Matters to a Vote of Security Holders.        18

    Item 5.  Other Information.                                          19

    Item 6.  Exhibits and Reports on Form 8-K                            19

    Signatures                                                           20

<PAGE>

                         Part I - FINANCIAL INFORMATION

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)



                                                                      June 30,
                                                                        2003
                                                                     -----------
ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                         $   140,381
  Accounts receivable, principally trade, less allowance
     for doubtful accounts of $421,405                                5,319,065
  Inventories                                                         2,841,731
  Deferred taxes                                                        335,800
  Prepaid expenses and other current assets                             452,488
                                                                     -----------
TOTAL CURRENT ASSETS                                                  9,089,465
                                                                     -----------

PROPERTY AND EQUIPMENT -at cost, less
   accumulated depreciation and amortization of $1,343,434              400,336

OTHER ASSETS                                                            622,518




                                                                    ------------
TOTAL ASSETS                                                        $10,112,319
                                                                    ============

See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                      CONDENSED CONSOLIDATED BALANCE SHEET
                                   (Unaudited)



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

CURRENT LIABILITIES

   Notes payable - principally to related party                     $    61,732
   Accounts payable and accrued expenses                              2,694,641
   Deferred revenue                                                     503,015
   Current portion of capital lease obligations                          20,590
                                                                     -----------
 TOTAL CURRENT LIABILITIES                                            3,279,978



   Note payable to bank                                               1,446,988
   Notes payable - principally to related party, less
    current portion                                                      52,553
   Capital lease obligations, less current portion                       28,640
   Deferred taxes                                                        11,600
                                                                     -----------
TOTAL LIABILITIES                                                     4,819,759
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 4,048,850 shares                   4,048
  Capital in excess of par                                            5,953,380
  Accumulated deficit                                                  (664,868)
                                                                     -----------
TOTAL STOCKHOLDERS' EQUITY                                            5,292,560
                                                                     -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                          $10,112,319
                                                                     ===========

See accompanying Notes to the Condensed Consolidated Financial Statements


<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                For the  Three Months Ended June 30,
                                                                  2003                      2002
                                                              -----------               -----------
<S>                                                          <C>                       <C>
Product sales                                                $ 3,442,433               $ 2,838,862
Subcontract sales                                                 65,250                   621,850
Service revenue                                                1,150,175                 1,170,698
                                                              -----------               -----------
Total revenues                                                 4,657,858                 4,631,410
                                                              -----------               -----------

Cost of product sales                                          2,280,600                 1,917,786
Cost of subcontract sales                                         59,736                   506,063
Cost of service                                                  810,267                   772,148
Selling, general and administrative                            1,367,466                 1,349,167
Interest expense                                                  20,191                    23,621
Depreciation and amortization                                     43,530                    44,143
                                                              -----------               -----------
                                                               4,581,790                 4,612,928
                                                              -----------               -----------
Income before provision for
  income taxes                                                    76,068                    18,482
                                                              -----------               -----------
Provsion for income taxes:
   Current                                                        34,000                    18,300
   Deferred                                                            -                   (11,300)
                                                              -----------               -----------
                                                                  34,000                     7,000

                                                              -----------               -----------
Net Income                                                   $    42,068               $    11,482
                                                              ===========               ===========
Earnings per common share
  Basic earnings per share                                        $ 0.01                     $ nil
                                                                   =====                       ===
  Diluted earnings per share                                      $ 0.01                     $ nil
                                                                   =====                       ===

Weighted average number of common shares outstanding           3,851,048                 3,408,850

Weighted average number of common and dilutive
  common shares outstanding                                    4,519,456                 3,668,654

</TABLE>

See accompanying Notes to the Condensed Consolidated Financial Statements<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                        For the Nine Months Ended June 30,
                                                            2003                           2002
                                                        -----------                    -----------
<S>                                                    <C>                            <C>
Product sales                                          $10,247,462                    $ 7,121,896
Subcontract sales                                          508,433                      1,257,252
Service revenue                                          3,328,246                      3,439,830
                                                        -----------                    -----------
Total revenues                                          14,084,141                     11,818,978
                                                        -----------                    -----------


Cost of product sales                                    6,816,016                      4,941,528
Cost of subcontract sales                                  415,444                      1,024,454
Cost of service                                          2,320,164                      2,398,395
Selling, general and administrative                      4,103,325                      3,903,042
Interest expense                                            47,583                         72,509
Depreciation and amortization                              131,104                        131,155
                                                        ----------                     -----------
                                                        13,833,636                     12,471,083
                                                        -----------                    -----------
Income (loss) before provision for
  (benefit from) income taxes                              250,505                       (652,105)
                                                        -----------                    -----------
Provision for (benefit from) income taxes:
   Current                                                 122,000                       (176,700)
   Deferred                                                  3,000                        (86,300)
                                                        -----------                    -----------
                                                           125,000                       (263,000)

                                                        -----------                    -----------
Net Income (Loss)                                      $   125,505                    $  (389,105)
                                                        ===========                    ===========
Earnings Per Common Share
  Basic Earnings (Loss) Per Share                           $ 0.03                        $ (0.11)
                                                             ======                         ======
  Diluted Earnings (Loss) Per Share                         $ 0.03                        $ (0.11)
                                                             ======                         ======

Weighted average number of common shares outstanding     3,782,916                      3,408,850

Weighted average number of common and dilutive
   common shares outstanding                             4,284,851                      3,408,850


</TABLE>


See accompanying Notes to the Condensed Consolidated Financial Statements

<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                  For the Nine Months Ended June 30,
                                                                    2003                     2002
                                                                  ---------               ----------
<S>                                                              <C>                     <C>
OPERATING ACTIVITIES
Net income (loss)                                                $ 125,505               $ (389,105)
 Adjustments to reconcile net income (loss) to net cash
     (used in) provided by operating activities:
         Depreciation and amortization                             131,104                  131,155
         Deferred tax                                                3,000                  (86,000)
         Provision for doubtful accounts                            (7,483)                  33,898
  Changes in operating assets and liabilities:
  Accounts receivable                                             (281,962)               1,589,132
  Inventories                                                     (404,535)                (186,228)
  Prepaid expenses and other current assets                        (58,208)                (212,417)
  Other assets                                                     (64,288)                  (3,841)
  Accounts payable and accrued expenses                             36,140                 (816,088)
  Deferred revenue                                                  57,175                   12,265
                                                                  ---------               ----------
NET CASH  (USED IN) PROVIDED BY OPERATING ACTIVITIES              (463,552)                  72,771
                                                                  ---------               ----------
INVESTING ACTIVITIES
  Purchases of property and equipment                             (130,875)                 (35,808)
                                                                  ---------               ----------
NET CASH (USED IN) INVESTING ACTIVITIES                           (130,875)                 (35,808)
                                                                  ---------               ----------
FINANCING ACTIVITIES

  Principal payments on revolving line of credit, long-term
    debt, notes payable and capital lease obligations             (122,676)                (190,536)
  Proceeds from revolving line of credit and notes payable         657,283                   30,729

                                                                  ---------               ----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                534,607                 (159,807)
                                                                  ---------               ----------

NET (DECREASE) IN CASH AND CASH EQUIVALENTS                        (59,820)                (122,844)

Cash and cash equivalents at beginning of period                   200,201                  298,420
                                                                  ---------               ----------
Cash and cash equivalents at end of period                       $ 140,381               $  175,576
                                                                  =========               ==========
SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid during the period for:
     Income taxes                                                $  67,476               $  151,234
     Interest                                                    $  48,511               $   76,993
</TABLE>

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:

During the nine  months  ended June 30, 2003 and 2002,  the Company  incurred no
capital lease obilgations for the acquisition of equipment.

In the quarter ended June 30, 2003,  Synergx purchased from Nafund Inc. a 24.99%
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 aggragate  market
value of $432,500, which is included in OTHER ASSETS (See Note 7)

See accompanying Notes to the Condensed Consolidated Financial Statements.


<PAGE>
                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                         NINE MONTHS ENDED JUNE 30, 2003

                                   (UNAUDITED)

1. BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with accounting  principles  generally  accepted in the United States of America
for interim financial information.  Accordingly,  they do not include all of the
information and footnotes required by accounting  principles  generally accepted
in the United  States of  America  for  complete  financial  statements.  In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered  necessary in order to make the financial  statements  not misleading
have been  included.  Results for the three and nine months  ended June 30, 2003
are not  necessarily  indicative  of the results  that may be  expected  for the
fiscal year ending  September 30, 2003.  For further  information,  refer to the
consolidated  financial  statements  and footnotes  thereto  included in Synergx
Systems  Inc.  (formerly  Firetector  Inc.)  ("Synergx"  or "the  Company")  and
Subsidiaries'  annual  report on Form  10-KSB for the year ended  September  30,
2002.

2. 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 or customer  agent.  Product sales are allocated  using a constant
gross profit  percentage over the entire  contract,  and  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 of  billings,  and  billings in excess of costs and
estimated  profits.  Costs and  estimated  profits in excess of billing were not
material  at June  30,  2003  and  2002  and  have  been  included  in  accounts
receivable. Billing in excess of costs and estimated profits was $42,000 at June
30,  2003 and is  included in deferred  revenue  (principally  unearned  service
revenue); there was none at June 30, 2002.

Subcontract   sales  principally   represents   revenue  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  revenue  is also  recognized  during the
entire  project  using  the  percentage-of-completion  method of  accounting  as
electrical installation is performed at the job site.

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. Non-contract service revenue is recognized when services are
performed.




<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                         NINE MONTHS ENDED JUNE 30, 2003

                                   (UNAUDITED)


3. INVENTORIES

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

4. LONG TERM DEBT

The  Company has a revolving  Credit  Facility  with  Citizens  Business  Credit
Company of Boston, Massachussetts,  (the "Credit Facility"). The Credit Facility
provides for a  $3,000,000  revolving  line of credit which  expires in December
2004. The Credit Facility provides for interest at prime rate (4.00% at June 30,
2003)  plus 1/4% on  outstanding  balances.  At June 30,  2003,  $1,446,988  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.

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.  Citizens Business Credit Company of Boston had modified the requirement
of one of the ratios. At June 30, 2003, the Company was not in default of any of
its covenants as a result of this modification.

5. RECLASSIFICATIONS

Certain accounts in the prior year financial  statements have been  reclassified
for  comparative  purposes to conform with the  presentation in the current year
financial  statements.  These  reclassifications  have no effect  on  previously
reported income.

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                         NINE MONTHS ENDED JUNE 30, 2003

                                   (UNAUDITED)

6. EARNINGS (LOSS) PER SHARE

The Financial  Accounting Standards Board ("FASB") issued Statement of Financial
Accounting  Standards  ("SFAS")  No. 128  "Earnings  Per Share"  which  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.
<TABLE>
<CAPTION>
                                                Three Months ended June 30,            Nine Months Ended June 30,
Basic EPS Computation                             2003              2002              2003               2002
                                               -----------------------------      -------------------------------
<S>                                           <C>               <C>                <C>                <C>
Net Income (Loss) available to common
    stockholders                              $   42,068        $   11,482         $  125,505         $ (389,105)
Weighted average outstanding shares            3,851,048         3,408,850          3,782,916          3,408,850
  Basic EPS (Loss)                                  $.01           $ nil                 $.03              $(.11)
                                                    ====           =====                 ====              ======
</TABLE>

<TABLE>
<CAPTION>

Diluted EPS Computation                         Three Months ended June 30,            Nine Months ended June 30,
                                                  2003              2002              2003               2002
                                             -------------------------------            -------------------------------
<S>                                           <C>               <C>                <C>                <C>
Net Income (Loss) available to common
     stockholders                             $   42,068        $   11,482         $  125,505         $ (389,105)
                                                 =======          ========          =========          ==========

Weighted-average shares                        3,851,048         3,408,850          3,782,916          3,408,850
                                               ---------         ---------          ---------          ---------
   Plus:  Incremental shares from
               assumed conversions

          Employee Stock Options*                122,795            61,404             96,135
          Warrants*                              545,613           198,400            405,800
                                                 -------           -------            -------
    Dilutive potential common shares             668,408           259,804            501,935
                                                 -------           -------            -------
N/A
    Adjusted weighted-average shares           4,519,456         3,668,654          4,284,851          3,408,850
                                               ---------         ---------          ---------          ---------

   Diluted EPS (Loss)                               $.01            $  nil               $.03              $(.11)
                                                   =====            ======              =====              ======
</TABLE>


*50,000  warrants  were  anitidilutive  in the nine month period ending June 30,
2003 and all warrants and options  were  antidilutive  for the nine month period
ended June 30, 2002 and therefore not included in the above calculation.



<PAGE>

                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                         NINE MONTHS ENDED JUNE 30, 2003

                                   (UNAUDITED)

7. INVESTMENT IN SECURE 724 L.P.

In  connection  with a letter of intent  signed by the Company in January  2003,
Nafund Inc., a Toronto based private equity fund  ("Nafund") and Avante Security
Inc.  ("Avante")  finalized the  organization of an Ontario limited  partnership
known as Secure 724 L.P.  ("Secure  LP") to exploit the Secure  7-24  technology
solution.  Avante is a Canadian corporation which designs, develops and installs
security systems and devices in Canada. Utilizing the wireless technology of the
BlackBerry(TM)  wireless  handheld system developed by Research in Motion (RIM),
Avante has  developed  the Secure 7-24  solution.  The Secure 7-24 solution uses
wireless  technology to transmit alarm and other data from a secured site to the
Avante  Command   Centre  and  to  multiple  RIM  pagers  or  cellular   phones.
Applications include transit,  security response vehicles,  corporate facilities
management,  manufacturing,  distribution, secured neighborhoods and residential
owners.

On May 29, 2003, the Company (through a special purpose Nova Scotia  subsidiary)
acquired 25% of Secure LP's equity from 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 June 30, 2003) to Secure
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 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  will be 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  $78,000;  resulting in goodwill of approximately
$354,500; which will not be amortized but will be tested for impairment. For the
period ending June 30, 2003, no adjustment to the equity investment was recorded
because the initial operating loss of Secure 724LP was insignificant.

In connection with initial capital  contribution per the partnership  agreement,
the  Company  advanced  $25,000  to Secure LP in May 2003.  The note  payable in
connection  with this advance bears  interest at a rate of 4% and matures in May
2006.

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

8. OTHER EVENTS

In January 2003, the Company also signed a letters of intent to acquire minority
interest in another technology  limited  partnerships in partnership with Nafund
Inc., a Toronto based private equity fund ("Nafund").


<PAGE>
                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                         NINE MONTHS ENDED JUNE 30, 2003

                                   (UNAUDITED)

8. OTHER EVENTS (Continued)

Under  this  agreement,   Nafund  would  organize  Re:Port   Business   Solution
("Re:Port").  Re:Port is a provider of software to the independent international
investment counseling,  portfolio management and brokerage community. Located in
Toronto,  Ontario,  Re:Port  software  links  external  or  outsourced  trading,
custodian,  broker  and bank  systems to  internal  diverse  security  and asset
management  system and contact  information  systems and  electronic  filing and
documentation systems. Utilizing the software and systems it has developed which
are scaleable and able to provide cost-effective  solutions,  Re:Port and Nafund
will organize a new entity to offer the types of back office  services that have
previously  been available only to the largest  investment  counselors and money
managers.  Re:Port would secure a contract to provide such services to a Toronto
based  investment  management  firm which will hold  equity in  Re:Port.  One of
Synergx's  Directors is the  principal in Re:Port.  Synergx would acquire 25% of
the Class B  Participating  Units  (Class B  Participating  Units  will  receive
distributions  of all free cash flow after the Class A Units have been redeemed)
in exchange for (i) 350,000 shares of Common Stock and (ii) warrants to purchase
50,000 shares of Common Stock at $1.15 per share for 24 months.

The parties are  negotiating  modifications  to the  structure  of the  proposed
Re:Port transaction and there can be no assurance that the investment in Re:Port
described  immediately  above  will be  consummated  or that it will prove to be
profitable to Synergx. The Re:Port transaction is subject to the completion of a
due  diligence  investigation  and the  negotiation  and execution of definitive
documentation  satisfactory to Synergx;  until said investigation and definitive
documentation  is completed and executed,  Synergx's Board of Directors  retains
the right to withdraw from the transaction.

The Company's  stockholders approved investment in Secure 247 LP and the Re:Port
transaction  at the Annual Meeting of  Stockholders  held on March 26, 2003. The
transactions  were submitted to the Annual Meeting of  Stockholders  inasmuch as
two  Directors of the Company,  Messrs.  Litwin and  Dalrymple  are Directors of
Nafund. Mr. Litwin is the President of Nafund. Mr. Dalrymple is the principal of
NSC  Holdings,  a Toronto  based  financial  services  group  that  would have a
significant  interest in and manage  Re:Port.  Messr Litwin and  Dalrymple  have
recused  themselves  from the vote by the Board of Directors that approved these
transactions.

9. STOCK SPLIT

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  shareholder  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 have been adjusted to reflect this
stock split.

10. NEW ACCOUNTING PRONOUNCEMENT

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
("SFAS  123"),   Accounting  for  Stock  -Based  Compensation,   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

<PAGE>


                      SYNERGX SYSTEMS INC. AND SUBSIDIARIES

      NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - Continued

                         NINE MONTHS ENDED JUNE 30, 2003

                                   (UNAUDITED)

10. NEW ACCOUNTING PRONOUNCEMENT (Continued)

in the summary of significant  accounting  polices 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 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
Company will continue to account for stock based  compensation  according to APB
Opinion No. 25. The adoption of SFAS 148 did not have an impact on net income or
proforma  net income  applying the fair value method as the Company did not have
stock based compensation for the nine months ended June 30, 2003 or 2002.

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 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 Company
is  evaluating  the impact  that the  adoption  of SFAS No. 150 will have on its
consolidated financial position or results of operations.


<PAGE>


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



Liquidity and Capital Resources

The Company has a $3 million  credit  facility  with  Citizens  Business  Credit
Company of Boston,  (the "Credit Facility") that expires in December,  2004. The
Credit Facility has 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 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.
Citizens  Business Credit had modified the requirements for one of these ratios.
At June 30,  2003,  the  Company  was not in default  with any of its  financial
covenants  as a result of this  modification  and at such  time owed  $1,446,988
under the Credit Facility.

Net cash (used) by  operations  for the nine months ended June 30, 2003 amounted
to  $(463,552)  as compared to cash being  provided by operations of $72,771 for
the  comparable  prior year  period.  The primary  reason for cash being used by
operations was due to an increase in working capital  requirements  from funding
$2.3 million of higher sales in 2003 and higher inventory due to purchases being
made ahead of requirements  in order to obtain special  purchase price discounts
from a vendor  and from  increased  prepaid  expenses  due to  higher  insurance
premiums for property and general liability  coverage.  In addition,  as of June
2003,  certain  payments of accounts  payable  where made in advance in order to
obtain payment  discounts.  The net cash outflow of $(463,552)  from  operations
during 2003 coupled with equipment purchases where funded by an increase in bank
borrowing.

The ratio of the Company's  current assets to current  liabilities  increased to
approximately 2.77 to 1 at June 30, 2003 compared to 2.70 to 1 at June 30, 2002.
The increase in the current  ratio is due to an  improvement  in cash flow since
June 30, 2002 due to the return to profitable operations and from an increase in
2003 of inventory  related to purchases  being made ahead of schedule (to obtain
special  purchase  price  discounts)  that were  funded by an  increase  in bank
borrowing. Working capital increased to a high level of $5.8 million at June 30,
2003 compared to $5.2 million at June 30, 2002 while bank borrowing increased by
only $207,000 since June 30, 2002.


<PAGE>

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


Results of Operations

Revenues and Gross Profit

                                       Three Months Ended     Nine Months Ended
                                            June 30,                June 30,
                                       2003        2002      2003           2002
                                       ----        ----      ----           ----
                                               (In thousands of dollars)

Product Revenue                     $ 3,443     $ 2,839     $10,248     $ 7,122
Subcontract Revenue                      65         622         508       1,257
Service Revenue                       1,150       1,170       3,328       3,440
Total Revenue                         4,658       4,631      14,084      11,819

Gross Profit Product                  1,161         921       3,431       2,180
Gross Profit Subcontract                  5         116          93         233
Gross Profit Service                    340         398       1,008       1,043
Total Gross Profit                    1,506       1,435       4,532       3,455

Gross Profit Product %                   34%         32%         33%         31%
Gross Profit Subcontract %                8%         19%         18%         19%
Gross Profit Service %                   30%         34%         30%         30%

Revenues

The Company's  product  revenues during the three and nine months ended June 30,
2003 increased from the comparable prior year periods, representing increases of
21% and 44% for the  respective  periods.  These  increases  in product  revenue
resulted  from a gradual  improvement  in  economic  activity  in the  Company's
principal  New York City market.  The prior year  periods  were  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 is  primarily  related to the New York City market area and
relates to the  following:  1) release of projects that have been delayed by the
events of September 11th, 2) from a gradual  improvement in tenant activity,  3)
higher sales of railcar communication products as we begin to see the release of
new orders for shipment.  Product revenues in our Dallas,  Texas market area for
the  three  and  nine  month  periods  were  significantly  below  2002  levels.
Management believes the Dallas, Texas market has not recovered from the slowdown
in  economic  activity  and,  accordingly,  we  have  implemented  certain  cost
reduction  initiatives  in that market area while we continue to quote  business
aggressively.  As a consequence,  new order bookings  improved and product sales
for the  three  months  ended  June 30,  2003  increased  over the two  previous
quarterly periods of fiscal 2003.

Subcontract revenue decreased during the current three and nine month periods 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  during the  current  three and nine month  periods
primarily  due to lower  call-in  service and material for  maintenance  of fire
alarm systems.


<PAGE>


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

Gross Profit

Gross profit on product revenues for the three months and nine months ended June
30, 2003,  increased 26% and 57% from the  respective  prior year  periods.  The
increase in absolute  gross profit  during both periods is primarily  related to
higher  product  sales  (noted  above) and related  gross margin The increase in
gross profit  percentage  during the current three and nine month periods is due
to the effect of higher sales in which to absorb certain fixed  overhead  costs.
In addition,  the nine month  period of 2003  benefited  from  certain  purchase
discounts received from a supplier.

Gross profit related to subcontract revenues for the three and nine months ended
June 30, 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.  However, the gross profit
percentage  was  lower  during  the  three  months  of 2003 as one  project  was
contracted for sale at a lower than normal mark up.

Gross profit from service revenues  decreased during the three months ended June
30, 2003 due to lower call-in service revenue.  The gross profit  percentage 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.  Gross profit on service revenues for the nine months ended June
30, 2003 decreased due to the lower call-in service revenue.

Income Before Tax

The  improvement  in income before income taxes during the three and nine months
ended June 30, 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  (1% and 5% during the three and
nine months of 2003,  respectively)  to support  higher  product  sales and from
higher  insurance  costs.  Favorably  affecting  income before income taxes were
declines in interest expense (15% and 34% for the three and nine months of 2003,
respectively) due to lower interest rates during the 2003 periods and from lower
borrowing levels during the nine month period of 2003.

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

The Company's order position,  excluding service,  at June 30, 2003 increased to
$14,800,000 as compared to $12,105,000 at September 30, 2002 and  $14,700,000 at
June 30, 2002. This is a record backlog and the increase in order position since
September 30, 2002, reflects recent large new orders received for several subway
complexes  which will be  deliverable  over  several  years as the  projects are
released and reflects recent increased new orders in

<PAGE>

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

our Dallas, Texas market area. In addition, the backlog includes $1.8 million of
orders for  communication  and  announcement  systems from  several  transit car
manufacturers,  that  will be  shippable  over the next 15 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 the Company's
products  are sold and  installed  as part of larger mass  transit  construction
projects, there is typically a delay between the booking of the contract and its
revenue realization.  The order position includes,  and the Company continues to
bid on projects that might 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 be responsible for
management of the project as well as electrical installation.

Item 3.   Controls and Procedures

     (a) Evaluation of Disclosure Controls and procedures

Based on their  evaluation of our disclosure  controls and procedures  conducted
within  90 days of the date of filing  this  report  on Form  10-QSB,  our Chief
Executive  Officer  and the  Chief  Financial  Officer  has  concluded  that our
disclosure  controls and  procedures  (as defined in Rules 13a - 14(c) and 15(d)
promulgated under the Securities Exchange Act of 1934 are effective.

     (b) Changes in Internal Controls

There were no significant  changes in our internal  controls or in other factors
that could  significantly  affect these controls subsequent to the date of their
evaluation.

<PAGE>

                           Part II - OTHER INFORMATION


Item 1.  Legal Proceedings.

     Not Applicable

Item 2.  Changes in Securities.

     In June 2003, in connection with the Secure 724 transaction noted in Item 6
below,  the Company  issued 300,000 shares of Common Stock pursuant to Section a
4(2) exemption from  registration  requirement of the Securities Act of 1933, as
amended.

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

     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

     (b) Reports on Form 8-K

     Reports on Form 8-K dated June 3, 2003  reported  purchase of investment in
Secure 724 L.P. from Nafund Inc. in consideration of the issuance by the Company
of 300,000  shares of Common  Stock and a warrant to purchase  50,000  shares of
Common Stock at $1.15 per share for 24 months.  The Company  would also issue an
additional 150,000 shares of Common Stock if certain development  milestones are
satisfied  and would also  provide  Secure 724 L.P.  with up to  Cdn$300,000  of
financing against satisfaction of certain development milestones.

Other

     The information in Item 2 and Item 6 regarding  shares of Common Stock have
been  adjusted  for a 2 for 1 stock split that took the form of a dividend  that
was distributed on July 25, 2003.

<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.

                                        SYNERGX SYSTEMS INC
                                        (Registrant)


                                                 /s/ John A. Poserina
                                        ------------------------------
                                            John A. Poserina,
                                            Chief Financial Officer
                                            (Principal Accounting and
                                            Financial Officer), Secretary
                                            And Director
Date:  August 13, 2003