<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       March 31, 1997

                    -------------------------
                  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 May 14, 1997,  3,523,287
shares of Registrant's Common Stock were issued and outstanding.

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






<PAGE>



                      Part I - FINANCIAL INFORMATION

                   Firetector Inc. and Subsidiaries
                       Consolidated Balance Sheet
                               Unaudited

                                                   March 31,
                                                     1997
                                              ----------------
ASSETS
Current assets:
  Cash                                         $    697,631
  Accounts receivable, principally
   trade, less allowance for
    doubtful accounts of  $154,059                3,840,860
  Accounts receivable from affilitaed companies     445,838
  Inventories                                     2,016,027
 Deferred taxes                                     149,900
  Prepaid expenses and other current assets         176,330
                                                -------------
Total current assets                              7,326,586
                                                -------------

Property, Plant and Equipment at cost, less
 accumulated depreciation and
 amortization of $572,873                           473,754
Software Development Costs, net                      40,253
Other Assets                                        331,977
Deferred Taxes                                      224,100
                                               -------------
Total assets                                     $8,396,670
                                               =============


See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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


                                                    March 31,
                                                       1997
                                               ------------------
  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Note payable bank                                $1,988,511
  Other notes payable                                 279,793
  Accounts payable and accrued expenses             1,654,356
  Unearned service revenue                            491,449
  Current portion of capital lease obligations         11,101
                                                ---------------
Total current liabilities                           4,425,210

Other notes payable, less current portion             283,390
Capital lease obligations, less current portion        18,257
Due to affiliated companies                           118,674
                                                 --------------
Total liabilities                                   4,845,531
                                                 --------------


Stockholders' equity:
  Convertible preferred stock, 2,000,000
    shares authorized - 675,000 shares issued
    and outstanding                                   675,000
  Common stock, 25,000,000 shares authorized,
    $.001 par value; issued and outstanding
    3,523,287 shares                                    3,523
  Capital in excess of par                          5,156,672
  Deficit                                          (2,284,056)
                                                   -----------
Total stockholders' equity                          3,551,139
                                                   -----------
Total liabilities and stockholders' equity         $8,396,670
                                                   ===========

See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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


                                     For The Three Months Ended
                                              March 31,
                                            1997        1996
                                         ----------  ----------
Net sales                               $3,077,270   $2,285,009
Service revenues                         1,129,848    1,310,269
                                         ----------  ----------
Total revenues                           4,207,118    3,595,278
                                         ----------  ----------

Cost of sales                            2,096,654    1,251,504
Cost of service                            704,491      715,655
Selling, general and administrative      1,074,974    1,017,770
Interest expense                            61,208       72,283
Depreciation and amortization expense       65,257       64,262
Other (income) net                          (9,412)      (6,520)
Statutory insurance refund                              (97,923)
Gain on sale of servcie contracts                      (208,571)

                                         ----------  ----------
                                         3,993,172    2,808,460
                                         ----------  ----------
Income from continuing operations before
 provision (credit) for income taxes       213,946      786,818


Provision (credit) for income taxes:
 Current                                    27,000
 Deferred                                              (77,000)
                                         ----------  ----------
Net income                               $ 186,946   $  863,818
                                         ==========  ==========

Per share data:                          ----------  ----------
   Net income                             $   0.03   $     0.13
                                         ==========  ==========
Weighted average shares outstanding      6,958,430    6,859,666
 (Including 3,435,143 and 3,616,266
 in 1997 and 1996, respectively,
 issuable upon exercise of options
 andconvertible securities at
 various exercise prices)

See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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

                                         For the Six Months Ended
                                                 March 31,
                                           1997              1996
                                         -----------   ----------
Net sales                                $6,828,947    $4,214,130
Service revenues                          2,202,119     2,323,264
                                         -----------   ----------
Total revenues                            9,031,066     6,537,394
                                         -----------   ----------
Cost of sales                             4,775,935     2,410,625
Cost of service                           1,387,361     1,311,007
Selling, general and administrative       2,132,249     2,020,128
Interest expense                            125,498       148,765
Depreciation and amortization expense       127,115       126,056
Other (income) net                          (18,491)      (11,267)
Statutory insurance refund                        0       (97,923)
Gain on sale of service contracts                 0      (208,571)
                                         -----------   ----------
                                          8,529,667     5,698,820
                                         -----------   ----------

Income from continuing operations before
 provision (credit) for income taxes        501,399       838,574


Provision (credit) for income taxes:
 Current                                    53,000
 Deferred                                    5,000        (95,000)
                                         -----------   ----------
                                            58,000        (95,000)
                                         -----------   ----------

                                         -----------   ----------
Net income                               $ 443,399      $ 933,574
                                         ===========   ==========

 Per share data:                        ------------   ----------
    Net income                            $    0.06     $    0.14
                                        ============   ==========
Weighted average shares outstanding       6,968,475     6,859,666
 (Including 3,432,631 and 3,616,266
 in 1997 and 1996, respectively,
 issuable upon exercise of options
 and convertible securities at
 various exercise prices)


See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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

                                         For The Six Months Ended
                                                   March 31,
                                               1997          1996
                                          -----------   ---------
OPERATING ACTIVITIES
Net income                                   $443,399   $933,574
Adjustments to reconcile net income to
 net cash provided by (used in)
 operating activities:
  Depreciation and amortization               128,710    144,462
  Provision for doubtful accounts              33,000     40,000
Changes in operating assets and liabilities:
  Accounts receivable                        (622,865)  (197,577)
  Inventories, prepaid expenses and other
   current assets                             203,237   (293,825)
  Accounts receivable from affiliated
   companies                                  (32,603)   (54,600)
  Other assets                                (44,553)    32,091
  Accounts payable and accrued expenses       369,114   (235,879)
  Unearned service revenue                    (81,977)     4,311
  Due to affiliated companies                 (30,711)    52,874
                                            ----------  ---------
NET CASH PROVIDED BY (USED IN)
  OPERATING ACTIVITIES                        364,751    425,431

INVESTING ACTIVITIES
 Purchases of property and equipment          (95,474) (110,812)
 Software development costs                                (800)
                                            ----------  ---------
NET CASH USED IN INVESTING ACTIVITIES         (95,474) (111,612)

FINANCING ACTIVITIES
 Principal payments on revolving line of
  credit, long term debt, notes payable
  and capital lease obligations               (75,753)  (173,245)
 Proceeds from revolving line of credit,
  notes payable and capital
  lease obligations                           334,850     95,223
 Repurchase of common stock with
  note payable                               (327,850)
                                            ----------   --------
NET CASH (USED IN) PROVIDED BY
 FINANCING ACTIVITIES                         (68,753)   (78,022)
                                            ----------   --------
NET INCREASE IN CASH AND
  CASH EQUIVALENTS                            200,524    235,797
Cash and cash equivalents at beginning
  of period                                   497,107
                                            ----------   --------
Cash and cash equivalents at end of period   $697,631   $235,797
                                            ==========  =========

See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



             FIRETECTOR INC. AND SUBSIDIARIES
         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
             SIX MONTHS ENDED MARCH  31, 1996
                       (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 six months ended March 31, 1997 are not  necessarily  indicative
of the results  that may be expected  for the fiscal year ending  September  30,
1997. For further  information,  refer to the consolidated  financial statements
and footnotes thereto included in the Registrant Company and Subsidiary's annual
report on Form 10-KSB for the year ended September 30, 1996.


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  Registrant  has a credit  facility with a New York City bank for $2,500,000
which was revised in May 1997 to  $2,615,477.  The credit  facility now provides
for a  $315,477  twenty-nine  month term loan  (with a monthly  amortization  of
$5,952 and a balloon  payment at September  1, 1999) and a $2,300,000  revolving
line of credit through March 31, 1998. The credit  facility  currently  provides
for interest at prime plus 1 1/2%  (reduced  from prime plus 2%) 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 of  the  assets  of the  Registrant  and  all of its  operating
subsidiaries,  as well as a $300,000  letter of credit  (reduced from  $500,000)
provided by the Registrant's  majority  shareholder,  Mirtronics Inc. an Ontario
Corporation ("Mirtronics").

The credit facility includes certain  restrictive  covenants,  which among other
things,  impose  limitations on declaring or paying dividends,  acquisitions and
capital  expenditures.  The  Registrant  is also  required to  maintain  various
financial ratios. At September 30, 1996, and continuing  through March 31, 1997,
the Registrant was not in default of any of its financial covenants.




<PAGE>



              FIRETECTOR INC. AND SUBSIDIARIES
       NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued
              SIX MONTHS ENDED MARCH  31, 1996
                       (UNAUDITED)


4. TRANSACTIONS WITH RELATED PARTIES

At  March  31,  1997,   the  Registrant  was  indebted  to  Mirtronics  and  its
subsidiaries for materials,  loans, and miscellaneous  advances in the aggregate
amount of  $155,807.  This  indebtedness  is  secured  by a pledge of all of the
Registrant's assets and is subordinate to debt payable to the Registrant's bank.
The Registrant is also  indebted,  on a demand basis to First  Corporate  Equity
Ltd.,  an  affiliate  of a  director  of  Mirtronics,  for notes  payable in the
aggregate  amount of $211,553 at March 31, 1997. The Registrant has a receivable
from  Mirtronics  and its  subsidiaries  in the amount of  $445,838 at March 31,
1997.

In July 1994, in consideration of Mirtronics extending the term of its letter of
credit in  connection  with the  Company's  credit  facility and making  further
advances to the Company,  the Company's  Board of directors  restated the price,
terms and  conditions of  previously  granted  conversion  rights and options to
Mirtronics.  In addition,  the Board also granted  Mirtronics 500,000 additional
options.  Presently,  Mirtronics  had the right to acquire up to an aggregate of
1,840,000 shares of common stock at a price of $.30 per share (subject to a call
option  held by the  Registrant's  Chairman on a portion  thereof).  The options
expire on December 31, 1998.

Effective  January 1, 1997, in  accordance  with the  employment  contract of an
officer/director,  the Registrant repurchased 25,312 shares of common stock at a
price of $12.96 per share (corresponding to his original split-adjusted purchase
price in 1980) by means of a seven year  promissory  note bearing  interest at a
rate of 4% per annum.

5. LEGAL PROCEEDINGS

On December  29, 1994 Casey  Systems,  Inc.  ("Casey")  filed suit in the United
States District Court for the Southern  District of New York against its largest
competitor in the New York City life safety market,  Firecom,  Inc. and a number
of its affiliates. The suit, which sought legal damages in excess of $10,000,000
and certain equitable  remedies,  was based on numerous Federal and State claims
including,  without  limitations,  violation  of  Federal  and  New  York  State
anti-trust   statutes,   unfair  competition,   unlawful  theft  of  proprietary
information,  deceptive trade practices, tortious interference with contract and
other  claims.  The suit  also set forth a breach of  contract  claim  against a
customer  of Casey who  breached a contract  with  Casey.  On March 28, 1996 the
litigation  was settled with  agreements  relating to  cross-licensing,  royalty
payments and other considerations.


6. OTHER

On March 29, 1996,  Systems Service  Technology  Corp.  ("SST"),  a wholly owned
subsidiary of the Registrant,  sold selected assets to Sirina Protection Systems
Corp.  ("Sirina")  which  included the right to certain SST contracts to provide
service or maintenance to selected buildings.  As consideration for the purchase
of such assets  Sirina paid SST an  aggregate  of  $378,000.  In  addition,  the
Registrant paid $22,500 in December 1996 as final settlement of royalties due on
service contracts  originally  acquired and subsequently  sold. This payment was
charged to cost of service.

For the years 1990 through and  including  1995,  the  Registrant,  upon review,
discovered it had been  overcharged by a statutory  employee  related  insurance
fund in the amount of approximately $252,000. The fund confirmed this amount and
payment was made in fiscal 1996. The registrant also discovered that it had been
overcharged by an employee benefit fund in the amount of approximately  $53,000.
Payment of this amount is expected within this fiscal year.




<PAGE>




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


Liquidity and Capital Resources

The  Registrant  has a credit  facility  with a New York City bank. At March 31,
1997, the Registrant owed $1,988,511 under the terms of the credit facility.  In
May,  1997 the bank  extended  the  maturity  date and  modified  the  terms and
conditions  of the credit  facility.  The credit  facility  now  provides  for a
$315,477  twenty-nine month term loan (with a monthly amortization of $5,952 and
a balloon  payment at  September  1, 1999) and a  $2,300,000  revolving  line of
credit  through  March 31,  1998.  The credit  facility  currently  provides for
interest  at prime  plus 1 1/2 % (reduced  from  prime  plus 2%) 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 of  the  assets  of the  Registrant  and  all of its  operating
subsidiaries,  as well as a $300,000  letter of credit  (reduced from  $500,000)
provided by the Registrant's majority shareholder..

The credit facility includes certain  restrictive  covenants,  which among other
things,  impose  limitations on declaring or paying dividends,  acquisitions and
capital  expenditures.  The  Registrant  is also  required to  maintain  various
financial ratios. At September 30, 1996, and continuing  through March 31, 1997,
the Registrant was not in default of any of its financial covenants.

Net cash provided by operations for the six months ended March 31, 1997 amounted
to $364,751 as compared to $425,431 for the  comparable  prior year period.  The
primary  reason  for the  decrease  of cash  provided  from  operations  was the
decrease in income from  operations  of $501,399 as compared to $838,574 for the
comparable  prior six month  period due to $665,000 of special  items  discussed
below.

In addition, the Registrant increased its revenues by approximately $2.5 million
with only a $331,000 increase in its working capital  requirement.  Furthermore,
the Registrant  continues its program of negotiation of terms with its customers
prior to the  beginning  of a  project,  the  monitoring  of its terms  during a
project and completing  projects in a more timely  fashion,  resulting in faster
final  payments.  It is the intention of the Registrant to continue this program
throughout fiscal 1997.

Results of Operations

The  Registrant's  product  revenues during the three and six months ended March
31, 1997  increased to $3,044,886  and  $6,828,947 as compared to $2,285,009 and
$4,214,130,  respectively,  for  the  comparable  prior  year  periods.  Product
revenues  during the 1997  quarter and six month period  included  approximately
$950,000  and  $1,750,000,  respectively  of billing in  relation to one transit
project,  which  involved the sale of  approximately  $700,000  and  $1,365,000,
respectively of lower margin  products  purchased from a third party for resale.
In addition,  during the 1997 six month period the Registrant's product division
benefited  from  significant  construction  projects  in its New York and Dallas
market areas.

Service  revenues  during the same three and six month periods of 1997 decreased
to  $1,124,700  and  $2,197,119  as  compared  to  $1,310,269  and   $2,323,264,
respectively.  However,  the prior  year  three and six month  periods  included
licensing and royalty payments  related to initial  settlement of litigation and
included service revenue related to the sale of service contracts. Without these
items in the 1996 periods, service revenues would have increased by $105,431 and
$252,855 for the three and six months ending March 31, 1997, respectively.




<PAGE>




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

Results of Operations (continued)

Competition for new product revenues and retention of existing service contracts
remains high in New York which has  impacted  and will  continue to impact gross
profit.

Gross profit  percentage on product revenues for the three and six month periods
ended March 31, 1997 was 31% and 30% respectively,  as compared with 45% and 43%
respectively,  for the  comparable  1996  periods.  The decrease in gross profit
percentage on product revenues for the three and six months ended March 31, 1997
relates  primarily to the transit  project noted above that carried a lower than
typical margin on those products that were manufactured by an outside vendor.

Gross profit  percentage on service revenues for the three and six month periods
ended March 31,  1997 was 37% and 37%,  respectively,  as compared  with 35% and
38%,  respectively,  for the comparable 1996 periods.  The 1996  percentages are
after adjusting for the settlement of litigation in 1996 (noted above).

Income from operating activities for the three and six month periods ended March
31, 1997 was $208,946 and $496,399, respectively.  Income from operations during
the 1996 comparable  periods  included the following  special items  aggregating
$665,000:  licensing and royalty payments from initial settlement of litigation,
revenue  from the sale of  service  contracts,  and from a  statutory  insurance
refund.  Excluding these special items, income from operations for the three and
six  month   periods   ending  March  31,  1996  were   $122,247  and  $174,003,
respectively.  After these adjustments,  income from operations increased in the
1997 periods  primarily  due to higher  product  revenues in New York and Texas.
Results  for the  six  months  ended  March  31,  1997  were  also  impacted  by
approximately  $100,000 relating to payment of state unemployment insurance from
prior periods,  final  royalties due on the service  contracts sold in 1996, and
installation and training costs for the Registrants' new management  information
system.

The  Registrant  had a current  income tax provision for the three and six month
periods  ending  March  31,  1997,   representing  state  and  local  taxes  and
alternative  minimum tax for federal income  purposes.  This is in contrast to a
deferred tax benefit  recorded for the similar  periods in 1996 of the impact of
utilizing net operating loss carryforwards.

The  backlog of orders at March 31,  1997  amounted  to  $6,400,000  compared to
$7,700,000 at December 31, 1996 and to  $9,700,000  at September  30, 1996.  The
decrease in the backlog since  September 30, 1996 is primarily the result of the
Registrant's  performance  of  certain  of  its  large  projects  in  Texas  and
commencement of shipments on delayed projects in New York.  Management  believes
its  marketing  efforts  will  enable it to maintain a  comfortable  backlog not
withstanding increased revenues.




<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.

The  Registrant's  Annual  Meeting of  Stockholders  was held on April 30, 1997.
Stockholders  considered  and voted upon (1) a Board of  Directors'  proposal to
adopt a Non Qualified  Stock Option Plan;  (2) the election of six (6) Directors
to Firetector's Board of Directors;  and (3) appointment of Moore Stephens, P.C.
as Firetector's Auditors for the fiscal year ending September 30, 1997.

The six nominees for director were  unopposed and were,  accordingly  elected by
the  Stockholders.  The following table details the votes cast for,  against and
abstained from voting on each matter considered by the Stockholders.


   MATTER             FOR         AGAINST         ABSTAINED     UNVOTED
--------------------------------------------------------------------------
Richard Axelsen    3,319,486       25,762
Dennis McConnell   3,308,486       36,762
John Poserina      3,319,486       25,762
Henry Schnurbach   3,314,486       30,762
Daniel Tamkin      3,319,486       25,762
Joseph Vitale      3,319,486       25,762

Option Plan        1,711,526       141,711          26,308      1,471,146

Auditors           3,275,713       54,321           15,214


Item 5.   Other Information.


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

          a. Exhibits.

             Ex-27  Financial Data Schedule

          b. Reports on Form 8-K.

          No Reports on Form 8-K were filed  during the quarter  ended March 31,
1997.


<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: May 15, 1997                 DENNIS P. McCONNELL
                           ------------------------------------
                                   DENNIS P. McCONNELL, SECRETARY