<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, 1996

                    -------------------------
                  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  3, 1997,
3,523,088 shares of Registrant's Common Stock were issued and outstanding.

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






<PAGE>




                                      INDEX

                                                                           Page
Part I - Financial Information (unaudited)

  Item 1.  Financial Statements.

           Consolidated Balance Sheet as at December 31, 1996                 4

           Consolidated Statements of Operations for the Three Month          6
            Periods Ended December 31, 1996 and 1995

           Consolidated Statements of Cash Flows for the Three                7
            Month Periods Ended December 31, 1996 and 1995

           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

<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.



<PAGE>



                      Part I - FINANCIAL INFORMATION

                   Firetector Inc. and Subsidiaries
                       Consolidated Balance Sheet
                               Unaudited


                                                 December 31,
                                                     1996
                                              ----------------
ASSETS
Current assets:
  Cash                                         $    705,222
  Accounts receivable, principally
   trade, less allowance for
    doubtful accounts of  $150,165                4,281,138
  Accounts receivable from affiliated companies     435,077
  Inventories                                     1,981,200
  Deferred taxes                                    140,000
  Prepaid expenses and other current assets         182,079
                                                -------------
TOTAL CURRENT ASSETS                              7,724,716
                                                -------------

Property, Plant and Equipment at cost, less
 accumulated depreciation and
 amortization of $528,808                           474,827
Software Development Costs, net                      49,449
Other Assets                                        327,945
Deferred Taxes                                      229,000
                                               -------------
Total assets                                     $8,805,937
                                               =============


See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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


                                                   December 31,
                                                      1996
                                               ------------------
  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Note payable bank                                $2,006,368
  Other notes payable                                 228,054
  Accounts payable and accrued expenses             2,225,023
  Unearned service revenue                            437,747
  Current portion of capital lease obligations         11,046
                                                ---------------
TOTAL CURRENT LIABILITIES                           4,908,238

Other notes payable, less current portion              19,607
Capital lease obligations, less current portion        21,429
Due to affiliated companies                           164,621
                                                 --------------
TOTAL LIABILITIES                                   5,113,895
                                                 --------------


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
    3,548,400 shares                                    3,548
  Capital in excess of par                          5,484,497
  Deficit                                          (2,471,003)
                                                   -----------
TOTAL STOCKHOLDERS' EQUITY                          3,692,042
                                                   -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY         $8,805,937
                                                   ===========


See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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


                                           For The Three Months Ended
                                                  December 31,
                                                1996        1995
                                             ---------  ----------
Net sales                                  $3,751,677   $1,929,121
Service revenues                            1,072,271    1,012,995
                                           -----------  ----------
Total revenues                              4,823,948    2,942,116
                                           -----------  ----------

Cost of sales                               2,679,281    1,159,121
Cost of service                               682,870      595,352
Selling, general and administrative         1,057,275    1,002,358
Depreciation and amortization expense          61,858       61,794
Other (income) net                             (9,079)      (4,747)
                                            ----------   ----------
Income before interest and provision
 (credit) for income taxes                    351,743      128,238
                                            ----------   ----------
Interest expense                               64,290       76,482
                                            ----------   ---------
Income before provision for
 income taxes                                 287,453       51,756


Provision (credit) for income taxes:
 Current                                       26,000
 Deferred                                       5,000      (18,000)
                                            ----------    ---------
                                               31,000      (18,000)
                                            ----------    ---------
Net income                                  $ 256,453   $   69,756
                                            ==========   =========

Per share data:
   Net income                                $   0.04   $     0.01
                                            =========    =========
Weighted average shares outstanding
 (including 2,552,500 issuable upon
 exercise of convertible securities
 at various exercise prices)                 6,961,220    6,763,654


See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



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

                                             For The Three Months Ended
                                                     December 31,
                                                    1996      1995
                                              -----------------------
OPERATING ACTIVITIES
Net income                                       $256,453    $69,756
Adjustments to reconcile net income to
 net cash provided by (used in)
 operating activities:
  Depreciation and amortization                    71,054     71,095
  Provision for doubtful accounts                  16,500
Changes in operating assets and liabilities:
  Accounts receivable                          (1,046,643)   494,571
  Inventories, prepaid expenses and other
   current assets                                 242,215   (144,223)
  Accounts receivable from affiliated
   company                                        (21,842)   (25,855)
  Other assets                                    (40,339)   (35,756)
  Accounts payable and accrued expenses           939,781   (329,330)
  Unearned service revenue                       (135,679)    17,922
  Due to affiliated companies                      15,236     10,508
                                                ----------  ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES         296,736    128,688

INVESTING ACTIVITIES
 Purchases of property and equipment              (52,481)   (67,804)
 Software development costs                                     (800)
                                                ----------   --------
NET CASH USED IN INVESTING ACTIVITIES             (52,481)   (68,604)

FINANCING ACTIVITIES
 Principal payments on revolving line of
  credit, long term debt, notes payable
  and capital lease obligations                   (39,740)  (120,988)
 Proceeds from revolving line of credit,
  notes payable and capital
  lease obligations                                 3,600     60,904
                                                ----------   --------
NET CASH (USED IN) PROVIDED BY
 FINANCING ACTIVITIES                             (36,140)   (60,084)


NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                208,115          0
Cash and cash equivalents at beginning
  of period                                       497,107          0
                                                ----------   --------
Cash and cash equivalents at end of period       $705,222    $     0
                                                ==========   ========

See accompanying Notes to the Consolidated Financial Statements.



<PAGE>



                        FIRETECTOR INC. AND SUBSIDIARIES

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 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  three  months  ended  December  31,  1996 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.
The credit  facility  provides for a $500,000 three year term loan (with a seven
year  amortization) and a $2,000,000  revolving line of credit through March 31,
1997. The  Registrant is  negotiating  with its bank to extend the maturity date
and modify the terms and conditions of the credit facility.  The credit facility
currently  provides  for  interest  at 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  $500,000  letter  of credit  provided  by the  Registrant's  majority
shareholder, Mirtronics Inc. ("Mirtronics").

In  exchange  for  options  to  acquire  500,000   unregistered  shares  of  the
Registrant's  common stock at an exercise price of $.30 per share,  an affiliate
of Mirtronics  guaranteed minimum increases in retained earnings of $100,000 for
fiscal 1994 (with a maximum  guarantee of $100,000) and $250,000 for fiscal 1995
(with a maximum  guarantee of  $250,000).  Due to the loss in fiscal  1994,  the
guarantor  loaned the Registrant the required  $100,000 which is subordinated to
the bank.  This loan bears  interest at a rate of 5% above the prime rate of The
Royal Bank of Canada and is payable upon demand subject to its subordination. In
July 1996, 100,000 of these options were exercised at $.30 per share.

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  December 31,
1996, the Registrant was not in default of any of its financial covenants.



<PAGE>




                        FIRETECTOR INC. AND SUBSIDIARIES

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 1996

                                   (UNAUDITED)


4. TRANSACTIONS WITH RELATED PARTIES

At  December  31,  1996,  the  Registrant  was  indebted to  Mirtronics  and its
subsidiaries for materials,  loans, and miscellaneous  advances in the aggregate
amount of  $164,621.  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  $208,153  at  December  31,  1996.  The  Registrant  has a
receivable  from  Mirtronics and its  subsidiaries  in the amount of $434,077 at
December 31, 1996.

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  has the right to acquire up to an aggregate of
1,840,000  shares of common  stock at an exercise  price of $.30 per share.  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 by means of a seven  year  promissory  note  bearing
interest at a rate of 4% per annum.

5. LEGAL SETTLEMENT

On December 29, 1994 the Registrant's  subsidiary  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,  in
December 1996, the Registrant paid $22,500 as final  settlement of royalties due
on service contracts originally acquired and subsequently sold. This payment was
charged to cost of service.


<PAGE>





                        FIRETECTOR INC. AND SUBSIDIARIES

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 1996

                                   (UNAUDITED)


6. OTHER (continued)

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 $256,000. 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 for  $2,500,000.
At December 31, 1996,  the  Registrant  owed  $2,006,368  under the terms of the
credit  facility.  The credit  facility  provides for a $500,000 three year term
loan (with a seven year amortization) and a $2,000,000  revolving line of credit
through March 31, 1997. The  Registrant is  negotiating  with its bank to extend
the maturity date and modify the terms and  conditions  of the credit  facility.
The  credit  facility  currently  provides  for  interest  at  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 $500,000 letter of credit provided by the
Registrant's  majority  shareholder.  An affiliate of Mirtronics  had guaranteed
minimum  increases  in retained  earnings  of  $100,000  for fiscal 1994 (with a
maximum guarantee of $100,000) and, if the credit facility was renewed, $250,000
for  fiscal  1995 (with a maximum  guarantee  of  $250,000).  Due to the loss in
fiscal 1994, the guarantor loaned the Registrant the required  $100,000 which is
subordinated to the bank. This loan bears an interest rate of 5% above the prime
rate of The Royal  Bank of Canada  and is  payable  upon  demand  subject to its
subordination. In July 1996, 100,000 of these options were exercised at $.30 per
share.

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  December 31,
1996, the Registrant was not in default of any of its financial covenants.

Net cash  provided by  operations  for the three months ended  December 31, 1996
amounted to $296,736 as  compared  to  $128,688  for the  comparable  prior year
period. The primary reason for the increase of cash provided from operations was
the  increase in income from  operations  of $287,453 as compared to $51,756 for
the comparable  prior year period.  In addition,  the  Registrant  increased its
revenues  by  approximately  $1.9  million  with only a $47,000  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 months ended December 31,
1996  increased 96% to $3,751,677 as compared to $1,929,121  for the  comparable
prior year period.  Product revenues during the quarter  included  approximately
$800,000 of billing in relation to one transit project,  which involved the sale
of  approximately  $660,000 of lower margin products  manufactured by an outside
vendor.  In addition,  the  Registrant's  product  division has  benefited  from
significant  construction  projects  in its New York and  Dallas  market  areas.
Service  revenues  during the three month  period  increased  to  $1,072,271  as
compared to $1,012,995,  not withstanding the sale of selected service contracts
in 1996 as a result of Management's focus on service,  marketing and quality and
the  settlement of litigation  with a competitor  in 1996.  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.



<PAGE>




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

Results of Operations (continued)


Gross profit on product  revenues for the three month period ended  December 31,
1996 was 29% as compared with 40% for the comparable  1996 period.  The decrease
in gross profit on product revenues for the three months ended December 31, 1996
relates  primarily to a transit project that carried a lower than typical margin
on products manufactured by an outside vendor.

Gross profit on service  revenues for the three month period ended  December 31,
1996 was 36% as compared with 41% for the  comparable  1996 period.  The current
period includes final settlement of royalties due on the service  contracts sold
in 1996.

Income from  operating  activities for the three month period ended December 31,
1996  increased to $287,453 as compared to income of $51,756 for the  comparable
1996 period. This increase is primarily  attributable to higher product revenues
in New York and Texas. Results were impacted by approximately  $100,000 relating
to payment of state unemployment  insurance from prior periods,  final royalties
due on service  contracts sold in 1996 and  installation  and training costs for
the Registrants' new management information software.

The backlog of orders at December 31, 1996 amount to  $7,7000,000 as compared to
$9,700,000  at September  30, 1996 and  $8,600,000  at December  31,  1995.  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 shipping on delayed  projects in New York.  Management  believes
its  marketing  efforts  will  enable  it  to  maintain  a  comfortable  backlog
notwithstanding 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.

               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, 1996.



<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 11, 1997            /s/DENNIS P. McCONNELL
                                  -----------------------------
                                  Dennis P. McConnell, Secretary