<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       June 30, 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 August  11,  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
 
 
                                                   June 30,
                                                     1997
                                              ----------------
ASSETS
Current assets:
  Cash                                         $    504,869
  Accounts receivable, principally
   trade, less allowance for
    doubtful accounts of  $181,059                3,589,637
  Accounts receivable from affiliated companies     456,936
  Inventories                                     1,928,300
  Deferred taxes                                    169,000
  Prepaid expenses and other current assets         167,184
                                                -------------
Total current assets                              6,815,926
                                                -------------

Property, Plant and Equipment at cost, less
 accumulated depreciation and
 amortization of $611,237                           473,163
Software Development Costs, net                      31,057
Other Assets                                        295,551
Deferred Taxes                                      200,000
                                               -------------
Total assets                                     $7,815,697
                                               =============


See accompanying Notes to the Consolidated Financial Statements.

<PAGE>

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



                                                    June 30,
                                                       1997
                                               ------------------

  LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Note payable bank                                $1,538,505
  Other notes payable                                 223,387
  Accounts payable and accrued expenses             1,201,685
  Unearned service revenue                            449,902
  Current portion of capital lease obligations         21,391
                                                ---------------
Total current liabilities                           3,434,870

Notes payable to bank, less current portion           226,196
Other notes payable, less current portion             268,248
Capital lease obligations, less current portion        37,992
Due to affiliated companies                           158,558
                                                 --------------
Total liabilities                                   4,125,864
                                                 --------------


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                          5,156,673
  Deficit                                          (2,145,363)
                                                   -----------
Total stockholders' equity                          3,689,833
                                                   -----------
Total liabilities and stockholders' equity         $7,815,697
                                                   ===========

See accompanying Notes to the Consolidated Financial Statements.
 

<PAGE>

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

 
                                       For The Three Months Ended
                                                June 30,
                                            1997        1996
                                          ---------  ----------

Net sales                               $2,155,554   $2,632,125
Service revenues                         1,106,239    1,027,033
                                        -----------   ---------
Total revenues                           3,261,793    3,659,158
                                        -----------   ---------

Cost of sales                            1,306,708    1,899,150
Cost of service                            621,543      503,694
Selling, general and administrative      1,072,899    1,031,026
Interest expense                            56,577       69,659
Depreciation and amortization expense       60,820       60,305
Other (income) net                          (9,448)      (4,810)
Statutory insurance refund                               (3,444)
Gain on sale of service contracts
Union refund                                            (21,807)
                                         ----------   ---------
                                         3,109,099    3,533,773
                                         ----------   ---------
Income from continuing operations before
 provision (credit) for income taxes       152,694      125,385


Provision (credit) for income taxes:
 Current                                    14,000
 Deferred                                               (47,500)
                                         ----------   ---------
Net income                               $ 138,694    $ 172,885
                                         ==========   =========

Per share data:                          ----------   ---------
   Net income                             $   0.02    $    0.03
                                         ==========   =========
Weighted average shares outstanding       6,958,430   6,546,209
 (Including 3,433,635 and 3,290,004
 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 Statement of Operations (Unaudited)


                                       For the Nine Months Ended
                                                 June 30,
                                           1997              1996
                                         -----------   ----------

Net sales                                $8,984,501    $6,846,255
Service revenues                          3,308,358     3,350,297
                                         -----------   ----------
Total revenues                           12,292,859    10,196,552
                                         -----------   ----------
Cost of sales                             6,082,643     4,309,775
Cost of service                           2,008,904     1,814,701
Selling, general and administrative       3,205,148     3,051,154
Interest expense                            182,075       218,424
Depreciation and amortization expense       187,935       186,361
Other (income) net                          (27,939)      (16,077)
Statutory insurance refund                        0      (101,367)
Gain on sale of service contracts                 0      (208,571)
Union refund                                              (21,807)
                                         -----------   ----------
                                         11,636,766     9,232,593
                                         -----------   ----------

Income from continuing operations before
 provision (credit) for income taxes        654,093       963,959


Provision (credit) for income taxes:
 Current                                     67,000
 Deferred                                     5,000      (142,500)
                                         -----------    ----------
                                             72,000      (142,500)

                                         -----------    ----------
Net income                               $  582,093    $1,106,459
                                         ===========   ===========

 Per share data:                        ------------   -----------
    Net income                            $    0.09    $     0.17
                                        ============   ===========
Weighted average shares outstanding       6,965,460     6,546,209
 (Including 3,435,143 and 3,290,004
 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 Nine Months Ended
                                                   June 30,
                                               1997        1996
                                            ----------   --------

OPERATING ACTIVITIES
Net income                                  $ 582,093   $1,106,459
Adjustments to reconcile net income to
 net cash provided by (used in)
 operating activities:
  Depreciation and amortization               187,935      213,963
  Provision for doubtful accounts              49,500       55,000
Changes in operating assets and liabilities:
  Accounts receivable                        (388,142)     322,755
  Inventories, prepaid expenses and other
   current assets                             281,010     (458,914)
  Accounts receivable from affiliated
   company                                    (43,701)     (77,557)
  Other assets                                (44,286)      (3,636)
  Accounts payable and accrued expenses       (83,557)    (372,178)
  Unearned service revenue                   (123,524)      54,129
  Due to affiliated companies                   9,173        2,507
                                            ----------   ----------
NET CASH PROVIDED BY
  OPERATING ACTIVITIES                        426,501      842,528

INVESTING ACTIVITIES
 Purchases of property and equipment          (83,963)    (122,721)
Software development costs                                    (800)
                                            ----------   ----------
NET CASH USED IN INVESTING ACTIVITIES         (83,963)    (123,521)

FINANCING ACTIVITIES
 Principal payments on revolving line of
  credit, long term debt, notes payable
  and capital lease obligations              (401,195)    (335,389)
 Proceeds from revolving line of credit,
  notes payable and capital
  lease obligations                            66,221      111,644
 Proceeds from sale of Common Stock                         70,000
 Other                                            198
                                            ----------   ----------
NET CASH (USED IN) PROVIDED BY
 FINANCING ACTIVITIES                        (334,776)    (153,745)
                                            ----------   ----------
NET INCREASE IN CASH AND
  CASH EQUIVALENTS                              7,762      565,262
Cash and cash equivalents at beginning
  of period                                   497,107
                                            ----------   ----------
Cash and cash equivalents at end of period   $504,869     $565,262
                                            ==========   ==========


See accompanying Notes to the Consolidated Financial Statements.


<PAGE>

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


Supplemental Schedule of Non-cash Financing Activities:



Financing Activities:


Repurchase of common stock from an officer/director by the issuance of a
$328,044 seven year promissory note.


See Accompanying Notes to the Consolidated Financial Statements

<PAGE>

                        FIRETECTOR INC. AND SUBSIDIARIES
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                         NINE MONTHS ENDED JUNE 30, 1997
                                   (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 nine months ended June 30, 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

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  which  was
increased in May 1997 to  $2,615,477.  The credit  facility  includes 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. At June 30, 1997, a total of $1,764,701  was  outstanding  under
this facility. The credit facility currently provides for interest at prime plus
1 1/2%  (reduced  from  prime  plus 2% in May  1997)  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 June 30, 1997,
the Registrant was not in default of any of its financial covenants.

4. TRANSACTIONS WITH RELATED PARTIES

At June 30, 1997, the Registrant was indebted to Mirtronics and its subsidiaries
for materials,  loans,  and  miscellaneous  advances in the aggregate  amount of
$158,558.  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


<PAGE>

                        FIRETECTOR INC. AND SUBSIDIARIES
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued
                         NINE MONTHS ENDED JUNE 30, 1997
                                   (UNAUDITED)

 
aggregate  amount  of  $144,706  at June 30,  1997.  This  indebtedness  is also
subordinate  to debt  payable to the  Registrant's  bank which allowed a $66,847
repayment in June, 1997. The Registrant has a receivable from Mirtronics and its
subsidiaries in the amount of $456,936 at June 30, 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 SETTLEMENT

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





<PAGE>


                        FIRETECTOR INC. AND SUBSIDIARIES
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued
                         NINE MONTHS ENDED JUNE 30, 1997
                                   (UNAUDITED)


had been  overcharged by an employee benefit fund in the amount of approximately
$53,000.  Payment of this amount is disputed by the fund and the  Registrant  is
pursuing available remedies.


<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 June 30,
1997, the Registrant owed $1,764,701 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 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 June 30, 1997,
the Registrant was not in default of any of its financial covenants.

Net cash provided by operations for the nine months ended June 30, 1997 amounted
to $426,501 as compared to $842,528 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 $654,093 as compared to $963,959 for the
comparable 1996 nine month period.  The 1996 period includes $665,000 of special
items discussed below in Results of Operations.

In addition, the Registrant increased its revenues by approximately $2.1 million
while only increasing accounts receivable (trade and affiliated) by $382,000 and
decreasing inventory by $167,000. Cash generated from operations of $427,000 was
primarily  used to reduce  the  Registrant's  revolving  line of  credit,  notes
payable and capital leases by $401,000.  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

Product  revenues for the quarter ended June 30, 1997 decreased to $2,155,554 as
compared to  $2,632,125  for the  comparable  prior year quarter.  However,  the
quarter  ended June 30, 1996,  included  approximately  $500,000 of billing as a
general contractor, essentially as a pass-through, with marginal profit. Without
this item in 1996,  product  revenues  for the three  months ended June 30, 1997
would have increased slightly. The Registrant's product revenues during the nine
months ended June 30, 1997 increased to $8,984,501 as compared to $6,846,255 for
the comparable  prior year period.  Product  revenues during the 1997 nine month
period included  approximately  $1,865,000 of billing in relation to one transit
project,  which  involved the sale of  approximately  $1,365,000 of lower margin
products  purchased from a third party for resale. In addition,  during the 1997
nine month period the Registrant's  product division benefitted from significant
construction projects in its New York and Dallas market areas.

<PAGE>


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

Results of Operations (continued)


Service  revenues for the quarter ended June 30, 1997 increased to $1,106,239 as
compared to $1,027,033 in the previous  year due to additional  service  revenue
from  contracts  and repairs.  Service  revenues for the nine month period ended
June 30, 1997  decreased to $3,308,358  as compared to $3,350,297  for the prior
year nine month  period.  However,  the prior year nine  month  period  included
licensing and royalty payments  related to initial  settlement of litigation and
included  service  revenues  related to the sale of service  contracts.  Without
these items in the 1996 nine month period, service revenues would have increased
by approximately $337,000 for the nine months ending June 30, 1997.

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 nine month periods
ended June 30, 1997 was 39% and 32%  respectively,  as compared with 28% and 37%
respectively,  for the  comparable  1996  periods.  The increase in gross profit
percentage  for the quarter ended June 30, 1997 was due to improved gross profit
on various  projects.  The comparable  three month period in 1996 includes a job
taken as the general  contractor.  General  contractor  jobs  generally  carry a
nominal gross profit  percentage and this periods margin was reduced to 28%. The
decrease in gross  profit  percentage  on product  revenues  for the nine months
ended June 30, 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 nine month periods
ended June 30, 1997 was 44% and 39%, respectively, as compared with 51% and 39%,
respectively,  for the comparable 1996 periods.  While service revenue increased
during the three  months  ended  June 30,  1997,  there was a decrease  in gross
margin  percentages due to a change in mix of service revenue requiring a larger
content of materials,  from salary  increases,  and from the addition of service
technicians.  The 1996  nine  month  percentages  are  after  adjusting  for the
settlement of litigation in 1996 (noted above under service revenue).

Income from operating activities for the three and nine month periods ended June
30, 1997 was $152,694 and  $654,093,  respectively,  as compared to $125,385 and
$963,959,  respectively, for the comparable 1996 periods. Income from operations
increased  in the 1997 three month period  primarily  due to higher gross margin
from products sold in each of Registrant's  market areas. Income from operations
during the 1996  comparable  nine period  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
nine month period  ending June 30, 1996 was $298,959.  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 nine months ended June
30, 1997 were also impacted by approximately $100,000 relating to the following:
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.


<PAGE>




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


Results of Operations (continued)



The  Registrant  had a current income tax provision for the three and nine 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 June 30,  1997  amounted  to  $6,300,000  compared  to
$6,400,000 at March 31, 1997,  $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.

     All of the  information  called  for by this  Item 4 was  disclosed  in the
Company's  Quarterly  Report on Form 10-QSB for the quarterly period ended March
31, 1997 and is incorporated herein in its entirety by reference.

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 June 30, 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: August 11, 1997              DENNIS P. McCONNELL
                                   ------------------------------------
                                   DENNIS P. McCONNELL, SECRETARY