<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, 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  February  3, 1998,
3,523,287 shares of Registrant's Common Stock were issued and outstanding.

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





                                        1

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                                      INDEX

                                                                            Page
Part I - Financial Information (unaudited)

         Item 1.  Financial Statements.

          Consolidated Balance Sheet as at December 31, 1997                   4

          Consolidated Statements of Operations for the Three Month            6
            Periods Ended December 31, 1997 and 1996

          Consolidated Statements of Cash Flows for the Three                  7
            Month Periods Ended December 31, 1997 and 1996


          Notes to Consolidated Financial Statements                           8

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

Part II - Other Information

         Item 1.    Legal Proceedings.                                        13

         Item 2.    Changes in Securities.                                    13

         Item 3.    Defaults Upon Senior Securities.                          13

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

         Item 5.    Other Information.                                        13

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

         Signatures                                                           14

                                        2

<PAGE>



                         Part I - FINANCIAL INFORMATION

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


                                        3

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                      Part I - FINANCIAL INFORMATION

                   Firetector Inc. and Subsidiaries
                       Consolidated Balance Sheet
                               Unaudited


                                                 December 31,
                                                    1997
                                              ----------------
ASSETS
Current assets:
  Cash and cash equivalents                    $    437,706
  Accounts receivable, principally
   trade, less allowance for
    doubtful accounts of  $181,613                3,882,263
  Accounts receivable from affiliated companies     521,525
  Inventories                                     1,886,367
  Deferred taxes                                    168,000
  Prepaid expenses and other current assets          77,232
                                                -------------
TOTAL CURRENT ASSETS                              6,973,093
                                                -------------

Property, Plant and Equipment at cost, less
 accumulated depreciation and
 amortization of $686,349                           430,933
Software Development Costs, net                      12,665
Other Assets                                        248,607
Deferred Taxes                                      206,000
                                               -------------
Total assets                                     $7,871,298
                                               =============


See accompanying Notes to the Consolidated Financial Statements.


                                        4

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


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

CURRENT LIABILITIES:
  Note payable to bank                                 $1,538,505
  Other notes payable                                     213,835
  Accounts payable and accrued expenses                 1,186,416
  Unearned service revenue                                362,546
  Current portion of capital lease obligations             21,005
                                                      ------------
TOTAL CURRENT LIABILITIES                               3,322,307

Note payable to bank,  less current  portion              196,431
Other notes payable,  less current portion                238,722
Capital lease  obligations,  less current portion          27,728
Due to affiliated companies                               170,218
                                                      ------------
TOTAL LIABILITIES                                       3,955,406
                                                      ------------


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                                              (1,919,303)
                                                      -----------
TOTAL STOCKHOLDERS' EQUITY                              3,915,892
                                                      -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $7,871,298
                                                      ===========


See accompanying Notes to the Consolidated Financial Statements.


                                        5

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


                                       For The Three Months Ended
                                                December 31,
                                            1997            1996
                                        -----------      ----------
Net sales                               $1,719,812       $3,751,677
Service revenues                         1,127,541        1,072,271
                                        -----------      ----------
Total revenues                           2,847,353        4,823,948
                                        -----------      ----------

Cost of sales                            1,109,366        2,679,281
Cost of service                            669,276          682,870
Selling, general and administrative        961,319        1,057,275
Interest expense                            55,239           64,290
Depreciation and amortization expense       52,076           61,858
Other (income) net                         (10,055)          (9,079)
                                        -----------       ----------
                                         2,837,221        4,536,495
                                        -----------       ----------
Income before provision
 for income taxes                           10,132          287,453

Provision (credit) for income taxes:
 Current                                     4,000           26,000
 Deferred                                                     5,000
                                         ----------       ----------
                                             4,000           31,000
                                         ----------       ----------
Net income                               $   6,132       $  256,453
                                         =========        ==========

Earnings per common share
  Basic earnings per share                $    nil       $     0.07
  Diluted earnings per share              $    nil       $     0.04
                                         =========        ==========
Weighted average number of common
  shares outstanding                      3,529,565       3,548,400

Weighted average number of common
  and potential dilutive
  common shares outstanding               6,674,408       6,958,264



See accompanying Notes to the Consolidated Financial Statements.


                                        6

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

                                                For The Three Months Ended
                                                      December 31,
                                                    1997          1996
                                                 ---------     ---------
OPERATING ACTIVITIES
Net income                                       $  6,132      $256,453
Adjustments to reconcile net income to
 net cash provided by (used in)
 operating activities:
  Depreciation and amortization                    60,885        71,054
  Provision for doubtful accounts                  18,000        16,500
Changes in operating assets and liabilities:
  Accounts receivable                             (79,101)   (1,046,643)
  Inventories, prepaid expenses and other
   current assets                                  19,723       242,215
  Accounts receivable from affiliated
   companies                                      (28,394)      (21,842)
  Other assets                                     45,735       (40,339)
  Accounts payable and accrued expenses          (155,968)      939,781
  Unearned service revenue                         25,206      (135,679)
  Due to affiliated companies                       1,751        15,236
                                                 ---------     ---------
NET CASH (USED IN)PROVIDED BY OPERATING
  ACTIVITIES                                      (86,031)      296,736
                                                 ---------     ---------
INVESTING ACTIVITIES
 Purchases of property and equipment              (13,552)      (52,481)
                                                 ---------     ---------
NET CASH (USED IN) INVESTING ACTIVITIES           (13,552)      (52,481)
                                                 ---------     ---------
FINANCING ACTIVITIES
 Principal payments on revolving line of
  credit, long term debt, notes payable
  and capital lease obligations                   (43,604)      (39,740)
 Proceeds from revolving line of credit,
  notes payable and capital
  lease obligations                                 1,841         3,600
                                                 ---------     ---------
NET CASH (USED IN)FINANCING ACTIVITIES            (41,763)      (36,140)
                                                 ---------     ---------

NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                               (141,346)      208 115
Cash and cash equivalents at beginning
  of period                                       579,052       497,107
                                                 ---------     ---------
Cash and cash equivalents at end of period       $437,706      $705,222
                                                 =========     =========


See accompanying Notes to the Consolidated Financial Statements.


                                        7

<PAGE>



                        FIRETECTOR INC. AND SUBSIDIARIES

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                      THREE MONTHS ENDED DECEMBER 31, 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  three  months  ended  December  31,  1997 are not  necessarily
indicative  of the  results  that may be  expected  for the fiscal  year  ending
September 30, 1998. For further information, refer to the consolidated financial
statements  and  footnotes  thereto  included in the  Registrant  Company  ("the
Company")  and  Subsidiary's  annual  report on Form 10- KSB for the year  ended
September 30, 1997.

2. INVENTORY

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

3. LONG TERM DEBT

The Company has a credit  facility  with a New York bank which was recently sold
(the  "Credit  Facility").  The  revolving  credit  portion of the  facility  is
$2,300,000  and expires on March 31,  1998 with a loan payoff by June 30,  1998.
The Credit Facility includes an additional $315,000  twenty-nine month term loan
(with a monthly  amortization  of $5,952 and a balloon  payment at  September 1,
1999).  The  Credit  Facility  has an  annual  facility  fee of .5% and  capital
expenditures are limited to $250,000. At December 31, 1997 a total of $1,735,000
was outstanding under this facility.  The Credit Facility currently provides for
interest at prime plus 1.5% 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  Company  and all of its  operating  subsidiaries,  as well as a $300,000
letter of credit provided by Mirtronics Inc.

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 various financial
ratios.  At  December  31,  1997,  the  Company was not in default of any of its
financial covenants.








                                        8

<PAGE>





                        FIRETECTOR INC. AND SUBSIDIARIES

           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued

                      THREE MONTHS ENDED DECEMBER 31, 1997

                                   (UNAUDITED)

4. TRANSACTIONS WITH RELATED PARTIES

At  December  31,  1997,   the  Company  was  indebted  to  Mirtronics  and  its
subsidiaries for materials,  loans and  miscellaneous  advances in the aggregate
amount of $170,218. Of this indebtedness, $115,000 is secured by a pledge of all
of the  Company's  assets and is  subordinate  to debt payable to the  Company's
bank. The Company 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 $142,510 at December 31, 1997. The Company has a receivable
from  Mirtronics and its  subsidiaries in the amount of $521,526 at December 31,
1997.

In  consideration  of collateral  support for the Company's  Credit Facility and
various loans over several years,  the Company granted to Mirtronics  options to
purchase the Company's  Common Stock.  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,  a  portion  of  which  are held for the  benefit  of the  Company's
Chairman.  These options  expire on December 31, 1998.  The Company also entered
into a Debt/Equity  agreement  that provided for the  retirement of debt and the
issuance  to  Mirtronics  of 675,000  shares of  Preferred  Stock,  which may be
converted into 1,350,000 shares of Common Stock.

The Company and Mirtronics are negotiating to restructure the terms of the above
debt and  convertible  preferred stock with the intent of reducing the potential
dilution from these securities.

In  consideration  of collateral  support for the Company's  Credit  Facility in
1994, the Company granted Gentera Capital  Corporation,  an Ontario Corporation,
("GCC"  formerly  known as First  Corporate  Capital  Inc.)  options for 500,000
unregistered  shares of the  Company's  common  stock at $.30 per share  through
December 31, 1999. In July 1996, GCC exercised  100,000 of these options at $.30
per share. An officer of GCC is also a director of Mirtronics.

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.  EARNINGS PER SHARE

The  Financial  Accounting  Standards  Board issued SFAS No. 128  "Earnings  Per
Shares" which requires  companies to report basic and diluted earnings per share
("EPS")  computations  effective with the Company's  quarter ending December 31,
1997. Basic EPS excludes  dilution and is based on the  weighted-average  common
shares  outstanding  and  diluted  EPS gives  effect to  potential  dilution  of
securities that could share in the earnings of the Company. Diluted EPS reflects
the assumed issuance of shares with respect to the

                                        9

<PAGE>



Company's  employee stock  options,  non-employee  stock  options,  warrants and
convertible  preferred  stock.  The  computation  for the  three  months  ending
December 31, 1996 has been restated to conform to the  requirements  of SFAS N0.
128.  Shown  below is a table that sets forth the  respective  calculations  for
basic and diluted EPS:

                                                      For the Three Months Ended
                                                           December 31,
Basic EPS Computation                                 1997              1996
                                                    --------          ---------

  Net Income available to common shareholders         $6,132          $256,453

  Weighted average outstanding shares              3,529,565         3,548,400

  Basic EPS                                            $.nil              $.07
                                                   =========        ==========


                                                      For the Three Months Ended
Diluted EPS Computation                                    December 31,
                                                     1997               1996
                                                    -------            ------

  Income available to common stockholders
   and assumed conversions                           $6,132          $256,453

  Weighted-average shares                         3,529,565         3,548,400
                                                  ---------         ---------
  Plus: Incremental shares from assumed
   conversions
  Non Employee Stock Option                       1,560,625         1,777,047
  Convertible preferred stock                     1,350,000         1,350,000
  Convertible debt                                  234,218           220,000
  Employee Stock Options*                                              35,281
  Warrants*                                                            27,536
                                                  ---------         ---------
  Dilutive potential common shares                3,144,843         3,409,864
                                                  ---------         ---------
  Adjusted weighted-average shares                6,674,408         6,958,264
                                                  ---------         ---------
Diluted EPS                                          $.nil               $.04
                                                  =========         =========


* Warrants and  employee  stock  options  convertible  into 318,875  shares were
antidilutive in the 1997 period.



                                       10

<PAGE>



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


Liquidity and Capital Resources

The Company has a credit  facility  with a New York City bank which was recently
sold (the  "Credit  Facility").  The credit  facility  provides for a $2,300,000
revolving line of credit through March 31, 1998 and a $315,000 twenty-nine month
term  loan  (with a monthly  amortization  of $5,952  and a balloon  payment  at
September 1, 1999). At December 31, 1997, the Company owed $1,734,940  under the
terms of the  credit  facility.  The  credit  facility  currently  provides  for
interest at prime plus 1.5% 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  Company  and all of its  operating  subsidiaries,  as well as a $300,000
letter of credit provided by the Company's majority shareholder.

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 various financial ratios.
At September 30, 1997, and continuing through December 31, 1997, the Company was
not in default of any of its financial covenants.

The credit  facility  expires on March 31,  1998 with a loan  payoff by June 30,
1998.  The  company  is in  discussions  with  several  banks  for a new  credit
facility.

Net cash used by  operations  for the  three  months  ended  December  31,  1997
amounted to $86,031 as compared to cash being provided by operations of $296,736
for the comparable prior year period.  The primary reason for the use of cash in
operations  was the decrease in income from  operations and a reduction of trade
payables.  The Company further  anticipates meeting its future cash requirements
through continuation of the 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 Company to continue this program throughout
fiscal 1998.


Results of Operations

The Company's  product  revenues during the three months ended December 31, 1997
were $1,719,812 as compared to $3,751,677 for the comparable  prior year period.
Product  revenues  during the 1996 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  purchased from a third party.
Also during the prior year period,  the Company's  product  division  benefitted
from significant  construction projects in its New York and Dallas market areas.
Service  revenues during the current three month period  increased to $1,127,541
as compared to $1,072,271. 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.


                                       11

<PAGE>



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

Gross profit on product  revenues for the three month period ended  December 31,
1997 was 36% as compared with 29% for the comparable  1996 period as a result of
an  improved  mix of  product.  The lower  gross  profit  percentage  on product
revenues for the three month period of 1996 relates primarily to the above noted
transit   project  that  carried  a  lower  than  typical   margin  on  products
manufactured by an outside vendor and from lower margins on certain construction
work that was completed by subcontractors for the Company.

Gross profit on service  revenues for the three month period ended  December 31,
1997  was  41% as  compared  with  36%  for  the  comparable  1996  period.  The
improvement  in gross  margin in 1997  reflects  the benefit of a 5% increase in
service  revenue.  Gross  profit in the prior year  period was also  impacted by
final payment of royalties due on service contracts that were sold in 1996.

Income from  operating  activities for the three month period ended December 31,
1997  decreased to $10,132 as compared to income of $287,453 for the  comparable
1996 period.  This decrease is primarily  attributable to lower product revenues
as the prior year period included  product sales from a major sports facility in
Texas and  commencement of shipments on several delayed projects in New York. In
1996, a transit  project  involved the sale of  approximately  $660,000 of lower
margin products  manufactured  by an outside vendor.  The decline in income from
operations  was  minimized  in 1997 by a 5%  increase  in  service  revenue,  an
improvement in gross margin  percentage  through product mix, and lower selling,
general  and   administrative   expenses   resulting  from  the  Company's  cost
containment program.

The backlog of orders at December 31, 1997 amounted to $5,100,000 as compared to
$5,700,000  at September  30, 1997 and  $7,700,000  at December  31,  1996.  The
decrease in the backlog since  September 30, 1997 is primarily the result of the
Company's  performance of certain of its large projects in New York.  Management
believes its  marketing  efforts,  which  includes  active bids in excess of $10
million,  will  result in new orders that will enable the Company to continue to
maintain a comfortable backlog.


                                       12

<PAGE>



                        Part II - OTHER INFORMATION

Item 1.   Legal Proceedings.

               Not Applicable

Item 2.   Changes in Securities.

               Not Applicable

Item 3.   Defaults Upon Senior Securities.

               Not Applicable

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

               Not Applicable

Item 5.   Other Information.


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

          a. Exhibits.

             Ex-27  Financial data Schedule                            15


          b. Reports on Form 8-K.

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


                                       13

<PAGE>



                                SIGNATURES

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


                                   FIRETECTOR, INC.
                                   (Registrant)


Date: February 12, 1998            /s/DENNIS P. McCONNELL
                                  -----------------------------
                                  Dennis P. McConnell, Secretary

                                       14