For the three months ended March 31, the company reported an operating loss (not including non-cash stock-based compensation charges and the accrual for the severance of its former chief operating officer) of $865,143 compared to an operating loss of $930,467 in the fourth quarter of 2001 and $1,266,340 for the same period in 2001. The company's net loss for the period was $950,152, or $0.05 per basic and diluted share, compared to a net loss of $1,291,867, or $0.07 per basic and diluted share, for the 2001 period.

TTR had no revenues in the quarter. Cash and short-term investments at March 31, 2002, were $3.96 million. The company has no long-term debt.

TTR recently restructured its management team and moved its headquarters to New York from Isreal. Daniel C. Stein, TTR's new chief executive officer, commented, "I am very excited to be joining the TTR team and believe the company is in position to become a major market force in digital security technologies." Marc Tokayer, chairman and president of TTR, added, "It was crucial to expand management in the United States and move corporate headquarters to New York to support expanded business activity in our new areas of development, as well as become more accessible to our investors and shareholders."