| BLASTGARD INTERNATIONAL, INC. |
|-------------------------------|

| Colorado                                                       |   | 84-1506325                        |
|----------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification No.) |

| 2451 McMullen Booth Road, Suite 242, Clearwater, Florida 33759-1362 |
|---------------------------------------------------------------------|
| (Address of principal executive offices)                            |

|                                                                               | (727) 592-9400                    |   |
|------------------------------------------------------------------------------------|-----------------------------------|--------|
|                                                                               | (issuer’s telephone number) |   |
|                                                                               |
| (Former name, former address and former fiscal year, if changed since last report) |

----

|                                                                                                                       |                                                |   |
|----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|
|                                                                                                                       |                                                | Page   |
|                                                                                                                       |                                                |   |
| PART 1 – FINANCIAL INFORMATION                                                                                       |                                                |
|                                                                                                                       |                                                |   |
| Item 1.                                                                                                                    | Financial Statements                                |   |
|                                                                                                                       |                                                |   |
| Condensed balance sheets, September 30, 2011 (unaudited) and December 31, 2010                                             | 3                                                   |
|                                                                                                                       |                                                |   |
| Condensed statements of operations, for the three and nine months ended  September 30, 2011 and 2010 (unaudited) | 4                                                   |
|                                                                                                                       |                                                |   |
| Condensed statements of cash flows for the nine months ended September 30, 2011 and 2010 (unaudited)                       | 6                                                   |
|                                                                                                                       |                                                |   |
| Notes to condensed financial statements (unaudited)                                                                        | 7                                                   |
|                                                                                                                       |                                                |   |
| Item 2.                                                                                                                    | Management’s Plan of Operation.               | 18     |
|                                                                                                                       |                                                |   |
| Item 3. Quantitative and Qualitative Disclosures and Market Risk                                                      | 24                                                  |
|                                                                                                                       |                                                |   |
| Item 4.                                                                                                                    | Controls and Procedures                             | 24     |
|                                                                                                                       |                                                |   |
| PART 2 – OTHER INFORMATION                                                                                           |                                                |
|                                                                                                                       |                                                |   |
| Item 1.                                                                                                                    | Legal Proceedings                                   | 24     |
|                                                                                                                       |                                                |   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                                        | 25                                                  |
|                                                                                                                       |                                                |   |
| Item 3.                                                                                                                    | Defaults upon Senior Securities                     | 26     |
|                                                                                                                       |                                                |   |
| Item 4.                                                                                                                    | Submission of Matters to a Vote of Security Holders | 26     |
|                                                                                                                       |                                                |   |
| Item 5.                                                                                                                    | Other Information                                   | 26     |
|                                                                                                                       |                                                |   |
| Item 6.                                                                                                                    | Exhibits                                            | 26     |
|                                                                                                                       |                                                |   |
| Signatures                                                                                                                 | 27                                                  |

----

|                                                                                                                                |   | September 30, |        |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|--------------|--------|
|                                                                                                                                |   | 2011          |        |   | 2010         |   |
|                                                                                                                                |   | (unaudited)   |        |   | (audited)    |   |
| Assets                                                                                                                              |   |          |        |   |         |   |
| Current assets                                                                                                                      |   |          |        |   |         |   |
| Cash                                                                                                                                |   | $             | 46,112      |   |         | $      | 46,382 |   |
| Accounts receivable                                                                                                                 |   |          | 9,699       |   |         |   | 342 |   |
| Inventory                                                                                                                           |   |          | 398,178     |   |         |   | 51,290 |   |
| Deposits and other current assets                                                                                                   |   |          | 19,824      |   |         |   | - |   |
| Net related party loans receivable                                                                                                  |   |          | 442,012     |   |         |   | - |   |
| Prepaid expenses                                                                                                                    |   |          | 513         |   |         |   | - |   |
| Total current assets                                                                                                                |   |          | 916,338     |   |         |   | 98,014 |   |
|                                                                                                                                |   |          |        |   |         |   |   |   |
| Property & equipment, net of accumulated depreciation of ($236,533) and ($75,700), respectively                                 |   |          | 123,631     |   |         |   | 64 |   |
| Intangible property, net of accumulated amortization of ($137,272) and ($4,642), respectively                                       |   |          | 526,714     |   |         |   | 24,344 |   |
| Deferred patent costs                                                                                                               |   |          | 209,896     |   |         |   | 203,535 |   |
| Investments                                                                                                                         |   |          | 112,832     |   |         |   | - |   |
| Goodwill                                                                                                                            |   |          | 2,543,282   |   |         |   | - |   |
| Deposits                                                                                                                            |   |          | 794         |   |         |   | 300 |   |
| Total Assets                                                                                                                        |   | $             | 4,433,487   |   |         | $      | 326,257 |   |
|                                                                                                                                |   |          |        |   |         |   |   |   |
| Liabilities and Stockholders' Equity                                                                                                |   |          |        |   |         |   |   |   |
| Current liabilities                                                                                                                 |   |          |        |   |         |   |   |   |
| Accounts payable                                                                                                                    |   | $             | 1,435,815   |   |         | $      | 249,087 |   |
| Accrued expenses                                                                                                                    |   |          | 367,259     |   |         |   | 385,094 |   |
| Current portion notes payable                                                                                                       |   |          | 1,345,862   |   |         |   | 729,652 |   |
| Loans and notes payable, related parties                                                                                            |   |          | 143,872     |   |         |   | 14,421 |   |
| Total current liabilities                                                                                                           |   |          | 3,292,808   |   |         |   | 1,378,254 |   |
|                                                                                                                                |   |          |        |   |         |   |   |   |
| Contingent liability                                                                                                                |   |          | 1,239,384   |   |         |   | - |   |
| Derivative liability                                                                                                                |   |          | 1,010,399   |   |         |   | - |   |
| Total liabilities                                                                                                                   |   |          | 5,542,591   |   |         |   | 1,378,254 |   |
|                                                                                                                                |   |          |        |   |         |   |   |   |
| Stockholders' Equity                                                                                                                |   |          |        |   |         |   |   |   |
| Preferred Stock:                                                                                                                    |   |          |        |   |         |   |   |   |
| Preferred Stock, 1,000,000 shares authorized; $100 par value; 0 and 0 issued and outstanding                                        |   |          | -           |   |         |   | - |   |
| Common Stock, $.001 par value, 100,000,000 shares authorized; 86,386,036 and 50,586,142 shares issued and outstanding, respectively |   |          | 86,386      |   |         |   | 56,086 |   |
| Additional paid-in capital                                                                                                          |   |          | 14,493,387  |   |         |   | 12,560,249 |   |
| Minority interest                                                                                                                   |   |          | (44,541     | )      |         |   | - |   |
| Accumulated deficit                                                                                                                 |   |          | (15,644,336 | )      |         |   | (13,668,332 | ) |
| Total stockholders' deficit                                                                                                         |   |          | (1,109,104  | )      |         |   | (1,051,997 | ) |
|                                                                                                                                |   |          |        |   |         |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                          |   | $             | 4,433,487   |   |         | $      | 326,257 |   |

----

|                                 |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|--------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                 |   | September 30,              |       |   | September 30,             |   |
|                                 |   | 2011                       |       |   | 2010                      |   |   | 2011 |   |   | 2010 |   |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |
| Revenues                             |   | $                          | 170,967    |   |                      | $      | 43,315 |   |   | $ | 194,260 |   |   | $ | 87,698 |   |
| Direct costs                         |   |                       | 137,984    |   |                      |   | 31,165 |   |   |   | 160,115 |   |   |   | 65,584 |   |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                         |   |                       | 32,983     |   |                      |   | 12,150 |   |   |   | 34,145 |   |   |   | 22,114 |   |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                  |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative           |   |                       | 541,065    |   |                      |   | 45,758 |   |   |   | 1,318,536 |   |   |   | 249,240 |   |
| Research and Development             |   |                       | 83         |   |                      |   | - |   |   |   | 1,274 |   |   |   | 888 |   |
| Amortization and depreciation        |   |                       | 64,876     |   |                      |   | 539 |   |   |   | 202,567 |   |   |   | 1,648 |   |
| Total operating expenses             |   |                       | 606,024    |   |                      |   | 46,297 |   |   |   | 1,522,377 |   |   |   | 251,776 |   |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                       |   |                       | (573,041   | )      |                      |   | (34,147 | ) |   |   | (1,488,232 | ) |   |   | (229,662 | ) |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Non-operating activity               |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense)               |   |                       | 6,355      |   |                      |   | - |   |   |   | 8,642 |   |   |   | 7,089 |   |
| Gains (losses) on settlement of debt |   |                       | -          |   |                      |   |   |   |   |   | 248,754 |   |   |   | - |   |
| Gain (loss) on derivative liability  |   |                       | 732,710    |   |                      |   |   |   |   |   | 492,366 |   |   |   | - |   |
| Gain (loss) on settlement of assets  |   |                       | 98,385     |   |                      |   |   |   |   |   | 98,385 |   |   |   |   |   |
| Interest expenses                    |   |                       | (450,505   | )      |                      |   | (29,572 | ) |   |   | (1,345,154 | ) |   |   | (60,879 | ) |
| Interest income                      |   |                       | 1          |   |                      |   |   |   |   |   | 1 |   |   |   |   |   |
| Total other income (expense)         |   |                       | 386,946    |   |                      |   | (29,572 | ) |   |   | (497,006 | ) |   |   | (53,790 | ) |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes             |   |                       | (186,095   | )      |                      |   | (63,719 | ) |   |   | (1,985,238 | ) |   |   | (283,452 | ) |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Minority interest loss               |   |                       | 347        |   |                      |   |   |   |   |   | (9,234 | ) |   |   |   |   |
| Provision for income taxes           |   |                       | -          |   |                      |   | - |   |   |   | - |   |   |   | - |   |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                             |   | $                          | (186,442   | )      |                      | $      | (63,719 | ) |   | $ | (1,976,004 | ) |   | $ | (283,452 | ) |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:           |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                |   | $                          | (0.00      | )      |                      | $      | (0.00 | ) |   | $ | (0.03 | ) |   | $ | (0.01 | ) |
| Dilutive                             |   | $                          | (0.00      | )      |                      | $      | (0.00 | ) |   | $ | (0.02 | ) |   | $ | (0.01 | ) |
|                                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding  |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                |   |                       | 84,754,168 |   |                      |   | 50,586,142 |   |   |   | 74,684,369 |   |   |   | 50,512,068 |   |
| Dilutive                             |   |                       | 96,968,454 |   |                      |   | 50,586,142 |   |   |   | 86,898,655 |   |   |   | 50,512,068 |   |

----

|                                    |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
|-----------------------------------------|--------|--------|------------|--------|--------|--------------------|--------|--------|------------|--------|--------|-------------|--------|--------|----------------|--------|--------|------------|--------|
|                                    |   |   | Common     |   |   | Additional Paid in |   |   | Minority   |   |   | Accumulated |   |   | Stock-Holders' |   |
|                                    |   |   | shares     |   |   | Par                |   |   | Capital    |   |   | Interest    |   |   | Deficit        |   |   | Deficit    |   |
|                                    |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
| Balance at December 31, 2009            |   |   | 50,086,142 |   |   | 50,086             |   |   | 12,351,249 |   |   | —     |   |   | (13,204,719    | )      |   | (803,384   | )      |
|                                    |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
| Board member compensation               |   |   | 500,000    |   |   | 500                |   |   | 49,500     |   |   |        |   |   |           |   |   | 50,000     |   |
| Sale of stock                           |   |   | 5,500,000  |   |   | 5,500              |   |   | 159,500    |   |   |        |   |   |           |   |   | 165,000    |   |
| Net loss                                |   |   |       |   |   |               |   |   |       |   |   |        |   |   | (463,613       | )      |   | (463,613   | )      |
|                                    |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
| Balance at December 31, 2010            |   |   | 56,086,142 |   |   | 56,086             |   |   | 12,560,249 |   |   | —     |   |   | (13,668,332    | )      |   | (1,051,997 | )      |
|                                    |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
| Sale of stock                           |   |   | 5,833,334  |   |   | 5,833              |   |   | 169,167    |   |   |        |   |   |           |   |   | 175,000    |   |
| Stock issued for acquisition of HighCom |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
| Security                                |   |   | 9,820,666  |   |   | 9,821              |   |   | 481,179    |   |   |        |   |   |           |   |   | 491,000    |   |
| Stock issued for conversion of debt     |   |   | 7,812,561  |   |   | 7,813              |   |   | 226,564    |   |   |        |   |   |           |   |   | 234,377    |   |
| Stock issued for consulting             |   |   | 6,333,333  |   |   | 6,333              |   |   | 203,667    |   |   |        |   |   |           |   |   | 210,000    |   |
| Stock issued for Acer payable           |   |   | 500,000    |   |   | 500                |   |   | 24,500     |   |   |        |   |   |           |   |   | 25,000     |   |
| Options issued for compensation         |   |   |       |   |   |               |   |   | 327,944    |   |   |        |   |   |           |   |   | 327,944    |   |
| Record discount on new loans            |   |   |       |   |   |               |   |   | 464,810    |   |   |        |   |   |           |   |   | 464,810    |   |
| Reclassify minority interest            |   |   |       |   |   |               |   |   | 35,307     |   |   | (35,307     | )      |   | —        |   |   |       |   |
| Net loss                                |   |   |       |   |   |               |   |   |       |   |   | (9,234      | )      |   | (1,976,004     | )      |   | (1,985,238 | )      |
|                                    |   |   |       |   |   |               |   |   |       |   |   |        |   |   |           |   |   |       |   |
| Balance at September 30, 2011           |   |   | 86,386,036 |   | $      | 86,386             |   |   | 14,493,387 |   |   | (44,541     | )      |   | (15,644,336    | )      | $      | (1,109,104 | )      |

----

|                                                                   |   | For the Nine Months Ended |       |
|------------------------------------------------------------------------|--------|---------------------------|------------|
|                                                                   |   | September 30,             |       |
|                                                                   |   | 2011                      |       |   | 2010 |   |
|                                                                   |   |                      |       |   |   |   |
| Cash Flows from Operating Activities:                                  |   |                      |       |   |   |   |
| Net (loss) income                                                      |   | $                         | (1,976,004 | ) |   | $ | (283,452 | ) |
| Adjustment to reconcile Net Income to net cash provided by operations: |   |                      |       |   |   |   |   |   |
| Minority interest loss                                                 |   |                      | (9,234     | ) |   |   |   |   |
| Depreciation and amortization                                          |   |                      | 202,567    |   |   |   | 1,648 |   |
| Amortization of debt discount                                          |   |                      | 1,230,953  |   |   |   |   |   |
| Discount on debt                                                       |   |                      | (464,810   | ) |   |   |   |   |
| Stock given for interest                                               |   |                      | 210,000    |   |   |   |   |   |
| Other stock comp                                                       |   |                      | 327,944    |   |   |   | 50,000 |   |
| Gain on conversion of debt                                             |   |                      | (248,754   | ) |   |   |   |   |
| Gain on disposal of equipment                                          |   |                      | (6,465     | ) |   |   |   |   |
| gain on derivative                                                     |   |                      | (492,366   | ) |   |   |   |   |
| Changes in assets and liabilities:                                     |   |                      |       |   |   |   |   |   |
| Accounts receivable                                                    |   |                      | 55,880     |   |   |   | (30,687 | ) |
| Note receivable                                                        |   |                      | (15,892    | ) |   |   | - |   |
| Inventory                                                              |   |                      | (19,560    | ) |   |   | 16,516 |   |
| Other operating assets                                                 |   |                      | 68,078     |   |   |   | (398 | ) |
| Accounts payable and accruals                                          |   |                      | 316,525    |   |   |   | 274,178 |   |
| Related party loans                                                    |   |                      | 84,282     |   |   |   | (4,611 | ) |
| Net Cash (Used) Provided by Operating Activities                       |   |                      | (736,856   | ) |   |   | 23,194 |   |
|                                                                   |   |                      |       |   |   |   |   |   |
| Cash Flows from Investing Activities:                                  |   |                      |       |   |   |   |   |   |
| Purchase of property and equipment                                     |   |                      | (11,880    | ) |   |   | - |   |
| Payments for deferred costs                                            |   |                      | (6,429     | ) |   |   | (24,423 | ) |
| Proceeds from sales of assets and intangibles                          |   |                      | 3,900      |   |   |   | - |   |
| Cash purchased                                                         |   |                      | 650        |   |   |   | - |   |
| Net Cash Used by Investing Activities                                  |   |                      | (13,759    | ) |   |   | (24,423 | ) |
|                                                                   |   |                      |       |   |   |   |   |   |
| Cash Flows from Financing Activities:                                  |   |                      |       |   |   |   |   |   |
| Proceeds from issuance of stock                                        |   |                      | 175,000    |   |   |   | - |   |
| Proceeds from issuance of note payable                                 |   |                      | 760,000    |   |   |   | - |   |
| Net proceeds from line of credit                                       |   |                      | -          |   |   |   | 572 |   |
| Repayments of notes payable                                            |   |                      | (184,655   | ) |   |   | - |   |
| Net Cash Provided by Financing Activities                              |   |                      | 750,345    |   |   |   | 572 |   |
|                                                                   |   |                      |       |   |   |   |   |   |
| Net increase/decrease in Cash                                          |   |                      | (270       | ) |   |   | (657 | ) |
|                                                                   |   |                      |       |   |   |   |   |   |
| Cash at beginning of period                                            |   |                      | 46,382     |   |   |   | 1,739 |   |
|                                                                   |   |                      |       |   |   |   |   |   |
| Cash at end of period                                                  |   | $                         | 46,112     |   |   | $ | 1,082 |   |
|                                                                   |   |                      |       |   |   |   |   |   |
| Supplemental cash flow information:                                    |   |                      |       |   |   |   |   |   |
| Interest paid                                                          |   | $                         | 69,653     |   |   | $ | 14,172 |   |
| Taxes paid                                                             |   | $                         | -          |   |   | $ | - |   |

----

----

|   |  (2) | Notes Payable |
|--------|-----------|---------------|

|                                                                                                                                                                            |   | (Unaudited) |     |   |              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|----------|--------|-------------------|--------|
|                                                                                                                                                                            |   | 30-Sept-11  |     |   | December 31, 2010 |   |
|                                                                                                                                                                            |   |        |     |   |              |   |
| $500,000 convertible promissory note issued December 2, 2004, due on November 30, 2009, 8% annual interest rate, net of unamortized Discount of $0                    |   | $           | -        |   |              | $      | 150,166 |   |
|                                                                                                                                                                            |   |        |     |   |              |   |   |   |
| $93,096 convertible promissory note (1/4 of previous outstanding notes) issued December 2, 2004, due November 30, 2009, 8% interest Net of unamortized discount of $0 |   |        | 93,097   |   |              |   | 93,096 |   |
|                                                                                                                                                                            |   |        |     |   |              |   |   |   |
| $50,000 convertible promissory note issued December 2, 2004, due on November 30, 2009, 8% annual interest rate, net of unamortized Discount of $0                |   |        | 17,325   |   |              |   | 17,325 |   |
|                                                                                                                                                                            |   |        |     |   |              |   |   |   |
| $50,000 convertible promissory note issued December 2, 2004, due on November 30, 2009, 8% annual interest rate, net of unamortized Discount of $0           |   |        | 15,241   |   |              |   | 15,241 |   |
|                                                                                                                                                                            |   |        |     |   |              |   |   |   |
| $10,000 convertible promissory note issued December 2, 2004, due on November 30, 2009, 8% annual interest rate, net of unamortized Discount of $0                |   |        | -        |   |              |   | 3,464 |   |
|                                                                                                                                                                            |   |        | 125,663  |   |              |   | 279,292 |   |
| Less: current maturities                                                                                                                                                        |   |        | (125,663 | )      |              |   | (279,292 | ) |
|                                                                                                                                                                            |   | $           | -        |   |              | $      | - |   |

----

|                                                                                                                                                                |   | (Unaudited)        |       |   |              |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                                                                                                                |   | September 30, 2011 |       |   | December 31, 2010 |   |
|                                                                                                                                                                |   |               |       |   |              |   |
| $160,000 convertible promissory note issued February 3, 2011, due on August 31, 2011, 10% annual interest rate, net of unamortized Discount of $0         |   | $                  | 110,000    |   |              | $      | - |   |
|                                                                                                                                                                |   |               |       |   |              |   |   |   |
| $300,000 convertible promissory note issued March 3, 2011, due on March 3, 2012, 10% interest, net of unamortized discount of $50,820                     |   |               | 249,180    |   |              |   | - |   |
|                                                                                                                                                                |   |               |       |   |              |   |   |   |
| $300,000 convertible promissory note issued June 16, 2011, due on June 17, 2012, 10% annual interest rate, net of unamortized Discount of $21,393    |   |               | 278,607    |   |              |   | - |   |
|                                                                                                                                                                |   |               |       |   |              |   |   |   |
| $210,000 convertible promissory note issued January 31, 2011, due on September 30, 2011, 10% annual interest rate, net of unamortized Discount of $0 |   |               | 210,000    |   |              |   | - |   |
|                                                                                                                                                                |   |               |       |   |              |   |   |   |
| $160,000 convertible promissory note issued January 31, 2011, due on 1/31/2012, 10% annual interest rate, net of unamortized Discount of $21,567          |   |               | 138,433    |   |              |   | - |   |
|                                                                                                                                                                |   |               |       |   |              |   |   |   |
| $67,025 convertible promissory note issued January 31, 2011, due on September 30, 2011, 10% annual interest rate, net of unamortized Discount of $0            |   |               | 67,025     |   |              |   | - |   |
|                                                                                                                                                                |   |               | 1,053,245  |   |              |   | - |   |
| Less: current maturities                                                                                                                                            |   |               | (1,053,245 | )      |              |   | - |   |
|                                                                                                                                                                |   | $                  | -          |   |              | $      | - |   |

----

|                                                                                                                           |   | (Unaudited)        |     |   |              |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                                                                                                           |   | September 30, 2011 |     |   | December 31, 2010 |   |
|                                                                                                                           |   |               |     |   |              |   |
| $100,000 line of credit from Regions Bank, interest only at 8% annually, due on demand                                    |   | $                  | 90,971   |   |              | $      | 95,380 |   |
|                                                                                                                           |   |               |     |   |              |   |   |   |
| $450,000 line of credit from Fifth Third Bank, interest only at prime plus 3% annually, due on demand                          |   |               | 426,583  |   |              |   | - |   |
|                                                                                                                           |   |               |     |   |              |
| $150,000 revolving credit card facility with Wells Fargo Bank, interest only at 6.25% annually, due on demand                  |   |               | 147,288  |   |              |   | - |   |
|                                                                                                                           |   |               |     |   |              |   |   |   |
| $50,000 revolving credit card facility with California Bank & Trust (non-assumable), interest only at 6%, due on demand    |   |               | 49,710   |   |              |   | - |   |
|                                                                                                                           |   |               |     |   |              |   |   |   |
| Three credit card accounts with major financial institutions varying monthly minimum payments including interest due on demand |   |               | 65,234   |   |              |   | - |   |
|                                                                                                                           |   |               | 779,786  |   |              |   | 95,380 |   |
| Less: current maturities                                                                                                       |   |               | (779,786 | )      |              |   | (95,380 | ) |
|                                                                                                                           |   | $                  | -        |   |              | $      | - |   |

----

| (3) |   | Subordinated Convertible Notes Payable |
|-----|--------|----------------------------------------|

|                                                                                                                                                                                          |   | (Unaudited)        |   |   |              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                          |   | September 30, 2011 |   |   | December 31, 2010 |   |
|                                                                                                                                                                                          |   |               |   |   |              |   |
| $600,000 subordinated, convertible promissory note issued June 22, 2006, due on June 22, 2008, 8% annual interest rate, net of unamortized discount of $0 and $0, respectively |   | $                  | -      |   |              | $      | 355,000 |   |
|                                                                                                                                                                                          |   |               | -      |   |              |   | 355,000 |   |
| Less: current maturities                                                                                                                                                                      |   |               | -      |   |              |   | (355,000 | ) |
|                                                                                                                                                                                          |   | $                  | -      |   |              | $      | - |   |

| (4) |   | Shareholders’ Equity |
|-----|--------|----------------------------|

|   | Preferred stock |
|--------|-----------------|

|   | On January 24, 2011, the Company sold 4,166,667 shares to an unrelated party for $125,000. |
|--------|--------------------------------------------------------------------------------------------|

----

|   | Stock Compensation |
|--------|--------------------|

----

|                                               |    | Numberof Shares |   |   | WeightedAverageExercisePrice |    | WeightedAverageRemainingContractual Life |      | AggregateIntrinsicValue |
|----------------------------------------------------|--------------|-----------------|--------|--------|------------------------------|--------------|-----------------------------------------------|----------------|-------------------------|
| Options Outstanding - January 1, 2011              |    | 2,850,000       |   |   | $                            | 0.10         |                                     | 1.2 years      |               |   | - |
| Granted                                            |    | 6,550,000       |   |   | $                            | 0.03         |                                     |           |               |   |   |
| Exercised                                          |    | (180,000)-      |   |   |                         | -            |                                     |           |               |   |   |
| Forfeited/expired/cancelled                        |    | -               |   |   |                         |         |                                          |           |               |   |   |
|                                               |    |            |   |   |                         |         |                                     |           |               |   |   |
| Options Outstanding – December 31, 2010      |    | 9,220,000       |   |   | $                            | 0.05         |                                     | 3.1 years |               | $ | 321,500 |
|                                               |    |            |   |   |                         |         |                                     |           |               |   |   |
| Outstanding Exercisable – January 1, 2011    |    | 2,850,000       |   |   | $                            | 0.10         |                                     | 1.2 years      |               | $ |   |
| Outstanding Exercisable – September 30, 2011 |    | 9,220,000       |   |   | $                            | 0.05         |                                     | 3.1 years      |               | $ | 31,250 |

----

|            |   | September 30, |    |   | December 31, |   |
|-----------------|--------|---------------|---------|--------|--------------|--------|
|            |   | 2011          |    |   | 2010         |   |
|            |   | (unaudited)   |    |   |         |   |
| Raw materials   |   | $             | 366,807 |   |         | $      | 17,370 |   |
| Work in process |   |          | -       |   |         |   | - |   |
| Finished Goods  |   |          | 31,371  |   |         |   | 33,920 |   |
|            |   |          |    |   |         |   |   |   |
| TOTAL           |   | $             | 398,178 |   |         | $      | 51,290 |   |

----

|                                  |   | September 30, 2011 |    |   | December 31, 2010 |   |
|---------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                  |   |               |    |   |              |   |
|     Customer list |   | $                  | 500,000 |   |              | $      | - |   |
| Product designs                       |   |               | 55,000  |   |              |   | - |   |
| Websites                              |   |               | 80,000  |   |              |   | - |   |
| Patents                               |   |               | 28,651  |   |              |   | 28,651 |   |
| Trademarks                            |   |               | 335     |   |              |   | 335 |   |
|                                  |   |               | 663,986 |   |              |   | 28,689 |   |
| Accumulated amortization              |   |               | 135,412 |   |              |   | 4,642 |   |
|                                  |   | $                  | 528,574 |   |              | $      | 24,344 |   |
|                                  |   |               |    |   |              |   |   |   |
| Future amortization:                  |   |               |    |   |              |   |   |   |
| 2011                                  |   | $                  | 99,466  |   |              |   |   |   |
| 2012                                  |   |               | 198,932 |   |              |   |   |   |
| 2013                                  |   |               | 166,710 |   |              |   |   |   |
| 2014                                  |   |               | 5,599   |   |              |   |   |   |
| 2015 and thereafter                   |   |               | 50,407  |   |              |   |   |   |
|                                  |   | $                  | 526,714 |   |              |   |   |   |

----

| Cash                                                    |   | $      | 834       |   |
|---------------------------------------------------------|--------|--------|-----------|--------|
|  Accounts receivable                               |   |   | 116,910   |   |
|  Contract performance bonds                        |   |   | 50,500    |   |
|  Inventory                                         |   |   | 219,233   |   |
| Related party loans                                     |   |   | 574,810.  |   |
|  Fixed assets                                      |   |   | 206,159   |   |
|  Investments                                       |   |   | 121,287   |   |
|  Deposits                                          |   |   | 37,738    |   |
|  Customer lists                                    |   |   | 500,000   |   |
|  Website                                           |   |   | 80,000    |   |
|  Goodwill                                          |   |   | 2,323,010 |   |
|  Total assets                                      |   | $      | 4,230,481 |   |
|                                                    |   |   |      |   |
|  Accounts payable                                  |   | $      | 1,265,693 |   |
|  Accrued expenses                                  |   |   | 403,000   |   |
|  Notes and loans payable                           |   |   | 665,607   |   |
|  Acquisition debt                                  |   |   | 196,400   |   |
|  Contingent consideration                          |   |   | 1,262,000 |   |
|  Stock given at closing                            |   |   | 491,000   |   |
|  Total liabilities assumed and consideration given |   | $      | 4,230,481 |   |

|             |   | Years ended December 31, |       |
|------------------|--------|--------------------------|------------|
|             |   | 2009                     |       |   | 2010 |   |
|             |   |                     |       |   |   |   |
| Revenues         |   | $                        | 3,886,692  |   |   | $ | 5,512,174 |   |
|             |   |                     |       |   |   |   |   |   |
| Net income(loss) |   | $                        | (1,881,925 | ) |   | $ | (944,653 | ) |
|             |   |                     |       |   |   |   |   |   |
| EPS              |   | $                        | (0.03      | ) |   | $ | (0.01 | ) |

|               |   | Three months ended September 30, 2010 |     |   | Nine months ended September 30, 2010 |   |
|--------------------|--------|---------------------------------------|----------|--------|--------------------------------------|--------|
|               |   |                                  |     |   |                                 |   |
| Revenues           |   |                                  | 124,729  |   |                                 |   | 5,050,241 |   |
| Operating expenses |   |                                  | 344,309  |   |                                 |   | 1,840,088 |   |
| Net income (loss)  |   |                                  | (392,778 | )      |                                 |   | (758,538 | ) |

----

----

| Item 2. | Management’s Plan of Operation |
|---------|--------------------------------------|

----

----

|   | · | Mitigated Bomb Receptacles and MBR Gard Cart; |
|--------|--------|-----------------------------------------------|

|   | · | Blast Mitigated Unit Load Device (“BMULD”) – LD3 Container; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | Insensitive Munitions (IM) Weapons Container; |
|--------|--------|-----------------------------------------------|

|   | · | Mitigated Trash Receptacle; and |
|--------|--------|---------------------------------|

|   | · | BlastGard Barrier System (“BBS”). |
|--------|--------|-----------------------------------------------|

| ·   | Type IIA body armor- minimal protection against smaller caliber handgun threats. |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Type II body armor – provides protection against many handgun threats, including many common smaller caliber pistols with standard pressure ammunition, and against many revolvers. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Type IIIA body armor- provides a higher level of protection and will generally protect against most pistol calibers including many law enforcement ammunitions, and against many higher poared revolvers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Type III and IV body armor – provides protection against rifle rounds and are generally only used in tactical situations. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| §   | Ballistic helmets |
|--------------------|-------------------|

| §   | Body armor and hard armor plates |
|--------------------|----------------------------------|

| §   | Riot helmets and shields |
|--------------------|--------------------------|

----

| §   | Mounted patrol, vehicular crew, and general duty helmets |
|--------------------|----------------------------------------------------------|

| §   | Uniforms, Apparel and Duty Gear |
|--------------------|---------------------------------|

| §   | Metal detectors:  walk-through and handheld |
|--------------------|-------------------------------------------------------|

| §   | Explosive ordinance disposal equipment:  bomb suits & gear, hook & line kits, detectors and search mirrors, under vehicle surveillance systems |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Range & training equipment:  robots and targets |
|--------------------|---------------------------------------------------------------|

| §   | Safety equipment:  gas masks, respirators, chemical detectors, medical equipment & supplies |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| §   | X-Ray screening systems:  luggage, parcel, freight and cargo scanners, mobile systems, transportation securities administration test objects |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Dry storage systems for ordnance and heavy equipment |
|--------------------|------------------------------------------------------|

| §   | Outdoor equipment:  gear, flashlights, GPS systems |
|--------------------|--------------------------------------------------------------|

| §   | Vision and optics:  binoculars, goggles, night vision equipment |
|--------------------|---------------------------------------------------------------------------|

| §   | Communication systems |
|--------------------|-----------------------|

| §   | Emergency lighting and warning systems |
|--------------------|----------------------------------------|

----

----

----

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

| Item 1. | Legal Proceedings. |
|---------|--------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

----

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

|   | (a) | From January 2011 to September 30, 2011, we had no sales or issuances of unregistered securities, except we made sales or issuances of unregistered securities listed in the table below: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date of Sale                                                       |   | Title ofSecurity                                                                         |   | Number Sold                                                                       |   | ConsiderationReceived andDescription ofUnderwriting orOther Discounts toMarket Price orConvertible Security,Afforded toPurchasers |   | Exemption fromRegistrationClaimed                                                            |   | If Option, Warrantor ConvertibleSecurity, terms ofexercise orconversion                                                                    |
|--------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| Jan 2011                                                           |   | Notes                                                                                    |   | $387,025 principal amount                                                         |   | Accounts payable totaling $87,025 owed to directors and legal counsel are converted into demand notes; no commissions paid        |   | Section 4(2)                                                                                 |   | Notes payable on demand; convertible at $.05 per share                                                                                     |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| Jan 2011   Jan 2011    Jan 2011 |   | Common stock (1)  Common stock   Common stock purchase warrants |   | 866,667 shares  4,166,667shares   6,250,000 shares  |   | $26,000; no commissions paid  $125,000; nocommissions paid Services rendered; no commissions paid             |   |  Section 4(2   Section 4(2) and/or Rule 506   Section 4(2 |   |  Not applicable.    Not applicable.    Five-year warrants exercisable at $.05 per share  |
| Feb 2011                                                           |   | Notes (2)                                                                                |   | $160,000 in principal                                                             |   | $160,000; no commissions paid                                                                                                     |   | Section 4(2)                                                                                 |   | Notes due August 31, 2011                                                                                                                  |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| March 2011                                                         |   | Notes (3)                                                                                |   | $300,000 in principal                                                             |   | $300,000; no commission paid                                                                                                      |   | Section 4(2)                                                                                 |   | Notes due March 3, 2012                                                                                                                    |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| April 2011                                                         |   | Common stock(1)                                                                          |   | 800,000 shares                                                                    |   | $24,000; no commission paid                                                                                                       |   | Section 4(2)                                                                                 |   | Not applicable                                                                                                                             |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| May 2011                                                           |   | Common stock (1)                                                                         |   | 3,333,333 shares                                                                  |   | Services rendered; no commission paid                                                                                             |   | Section 4(2)                                                                                 |   | Not applicable                                                                                                                             |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| May 2011                                                           |   | Common stock                                                                             |   | 1,000,000 shares                                                                  |   | Services rendered; no commission paid                                                                                             |   | Section 4(2)                                                                                 |   | Not applicable                                                                                                                             |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| Jan 2011                                                           |   | Notes                                                                                    |   | $50,000 principal amount                                                          |   | Accounts payable totaling $50,000; owed to a director; no commissions paid                                                        |   | Section 4(2)                                                                                 |   | Notes payable on demand; convertible at $.05 per share                                                                                |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| June 2011                                                          |   | Notes (4)                                                                                |   | $300,000 in principal                                                             |   | $300,000; nocommissionspaid                                                                                                       |   | Section 4(2)                                                                                 |   | Notes due June 2012                                                                                                                        |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| August 2011                                                   |   | Common Stock                                                                             |   | 500,000 shares                                                                    |   | Accounts payable totaling $50,000 for acquisition of Acer product line; no commissionPaid                                         |   | Section 4(2)                                                                                 |   | Not applicable                                                                                                                             |
|                                                               |   |                                                                                     |   |                                                                              |   |                                                                                                                              |   |                                                                                         |   |                                                                                                                                       |
| September 2011                                                |   | Common Stock                                                                             |   | 2,000,000 shares                                                                  |   | Consulting fees;no commissionspaid                                                                                           |   | Section 4(2)                                                                                 |   | Not applicable                                                                                                                             |

----

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| Item 4. | Reserved. |
|---------|-----------|

| Item 5. | Other Information. |
|---------|--------------------|

| Item 6. | Exhibits |
|---------|----------|

| Exhibit Number |   |  Description                                                                                                                                                                                     |
|----------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1            |   | The Company’s Articles of Incorporation, as amended and currently in effect. (Incorporated by reference to Exhibit 3.7 to the Company’s quarterly report on Form 10-QSB dated March 31, 2004). |
| 3.2            |   | The Company’s Bylaws, as amended and currently in effect. (Incorporated by reference to Exhibit 3.8 to the Company’s quarterly report on Form 10-QSB dated March 31, 2004).                    |
| 3.3            |   | Amendments to Articles of Incorporation, as amended and currently in effect. (Incorporated by reference to Form 8-K date of earliest event July 29, 2011, filed with the SEC on August 2, 2011).           |
| 3.4            |   | Election of Directors (Incorporated by reference to Form 8-K date of earliest event October 25, 2011, filed with the SEC on October 28, 2011.                                                              |
| 4.01           |   | Form of Subscription Agreement between the Company and the named investor dated November 8, 2011*                                                                                                          |
| 4.02           |   | Form of Secured Convertible Promissory Note issued to the named investor dated November 8, 2011*                                                                                                           |
| 4.03           |   | Form of Class A Common Stock Purchase Warrant dated November 8, 2011*                                                                                                                                      |
| 4.04           |   | Form of Escrow Agreement dated November 8, 2011*                                                                                                                                                           |
| 11.1           |   | Statement re: computation of earnings per share. See condensed consolidated statement of operations and notes thereto.                                                                                     |
| 31.1           |   | Rule 13a-14(a) Certification – Chief Executive Officer and Chief Financial Officer *                                                                                                            |
| 32.1           |   | Section 1350 Certification – Chief Executive Officer and Chief Financial Officer *                                                                                                              |

|   |   |
|--------|--------|

| * | Filed herewith. |
|---|-----------------|

----

|                     |                                                                                                                                                                                                                                                                                                                                                                                             | BLASTGARD INTERNATIONAL, INC. |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|                     |                                                                                                                                                                                                                                                                                                                                                                                             |                          |   |
|                     |                                                                                                                                                                                                                                                                                                                                                                                             |                          |   |
| Dated: November 14, 2011 |                                                                  |   By:               | /s/ Michael J. Gordon |
|                     |                                                                                                                                                                                                                                                                                                                                                                                             |                          | Michael J. Gordon, Chief Executive and Chief Financial Officer |
|                     |                                                                                                                                                                                                                                                                                                                                                                                             |                          |   |

----