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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                          ----------------------------

                                    FORM 10-Q


[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                  For the quarterly period ended: JUNE 30, 2008

                                       OR

[ ]    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
       EXCHANGE ACT OF 1934

                   For the transition period from ___ to ____

                         Commission File Number 0-31012

                         UNIVERSAL DETECTION TECHNOLOGY
           (NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

       CALIFORNIA                                           95-2746949
----------------------------------------            -----------------------
(State or other jurisdiction                            (I.R.S. Employer
 of incorporation or organization)                      Identification No.)


   9595 WILSHIRE BLVD., SUITE 700
       BEVERLY HILLS, CALIFORNIA                          90212
-----------------------------------------            ---------------
 (Address of principal executive offices)                (Zip Code)


                    Issuer's telephone number: (310) 248-3655


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [ X ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer |_|            Accelerated filer |_|
Non-accelerated filer   |_|            Smaller reporting company |X|

Check whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [ ] No [ X ]

Number of shares outstanding as of August 13, 2008: 15,562,017 common shares.

Transitional Small Business Disclosure Format: Yes [ ] No [ X ]



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                                                FORM 10-Q

                                                  INDEX

                                                                                                PAGE NO.
                                                                                                ----------
PART I.  FINANCIAL
         INFORMATION
         Item 1.            Condensed Consolidated Financial Statements (unaudited):                 3
                            Notes to Condensed Consolidated Financial Statements                     7

         Item 2.            Management's Discussion and Analysis of Financial Condition and
                            Results of Operations.                                                  16

         Item 3.            Quantitative and Qualitative Disclosures About Market Risk.             23

         Item 4.            Controls and Procedures.                                                23

PART II. OTHER INFORMATION                                                                          23
         Item 1.            Legal Proceedings                                                       23

         Item 1A            Risk Factors                                                            24

         Item 2.            Unregistered Sales of Equity Securities and Use of Proceeds             24

         Item 3.            Defaults Upon Senior Securities                                         24

         Item 4.            Submission of Matters to a Vote of Security Holders                     25

         Item 5.            Other Information                                                       25

         Item 6.            Exhibits                                                                26

SIGNATURES
CERTIFICATES                                                                                        27
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                                     PART I
                              FINANCIAL INFORMATION

 ITEM 1. FINANCIAL STATEMENTS

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                      UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                                 CONSOLIDATED BALANCE SHEETS



                                                               JUNE 30,       DECEMBER 31,
                                                                 2008             2007
                                                             ------------     ------------
                                                              (UNAUDITED)       (AUDITED)
                                           ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                    $      1,853     $      9,555
Restricted cash                                                    10,307           10,209
Accounts Receivable,net                                            54,578            4,282
Deposits                                                           10,226           10,226
Prepaid expenses                                                   25,827           10,827
                                                             ------------     ------------

Total current assets                                              102,790           45,099

Equipment, net                                                     45,310           57,673
Patent, net                                                        86,710           89,413
                                                             ------------     ------------

Total assets                                                 $    234,810     $    192,185
                                                             ============     ============


                   LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
Accounts payable, trade                                      $    884,311     $  1,000,478
Accrued liabilities                                               534,830          519,382
Accrued payroll - officers                                        660,385          522,573
Notes payable - related party                                      44,086           72,543
Notes payable                                                   1,489,749        1,385,760
Accrued interest expense                                          573,797          514,773
                                                             ------------     ------------

Total current liabilities                                       4,187,159        4,015,509

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT:
Common stock, no par value, 20,000,000,000 shares
     authorized, 12,583,599 shares issued and outstanding      28,299,623       27,195,242
Additional paid-in-capital                                      5,313,089        5,313,089
Accumulated deficit                                           (37,565,061)     (36,331,655)
                                                             ------------     ------------

Total stockholders' deficit                                    (3,952,349)      (3,823,324)
                                                             ------------     ------------

Total liabilities and stockholders' deficit                  $    234,810     $    192,185
                                                             ============     ============


  See accompanying notes to unaudited consolidated financial statements.

                                        3


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              UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
                                (UNAUDITED)

                                                           2008             2007
                                                        -----------     -----------

REVENUE, NET                                            $    62,570     $     5,825
COST OF GOODS SOLD                                           18,205           3,004
                                                        -----------     -----------

GROSS PROFIT                                                 44,365           2,821

OPERATING EXPENSES:
Selling, general and administrative                         743,649       2,207,611
Marketing                                                     7,936          17,750
Depreciation and amortization                                15,066          12,364
                                                        -----------     -----------

Total expenses                                              766,652       2,237,725
                                                        -----------     -----------

LOSS FROM OPERATIONS                                       (722,287)     (2,234,904)

OTHER INCOME (EXPENSE):
Interest income                                                 102             735
Interest expense                                            (90,637)        (87,873)
Penalties                                                       (10)             --
Loss on settlement of debt                                 (420,575)             --
                                                        -----------     -----------

Total other expenses                                       (511,120)        (87,138)
                                                        -----------     -----------

NET LOSS                                                $(1,233,407)    $(2,322,042)
                                                        ===========     ===========

NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED:        $    (0.154)    $    (1.509)
                                                        ===========     ===========

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING      8,018,377       1,538,707
                                                        ===========     ===========

   Weighted average number of dilutive securities has not been calculated
       as the effect of dilutive securities would be anti-dilutive

  See accompanying notes to unaudited consolidated financial statements.

                                       4


<page>

                    UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE THREE MONTHS ENDED JUNE 30, 2008 AND 2007
                                      (UNAUDITED)

                                                           2008              2007
                                                        ------------     ------------

REVENUE, NET                                            $      2,194     $      4,650
COST OF GOODS SOLD                                             1,952            1,354
                                                        ------------     ------------

GROSS PROFIT                                                     242            3,296

OPERATING EXPENSES:
Selling, general and administrative                          433,949          590,693
Marketing                                                      3,514            2,750
Depreciation and amortization                                  7,533            6,182
                                                        ------------     ------------

Total expenses                                               444,996          599,625
                                                        ------------     ------------

LOSS FROM OPERATIONS                                        (444,753)        (596,329)

OTHER INCOME (EXPENSE):
Interest income                                                   43               72
Interest expense                                             (48,065)         (45,626)
Penalties                                                        (10)            --
Loss on settlement of debt                                  (203,095)            --
                                                        ------------     ------------

Total other expenses                                        (251,127)         (45,554)
                                                        ------------     ------------

NET LOSS                                                $   (695,881)    $   (641,883)
                                                        ============     ============

NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED:        $     (0.069)    $     (0.331)
                                                        ============     ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING      10,105,873        1,937,486
                                                        ============     ============

       Weighted average number of dilutive securities has not been calculated as
               the effect of dilutive securities would be anti-dilutive

        See accompanying notes to unaudited consolidated financial statements.

                                       5


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                    UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                    FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007
                                      (UNAUDITED)

                                                                        2008            2007
                                                                     -----------     -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                             $(1,233,407)    $(2,322,042)
Adjustments to reconcile net loss to net cash used in operations:
Stocks issued for services                                               445,075       1,517,948
Loss on settlement of debt                                               420,575              --
Depreciation and amortization                                             15,066          12,364
Changes in operating assets and liabilities:
Accounts receivable                                                      (50,293)         (4,600)
Prepaid expenses                                                         (15,000)         37,971
Accounts payable and accrued liabilities                                 126,457         339,912
                                                                     -----------     -----------
Net cash used in operating activities                                   (291,527)       (418,447)
                                                                     -----------     -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase)/Decrease in restricted cash                                       (98)         52,217
                                                                     -----------     -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft                                                                --             567
Proceeds from sale of common stock                                            --          21,000
Proceeds from notes payable-related party                                  9,600          32,500
Proceeds from notes payable                                              322,000         390,000
Payments on notes payable - related party                                (38,057)        (28,000)
Payments on notes payable                                                 (9,620)        (64,115)
                                                                     -----------     -----------

Net cash provided by  financing activities                               283,923         351,952
                                                                     -----------     -----------


NET DECREASE IN CASH AND CASH EQUIVALENTS                                 (7,702)        (14,278)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             9,555          18,113
                                                                     -----------     -----------

CASH AND CASH EQUIVALENTS, END OF PERIOD                             $     1,853     $     3,835
                                                                     ===========     ===========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Income tax                                                           $        --     $        --
                                                                     ===========     ===========
Interest Paid                                                        $     1,273     $    36,270
                                                                     ===========     ===========

SUPPLEMENTAL DISCLOSURES FOR NON CASH INVESTING AND
FINANCING ACTIVITIES:

Shares issued for settlement of debt and accrued interest            $   622,306     $        --
                                                                     ===========     ===========

        See accompanying notes to unaudited consolidated financial statements.
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                                       6


<page>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
by Universal Detection Technology and Subsidiares., pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") Form 10-Q and
generally accepted accounting principles for interim financial reporting. The
information furnished herein reflects all adjustments (consisting of normal
recurring accruals and adjustments) which are, in the opinion of management,
necessary to fairly present the operating results for the respective periods.
Certain information and footnote disclosures normally present in annual
consolidated financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been omitted
pursuant to such rules and regulations. These consolidated financial statements
should be read in conjunction with the audited consolidated financial statements
and footnotes included in the Company's Annual Report on Form 10-KSB. The
results of the three and six months and ended June 30, 2008 are not necessarily
indicative of the results to be expected for the full year ending December 31,
2008.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

STOCK SPLIT

On July 25, 2008, the Company effected a reverse stock split of our common
stock. The reverse split was effected on a one-for-two hundred basis, resulting
in 14,211,953 shares outstanding immediately following the stock split. All
common stock numbers in this Current Report on Form 10-Q, have been
retroactively restated for the effect of the reverse split, although it was
effected after the close of the second quarter.

GOING CONCERN

As of June 30, 2008, the Company had a working capital deficit of $4,084,368 and
an accumulated deficit of $37,565,061. These conditions raise substantial doubt
about its ability to continue as a going concern. Its ability to continue as a
going concern is dependent upon its ability to develop additional sources of
capital and ultimately achieve profitable operations. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty. The Company's financial statements have been presented on the basis
that it is a going concern, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business.

The Company is currently devoting its effort to raising capital, and to the
development, field-testing and marketing of its counter-terrorism products and
services including its bioterrorism detection device, known as BSM-2000, and to
the marketing and distribution of its other counterterrorism products and
services in related fields including threat evaluation services, security and
surveillance cameras, radiation detection systems, safety videos, and kits for
rapid detection of up to five bioterrorism agents. During the first six months
of 2008, the Company offered consulting services and sold detection kits under
various purchase agreements for a total revenue of $62,570.

The Company continues to try and pursue sales leads for direct sale of BSM-2000
and also is seeking to establish relationships with resellers who can assist in
selling BSM-2000, Company's bioterrorism detection kits, surveillance cameras,
training material, and radiation detectors. The Company also plans to seek and
find third parties interested in collaborating on further research and
development on BSM-2000. Such research shall be aimed at making BSM-2000 more
user-friendly, developing a less complicated interface and software, designing a
lighter casing, and some cosmetics. The ideal third party collaborator would

                                        7


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                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


also assist us in marketing BSM-2000 more aggressively. There is no guarantee
that any such collaborators will be found and, if found, that this strategy will
be successful. The current version of BSM-2000 is fully functional and available
for sale. To date, we have sold two units to the Government of the United
Kingdom and we intend to develop a more wide-spread use for BSM-2000 through our
planned collaborative research, development, sales, and marketing efforts.

During the six months ended June 30, 2008, the Company entered into various
agreements to sell 4,947,486 shares of its common stock to a third party in
order to convert their debt to the respective parties. The value of the stock
issued in consideration for the debt conversion was $622,306.


RECLASSIFICATION

Certain reclassifications have been made to the prior year balances to conform
to the current year presentation.

REVENUE RECOGNITION

The Company's revenue recognition policies are in compliance with Staff
accounting bulletin (SAB) 104. Sales revenue is recognized at the date of
shipment to customers when a formal arrangement exists, the price is fixed or
determinable, the delivery is completed, no other significant obligations of the
Company exist and collectibility is reasonably assured. Payments received before
all of the relevant criteria for revenue recognition are satisfied are recorded
as unearned revenue.

STOCK-BASED COMPENSATION

The Company adopted SFAS No. 123 (Revised 2004), SHARE BASED PAYMENT ("SFAS No.
123R"), under the modified-prospective transition method on January 1, 2006.
SFAS No. 123R requires companies to measure and recognize the cost of employee
services received in exchange for an award of equity instruments based on the
grant-date fair value. Share-based compensation recognized under the
modified-prospective transition method of SFAS No. 123R includes share-based
compensation based on the grant-date fair value determined in accordance with
the original provisions of SFAS No. 123, ACCOUNTING FOR STOCK-BASED
COMPENSATION, for all share-based payments granted prior to and not yet vested
as of January 1, 2006, and share-based compensation based on the grant-date
fair-value determined in accordance with SFAS No. 123R for all share-based
payments granted after January 1, 2006. SFAS No. 123R eliminates the ability to
account for the award of these instruments under the intrinsic value method
prescribed by Accounting Principles Board ("APB") Opinion No. 25, ACCOUNTING FOR
STOCK ISSUED TO EMPLOYEES, and allowed under the original provisions of SFAS No.
123. The Company recognized $-0- and $661,484 in share-based compensation
expense for the six months ended June 30, 2008 and 2007, respectively.




                                       8


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                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Significant
estimates include collectibility of accounts receivable, accounts payable, sales
returns and recoverability of long-term assets.

RECENT ACCOUNTING PRONOUNCEMENTS

In December 2007, the FASB issued SFAS No. 160, "Noncontrolling Interests in
Consolidated Financial Statements", which is an amendment of Accounting Research
Bulletin ("ARB") No. 51. This statement clarifies that a noncontrolling interest
in a subsidiary is an ownership interest in the consolidated entity that should
be reported as equity in the consolidated financial statements. This statement
changes the way the consolidated income statement is presented, thus requiring
consolidated net income to be reported at amounts that include the amounts
attributable to both parent and the noncontrolling interest. This statement is
effective for the fiscal years, and interim periods within those fiscal years,
beginning on or after December 15, 2008. Based on current conditions, the
Company does not expect the adoption of SFAS 160 to have a significant impact on
its results of operations or financial position.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business
Combinations." This statement replaces FASB Statement No. 141, "Business
Combinations." This statement retains the fundamental requirements in SFAS 141
that the acquisition method of accounting (which SFAS 141 called the purchase
method) be used for all business combinations and for an acquirer to be
identified for each business combination. This statement defines the acquirer as
the entity that obtains control of one or more businesses in the business
combination and establishes the acquisition date as the date that the acquirer
achieves control. This statement requires an acquirer to recognize the assets
acquired, the liabilities assumed, and any noncontrolling interest in the
acquiree at the acquisition date, measured at their fair values as of that date,
with limited exceptions specified in the statement. This statement applies
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning on or after
December 15, 2008. The Company does not expect the adoption of SFAS 160 to have
a significant impact on its results of operations or financial position.

In March, 2008, the FASB issued FASB Statement No. 161, "Disclosures about
Derivative Instruments and Hedging Activities". The new standard is intended to
improve financial reporting about derivative instruments and hedging activities
by requiring enhanced disclosures to enable investors to better understand their
effects on an entity's financial position, financial performance, and cash
flows. It is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008, with early application
encouraged. The new standard also improves transparency about the location and

                                       9


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                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


amounts of derivative instruments in an entity's financial statements; how
derivative instruments and related hedged items are accounted for under
Statement 133; and how derivative instruments and related hedged items affect
its financial position, financial performance, and cash flows.

FASB Statement No. 161 achieves these improvements by requiring disclosure of
the fair values of derivative instruments and their gains and losses in a
tabular format. It also provides more information about an entity's liquidity by
requiring disclosure of derivative features that are credit risk-related.
Finally, it requires cross-referencing within footnotes to enable financial
statement users to locate important. Based on current conditions, the Company
does not expect the adoption of SFAS 161 to have a significant impact on its
results of operations or financial position.

In May 0f 2008, FSAB issued SFASB No.162, The Hierarchy of Generally Accepted
Accounting Principles. The pronouncement mandates the GAAP hierarchy reside in
the accounting literature as opposed to the audit literature. This has the
practical impact of elevating FASB Statements of Financial Accounting Concepts
in the GAAP hierarchy. This pronouncement will become effective 60 days
following SEC approval. The company does not believe this pronouncement will
impact its financial statements.

In May of 2008, FASB issued SFASB No. 163, Accounting for Financial Guarantee
Insurance Contracts-an interpretation of FASB Statement No. 60. The scope of the
statement is limited to financial guarantee insurance (and reinsurance)
contracts. The pronouncement is effective for fiscal years beginning after
December 31, 2008. The company does not believe this pronouncement will impact
its financial statements.

NOTE 3 - PATENTS

As of June 30, 2008 and December 31, 2007, the patent value is as follows:

           ----------------------------- ------------- -------------
             Patent Costs                  $117,341     $117,341
           ----------------------------- ------------- -------------
             Accumulated Amortization      (30,631)     (27,928)
           ----------------------------- ------------- -------------
             Patent, Net                   $86,710      $89,413
           ----------------------------- ------------- -------------

Total amortization expense was $2,704 and $-0- for the six months ended June 30,
2008 and 2007 respectively.

NOTE 4 - NOTES PAYABLE

During the six month period ended June 30, 2008, the Company borrowed an
aggregate of $322,000 from third parties under various promissory note
agreements. The promissory notes all bear interest at 12.0% to 12.5% per annum,
and are due on or before April 2, 2009. No interest or principal payments have
been made on the notes.


                                       10


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                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


As of June 30, 2008 and December 31, 2007, the Company had total notes payable
of $1,489,749 and $1,385,760.



NOTE 5 - COMMITMENTS AND CONTINGENCIES

a)    A. Sean Rose, Claire F. Rose and Mark Rose v. Universal Detection
      Technology, fka Pollution Research and Control Corporation (Superior Court
      of the State of California for the County of Los Angeles, North Central
      District, Case No. EC042040)

      On or about April 16, 2004, Plaintiffs commenced an action against the
      Company (Case No. EC 038824) for amounts allegedly due pursuant to four
      unpaid promissory notes. On August 2, 2004, the parties executed a
      Confidential Settlement Agreement and Mutual Releases (the "AGREEMENT").
      On December 30, 2005, Plaintiffs commenced the above-referenced action
      against the Company, alleging the Company breached the Agreement and
      seeking approximately $205,000 in damages. A judgment was entered on April
      11, 2006. As of June 30, 2008 and December 31, 2007, the Company has
      accrued $430,933 and $405,259 for this settlement including principal and
      interest.

b)    Steven P. Sion and Sion Consulting, Inc. v. Universal Detection Technology
      Corporation, et. Al. (Superior Court of the State of California for the
      County of Los Angeles, Case NO. BC350942)

      On April 19, 2006, Plaintiffs Steven P Sion and Sion Consulting, Inc., a
      Nevada corporation, instituted an action in the Los Angeles Superior Court
      (SION V. UNIVERSAL DETECTION TECHNOLOGY CORPORATION, ET. AL.; Central
      District Case No. BC350942) against Defendants Universal Detection
      Technology Corporation, Albert E. Gosselin, Jr., Roy Peterson, Greg
      Edwards, Bombay Consortium, Inc., Howard Sperling, Assisted Care, Inc. As
      to Universal Detection, Plaintiffs alleged claims for: (1) Breach of
      Contract; (2) Fraud, (3) Negligent Misrepresentation; and (4) Conspiracy
      in relation to the sale of Dasibi Environmental Corp. Plaintiffs seek an
      unspecified amount of compensatory, general and punitive damages against
      all Defendants. On July 17, 2006, Universal Detection timely filed an
      Answer to the Complaint. Universal Detection strongly disputes and is
      vigorously defending against the allegations of the Complaint. Universal
      Detection has filed a Motion for Summary Judgment, or Alternative, Summary
      Adjudication of Claims. Trial was scheduled to commence on October 9,
      2007. On September 5, 2007, a settlement and mutual release of all claims
      was signed between Plaintiffs and Universal Detection Technology
      Corporation. Plaintiffs and Defendant agreed to a dismissal of action and
      mutual release of claims. A dismissal has been filed.

c)    On June 2, 2006, Plaintiff Trilogy Capital Partners instituted an
      action in the Los Angeles Superior Court (TRILOGY CAPITAL PARTNERS V.
      UNIVERSAL DETECTION TECHNOLOGY, ET. AL., Case No. SC089929) against the
      Company. Plaintiff's Complaint alleged damages against UDT for breach of
      an engagement letter in the amount of $93,449. Also, Plaintiff alleged
      that UDT had failed to issue warrants to it pursuant to a written
      agreement. After completing the initial stages of litigation and
      conducting extensive mediation, Plaintiff and UDT reached a settlement
      wherein commencing December 15, 2006, UDT would make monthly payments to
      Plaintiff of $2,000 until a debt of $90,000 plus accrued interest at six

                                       11


<page>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


      percent per annum was fully paid. In exchange, Plaintiff would release all
      of its claims against UDT. UDT has been current on all of its agreed
      payments to Plaintiff. As of June 30 2008 and December 31, 2007, $56,757
      and $68,757 was due under the agreement.

      d) On November 15, 2006, Plaintiff NBGI, Inc. instituted an action in the
      Los Angeles Superior Court (NBGI, Inc. v. Universal Detection Technology,
      et. al., Case No. BC361979) against the Company. NBGI, Inc.'s Complaint
      alleged breach of contract, and requested damages in the amount of
      $111,014 plus interest at the legal rate and for costs of suit. UDT
      strongly disputes and shall vigorously defend against the allegations of
      the Complaint. To date, discovery has commenced, and trial had been set
      for October 29, 2007. There was also a Motion for Summary Judgment set for
      September 11, 2007. The Summary Judgment was granted in NBGI's favor and
      Judgment has been entered.

From time to time, the Company is a party to a number of lawsuits arising in the
normal course of business. In the opinion of management, the resolution of these
matters will not have a material adverse effect on the Company's operations,
cash flows or financial position.


NOTE 6- STOCKHOLDERS' EQUITY
During the six month period ended June 30, 2008, the Company issued an aggregate
of 1,877,202 shares of common stock to employees for services rendered to the
Company. The Company recorded the expense at the fair market value of the shares
of $250,313.

During the six month period ended June 30, 2008, the Company issued
1,589,286shares of common stock as payment for consulting or other professional
fees for an aggregate amount of $236,280.


                                       12


<page>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


During the six month period ended June 30, 2008, the Company entered various
agreements to convert $238,731 of indebtedness into 4,947,486 shares of common
stock The fair market value of the stock on the date of agreement & issuance was
$622,306. The Company recorded a loss on settlement of debt of $383,575.

During the six month period ended June 30, 2008, the Company cancelled an
aggregate 18,854 shares of common stock. The holders of these shares have agreed
with the cancellation for no consideration.

COMMON STOCK PURCHASE WARRANTS AND OPTIONS

From time to time, the Company issues options and warrants as incentives to
employees, officers and directors, as well as to non-employees.


STOCK OPTION PLAN

On February 11, 2008, the Board of Directors adopted the 2008 Equity Incentive
Plan (the "Plan"). The Plan provides for the granting of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights (or SARs),
Restricted Stock, Performance Units, and Performance Shares, to our employees,
officers, directors, consultants, independent contractors, advisors, or other
service providers, provided that such services are not in connection with the
offer and sale of securities in a capital-raising transaction. The Company
reserved 1,500,000 shares of its common stock for awards to be made under the
Plan. 1,499,955 shares reserved under this plan have been issued.

On April 29, 2008, the Board of Directors adopted the 2008-2 Equity Incentive
Plan (the "Plan"). The Plan provides for the granting of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights (or SARs),
Restricted Stock, Performance Units, and Performance Shares, to our employees,
officers, directors, consultants, independent contractors, advisors, or other
service providers, provided that such services are not in connection with the
offer and sale of securities in a capital-raising transaction. The Company
initially reserved 1,650,000 shares of its common stock for awards to be made
under the Plan. 1,634,270 of the shares reserved under this plan have been
issued.

On July 1, 2008, the Board of Directors adopted the 2008-3 Equity Incentive
Plan (the "Plan"). The Plan provides for the granting of Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights (or SARs),
Restricted Stock, Performance Units, and Performance Shares, to our employees,
officers, directors, consultants, independent contractors, advisors, or other
service providers, provided that such services are not in connection with the
offer and sale of securities in a capital-raising transaction. The Company
initially reserved 25,000,000 shares of its common stock for awards to be made
under the Plan. 350,000 of the shares reserved under this plan have been
issued.


Warrants:

There were no warrants granted during the six month period ended June 30, 2008.

      Common stock purchase options and warrants consisted of the following as
      of June 30, 2008


                                       13


<page>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


<TABLE>
<CAPTION>
<S>     <C>

                                                                              Aggregated
                                                                Exercise      Intrinsic
                                                   # shares      Price          Value
                                                  ----------------------------------------
OPTIONS:
Outstanding and exercisable, December 31, 2007     539,750     $2 to $66      $     --
      Granted                                           --                          --
      Exercised                                         --                          --
      Expired                                           --                          --
                                                               -----------    --------
Outstanding and exercisable, June 30, 2008         539,750     $2 to $66      $     --

WARRANTS:
Outstanding and exercisable, December 31, 2007      75,250     $20 to $140    $     --
      Granted                                           --                          --
      Exercised                                         --                          --
      Expired                                       (1,250)                         --
                                                                              --------
Outstanding and exercisable, June 30, 2008          74,000     $20 to $140    $     --
</TABLE>


Options:

Prior to July 1, 2006, the Company measured stock compensation expense using the
intrinsic value method of accounting in accordance with Accounting Principles
Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and
related interpretations (APB No. 25).

The company adopted SFAS No. 123-R effective July 1, 2006 using the modified
prospective method. Under this transition method, stock compensation expense
recognized in the quarter ended September 30, 2006 includes compensation expense
for all stock-based compensation awards vested during the quarter ended
September 30, 2006, based on the grant-date fair value estimated in accordance
with the provisions of SFAS No. 123-R. As there were no options granted or
vested since the implementation of SFAS 123-R, no expense has been recorded
during the six month period ended June 30, 2008.

On March 28, 2007, the Company granted to Jacques Tizabi, its president and CEO,
an option to purchase 500,000 shares of Common Stock at an exercise price of $2
per share, for a term of five years. The option is fully vested and immediately
exercisable. The options were valued at $661,484 using the Black Scholes model
for Options Valuation, with volatility of 174% and risk-free interest rate of
4.65%. The market price on the day of grant was $1.4. The Company recognized
$661,484 as expense during the six month period ended June 30, 2007.


                                       14


<page>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                  JUNE 30, 2008


Methods of estimating fair value

Under both SFAS No. 123-R and under the fair value method of accounting under
SFAS No. 123 (i.e., SFAS No. 123 Pro Forma), the fair value of stock options is
determined using the Black-Scholes model. Under SFAS No. 123-R, the company's
expected volatility assumption is based on the historical volatility of the
Company's stock. The expected life assumption is primarily based on historical
exercise patterns and employee post-vesting termination behavior. The risk-free
interest rate for the expected term of the option is based on the U.S. Treasury
yield curve in effect at the time of grant.

SFAS No. 123-R requires forfeitures to be estimated at the time of grant and
revised in subsequent periods, if necessary, if actual forfeitures differ from
those estimates.

NOTE 7 - RELATED PARTY TRANSACTIONS

During the three months ended June 30, 2008, the Company borrowed and aggregate
of $6,100 in principal with interest rates of 12.5% and repaid $8,818 in
principal payments under various promissory note agreements. No interest has
been paid under these agreements.

During the three months ended March 31, 2008, the Company repaid $26,900 in
principal payments under various promissory note agreements to its president and
CEO. The CEO has elected to forgo interest payments on the notes due to the
short-term payback period.


NOTE 8 - SUBSEQUENT EVENTS

During July and August 2008, the Company entered in various agreements to
convert $43,145 of indebtedness into 2,327,604 shares of common stock. The
shares were issued in July 2008.

On July 25, 2008, the Company filed a Certificate of Amendment to its Articles
of Incorporation (the "Amendment") with the Secretary of State of the State of
California after stockholders approved to effect a reverse stock split of the
Common Stock of the Company in the ratio of two-hundred for one (200:1).

All stock issuances have been retroactively updated for the effect of 200-for-1
reverse split for the purposes of these notes for the financial statements.



                                       15


<page>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

FORWARD-LOOKING STATEMENTS

THIS QUARTERLY REPORT OF FORM 10-Q, INCLUDING THE FOLLOWING MANAGEMENT'S
DISCUSSION AND ANALYSIS, AND OTHER REPORTS FILED BY THE REGISTRANT FROM TIME TO
TIME WITH THE SECURITIES AND EXCHANGE COMMISSION (COLLECTIVELY THE "FILINGS")
CONTAIN FORWARD-LOOKING STATEMENTS WHICH ARE INTENDED TO CONVEY OUR EXPECTATIONS
OR PREDICTIONS REGARDING THE OCCURRENCE OF POSSIBLE FUTURE EVENTS OR THE
EXISTENCE OF TRENDS AND FACTORS THAT MAY IMPACT OUR FUTURE PLANS AND OPERATING
RESULTS. THESE FORWARD-LOOKING STATEMENTS ARE DERIVED, IN PART, FROM VARIOUS
ASSUMPTIONS AND ANALYSES WE HAVE MADE IN THE CONTEXT OF OUR CURRENT BUSINESS
PLAN AND INFORMATION CURRENTLY AVAILABLE TO US AND IN LIGHT OF OUR EXPERIENCE
AND PERCEPTIONS OF HISTORICAL TRENDS, CURRENT CONDITIONS AND EXPECTED FUTURE
DEVELOPMENTS AND OTHER FACTORS WE BELIEVE TO BE APPROPRIATE IN THE
CIRCUMSTANCES. YOU CAN GENERALLY IDENTIFY FORWARD-LOOKING STATEMENTS THROUGH
WORDS AND PHRASES SUCH AS "SEEK", "ANTICIPATE", "BELIEVE", "ESTIMATE", "EXPECT",
"INTEND", "PLAN", "BUDGET", "PROJECT", "MAY BE", "MAY CONTINUE", "MAY LIKELY
RESULT", AND SIMILAR EXPRESSIONS. WHEN READING ANY FORWARD-LOOKING STATEMENT YOU
SHOULD REMAIN MINDFUL THAT ALL FORWARD-LOOKING STATEMENTS ARE INHERENTLY
UNCERTAIN AS THEY ARE BASED ON CURRENT EXPECTATIONS AND ASSUMPTIONS CONCERNING
FUTURE EVENTS OR FUTURE PERFORMANCE OF OUR COMPANY, AND ARE SUBJECT TO RISKS,
UNCERTAINTIES, ASSUMPTIONS AND OTHER FACTORS RELATING TO OUR INDUSTRY AND
RESULTS OF OPERATIONS.

EACH FORWARD-LOOKING STATEMENT SHOULD BE READ IN CONTEXT WITH, AND WITH AN
UNDERSTANDING OF, THE VARIOUS OTHER DISCLOSURES CONCERNING OUR COMPANY AND OUR
BUSINESS MADE IN OUR FILINGS. YOU SHOULD NOT PLACE UNDUE RELIANCE ON ANY
FORWARD-LOOKING STATEMENT AS A PREDICTION OF ACTUAL RESULTS OR DEVELOPMENTS. WE
ARE NOT OBLIGATED TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENT CONTAINED IN
THIS REPORT TO REFLECT NEW EVENTS OR CIRCUMSTANCES UNLESS AND TO THE EXTENT
REQUIRED BY APPLICABLE LAW.

OVERVIEW

We are engaged in the research, development, and marketing of bioterrorism
detection devices, radiation detectors, counter terrorism training references,
and anti-microbial products. In August 2002, we entered into a Technology
Affiliates Agreement with NASA's Jet Propulsion Laboratory, commonly referred to
as JPL, to develop technology for our bioterrorism detection equipment. Under
the Technology Affiliates Agreement, JPL developed its proprietary bacterial
spore detection technology and integrated it into our existing aerosol
monitoring system, resulting in a product named BSM-2000. BSM-2000 is designed
to provide continuous unattended monitoring of airborne bacterial spores in
large public places, with real-time automated alert functionality. The device is
designed to detect an increase in the concentration of bacterial spores, which
is indicative of a potential presence of Anthrax.

Our management continues to gain expertise in anti-terrorism techniques and
solutions. Through our partnership with Security Solutions International, we
continue to provide training seminars on terrorism detection and response
methods. The seminars are designed for security officials, building safety
managers, and law enforcement personnel. Through partnerships with various third
parties, we have commenced sales and marketing of bioterrorism hand held assays,
radiation detection systems, anti-microbial products, surveillance cameras, and
training references.


                                       16


<page>


During the six months ended June 30, 2008 we spent an aggregate of $751,585 on
selling, general and administrative expenses and marketing expenses. This amount
represents a 66.3% decrease over the comparable year-ago period. The decrease is
principally attributable to a reduction in compensation expenses.

Our working capital deficit at June 30, 2008, was $4,084,369. Our independent
auditors' report, dated March 25, 2008 includes an explanatory paragraph
relating to substantial doubt as to our ability to continue as a going concern,
due to our working capital deficit at December 31, 2007. We require
approximately $2.0 million to repay indebtedness in the next 12 months.

In 2007 we continued to diversify our activities. We plan to engage more in
value added services to complement our bioterrorism detection technologies. We
now supply our proprietary bacterial spore detection system (BSM-2000),
bioterrorism detection kits capable of detecting anthrax, ricin, botulinum,
plague, and SEBs, anti microbial products, surveillance cameras, radiation
detection systems, and counter-terrorism training references.

We plan to continue expanding our product base and to sell our products to more
users inside and outside the U.S. There is no guarantee that we will succeed in
implementing this strategy or if implemented, that this strategy will be
successful. We plan to seek and find third parties interested in collaborating
on further research and development on BSM-2000. Such research shall be aimed at
making BSM-2000 more user-friendly, developing a less complicated interface and
software, and designing a lighter casing. The ideal third party collaborator
would also assist us in marketing BSM-2000 more aggressively. There is no
guarantee that any such collaborators will be found and, if found, that this
strategy will be successful. The current version of BSM-2000 is fully functional
and available for sale. To date, we have sold two units to the Government of the
United Kingdom and we intend to develop a more wide-spread use for BSM-2000
through our planned collaborative research, development, sales, and marketing
efforts.

On July 25, 2008, we effected a reverse stock split of our common stock. The
reverse split was effected on a one-for-two hundred basis, resulting in
14,211,953 number of shares outstanding immediately following the stock split.
All common stock numbers in this Current Report on Form 10-Q, reflect the
implementation of the reverse split, although it was effected after the close of
the second quarter.

Results of Operations

The following discussion is included to describe our consolidated financial
position and results of operations. The unaudited consolidated financial
statements and notes thereto contain detailed information that should be
referred to in conjunction with this discussion.

SIX MONTHS ENDED June 30, 2008 COMPARED TO THE SIX MONTHS ENDED June 30, 2007

REVENUE. Total revenue for the six months ended June 30, 2008 was $62,570, as
compared to revenue of $5,825 for the same period in the prior fiscal year, an
increase of $56,745. The increase is primarily due to the increase in sales of
the Company's test kits and for new consulting engagements.

OPERATING EXPENSES. Total operating expenses for the six months ended June 30,
2008 were $766,652 representing a decrease of $1,471,073. Total selling, general
and administrative expenses for the six months ended June 30, 2008 were $743,649
representing a decrease of $1,463,962 (66.3%) as compared to the same period in
the prior fiscal year. These decreases are principally attributable to a
reduction in compensation expenses.

OTHER INCOME/(EXPENSE). Other income (expense) amounted to ($511,120) for the
six months ended June 30, 2008 as compared to ($87,138) for the corresponding
quarter of the prior year. The change is principally related to loss recognized
on stock issued for settlement of debt.


                                       17


<page>

NET LOSS. Net loss for the six months ended June 30, 2008 was $1,233,407, as
compared to a net loss of $2,322,042 for the same period in the period fiscal
year, representing a decrease of $1,088,635. The primary reason of this
decreased loss in the current year is due to the decrease in operating expenses
as explained above.


LIQUIDITY AND CAPITAL RESOURCES

require approximately $2.0 million to repay debt and $400,000 to execute our
business plan in the next twelve months. We do not anticipate that our cash on
hand is adequate to meet our operating expenses over the next 12 months. Also,
we do not believe we have adequate capital to repay all of our debt currently
due and becoming due in the next 12 months. We anticipate that uses of our
available capital during the next 12 months principally will be for:

      o     administrative expenses, including salaries of officers and other
            employees we plan to hire;

      o     repayment of debt;

      o     sales and marketing;

      o     product testing and manufacturing; and

      o     expenses of professionals, including accountants and attorneys.


Our working capital deficit at June 30, 2008 was $4,084,369. Our independent
auditors' report includes an explanatory paragraph relating to substantial doubt
as to our ability to continue as a going concern, due to our working capital
deficit at June 30, 2008. We require approximately $2.0 million to repay
indebtedness including interest in the next 12 months. The following provides
principal terms of our outstanding debt as of June 30, 2008:

      o     One loan from three family members, each of whom is an unaffiliated
            party, evidenced by four promissory notes in the aggregate principal
            amounts of $100,000, $50,000, $50,000, and $100,000, each due June
            24, 2001 with interest rates ranging from 11% to 12%. We entered
            into a settlement agreement in the third quarter of 2004 with each
            of these parties. Pursuant to this agreement, at June 30, 2005, we
            were required to pay an additional $80,000 as full payment of our
            obligations. We did not make this payment and are in default of
            these notes. As of June 30, 2008, we have $430,932 accrued for
            including interest relating to this matter.

      o     One loan from an unaffiliated party in the aggregate principal
            amount of $195,000 with interest at a rate of 12% per annum.
            Pursuant to a letter agreement dated as of August 10, 2004, we
            entered into a settlement with this party and agreed to pay a total
            of $261,000 pursuant to a scheduled payment plan through July 2005.
            Additionally, the Company, in September 2004, issued 206,250 shares
            of common stock upon the conversion of unpaid interest in the
            aggregate amount of $33,000. At June 30, 2008, there was $161,000
            principal amount (and $59,874 in interest) remaining on this note.
            We did not make our scheduled payment under this note in July 2005,
            and are in default of this note.

      o     One loan from an unaffiliated party in the aggregate principal
            amount of $98,500, due July 31, 2005, with interest at the rate of
            9% per annum. Pursuant to a letter agreement dated August 10, 2004,
            between us and this third party, we agreed to pay a total of
            $130,800 pursuant to a scheduled payment plan through July 2005. At
            June 30, 2008, there was $71,500 principal amount (and $34,709 in
            interest) remaining on this note. We did not make our scheduled
            payment under this note in July 2005, and are in default of this
            note.



                                       18


<page>

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $100,000 due on March 31, 2006
            with an interest rate of 12% per annum. As of June 30, 2008 we owed
            $28,500 in interest. We did not make our scheduled payment on March
            31, 2006. We have verbally extended the unpaid note and the due date
            and other terms are being renegotiated so the note is not considered
            in default.


      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on May 26, 2006
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $15,000 in principal and $6,094 in interest. We did not make
            our scheduled payment on May 26, 2006. We have verbally extended the
            unpaid note and the due date and other terms are being renegotiated
            so the note is not considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $14,975 due on August 31, 2006
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $3,432 in interest. We did not make our scheduled payment on
            August 31, 2006. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $25,000 due on August 21, 2006
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $10,000 in principal and $342 in interest. We did not make our
            scheduled payment on August 21, 2006. We have verbally extended the
            unpaid note and the due date and other terms are being renegotiated
            so the note is not considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $100,000 due on February 14,
            2007 with an interest rate of 12.5% per annum. As of June 30, 2008
            we owed $17,708 in interest. We did not make our scheduled payment
            on February 14, 2007. We have verbally extended the unpaid note and
            the due date and other terms are being renegotiated so the note is
            not considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $15,000 due on February 20,
            2007 with an interest rate of 12.5% per annum. As of June 30, 2008
            we owed $2,656 in interest. We did not make our scheduled payment on
            February 20, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $35,000 due on February 23,
            2007 with an interest rate of 12.5% per annum. As of June 30, 2008
            we owed $6,198in interest. We did not make our scheduled payment on
            February 23, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $20,000 due on March 15, 2007
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $3,438 in interest. We did not make our scheduled payment on
            March 15, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $50,000 due on March 20, 2007
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $8,594 in interest. We did not make our scheduled payment on
            March 20, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

                                       19


<page>

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $50,000 due on April 5, 2007
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $8,333 in interest. We did not make our scheduled payment on
            April 5, 2007. We have verbally extended the unpaid note and the due
            date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on April 13, 2007
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $4,688 in interest. We did not make our scheduled payment on
            April 13, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $60,000 due on November 1, 2007
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $8,750 in interest. We did not make our scheduled payment on
            November 1, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on December 7, 2007
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $4,063 in interest. We did not make our scheduled payment on
            December 7, 2007. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on January 11, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $4,800 in interest. We did not make our scheduled payment on
            January 11, 2008. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on February 13,
            2008 with an interest rate of 12.5% per annum. As of June 30, 2008
            we owed $5,000 in interest. We did not make our scheduled payment on
            February 13, 2008. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $25,000 due on March 6, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $2,552 in interest. We did not make our scheduled payment on
            March 6, 2008. We have verbally extended the unpaid note and the due
            date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $40,000 due on March 12, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $4,000 in interest. We did not make our scheduled payment on
            March 12, 2008. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $25,000 due on October 3, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $2,083 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $40,000 due on April 11, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $3,333 in interest. We did not make our scheduled payment on
            April 11, 2008. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.


                                       20


<page>

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $60,000 due on May 30, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $4,375 in interest. We did not make our scheduled payment on
            May 30, 2008. We have verbally extended the unpaid note and the due
            date and other terms are being negotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on November 2, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $2,188 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $20,000 due on January 11, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $1,250 in interest. We did not make our scheduled payment on
            January 11, 2008. We have verbally extended the unpaid note and the
            due date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $20,000 due on July 8, 2008
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $1,250 in interest. We did not make our scheduled payment on
            July 8, 2008. We have verbally extended the unpaid note and the due
            date and other terms are being renegotiated so the note is not
            considered in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $15,000 due on August 4, 2008
            with an interest rate of 12% per annum. As of June 30, 2008 we owed
            $750 in interest. We did not make our scheduled payment on August 4,
            2008. We have verbally extended the unpaid note and the due date and
            other terms are being renegotiated so the note is not considered in
            default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $17,000 due on August 11, 2008
            with an interest rate of 12% per annum. As of June 30, 2008 we owed
            $850 in interest. We did not make our scheduled payment on August
            11, 2008. We have verbally extended the unpaid note and the due date
            and other terms are being renegotiated so the note is not considered
            in default.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $20,000 due on August 13, 2008
            with an interest rate of 12% per annum. As of June 30, 2008 we owed
            $900 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on August 27, 2008
            with an interest rate of 12% per annum. As of June 30, 2008 we owed
            $1,200 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $13,000 due on August 28, 2008
            with an interest rate of 12% per annum. As of June 30, 2008 we owed
            $520 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $13,000 due on September 6,
            2008 with an interest rate of 12.5% per annum. As of June 30, 2008
            we owed $515 in interest.


                                       21


<page>

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $20,000 due on April 2, 2009
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $625 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $19,000 due on April 2, 2009
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $594 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $30,000 due on May 2, 2009 with
            an interest rate of 12.5% per annum. As of June 30, 2008 we owed
            $625 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $35,000 due on May 6, 2009 with
            an interest rate of 12.5% per annum. As of June 30, 2008 we owed
            $729 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $50,000 due on June 13, 2009
            with an interest rate of 12.5% per annum. As of June 30, 2008 we
            owed $521 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $40,000 due on December 24,,
            2008 with an interest rate of 12.5% per annum. As of June 30, 2008
            we owed $0 in interest.

      o     One loan from an unaffiliated party evidenced by a promissory note
            in the aggregate principal amount of $44,256 due on October 17, 2008
            with an interest rate of 16.75% per annum. As of June 30, 2008 we
            owed $9,533 in Principal amount on this note.

Management continues to take steps to address the Company's liquidity needs. In
the past, management has entered into agreements with some of our note holders
to amend the terms of our notes to provide for extended scheduled payment
arrangements. Management is engaged in discussions with each holder of debt that
is in default and continues to seek extensions with respect to our debt that is
past due. In addition, management may endeavor to convert some portion of the
principal amount and interest on our debt into shares of common stock. Since
June 2008 we have converted $43,000 of debt to 2,327,604 shares of common
stock.

Historically, we have financed operations through private debt and equity
financings. In recent years, financial institutions have been unwilling to lend
to us and the cost of obtaining working capital from investors has been
expensive. We principally expect to raise funds through the sale of equity or
debt securities. The more recent price and volume volatility in the common stock
has made it more difficult for management to negotiate sales of its securities
at a price it believes to be fair to the Company. The Company actively continues
to pursue additional equity or debt financings, but cannot provide any assurance
that it will be successful. If we are unable to pay our debt as it becomes due
and are unable to obtain financing on terms acceptable to us, or at all, we will
not be able to accomplish any or all of our initiatives and will be forced to
consider steps that would protect our assets against our creditors.

OFF-BALANCE SHEET ARRANGEMENTS

We have not entered into any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures, or capital resources, and that would be
considered material to investors.


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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLSOURES ABOUT MARKET RISK.

Not Applicable

ITEM 4.  CONTROLS AND PROCEDURES

Under the supervision and with the participation of our management, we evaluated
the effectiveness of the design and operation of our disclosure controls and
procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934 (the "Exchange Act")) as of the end of the period covered
by this report. Based upon that evaluation, our chief executive officer and
chief financial officer concluded that our disclosure controls and procedures
were not effective such that the information required to be disclosed by us in
reports filed under the Securities Exchange Act of 1934 is (a) recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms and (b) accumulated and communicated to our management,
including our chief executive officer, as appropriate to allow timely decisions
regarding disclosure.

Changes In Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as
defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of
1934, as amended) during the quarter ended June 30, 2008 that have materially
affected, or are reasonably likely to materially affect our internal control
over financial reporting.

Additional Disclosure Concerning Controls and Procedures.

We currently believe that the Company has material weaknesses in its disclosure
controls and procedures. We will work in the coming weeks and months to address
such weaknesses. We believe that the out-of-pocket costs, the diversion of
management's attention from running the day-to-day operations and operational
changes caused by the need to make changes in our internal control and
procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934 (the "Exchange Act")) could be significant and still we may
not achieve significant improvements in our internal controls and procedures. If
the time and costs associated with such compliance exceed our current
expectations, our results of operations and the accuracy and timeliness of the
filing of our annual and periodic reports may be materially adversely affected
and could cause investors to lose confidence in our reported financial
information, which could have a negative affect on the trading price of our
common stock.


                                     PART II
                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

On or about April 16, 2004, Plaintiffs A. Sean Rose, Claire F. Rose, and Mark
Rose commenced an action in the Los Angeles Superior Court against the Company
(A. SEAN ROSE, CLAIRE F. ROSE AND MARK ROSE V. UNIVERSAL DETECTION TECHNOLOGY,
FKA POLLUTION RESEARCH AND CONTROL CORPORATION) for amounts allegedly due
pursuant to four unpaid promissory notes. On August 2, 2004, the parties
executed a Confidential Settlement Agreement and Mutual Releases (the
"Agreement"). On December 30, 2005, Plaintiffs commenced an action against the
Company, alleging the Company breached the Agreement and sought approximately
$205,000 in damages. A judgment was entered on April 11, 2006 for $209,277.58.
The Company has previously accrued for this settlement. We entered into a
settlement agreement in the third quarter of 2004 with each of these parties. As
of June 30, 2008, we have accrued $430,933 for this settlement including
principal and interest.



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<page>


On June 2, 2006, Plaintiff Trilogy Capital Partners instituted an action in the
Los Angeles Superior Court (TRILOGY CAPITAL PARTNERS V. UNIVERSAL DETECTION
TECHNOLOGY, ET. AL., Case No. SC089929) against the Company. Plaintiff's
Complaint alleged damages against UDT for breach of an engagement letter in the
amount of $93,448.54. Also, Plaintiff alleged that UDT had failed to issue
warrants to it pursuant to a written agreement. After completing the initial
stages of litigation and conducting extensive mediation, Plaintiff and UDT
reached a settlement wherein commencing December 15, 2006, UDT would make
monthly payments to Plaintiff of $2,000 until a debt of $90,000 plus accrued
interest at six percent per annum was fully paid. In exchange, Plaintiff would
release all of its claims against UDT. UDT has been current on all of its agreed
payments to Plaintiff. As of June 30, 2008, $56,757 was due under the agreement.

On November 15, 2006, Plaintiff NBGI, Inc. instituted an action in the Los
Angeles Superior Court (NBGI, Inc. v. Universal Detection Technology, et. al.,
Case No. BC361979) against the Company. NBGI, Inc.'s Complaint alleged breach of
contract, and requested damages in the amount of $111,014.34 plus interest at
the legal rate and for costs of suit. There is also a Motion for Summary
Judgment set for September 11, 2007. The Summary Judgment was granted in NBGI's
favor and Judgment has been entered.

ITEM 1A. RISK FACTORS.

Not Applicable


ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.


During the second quarter of 2008, we issued the following securities which were
not registered under the Securities Act of 1933, as amended. We did not employ
any form of general solicitation or advertising in connection with the offer and
sale of the securities described below. In addition, we believe the purchasers
of the securities are "ACCREDITED INVESTORS" for the purpose of Rule 501 of the
Securities Act. For these reasons, among others, the offer and sale of the
following securities were made in reliance on the exemption from registration
provided by Section 4(2) of the Securities Act or Regulation D promulgated by
the SEC under the Securities Act:

      o     During the three months ended June 30,2 008, we issued 3,083,250
            shares of common stock to various notes holders to convert
            outstanding debt obligations valued at approximately $331,073.

      o     During July and August 2008, we issued 2,327,604 shares of common
            stock to various note holders to convert outstanding debt
            obligations valued at approximately $43,146.



ITEM 3. DEFAULTS UPON SENIOR SECURITIES

We have defaulted upon the following senior securities:

      o     One loan from three family members, each of whom is an unaffiliated
            party, evidenced by four promissory notes in the aggregate principal
            amounts of $100,000, $50,000, $50,000, and $100,000, each due June
            24, 2001with interest rates ranging from 11% to 12%. We entered into
            a settlement agreement in the third quarter of 2004 with each of
            these parties. Pursuant to this agreement, at June 30, 2005, we were
            required to pay an additional $80,000 as full payment of our
            obligations. We did not make scheduled payments and are in default
            of these notes.

      o     One loan from an unaffiliated party in the aggregate principal
            amount of $195,000 with interest at a rate of 9% per annum. Pursuant
            to a letter agreement dated as of August 10, 2004, we entered into a
            settlement with this party and agreed to pay a total of $261,000
            pursuant to a scheduled payment plan through July 2005.
            Additionally, the Company, in September 2004, issued 206,250 shares
            of common stock upon the conversion of unpaid interest in the
            aggregate amount of $33,000. At June 30, 2008, there was $161,000
            principal amount remaining on this note. We did not make our
            scheduled payment under this note and are in default. As of June 30,
            2008 we owed $59,874 in interest on this note.


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<page>

      o     One loan from an unaffiliated party in the aggregate principal
            amount of $98,500, due July 31, 2005 with interest at the rate of 9%
            per annum. Pursuant to a letter agreement dated August 10, 2004,
            between this third party and us, we agreed to pay a total of
            $130,800 pursuant to a scheduled payment plan through July 2005. At
            June 30, 2008 there was $ 71,500 principal amount remaining on this
            note. We did not make our scheduled payments under this note and are
            in default. As of June 30, 2008 we owed $34,709 in interest on this
            note.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not Applicable.

ITEM  5. OTHER INFORMATION.

Not Applicable.



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<page>


ITEM 6.  EXHIBITS.

EXHIBIT LIST

EXHIBIT NUMBER          DESCRIPTION

3.1 Articles of Incorporation of A. E. Gosselin Engineering, Inc. (now the
Company) (incorporated herein by reference to Exhibit 3(a) to Amendment No. 1 to
the Registration Statement on Form 10 of Dasibi Environmental Corporation).

3.2 Certificate of Amendment of Articles of Incorporation of A. E. Gosselin
Engineering, Inc. (now the Company) (incorporated herein by reference to Exhibit
3(a) to Amendment No. 1 to the Registration Statement on Form 10 of Dasibi
Environmental Corporation).

3.3 Certificate of Amendment of Articles of Incorporation of Dasibi
Environmental Corp. (now the Company) (incorporated herein by reference to
Exhibit 3(a) to Amendment No. 1 to the Registration Statement on Form 10 of
Dasibi Environmental Corporation).

3.4 Amended and Restated Bylaws of Registrant (incorporated by reference to
Exhibit 3.4 of the Company's Annual Report on Form 10-KSB for the year ended
December 31, 2001, filed on April 15, 2002).

3.5 Certificate of Determination of Preferences of Preferred Shares.

3.6 Certificate of Amendment of Articles of Incorporation (incorporated herein
by reference to Exhibit 3.4 of the Company's Form 8-K, filed on July 25, 2008)

4.1 2008 Equity Incentive Plan (incorporated by reference to Exhibit 4.1 of the
Company's Form S-8 Registration Statement, filed on February 11, 2008).

4.2 2008 Equity Incentive Plan II (incorporated by reference to Exhibit 4.1 of
the Company's Form S-8 Registration Statement, filed on April 23, 2008).

4.3 2008 Equity Incentive Plan III (incorporated by reference to Exhibit 4.1 of
the Company's Form S-8 Registration Statement, filed on July 11, 2008).

10.1 Form of Debt Conversion Agreement.*

31 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*

32 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.*

* Filed herewith.

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<page>



                                   SIGNATURES

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


Dated: August 14, 2008                      UNIVERSAL DETECTION TECHNOLOGY



                                            /S/ JACQUES TIZABI
                                            ---------------------------------
                                            Jacques Tizabi,
                                            President, Chief Executive Officer
                                            (Principal Executive
                                            Officer), Principal Accounting
                                            Officer, and Acting Chief
                                            Financial Officer (Acting Principal
                                            Financial Officer)






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