<PAGE>

                                  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: SEPTEMBER 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 700y,.l
          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 |_|                Acceleratedfiler |_|
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 November 11, 2008: 26,584,987 common shares.

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




<PAGE>

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

                                                 FORM 10-Q

                                                   INDEX

                                                                                                    PAGE NO.
                                                                                                   ----------
PART I.     FINANCIAL INFORMATION

            Item 1.             Condensed Consolidated Financial Statements (unaudited)..................

                                Notes to Condensed Consolidated Financial Statements.....................

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

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

            Item 4T.            Controls and Procedures..................................................

PART II.    OTHER INFORMATION

            Item 1.             Legal Proceedings........................................................

            Item 1A             Risk Factors.............................................................

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

            Item 3.             Defaults Upon Senior Securities..........................................

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

            Item 5.             Other Information........................................................

            Item 6.             Exhibits.................................................................

SIGNATURES...............................................................................................
</TABLE>





<PAGE>


                                     PART I
                              FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS

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

                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                                                          SEPTEMBER 30, 2008  DECEMBER 31, 2007
                                                                              (UNAUDITED)        (AUDITED)
                                 ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                                    $      1,499      $      9,555
Restricted cash                                                                    10,307            10,209
Accounts Receivable,net                                                             1,427             4,282
Deposits                                                                           10,226            10,226
Prepaid expenses                                                                       --             10,827
                                                                             ------------      ------------

Total current assets                                                               23,459            45,099

Equipment, net                                                                     39,128            57,673
Patent, net                                                                        85,359            89,413
                                                                             ------------      ------------

Total assets                                                                 $    147,946      $    192,185
                                                                             ============      ============


             LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
Accounts payable, trade                                                      $    962,588      $  1,000,478
Accrued liabilities                                                               544,117           519,382
Accrued payroll - officers                                                        729,292           522,573
Notes payable - related party                                                       6,520            72,543
Notes payable                                                                   1,581,160         1,385,760
Accrued interest expense                                                          607,733           514,773
                                                                             ------------      ------------

Total current liabilities                                                       4,431,410         4,015,509

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT:
Common stock, no par value, 20,000,000,000 shares authorized, 19,181,387
  shares issued and outstanding in September 30, 2008
    4,178,479 shares issued and outstanding in December 31, 2008               28,614,869        27,195,242
Additional paid-in-capital                                                      5,313,089         5,313,089
Accumulated deficit                                                           (38,211,422)      (36,331,655)
                                                                             ------------      ------------

Total stockholders' deficit                                                    (4,283,464)       (3,823,324)
                                                                             ------------      ------------

Total liabilities and stockholders' deficit                                  $    147,946      $    192,185
                                                                             ============      ============


              See accompanying notes to unaudited consolidated financial statements.


                                       3


<PAGE>

                     UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF OPERATIONS
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007


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

REVENUE, NET                                             $    108,230      $      6,483
COST OF GOODS SOLD                                             76,560             5,283
                                                         ------------      ------------

GROSS PROFIT                                                   31,670             1,200
                                                         ------------      ------------

OPERATING EXPENSES:
Selling, general and administrative                         1,183,223         2,406,157
Marketing                                                      24,974            20,423
Research and development                                           --             9,632
Depreciation and amortization                                  22,599            18,545
                                                         ------------      ------------

Total expenses                                              1,230,796         2,454,757
                                                         ------------      ------------

LOSS FROM OPERATIONS                                       (1,199,126)       (2,453,557)

OTHER INCOME (EXPENSE):
Interest income                                                   105             1,551
Interest expense                                             (142,367)         (136,722)
Penalties                                                         (10)               --
Loss on settlement of debt                                   (538,370)          (37,962)
                                                         ------------      ------------

Total other expenses                                         (680,642)         (173,133)
                                                         ------------      ------------

NET LOSS                                                 $ (1,879,768)     $ (2,626,690)
                                                         ============      ============

NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED:         $     (0.174)     $     (1.249)
                                                         ============      ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING       10,808,354         2,103,223
                                                         ============      ============

        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 SEPTEMBER 30, 2008 AND 2007


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

REVENUE, NET                                             $     45,660      $        658
COST OF GOODS SOLD                                             58,355             2,444
                                                         ------------      ------------

GROSS PROFIT                                                  (12,695)           (1,786)
                                                         ------------      ------------

OPERATING EXPENSES:
Selling, general and administrative                           439,574           207,012
Marketing                                                      17,038             3,673
Depreciation and amortization                                   7,533             6,182
                                                         ------------      ------------

Total expenses                                                464,144           216,867
                                                         ------------      ------------

LOSS FROM OPERATIONS                                         (476,839)         (218,653)

OTHER INCOME (EXPENSE):
Interest income                                                     3               815
Interest expense                                              (51,730)          (48,849)
Loss on settlement of debt                                   (117,795)          (37,962)
                                                         ------------      ------------

Total other expenses                                         (169,523)          (85,996)
                                                         ------------      ------------

NET LOSS                                                 $   (646,361)     $   (304,649)
                                                         ============      ============

NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED:         $     (0.040)     $      (0.12)
                                                         ============      ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING       16,319,224         2,522,504
                                                         ============      ============

      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


<PAGE>
                     UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007

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

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                               $(1,879,768)     $(2,626,690)
Adjustments to reconcile net loss to net cash used in operations:
Stocks issued for services                                                 570,274        1,504,140
Loss on settlement of debt                                                 538,370           37,962
Depreciation and amortization                                               22,599           18,545
Changes in operating assets and liabilities:
Accounts receivable                                                          2,855           (3,858)
Prepaid expenses                                                            10,827           27,748
Accounts payable and accrued liabilities                                   334,418          495,563
                                                                       -----------      -----------

Net cash used in operating activities                                     (400,426)        (546,590)
                                                                       -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase)/Decrease in restricted cash                                         (98)          52,155
                                                                       -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft                                                                  --               --
Proceeds from sale of common stock                                              --           21,000
Proceeds from notes payable-related party                                   12,350           12,343
Proceeds from notes payable                                                501,500          515,000
Payments on notes payable - related party                                  (78,373)              --
Payments on notes payable                                                  (43,009)         (68,449)
                                                                       -----------      -----------

Net cash provided by  financing activities                                 392,468          479,894
                                                                       -----------      -----------


NET DECREASE IN CASH AND CASH EQUIVALENTS                                   (8,056)         (14,541)

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                               $     1,499      $     3,572
                                                                       ===========      ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Income tax                                                             $        --      $        --
                                                                       ===========      ===========
Interest Paid                                                          $     1,516      $    37,383
                                                                       ===========      ===========

SUPPLEMENTAL DISCLOSURES FOR NON CASH INVESTING AND
FINANCING ACTIVITIES:

Shares issued for settlement of debt & payment of accrued interest     $   812,353      $   136,000
                                                                       ===========      ===========
Compensation contribution                                              $        --      $   550,000
                                                                       ===========      ===========

              See accompanying notes to unaudited consolidated financial statements.
</TABLE>


                                           6


<PAGE>

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


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
by Universal Detection Technology and Subsidiaries, pursuant to the rules and
regulations of the Securities and Exchange Commission (the "SEC") Form 10-QSB
and Item 310 of Regulation S-B, 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 nine months ended September
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 their 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.

GOING CONCERN

As of September 30, 2008, the Company had a working capital deficit of
$4,407,951 and an accumulated deficit of $38,211,422. The Company incurred a net
loss of $1,879,768 for the nine month period ended September 30, 2008. 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 expansion of its product line into other counterterrorism products and
services in related fields including threat evaluation services, security and
surveillance cameras, safety videos, and kits for rapid detection of up to five
agents. During the first nine months of 2008, the Company sold detection kits


                                       7


<PAGE>

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



under various purchase agreements and had consulting revenue for $108,230. The
Company cancelled sales of $600 related to products that were not accepted by
Israeli customs and were subsequently returned to the Company.

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 radiological 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
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, the Company has sold three units to the Government of the
United Kingdom and intends to develop a more wide-spread use for BSM-2000
through their planned collaborative research, development, sales, and marketing
efforts.


During the nine months ended September 30, 2008, the Company entered into
various agreements to sell 8,735,090 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 $812,353.

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

                                       8


<PAGE>

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


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 nine months ended September 30, 2008 and 2007, respectively.

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

                                       9


<PAGE>

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


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
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 of 2008, FSAB issued SFASB No.162, "THE HIERARCHY OF GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES." The pronouncement mandates that 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 September 30, 2008 and December 31, 2007, the patent value is as follows:

                        September 30, 2008    December 31, 2007
                            (Unaudited)          (Audited)

Patent Costs                 $ 117,341           $ 117,341
Accumulated Amortization       (31,982)            (27,928)
                             ---------           ---------
Patent, Net                  $  85,359           $  89,413


                                       10


<PAGE>

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


Total amortization expense was $4,054 and $-0- for the nine months ended
September 30, 2008 and 2007 respectively.

NOTE 4 - NOTES PAYABLE
During the nine month period ended September 30, 2008, the Company borrowed an
aggregate of $501,500 from third parties under various promissory note
agreements. The promissory notes all bear interest at 12.0% to 13.0% per annum,
and are due on or before August 28, 2009. No principal or interest payments have
been made on these notes.

As of September 30, 2008 and December 31, 2007, the Company had total notes
payable of $1,581,160 and $1,385,760 respectively.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

The Company was involved in the following litigation matters:

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 September 30, 2008 and December 31, 2007, the Company has
     accrued $443,769 and $405,259 respectively 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


                                       11


<PAGE>

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


     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 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
     September 30, 2008 and December 31, 2007, $56,767 and $68,757 respectively
     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 has been set for
     October 29, 2007. 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.

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 nine month period ended September 30, 2008, the Company issued an
aggregate of 3,577,202 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 $344,434.


                                       12


<PAGE>


During the nine month period ended September 30, 2008, the Company issued
2,680,432 shares of common stock as payment for consulting or other professional
fees for an aggregate amount of $262,840.

During the nine month period ended September 30, 2008, the Company entered
various agreements to convert $310,983 of indebtedness into 8,735,090 shares of
common stock The fair market value of the stock on the date of agreement and
issuance was $812,353. The Company recorded a loss on settlement of debt of
501,370.

During the nine month period ended September 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 the nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights (or SARs),
Restricted Stock, Performance Units, and Performance Shares, to their employees,

                                       13


<PAGE>

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


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 2,500,000 shares of its common stock for awards to be made
under the Plan. 2,500,000 of the shares reserved under this plan have been
issued.

On September 2, 2008 the Board of Directors adopted the 2008-4 Equity Incentive
Plan (the "Plan"). The Plan provides for the granting of the nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights (or SARs).
Restricted Stock, Performance Units, and Performance Shares, to their employees,
officers, directors, consultants, independent contractors, advisors, or other
service provides, provided that such services are no it connection with the
offer and sale of securities in a capital raising transactions. The company
initially reserved 3,800,000 shares of its common stock for awards to be made
under the Plan. No shares have yet been issued.

Warrants:

There were no warrants granted during the nine month period ended September 30,
2008.

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

<TABLE>
<CAPTION>
<S>     <C>    <C>    <C>    <C>    <C>    <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                                        (19,250)                           --
                                                    -------                      --------
Outstanding and exercisable, June 30, 2008           56,000      $20 to $140     $     --
</TABLE>


                                       14


<PAGE>


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


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 nine month period ended September 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 $1.40. The Company recognized
$661,484 as expense during the nine month period ended September 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 September 30, 2008, the Company borrowed an
aggregate of $1,800 in principal with interest rates of 12.5% and repaid $39,237
in principal payments under various promissory note agreements. No interest has
been paid under these agreements

During the three months ended June 30, 2008, the Company borrowed an aggregate
of $6,100 in principal with interest rates of 12.5% and repaid $8,818 in


                                       15


<PAGE>


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


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 November 2008, the Company issued an aggregate of 3,800,000 shares of
common stock to three employees for services rendered valued at approximately
$45,600.

During October 2008, the Company borrowed an aggregate of $25,000 from third
parties under three promissory notes. The notes carry interest at 12.5%. The
notes are due on or before October 09, 2009.

During October 2008, the Company entered in various agreements to convert
$43,804 of indebtedness into 3,253,600 shares of common stock. The shares were
issued in October 2008.



                                       16


<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.


                                       17


<PAGE>


During the nine months ended September 30, 2008 we spent an aggregate of
$1,183,223 on selling, general and administrative expenses, research and
development expenses and marketing expenses. This amount represents a 50.8%
decrease over the comparable year-ago period. The decrease is principally
attributable to a reduction in compensation expenses.

Our working capital deficit at September 30, 2008, was $4,407,951. 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 $2.1 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 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-200 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.

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.

NINE MONTHS ENDED September 30, 2008 COMPARED TO THE NINE MONTHS ENDED September
30, 2007

REVENUE. Total revenue for the nine months ended September 30, 2008 was
$108,230, as compared to revenue of $6,483 for the same period in the prior
fiscal year, an increase of $101,747. The increase is primarily due to the
increase in sales of the Company's test kits and for new consulting engagements.
The Company cancelled sales of $600 related to products that were not accepted
by Israeli customs and were subsequently returned to the Company.

OPERATING EXPENSES. Total operating expenses for the nine months ended September
30, 2008 were $1,230,796 representing a decrease of $1,223,961. Total selling,
general and administrative expenses for the nine months ended September 30, 2008
were $1,183,223 representing a decrease of $1,222,934 (50.8%) as compared to the

                                       18


<PAGE>


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


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 ($680,642) for the
nine months ended September 30, 2008 as compared to ($173,133) for the
corresponding period of the prior year. The change is principally related to
loss recognized on stock issued for settlement of debt.

NET LOSS. Net loss for the nine months ended September 30, 2008 was $1,879,768,
as compared to a net loss of $2,626,690 for the same period in the prior fiscal
year, representing a decrease of $746,922. The primary reason of this decreased
loss in the current year is due to the decrease in operating expenses as
explained above.


LIQUITY AND CAPITAL RESOURCES

We require approximately $2.1 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 September 30, 2008 was $4,283,464. 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 September 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 September 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
         September 30, 2008, we have $443,769 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 September 30, 2008, there was $161,000 principal amount
         (and $63,501 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.


                                       19


<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 September 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.

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 September 30, 2008 we owed
         $31,500 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 $14,975 due on August 31, 2006 with
         an interest rate of 12.5% per annum. As of September 30, 2008 we owed
         $3,900 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 September 30, 2008, we paid
         off the remaining principal, and we owed $342 in interest.

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 September 30, 2008 we
         owed $90,000 in principal and $9,375 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 September 30, 2008 we owed
         $4,500 in principal and $3,125 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 September 30, 2008 we owed
         $25,000 in principal and $7,291 in 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 September 30, 2008 we owed
         $10,800 in principal and $4,063 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 September 30, 2008 we owed
         $10,156 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.



                                       20


<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 September 30, 2008 we owed
         $9,896 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 September 30, 2008 we owed
         $5,625 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 September 30, 2008 we owed
         $10,625 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 September 30, 2008 we owed
         $5,000 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% per annum. As of September 30, 2008 we owed
         $5,700 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 September 30, 2008 we owed
         $5,938 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 September 30, 2008 we owed
         $3,333 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 September 30, 2008 we owed
         $5,250 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 September 30, 2008 we owed
         $2,865 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 September 30, 2008 we owed
         $4,583 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.


                                       21


<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 September 30, 2008 we owed
         $6,250 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 September 30, 2008 we owed
         $3,125 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 September 30, 2008 we paid
         off the remaining principal balance, and we owed $1,250 in interest.

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 September 30, 2008 we owed
         $1,875 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 September 30, 2008 we owed $1,200
         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 September 30, 2008 we owed
         $1,360 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 September 30, 2008 we owed
         $1,500 in interest. We did not make our scheduled payment on August 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 $30,000 due on August 27, 2008 with
         an interest rate of 12% per annum. As of September 30, 2008 we owed
         $2,100 in interest. We did not make our scheduled payment on August 27,
         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 $13,000 due on August 28, 2008 with
         an interest rate of 12% per annum. As of September 30, 2008 we owed
         $910 in interest. We did not make our scheduled payment on August 28,
         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 $13,000 due on September 6, 2008 with
         an interest rate of 12.5% per annum. As of September 30, 2008 we owed
         $922 in interest. We did not make our scheduled payment on September 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.


                                       22


<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 September 30, 2008 we owed
         $1,250 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 September 30, 2008 we owed
         $1,188 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 September 30, 2008 we owed
         $1,563 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 September 30, 2008 we owed
         $1,823 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 September 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 December 24, 2008 with
         an interest rate of 12.5% per annum. As of September 30, 2008 we owed
         $1,250 in interest.

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $35,000 due on January 15, 2009 with
         an interest rate of 12.0% per annum. As of September 30, 2008 we owed
         $875 in interest.

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $15,000 due on July 17, 2009 with an
         interest rate of 13.0% per annum. As of September 30, 2008 we owed $406
         in interest.

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $34,000 due on July 22, 2009 with an
         interest rate of 12.0% per annum. As of September 30, 2008 we owed $680
         in interest.

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $17,000 due on August 5, 2009 with an
         interest rate of 10.0% per annum. As of September 30, 2008 we owed $283
         in interest.

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $23,500 due on August 27, 2009 with
         an interest rate of 12.0% per annum. As of September 30, 2008 we owed
         $235 in interest.

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $55,000 due on August 28, 2009 with
         an interest rate of 12.0% per annum. As of September 30, 2008 we owed
         $550 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 September 30, 2008 we owed
         $4,415 in principal amount on this note.


                                       23


<PAGE>


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
September 2008 we have converted $33,804 of debt to 2,253,600 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.


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
are not effective such that the information required to be disclosed by us in
reports filed under the Securities Exchange Act of 1934 is not (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 September 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 continue to 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

                                       24


<PAGE>

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 September 30, 2008, we have accrued $443,769 for this settlement including
principal and interest.

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 September 30, 2008, $56,767 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 third 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


                                       25


<PAGE>

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 September 30, 2008, we issued
                  3,787,605 shares of common stock to various notes holders to
                  convert outstanding debt obligations valued at approximately
                  $190,047.

         o        During October 2008, we issued 2,253,600 shares of common
                  stock to various note holders to covert outstanding debt
                  obligations valued at approximately $67,608.

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, 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 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
                  September 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 September 30, 2008
                  we owed $63,501 in interest on 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 this third party and us, we agreed to pay a
                  total of $130,800 pursuant to a scheduled payment plan through
                  July 2005. At September 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 September
                  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.


                                       26


<PAGE>



ITEM 6.  EXHIBITS.

EXHIBIT LIST

EXHIBIT NUMBER       DESCRIPTION


10.1                 Form of Note Conversion Agreeent

Exhibit 31           Certification Pursuant to Section 302 of the Sarbanes-Oxley
                     Act of 2002, filed herewith

Exhibit              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.

                                       27


<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: November 18, 2008                    UNIVERSAL DETECTION TECHNOLOGY



                                            /s/ Jacques Tizabi
                                            ----------------------------
                                            Jacques Tizabi,
                                            President, Chief Executive Officer
                                            (Principal Executive Officer), and
                                             Acting Chief Financial Officer
                                            (Acting Principal Financial Officer)



                                       28