<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: MARCH 31, 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 of                (I.R.S. Employer
  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 May 2, 2008: 1,131,478,082 common shares.

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



<PAGE>

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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

          Item 2.             Management's Discussion and Analysis of Financial Condition and Results of Operations..........15

          Item 3.             Quantitative and Qualitative Disclosures About Market Risk.....................................21

          Item 4.             Controls and Procedures........................................................................21

PART II.  OTHER INFORMATION
          Item 1.             Legal Proceedings..............................................................................21

          Item 2.             Unregistered Sales of Equity Securities and Use of Proceeds....................................22

          Item 3.             Defaults Upon Senior Securities................................................................23

          Item 4.             Submission of Matters to a Vote of Security Holders............................................23

          Item 5.             Other Information..............................................................................23

          Item 6.             Exhibits.......................................................................................24

SIGNATURES...................................................................................................................25

</TABLE>



<PAGE>


                                     PART I
                              FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS
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                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                 MARCH 31, 2008
                                   (UNAUDITED)

                                     ASSETS

CURRENT ASSETS:
Cash and cash equivalents                                      $      3,470
Restricted cash                                                      10,266
Accounts Receivable, net                                             53,722
Deposits                                                             10,226
                                                               ------------

Total current assets                                                 77,684

Equipment, net                                                       51,492
Patent, net                                                          88,061
                                                               ------------

Total assets                                                   $    217,237
                                                               ============


                      LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES:
Accounts payable, trade                                        $    855,652
Accrued liabilities                                                 569,131
Accrued payroll - officers                                          552,193
Notes payable - related party                                        48,984
Notes payable                                                     1,419,659
Accrued interest expense                                            534,247
                                                               ------------

Total current liabilities                                         3,979,866

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' DEFICIT:
Common stock, no par value, 20,000,000,000 shares
     authorized, 1,545,069,808 shares issued and outstanding     27,793,462
Additional paid-in-capital                                        5,313,089
Accumulated deficit                                             (36,869,180)
                                                               ------------

Total stockholders' deficit                                      (3,762,629)
                                                               ------------

Total liabilities and stockholders' deficit                    $    217,237
                                                               ============


     See accompanying notes to unaudited consolidated financial statements.


                                       3


<PAGE>
                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
                                   (UNAUDITED)

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

REVENUE, NET                                           $      60,375    $       1,175
COST OF GOODS SOLD                                            16,253            1,650
                                                       -------------    -------------

GROSS PROFIT                                                  44,122             (475)
                                                       -------------    -------------

OPERATING EXPENSES:
Selling, general and administrative                          309,701        1,616,918
Marketing                                                      4,423           15,000
Depreciation and amortization                                  7,534            6,182
                                                       -------------    -------------

Total expenses                                               321,657        1,638,100
                                                       -------------    -------------

LOSS FROM OPERATIONS                                        (277,535)      (1,638,575)

OTHER INCOME (EXPENSE):
Interest income                                                   60              663
Interest expense                                             (42,571)         (42,247)
Loss on settlement of debt                                  (217,480)              --
                                                       -------------    -------------

Total other expenses                                        (259,991)         (41,584)
                                                       -------------    -------------

NET LOSS                                               $    (537,526)   $  (1,680,159)
                                                       =============    =============

NET INCOME (LOSS) PER SHARE - BASIC AND DILUTED:       $      (0.001)   $      (0.006)
                                                       =============    =============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING     836,010,914      273,535,590
                                                       =============    =============

    Weighted average number of dilutive securities has no 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 CASH FLOWS
            FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
                                   (UNAUDITED)

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

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                            $  (537,526)   $(1,680,159)
Adjustments to reconcile net loss to net cash used in operations:
Stocks issued for services                                              268,988      1,302,244
Loss on settlement of debt                                              217,480             --
Depreciation and amortization                                             7,534          6,182
Changes in operating assets and liabilities:
Accounts receivable                                                     (49,440)          (250)
Prepaid expenses                                                         10,827         31,887
Accounts payable and accrued liabilities                                (23,622)        36,380
                                                                    -----------    -----------

Net cash used in operating activities                                  (105,760)      (303,716)
                                                                    -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase)/Decrease in restricted cash                                      (57)        51,280
                                                                    -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
Bank overdraft                                                               --          3,837
Proceeds from sale of common stock                                           --         21,000
Proceeds from notes payable-related party                                 3,500         28,000
Proceeds from notes payable                                             128,000        300,000
Payments on notes payable - related party                               (27,058)       (28,000)
Payments on notes payable                                                (4,710)       (59,957)
                                                                    -----------    -----------

Net cash provided by  financing activities                               99,732        264,880
                                                                    -----------    -----------


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                     (6,085)        12,444

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

CASH AND CASH EQUIVALENTS, END OF PERIOD                            $     3,470    $    30,557
                                                                    ===========    ===========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

Income tax                                                          $        --    $        --
                                                                    ===========    ===========
Interest Paid                                                       $       736    $    34,989
                                                                    ===========    ===========

SUPPLEMENTAL DISCLOSURES FOR NON CASH INVESTING AND
FINANCING ACTIVITIES:

Shares issued for settlement of debt and accrued interest           $   491,233    $        --
                                                                    ===========    ===========

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

                                       5


<PAGE>

                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 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 months ended March 31, 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

GOING CONCERN

As of March 31, 2008, the Company had a working capital deficit of $3,902,182
and an accumulated deficit of $36,869,180. 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 three months of 2008, the Company sold detection kits
under various purchase agreements and had consulting revenue for $60,375.

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. We also 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, designing a lighter
casing, and some cosmetics. The ideal third party collaborator would also assist

                                       6


<PAGE>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008


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 three 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 three months ended March 31, 2008, the Company entered into various
agreements to sell 372,847,133 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 $291,233.


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 three months ended March 31, 2008 and 2007, respectively.



                                       7


<PAGE>

                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 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

                                       8


<PAGE>

                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 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.

NOTE 3 - PATENTS

As of March 31, 2008, the patent value is as follows:

         --------------------------------- ----------------
             Patent Costs                     $117,341
         --------------------------------- ----------------
             Accumulated Amortization         (29,280)
         --------------------------------- ----------------
             Patent, Net                      $88,061
         --------------------------------- ----------------

Total amortization expense was $1,352 and $-0- for the three months ended March
31, 2008 and 2007 respectively.

NOTE 4 - NOTES PAYABLE
During the first quarter of 2008, the Company borrowed an aggregate of $128,000
from third parties under various promissory note agreements. The promissory
notes all bear interest at 12.0% to 12.5% per annum, and were due on or before
September 6, 2008. No interest or principal payments have been made on the
notes.

As of March 31, 2008, the Company had total notes payable of $1,419,659.


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 March 31, 2008, the Company has accrued $418,096 for this
     settlement including principal and interest.

                                       9


<PAGE>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008


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.

     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
     March 31, 2008, $64,757 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 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 and Judgment has been
     entered.


                                       10


<PAGE>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008



e) On May 4, 2007, Plaintiff Horiba Jobin Yvon Inc. fka Jobin Yvon Inc.
instituted an action in the Los Angeles Superior (West District Case No.
07C01862) against Defendants Universal Detection Technology Horiba Jobin Yvon
Inc.'s complaint for money alleged that Defendants became indebted to Plaintiff
in the sum of $9,510 for goods and services. Defendants agreed to pay said sum,
but no part of said sum has been paid. Plaintiff seeks the following: the sum of
$9,510 plus accrued interest at ten percent per annum from July 18, 2006; the
costs of suit incurred; and reasonable attorneys' fees of $1,000. During August
2007, the Company's bank account was garnished.

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 three month period ended March 31, 2008, the Company issued an
aggregate of 132,440,475 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 $109,226

During the three month period ended March 31, 2008, the Company issued
207,857,142 shares of common stock as payment for consulting services or other
professional fees for an aggregate amount of $202,286.

During the three month period ended March 31, 2008, the Company entered various
agreements to convert $111,752 of indebtedness into 372,847,133 shares of common
stock The fair market value of the stock on the date of agreement & issuance was
$291,233. The Company recorded a loss on settlement of debt of $179,481.

During the three month period ended March 31, 2008, the Company cancelled an
aggregate 3,770,832 shares of common stock. The holders of these shares have
agreed with the cancellation for no consideration.

During the three month period ended March 31, 2007, the Company issued an
aggregate of 12,187,496 shares of common stock to employees for services
rendered to the Company valued at $52,000.

During the three month period ended March 31, 2007, the Company issued
48,000,000 shares of common stock as payment for consulting services for an
aggregate amount of $299,600.

During the three month period ended March 31, 2007, an investor purchased
33,337,129 shares of common stock as required under an investment agreement for
an aggregate amount of $146,500. The Company received $21,000 of the proceeds
during the first quarter of 2007. The remaining $125,500 was used to repay
outstanding notes payable and accrued interest. The notes were paid directly by
the investor.

                                       11


<PAGE>


                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008



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 300,000,000 shares of its common stock for awards to be made under the
Plan. 299,991,072 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 330,000,000 shares of its common stock for awards to be made
under the Plan. 125,604,165 of the shares reserved under this plan have been
issued.


Warrants:

There were no warrants granted during the three month period ended March 31,
2008.


Common stock purchase options and warrants consisted of the following as of
March 31, 2008:



                                       12


<PAGE>

                 UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2008
<TABLE>
<CAPTION>
<S>     <C>


                                                                                            Aggregated
                                                                           Exercise         Intrinsic
                                                          # shares           Price            Value
                                                     ----------------------------------------------------
OPTIONS:
Outstanding and exercisable, December 31, 2007             107,950,000  $0.01 to $0.33     $          --
     Granted                                                        --                                --
     Exercised                                                      --                                --
     Expired                                                        --                                --
                                                     ------------------                   ---------------
Outstanding and exercisable, March 31, 2008                107,950,000  $0.01 to $0.33     $          --

WARRANTS:
Outstanding and exercisable, December 31, 2007              15,050,000  $0.1 to $0.7       $          --
     Granted                                                        --                                --
     Exercised                                                      --                                --
     Expired                                                        --                                --
                                                     ------------------                   ---------------
Outstanding and exercisable, September 30, 2007             15,050,000  $0.1 to $0.7       $          --
</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 three month period ended March 31, 2008.

On March 28, 2007, the Company granted to Jacques Tizabi, its president and CEO,
an option to purchase 100,000,000 shares of Common Stock at an exercise price of
$0.01 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 $0.007. The
Company recognized $661,484 as expense during the three month period ended March
31, 2007


                                       13


<PAGE>

                UNIVERSAL DETECTION TECHNOLOGY AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 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 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 April and May 2008, the Company issued an aggregate of 163,749,999 shares
of common stock to three employees for services rendered valued at approximately
$100,462.

During April 2008, the Company borrowed an aggregate of $39,000 from third
parties under two promissory notes. The notes carry interest at 12.5%. The notes
are due on or before April 2, 2009.

During April 2008, the Company entered in various agreements to convert $66,000
of indebtedness into 230,000,000 shares of common stock. The shares were issued
in April 2008.


                                       14


<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. Our strategy is to identify qualified strategic partners with
whom to collaborate in order to develop commercially viable bioterrorism
detection devices. Consistent with this strategy, 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
have begun providing 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.


                                       15


<PAGE>

During the three months ended March 31, 2008 we spent an aggregate of $321,657
on selling, general and administrative expenses and marketing expenses. This
amount represents an 80.3% decrease over the comparable year-ago period. The
decrease is principally attributable to a reduction in compensation expenses.

Our working capital deficit at March 31, 2008, was $3,902,182. 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 $1.9 million to repay indebtedness in the next 12 months.

In 2007 we have 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, 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, 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.

Results of Operations

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

QUARTER ENDED MARCH 31, 2008 COMPARED TO THE QUARTER ENDED MARCH 31, 2007

Revenue. Total revenue for the three months ended March 31, 2008 was $60,375, as
compared to revenue of $1,175 for the same quarter in the prior fiscal year, an
increase of $59,200. 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 three months ended March
31, 2008 were $321,657 representing a decrease of $1,316,443. Total selling,
general and administrative expenses for the three months ended March 31, 2008
were $309,701 representing a decrease of $1,307,217 (80.3%) 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 ($259,991) for the
three months ended March 31,2008 as compared to ($41,584) for the corresponding
quarter 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 three months ended March 31, 2008 was $537,526, as
compared to a net loss of $1,680,159 for the same period in the period fiscal
year, representing a decrease of $1,142,633. 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 $2.3 million in the next 12 months to repay debt
obligations and execute our business plan. 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 our uses of
capital during the next 12 months principally will be for:

                                       16


<PAGE>

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 March 31, 2008 was $3,902,182. 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 March 31, 2008. We require approximately $1.9 million to repay
indebtedness including interest in the next 12 months. The following provides
principal terms of our outstanding debt as of March 31, 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 March
         31, 2008, we have $418,095 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 March 31, 2008, there was $161,000 principal amount (and
         $56,246 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 March 31, 2008, there
         was $74,500 principal amount (and $32,445 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 $90,000 due on November 13, 2005 with
         an interest rate of 12% per annum. We agreed to issue 200,000 shares of
         common stock to the noteholder as additional consideration for
         extending credit to us. This note has not been repaid and we are in
         default. As of March 31, 2008 we owed $66,000 in principal and $1,980
         in interest on this note and the shares have not yet been issued. 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 March 31, 2006 with
         an interest rate of 12% per annum. As of March 31, 2008 we owed $25,500
         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.


                                       17


<PAGE>

o        One loan from an unaffiliated party evidenced by a promissory note in
         the aggregate principal amount of $20,000 due on May 17, 2006 with an
         interest rate of 12.5% per annum. As of March 31, 2008 we owed $4,779
         in interest. We did not make our scheduled payment on May 17, 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 March 31, 2008 we owed $7,031
         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 March 31, 2008 we owed
         $2,964 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 March 31, 2008 we owed
         $4,948 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 March 31, 2008 we owed
         $14,583 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 March 31, 2008 we owed
         $2,188 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 March 31, 2008 we owed
         $5,104 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 March 31, 2008 we owed $2,813
         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 March 31, 2008 we owed $7,031
         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.


                                       18


<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 March 31, 2008 we owed $6,771in
         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 March 31, 2008 we owed $3,750
         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 March 31, 2008 we owed
         $6,875 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 March 31, 2008 we owed
         $3,125 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 March 31, 2008 we owed
         $3,900 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 March 31, 2008 we owed
         $4,063 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 March 31, 2008 we owed $1,771
         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 March 31, 2008 we owed $2,750
         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 March 31, 2008 we owed
         $1,302 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 March 31, 2008 we owed $2,083
         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.

                                       19


<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 March 31, 2008 we owed $2,500
         in interest.

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 March 31, 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 $20,000 due on January 11, 2008 with
         an interest rate of 12.5% per annum. As of March 31, 2008 we owed $625
         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 March 31, 2008 we owed $625 in
         interest.

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 March 31, 2008 we owed $300 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 11, 2008 with
         an interest rate of 12% per annum. As of March 31, 2008 we owed $340 in
         interest.

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 March 31, 2008 we owed $300 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 March 31, 2008 we owed $300 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 March 31, 2008 we owed $130 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 March 31, 2008 we owed $109
         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 March 31, 2008 we owed
         $14,443 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
March 2008 we have converted $66,000 of debt to 230,000,000 shares of common
stock.


                                       20


<PAGE>

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. QUANTATATIVE AND QUALITATIVE DISCLSOURES ABOUT MARKET RISK.

Not Applicable

ITEM 4.  CONTROLS AND PROCEDURES

As required by SEC rules, we have evaluated the effectiveness of the design and
operation of our disclosure controls and procedures at the end of the period
covered by this report. The evaluation was carried out by our Chief Executive
Officer and Acting Principal Financial Officer (the "Certifying Officers").
Based upon this evaluation, the Certifying Officers have concluded that the
design and operation of our disclosure controls and procedures are effective.
Such disclosure controls and procedures are designed to ensure that material
information is made known to the Certifying Officers, particularly during the
period in which this report was prepared. The Certifying Officers have evaluated
the effectiveness of our disclosure controls and procedures as of the end of the
period covered by this report and believe that our disclosure controls and
procedures are effective based on the required evaluation.


During the period covered by this report, there were no changes in internal
controls over financial reporting that materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting.

While management believes that our disclosure controls and procedures and our
internal control over financial reporting are effective, no system of controls
can prevent all error and all fraud. A control system, no matter how well
designed and operated, can provide only reasonable, not absolute, assurance that
the control system's objectives will be met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within our company have been detected. These inherent limitations include
the realities that judgments in decision-making can be faulty, and that
breakdowns can occur because of simple error or mistake. Controls can also be
circumvented by the individual acts of some persons, by collusion of two or more
people, or by management override of the controls. The design of any system of
controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions. Over time,
controls may become inadequate because of changes in conditions or deterioration
in the degree of compliance with its policies or procedures. Because of the
inherent limitations in a cost-effective control system, misstatements due to
error or fraud may occur and not be detected.

                                       21


<PAGE>


                                     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 March 31, 2008, we have accrued $418,096 for this settlement including
principal and interest.

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. On or about June 13, 2007, Universal Detection
filed a Motion for Summary Judgment, or Alternative, Summary Adjudication of
Claims. Shortly before the hearing on said Motion, a settlement and mutual
release of all claims was signed between Plaintiffs and Universal Detection. On
September 5, 2007, Plaintiffs dismissed Universal Detection with prejudice from
the action.

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 March 31, 2008, $64,757 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 and
Judgment has been entered.

On May 4, 2007, Plaintiff Horiba Jobin Yvon Inc. fka Jobin Yvon Inc. instituted
an action in the Los Angeles Superior (West District Case No. 07C01862) against
Defendants Universal Detection Technology Horiba Jobin Yvon Inc.'s complaint for
money alleged that Defendants became indebted to Plaintiff in the sum of
$9,510.20 for goods and services. Defendants agreed to pay said sum, but no part
of said sum has been paid. Plaintiff seeks the following: the sum of $9,510.20
plus accrued interest at ten percent per annum from July 18, 2006; the costs of
suit incurred; and reasonable attorneys' fees of $1,000. During August 2007, the
Company's bank account was garnished. The Plaintiff has been satisfied with the
collection of the debt and has no further complaints.


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<PAGE>

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

During the first 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 March 31, 2008, we issued
                  372,847,133 shares of common stock to various notes holders to
                  covert outstanding debt obligations valued at approximately
                  $291,233.

 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 March
                  31, 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 March 31, 2008 we owed $56,246
                  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 March 31, 2008 there was $ 74,500 principal
                  amount remaining on this note. We did not make our scheduled
                  payments under this note and are in default. As of March 31,
                  2008 we owed $32,445 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
--------------      -----------

    31.1            CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY
                    ACT OF 2002

    32.1            CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED
                    PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


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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: May 19, 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)



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