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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 Commission File No. 0-13328
 SENTEX SENSING TECHNOLOGY, INC.
  New Jersey
    
    22-2333899(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 1801 East Ninth Street
Cleveland, Ohio
    
    44114(Address of principal executive offices)
    
    (Zip Code)
 (216) 687-0289
 
 
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TABLE OF CONTENTS  CONSOLIDATED BALANCE SHEETCONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND THE NINE MONTHSCONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE MONTHSNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONSIGNATUREEXHIBITS AND REPORTS ON FORM 8-KEX-31.1 Certification of CEOEX-31.2 Certification of CFOEX-32.1 Certification of CEOEX-32.2 Certification of CFO    Table of Contents  
 SENTEX
SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
NOVEMBER 30, 2004 AND AUGUST 31, 2005
 NOVEMBER 30,
    
    
    AUGUST 31,2004
    
    
    2005(AUDITED)
    
    
    (UNAUDITED)ASSETSCURRENT ASSETSCash
    
    $
    12,872
    
    
    $
    37,165Accounts receivable  trade, net of allowance for
doubtful accounts of $55,000
    
    
    98,206
    
    
    
    152,518Inventory
    
    
    103,550
    
    
    
    105,333TOTAL CURRENT ASSETS
    
    
    214,628
    
    
    
    295,016FIXED ASSETSComputer equipment
    
    
    4,009
    
    
    
    3,343Leasehold improvements
    
    
    
    
    
    
    25,000Less accumulated depreciation
    
    
    (4,009
    )
    
    
    (7,143
    )
    
    
    
    21,200OTHER ASSETSGoodwill
    
    
    36,042
    
    
    
    36,042Deposits
    
    
    990
    
    
    
    99037,032
    
    
    
    37,032TOTAL ASSETS
    
    $
    251,660
    
    
    $
    353,248LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESNotes payable:Related party
    
    $
    6,203,340
    
    
    $
    6,372,058Trade and other accounts payable ($913,174 and
$1,347,125 to related parties)
    
    
    1,171,122
    
    
    
    1,684,421Accrued liabilities
    
    
    160,476
    
    
    
    47,795Consulting contracts payable
    
    
    21,249
    
    
    
    21,249Convertible subordinated notes payable
    
    
    12,423
    
    
    
    12,423TOTAL CURRENT LIABILITIES
    
    
    7,568,610
    
    
    
    8,137,946STOCKHOLDERS EQUITYCommon
stock, no par value
Authorized - 200,000,000 shares
Issued - 109,460,911 shares
Outstanding - 101,764,911 shares
    
    
    2,867,579
    
    
    
    2,867,579Accumulated deficit
    
    
    (9,915,061
    )
    
    
    (10,382,809
    )Treasury shares at cost, 7,696,000 shares
    
    
    (269,468
    )
    
    
    (269,468
    )TOTAL STOCKHOLDERS EQUITY
    
    
    (7,316,950
    )
    
    
    (7,784,698
    )TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    251,660
    
    
    $
    353,248
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SENTEX
SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND THE
NINE MONTHS
ENDED AUGUST 31, 2004 AND AUGUST 31, 2005 (UNAUDITED)
 THREE MONTHS ENDED
    
    
    NINE MONTHS ENDEDAUGUST 31,
    
    
    AUGUST 31,
    
    
    AUGUST 31,
    
    
    AUGUST 31,2004
    
    
    2005
    
    
    2004
    
    
    2005REVENUESSales
    
    $
    1,305,970
    
    
    $
    660,884
    
    
    $
    2,680,314
    
    
    $
    2,280,982Interest and other income
    
    
    24,256
    
    
    
    707
    
    
    
    59,889
    
    
    
    160,506Total Revenues
    
    
    1,330,226
    
    
    
    661,591
    
    
    
    2,740,203
    
    
    
    2,441,488COST OF GOODS SOLD
    
    
    997,675
    
    
    
    406,587
    
    
    
    2,144,379
    
    
    
    1,433,473GROSS PROFIT
    
    
    332,551
    
    
    
    255,004
    
    
    
    595,824
    
    
    
    1,008,015OPERATING EXPENSESAdministration
    
    
    357,762
    
    
    
    401,053
    
    
    
    1,141,941
    
    
    
    1,228,940Total expenses
    
    
    357,762
    
    
    
    401,053
    
    
    
    1,141,941
    
    
    
    1,228,940LOSS FROM OPERATIONS
    
    
    (25,211
    )
    
    
    (146,049
    )
    
    
    (546,117
    )
    
    
    (220,925
    )OTHER EXPENSEInterest Expense
    
    
    51,903
    
    
    
    77,625
    
    
    
    161,178
    
    
    
    246,822LOSS BEFORE PROVISION FOR
INCOME TAX EXPENSE
    
    
    (77,114
    )
    
    
    (223,674
    )
    
    
    (707,295
    )
    
    
    (467,747
    )PROVISION FOR INCOME TAX EXPENSE
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    NET LOSS
    
    
    (77,114
    )
    
    
    (223,674
    )
    
    
    (707,295
    )
    
    
    (467,747
    )NET LOSS PER SHARE (BASIC AND DILUTED)
    
    $
    (0.00
    )
    
    $
    (0.00
    )
    
    $
    (0.01
    )
    
    $
    (0.00
    )WEIGHTED NUMBER OF SHARES OUTSTANDING
    
    
    101,764,911
    
    
    
    101,764,911
    
    
    
    101,764,911
    
    
    
    101,764,911
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SENTEX
SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE MONTHS
ENDED AUGUST 31, 2004 AND AUGUST 31, 2005 (UNAUDITED)
 NINE MONTHS ENDEDAUGUST 31,
    
    
    AUGUST 31,2004
    
    
    2005OPERATING ACTIVITIES:Net loss
    
    $
    (707,295
    )
    
    $
    (467,747
    )Adjustment to reconcile net loss to net
cash used by operating activities:Depreciation and amortization
    
    
    405
    
    
    
    3,134Noncash interest expense
    
    
    113,760
    
    
    
    246,822Accounts receivable
    
    
    (105,049
    )
    
    
    (54,312
    )Inventories
    
    
    187,033
    
    
    
    (1,783
    )Other assets
    
    
    4,800
    
    
    
    Accounts payable
    
    
    293,565
    
    
    
    513,299Accrued liabilities
    
    
    (131,399
    )
    
    
    (359,504
    )Total adjustments
    
    
    363,115
    
    
    
    347,656Net cash used by operating activities
    
    
    (344,180
    )
    
    
    (120,091
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchase of leasehold improvements
    
    
    
    
    
    
    (24,334
    )CASH FLOWS FROM FINANCING ACTIVITIESProceeds on notes and accounts payable  related party
    
    
    2,811,962
    
    
    
    168,718Payments on note payable  related party
    
    
    
    
    
    
    Payments on note payable  bank
    
    
    (2,500,000
    )
    
    
    Net cash provided by financing activities
    
    
    311,962
    
    
    
    168,718NET INCREASE (DECREASE) IN CASH
    
    
    (32,218
    )
    
    
    24,293CASH  BEGINNING OF PERIOD
    
    
    45,330
    
    
    
    12,872CASH  END OF PERIOD
    
    $
    13,112
    
    
    $
    37,165Supplemental disclosure of cash flow information:Cash paid during the nine month period for:Interest
    
    $
    47,418
    
    
    $
    
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State of Ohio, Department of Administrative Services v. IQ Solutions, LLC, et al.
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Date: October 14, 2005
    
    
    
    SENTEX SENSING TECHNOLOGY, INC.By:
    
    /s/ Robert S. KendallRobert S. Kendall, Chief Executive Officer/s/ William R. SprowWilliam R. Sprow, Chief Financial Officer/s/ William R. SprowWilliam R. Sprow, Controller
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a)
    
    Exhibit 31.1
    
    302 Certification of Chief Executive OfficerExhibit 31.2
    
    302 Certification of Chief Financial OfficerExhibit 32.1
    
    Certification Pursuant To 18 U. S. C. Section 1350, As Adopted Pursuant To
Section 906 Of The Sarbanes-Oxley Act of 2002Exhibit 32.2
    
    Certification Pursuant To 18 U. S. C. Section 1350, As Adopted Pursuant To
Section 906 Of The Sarbanes-Oxley Act of 2002
 b)
    
    No reports on Form 8-K were filed with the Commission during the small business
issuers third quarter.
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