<PAGE>

                                   FORM 10-QSB
                                   -----------

                       SECURITIES AND EXCHANGE COMMISSION
                       ----------------------------------

                             WASHINGTON, D.C. 20549
                             ----------------------


(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
--------------------------------------------------------------------------------
ACT OF 1934
-----------

FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2001

                                       OR

(_) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from                  to

 Commission File Number  0-13328
                         ---------

                         SENTEX SENSING TECHNOLOGY, INC.
           ----------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          New Jersey                                  22-2333899
-------------------------------          ------------------------------------
(State or other jurisdiction of          (I.R.S. Employer Identification No.)
incorporation or organization)

1801 East Ninth Street, Cleveland, Ohio                  44114
----------------------------------------            ------------
(Address of principal executive offices)            (Zip Code)


Registrant's telephone number, including area code   (216) 687-9133
                                                    ---------------


(Former name, former address and former fiscal year, if changed since last
report.)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities and Exchange Act of 1934
during the preceding 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
                                    ---       ---

<PAGE>


                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS


Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Securities and Exchange Act of 1934
after the distribution of securities under a plan confirmed by a court.

                                 Yes X      No
                                    ---       ---

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 100,514,911.


                                       2

<PAGE>

                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                      NOVEMBER 30, 2000 AND AUGUST 31, 2001


                                                      November 30,   August 31,
                                                          2000          2001
                                                        (Audited)   (Unaudited)
                                                      -----------   -----------

     ASSETS
     ------
CURRENT ASSETS
     Cash and cash equivalents                        $   168,051   $    44,350
     Accounts receivable                                    4,000        24,627
     Current portion of notes receivable                   44,339       106,414
                                                      -----------   -----------
     TOTAL CURRENT ASSETS                                 216,390       175,391

FIXED ASSETS
     Computer Equipment                                      --           4,009

OTHER ASSETS
     Goodwill                                                --          36,042
     Restricted stock investment                          379,200       379,200
     Note receivable - net of current portion             381,316       301,506
                                                      -----------   -----------
     TOTAL OTHER ASSETS                                   760,516       716,748
                                                      -----------   -----------
TOTAL ASSETS                                          $   976,906   $   896,148
                                                      ===========   ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY
     ------------------------------------
CURRENT LIABILITIES
     Notes payable:
         Bank                                         $ 2,000,000   $ 2,500,000
         Related party                                  2,351,477     2,258,210
     Accounts payable ($441,671.00 to related party)      484,737       479,240
     Accrued liabilities                                  295,760       225,899
     Convertible subordinated notes payable                12,423        12,423
                                                      -----------   -----------
     TOTAL CURRENT LIABILITIES                          5,144,397     5,475,772

LONG TERM DEBT
     Consulting contracts payable                          32,100          --

STOCKHOLDERS' EQUITY
     Common stock, no par value                         2,880,079     2,867,579
         Authorized - 200,000,000 shares
         Issued - 109,460,911 shares
         Outstanding - 100,514,911 shares
     Accumulated deficit                               (6,766,452)   (7,177,735)
     Treasury shares at cost, 8,946,000 shares           (313,218)     (269,468)
                                                      -----------   -----------
     TOTAL STOCKHOLDERS' EQUITY                        (4,199,591)   (4,579,624)
                                                      -----------   -----------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $   976,906   $   896,148
                                                      ===========   ===========


                 See Notes to Consolidated Financial Statements



                                       3
<PAGE>

                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
              ENDED AUGUST 31, 2001 AND AUGUST 31, 2000 (UNAUDITED)

<TABLE>
<CAPTION>

                                                                THREE MONTHS ENDED                   NINE MONTHS ENDED
                                                            AUGUST 31        AUGUST 31          AUGUST 31        AUGUST 31
                                                            ---------        ---------          ---------        ---------
                                                               2001            2000               2001             2000
                                                               ----            ----               ----             ----
<S>                                                      <C>              <C>              <C>              <C>
REVENUES
       Sales                                             $      17,678    $          --    $      17,678    $          --
       Interest and other income                                83,265            1,156          105,829            4,501
                                                         -------------    -------------    -------------    -------------
            Total Revenuew                                     100,943            1,156          123,507            4,501

COST AND EXPENSES
       Cost of Goods Sold                                          714               --              714               --
       Administration                                          150,934           94,858          282,151          382,146
       Research and development                                     --           10,370               --           71,290
                                                         -------------    -------------    -------------    -------------

           Total costs and expenses                            151,648          105,228          282,865          453,436
                                                         -------------    -------------    -------------    -------------

LOSS FROM OPERATIONS                                           (50,705)        (104,072)        (159,358)        (448,935)

OTHER EXPENSE
       Interest                                                 78,985          119,323          251,924          283,525
       Loss on sale of Monitek                                      --          243,441               --          243,441
                                                         -------------    -------------    -------------    -------------

LOSS FROM CONTINUING OPERATIONS BEFORE
       PROVISION FOR INCOME TAX EXPENSE                       (129,690)        (466,836)        (411,282)        (975,901)

PROVISION FOR INCOME TAX EXPENSE                                    --               --               --               --
                                                         -------------    -------------    -------------    -------------

LOSS FROM CONTINUING OPERATIONS                               (129,690)        (466,836)        (411,282)        (975,901)

LOSS FROM DISCONTINUED OPERATIONS:

       Loss from operations of discontinued operations              --          (87,562)              --         (229,370)
                                                         -------------    -------------    -------------    -------------

NET LOSS                                                 $    (129,690)   $    (554,398)   $    (411,282)   $  (1,205,271)
                                                         =============    =============    =============    =============

NET LOSS PER SHARE (BASIC AND DILUTED)                   $       (0.00)   $       (0.01)   $       (0.00)   $       (0.01)

WEIGHTED NUMBER OF SHARES OUTSTANDING                      100,514,911      100,514,911      100,514,911      100,514,911
</TABLE>


                 See Notes to Consolidated Financial Statements


                                       4

<PAGE>


                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE MONTHS
              ENDED AUGUST 31, 2001 AND AUGUST 31, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
                                                                  Nine Months Ended

                                                                August 31     August 31
                                                                  2001          2000
                                                                ---------    -----------

<S>                                                             <C>          <C>
OPERATING ACTIVITIES:
      Net loss                                                  $(411,282)   $(1,205,271)
      Adjustment to reconcile net (loss) income
           to net cash provided by (used in) operating
           activities:
           Depreciation, amortization and write down of
           intangible assets                                         --           62,327
      Change in assets and liabilities:
           (Increase) decrease in:
               Accounts receivable                                (12,284)       177,709
               Inventories                                           --           (8,979)
               Other assets                                        17,735         21,863
           Increase (Decrease) in:
               Accounts payable                                   (29,886)        57,060
               Accrued expenses and other current liabilities    (101,219)       112,939
               Currency translation adjustment                       --           49,564
                                                                ---------    -----------
           TOTAL ADJUSTMENTS                                     (125,654)       472,483
                                                                ---------    -----------

      NET CASH USED BY OPERATING ACTIVITIES                      (536,936)      (732,788)

INVESTING ACTIVITIES:

      Proceeds on sale to Metrisa                                    --          500,000

FINANCING ACTIVITIES:
      Net proceeds on note payable - bank                         500,000           --
      Net proceeds on note payable - related party                (93,268)       599,667
                                                                ---------    -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES                         406,732        599,667
                                                                ---------    -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS             (130,204)       366,879

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                   174,554         15,280
                                                                ---------    -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD                       $  44,350    $   382,159
                                                                =========    ===========
</TABLE>


                 See Notes to Consolidated Financial Statements



                                       5
<PAGE>
                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


(1) In the opinion of management, the unaudited financial statements contain all
adjustments (consisting of only normal recurring accruals and repayments)
necessary to present fairly the financial position at August 31, 2001 and the
results of operations and cash flows for the nine months ended August 31, 2001
and August 31, 2000.

These interim statements should be read in conjunction with the audited
financial statements and notes thereto included in the Company's Annual Report
on Form 10-KSB for the fiscal year ended November 30, 2000 (Commission File No.
2-13328).

(2) The results of operations for the six months ended August 31, 2001 and
August 31, 2000 are not necessarily indicative of the results to be expected for
the full year.

(3) EARNINGS PER SHARE

Earnings (loss) per share is calculated using the weighted average number of
common shares outstanding. Potentially dilutive securities are insignificant.

(4) PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Sentex Sensing
Technology, Inc. and its wholly-owned subsidiaries (the "Company"). All material
inter-company accounts and transactions have been eliminated in consolidation.

(5) NOTE RECEIVABLE

Note receivable, in the original amount of $425,655, consists of a single
promissory note dated July 1, 2000, due from Metrisa (see Notes 1 and 4).
Amounts due under the note bear interest payable and due monthly at the prime
rate. The note is payable in forty-eight monthly installments of $8,868 plus
interest beginning July 1, 2001. The note is secured by certain assets of
Metrisa and is subordinated to Metrisa's senior debt.

At August 31, 2001, principal payments due, based on the company's fiscal year,
are as follows:

                2001     $ 26,603
                2002      106,416
                2003      106,416
                2004      106,416
                2005       62,068
                         --------
                         $407,919



                                       6
<PAGE>


                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONT'D)


(6) RESTRICTED STOCK INVESTMENT

At August 31, 2001, the Company owned 160,000 shares of Metrisa, Inc. common
stock which represents approximately 11% of the outstanding common stock of
Metrisa. The unregistered stock was received in a private transaction as partial
consideration for the sale of the net assets and operations of Monitek. The
stock is subject to "Rule 144" covering the purchase, resale and holding periods
of "restricted securities." Metrisa is subject to Section 15(d) reporting
requirements of the Securities Exchange Act of 1934, however, Metrisa's common
stock is not quoted on a securities exchange registered with the SEC or in the
over-the-counter market. There currently does not exist an active trading market
for Metrisa's securities and there are less than 350 holders of Metrisa's
outstanding common stock at November 30, 2000.

The Company does not consider the stock to be "trading securities", as defined
under Statement of Financial Accounting Standards No. 116, "Accounting for
Certain Investments in Debt and Equity Securities." Management of the Company
estimates the August 31, 2001 carrying value ($379,200) of the Company's
investment in Metrisa does not differ materially from its fair value.

Metrisa was incorporated in Delaware and is a product development, manufacturing
and contract test services company which specialized in manufacturing
instruments and providing contract test services for measuring the properties of
a wide variety of materials, liquids and gases.


                                       7

<PAGE>


                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS


On July 6, 2000, Sentex Sensing Technology, Inc. (the "Registrant") sold
substantially all of its Monitek and Monitek GmbH assets to Metrisa for cash,
notes, the assumption of selected liabilities and Metrisa common stock. No
dividends or distributions were available to make payments to the shareholders
resulting from the sale. Monitek manufactures a wide range of environmental and
process control instrumentation to monitor and analyze fluids of all types.
Metrisa makes scientific and process control equipment for markets worldwide.

At the closing, Metrisa issued 160,000 shares of Metrisa common stock to the
Registrant and paid the Registrant $1,248,000 for substantially all the assets
of Monitek and Monitek GmbH, which was based on the net book value of certain
assets of those companies at July 1, 2000. The payment of the non-stock
consideration was made by the assumption of various liabilities of Monitek and
Monitek GmbH in the amount of $322,000, payment in cash of approximately
$500,000, reduced by $50,000 reflecting the amount of cash Metrisa advanced to
the Registrant prior to closing, and delivery of a promissory note in the amount
of approximately $426,000. A final adjustment to the purchase price has been
made.

For a period of five years following the closing date, Metrisa and Metrisa GmbH
will pay Monitek, on a monthly basis, a royalty on the amounts received from the
United States Department of Defense by Metrisa or Metrisa GmbH from the sale of
acoustic products of Monitek for measurement of water in jet fuel, net of
discounts and returns and uncollectible accounts.

There is currently no agreement with the United States Department of Defense and
no assurance can be made that Metrisa will make any sales to the United States
Department of Defense.

Prior to the closing, the operation of Monitek and Monitek GmbH contributed
substantially all of the Registrant's total revenues and constitute
substantially all of the Registrant's total assets. Accordingly, the
Registrant's operations currently substantially consist of settling its
liabilities and managing and holding Metrisa shares and promissory notes. The
Registrant may purchase additional assets in other lines of business, which at
this time have not been determined. No assurance can be given that the
Registrant will be able to acquire other lines of business.

RECENT EVENTS

In March 2001, the Company entered into a 50/50 joint venture-type arrangement
with International Power Machinery Corporation (IPMC), which is privately owned
and Cleveland-based. Founded in 1913, IPMC serves major industrial users,
utilities, independent power producers, co-ops, and governmental entities around
the world. Traditionally, IPMC sold and traded power equipment to this customer
base. Now IPMC intends to offer a leasing option utilizing the skills of the
Company's management team, which has extensive experience in financial services
and leasing of computer and other high-tech equipment. Also, as needed, IPMC can
refurbish used equipment to provide enhanced performance, and resell it on the
open market. The Company is obligated to invest up to $80,000, by December 2001,
in IPMC to protect its rights to sharing equally in the profits of IPMC. There
can be no assurances that the joint venture-type arrangement with IPMC will be
successful or that the Company will continue the arrangement.


                                       8
<PAGE>


                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                       AND RESULTS OF OPERATIONS (CONT'D)


On July 2, 2001, the Company acquired Regency Technologies from Regency Steel,
LLC. Regency Technologies provides a computer hardware/software competence, and
is a system designer and builder of processors, hard drives and network
products. This range of expertise can contribute to the computer/internet
requirements that will increasingly be necessary to compete in the energy
market. In connection with the acquisition, the Company issued 1,250,000 common
shares to the five owners of Regency Technologies, LLC in a private offering.

The Company did not move ahead with a proposed acquisition of Regency Steel,
announced earlier this year, because adverse conditions in the steel industry
did not serve the interest of the Company and its shareholders.

FINANCIAL CONDITION

Working Capital and Liquidity

During the last several fiscal years, the Company has incurred losses from
operations. In addition, the Company's certified public accountants, Hausser +
Taylor LLP, have included in their auditors' report, which covers the Company's
financial statements for the years ended November 30, 1999 and November 30,
2000, a statement that the Company's recurring losses from operations raised
substantial doubt about the Company's ability to continue as a going concern.
Subsequently, for fiscal 2000, the Company has sustained losses of approximately
$1,567,000. These losses have had a substantial adverse effect on the working
capital of the Company.

To address the Company's working capital needs, the Company currently has a
$2,500,000 working capital line of credit, which was fully drawn on as of
August 31, 2001. This line of credit is secured by the personal guarantee of
Robert S. Kendall, the Chairman of the Company. From time to time, CPS has
provided the Company with temporary working capital loans and, as of August 31,
2001, there was an outstanding borrowing of $2,258,000 on such loans.

Without continued financial support from CPS or Mr. Kendall, the Company would
not generate sufficient cash in the next 12 months to meets its working capital
needs.

Net Operating Losses:  IC-DISC

The Company has approximately $13,292,000 in net operating losses as of August
31, 2001, which will expire at various dates through the year 2020 that are
mainly attributable to losses incurred by Monitek. Federal tax law imposes
restrictions on the use of net operating loss carry-forwards in the event of a
change in ownership, such as a merger. Due to the Merger, approximately
$6,265,000 of the $13,292,000 net operating losses may be subject to these
limitations and potentially may not be able to provide any economic benefit to
the Company.



                                       9
<PAGE>


                SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                       AND RESULTS OF OPERATIONS (CONT'D)


RESULTS OF OPERATIONS

Nine Months Ended August 31, 2001 Compared to Nine Months Ended August 31, 2000

Revenues of $123,507 were $119,006 higher than last year and due to a used
computer trading deal of $75,800, Regency Technologies sales of $17,678,and
interest received on the note from Metrisa.

Operations of Regency Technologies are included in the Company's financial
statements for the months of July and August 2001. A profit of $3,846 was
realized for the period on sales of $17,678. Continuing Sentex expenses are for
interest on debt obligations and professional fees.

The net loss for the period amounted to $411,282 compared to a loss of
$1,205,271 for the same period last year.

CHANGES IN ACCOUNTING STANDARDS

In June 1997, SFAS No. 131, Disclosures About Segments of an Enterprise and
Related Information, was issued. SFAS No. 131 changes the standards for
reporting financial results by operating segments, related products and
services, geographic areas and major customers. The Company must adopt the new
standard no later than November 30, 1999.

In June 1998, SFAS No. 133, Accounting for Derivative Instruments and Hedging
Activities, was issued. SFAS No. 133 establishes accounting and reporting
standards for derivative instruments and hedging activities. SFAS No. 133 is
effective for fiscal years beginning after June 15, 1998. Management believes
this pronouncement will have no effect on the financial statements.


                                       10
<PAGE>


                                OTHER INFORMATION

                                     ITEM 2


 (a)  Not applicable

 (b)  Not applicable

 (c)  Rider 11.1

On July 2, 2001, the Company issued 1,250,000 common shares to the five owners
of Regency Technologies, LLC in exchange for all of their equity interest in
that company. The shares were issued in reliance on the exemption contained in
section 4(2) of the Securities Act of 1933 as amended.

                    CAUTIONARY STATEMENT FOR PURPOSES OF THE
                    "SAFE HARBOUR" OF THE PRIVATE SECURITIES
                          LITIGATION REFORM ACT OF 1995


Certain statements in the Management's Discussion and Analysis of Financial
Condition and Results of Operations and the Financial Statements included in
this Quarterly Report on Form 10-QSB, in the Company's press releases and in
oral statements made by or with the approval of an authorized executive officer
of the Company constitute "forward-looking statements" as that term is defined
under the Private Securities Litigation Reform Act of 1995. These may include
statements projecting, forecasting or estimating Company performance, including
with respect to the arrangement with IPMC, and industry trends. The achievement
of the projections, forecasts or estimates is subject to certain risks and
uncertainties. Actual results and events may differ materially from those
projected, forecasted or estimated. The applicable risks and uncertainties
include general economic and industry conditions that affect all businesses, as
well as matters that are specific to the Company and the markets it serves.

General risks that may impact the achievement of such forecasts include
compliance with new laws and regulations; significant raw material price
fluctuations; currency exchange rate fluctuations; matters affected by various
energy policies; business cycles; and political uncertainties. Specific risks to
the Company include an inability of the Company to finance its working capital
needs; an inability of the Company to curtail its recurring losses. In light of
these and other uncertainties, the inclusion of a forward-looking statement
herein should not be regarded as a representation by the Company that the
Company's plans and objectives will be achieved.

                                    SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized:

Date:  October 16, 2001            SENTEX SENSING TECHNOLOGY, INC.


                                   By: /s/ Robert S. Kendall
                                      ------------------------------------------
                                      Robert S. Kendall, Chief Executive Officer


                                      /s/ William R. Sprow
                                     -------------------------------------------
                                     William R. Sprow, Chief Financial Officer



                                       11