Form 10-Q

                       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, 1996__________


                                       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]

553 Broad Avenue,  Ridgefield, New Jersey                 07657
[Address of principal executive offices]               [Zip Code]

Registrant's telephone number, including area code   (201) 945-3694__________


[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 ___

                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          No ___


State the number of shares outstanding of each of the issuer's classes of
 common equity, as of the latest practicable date: 67,360,081



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SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
------------------------------------------------------------------------------


CONSOLIDATED BALANCE SHEET AS OF AUGUST 31, 1996.
[UNAUDITED]
------------------------------------------------------------------------------




<S>                                                                    <C> 

Assets:
Current Assets:
  Cash and Cash Equivalents                                             $ 1,661,441
  Short-Term Investments                                                    100,000
  Accounts                                                                  389,737
  Inventories                                                               181,655
  Prepaid Expenses                                                           15,874
  Income Tax Refunds                                                         14,647
  Note Receivable                                                            50,083
  Other Current Assets                                                        5,139
                                                                        -----------

  Total Current Assets                                                    2,418,576

Equipment and Improvements - [Net of Accumulated
  Depreciation and Amortization]                                             33,091

Covenant Not To Compete - [Net of Amortization]                              83,333

Deferred Charges                                                             62,500

Other Assets                                                                  5,745

  Total Assets                                                          $ 2,603,245
                                                                        ===========

Liabilities and Stockholders' Equity :
Current Liabilities:
  Accounts Payable                                                      $    36,633
  Accrued Expenses and Other Current Liabilities                            105,875
  Due to Related Party                                                       33,333
  Note Payable - Bank                                                       190,000
                                                                        -----------

  Total Current Liabilities                                                 365,841

Due to Related Party                                                         33,333

Commitments and Contingencies                                                    --

Stockholders' Equity:
  Common Stock, No Par Value, Authorized 200,000,000
   Shares, Issued 76,206,081 Shares, Outstanding 67,360,081 Shares        1,955,489

  Retained Earnings                                                         561,800

  Total                                                                   2,517,289
  Less:   Treasury Stock - At Cost - 8,846,000                              313,218
                                                                        -----------

  Total Stockholders' Equity                                              2,204,071

  Total Liabilities and Stockholders' Equity                            $ 2,603,245
                                                                        ===========

See Notes to Consolidated Financial Statements.

</TABLE>

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<TABLE>

SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
------------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF OPERATIONS [UNAUDITED]
------------------------------------------------------------------------------



                                       Three months ended      Nine months ended
                                           August 31,             August 31,
                                           ----------             ----------
                                       1 9 9 6     1 9 9 5   1 9 9 6      1 9 9 5
                                       -------     -------   -------      -------
<S>                                  <C>        <C>         <C>         <C>  


Revenues:
  Net Sales                          $   353,504 $  349,742 $   807,074 $ 1,059,724
  Interest and Other Income               32,506     71,946      67,292     197,022
                                     ----------- ---------- ----------- -----------

  Total Revenues                         386,010    421,688     874,366   1,256,746
                                     ----------- ---------- ----------- -----------

Costs and Expenses:
  Cost of Sales                          102,371    118,308     348,584     384,804
  Selling, General and Administrative    319,475    256,063     903,951     639,854
  Research and Development                63,645     70,323     166,712     261,934
                                     ----------- ---------- ----------- -----------

  Total Cost and Expenses                485,491    444,694   1,419,247   1,286,592
                                     ----------- ---------- ----------- -----------

  [Loss] Income Before Income Taxes      (99,481)   (23,006)   (544,881)    (29,846)

Provision for Income Taxes                 3,618      5,095       3,618     (40,384)
                                     ----------- ---------- ----------- -----------

  Net [Loss] Income                  $  (103,099)$  (28,101)$  (548,499)$    10,538
                                     =========== ========== =========== ===========

Net Income Per Share                 $        -- $       -- $        -- $        --
                                     =========== ========== =========== ===========

Weighted Average Number of Shares     67,360,081 67,873,339  67,360,081  68,287,327
                                     =========== ========== =========== ===========


See Notes to Consolidated Financial Statements.

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<TABLE>

SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
------------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF CASH FLOWS [UNAUDITED]
------------------------------------------------------------------------------


                                                               Nine months ended
                                                                  August 31,
                                                             1 9 9 6      1 9 9 5

                                                            -------      -------
Operating Activities:
<S>                                                         <C>         <C> 

  Net [Loss] Income                                         $  (548,499)$    10,538
                                                            ----------- -----------
  Adjustments to Reconcile Net [Loss] Income to
   Net Cash [Used for] Operating Activities:
   Depreciation and Amortization                                 33,945      10,722
   Deferred Income Tax                                               --      (2,760)
   Gain on Sale of Assets                                        (1,500)         --
   Gain on Sale of Investments                                   (6,384)         --
   Provision for Bad Debts                                       18,877          --

  Changes in Assets and Liabilities:
   [Increase] Decrease in:
     Accounts Receivable                                       (141,622)     50,414
     Inventories                                                 52,320     (12,563)
     Prepaid Expenses                                            (4,251)         --
     Other Current Assets                                        28,523     (20,533)
     Income Tax Refund                                           (2,247)    (48,068)
     Other Assets                                                 4,990          --

   Increase [Decrease] in:
     Accounts Payable                                              (817)      8,196
     Accrued Expenses and Other Current Liabilities              25,176     (18,671)
                                                            ----------- -----------

   Total Adjustments                                              7,010      33,263
                                                            ----------- -----------

  Net Cash - Operating Activities                              (541,489)    (22,725)
                                                            ----------- -----------

Investing Activities:
  Proceeds on Sale of Equipment                                   1,500       5,311
  Redemption of Short-Term Investments                          372,667   1,797,589
  Purchase of Investments                                      (100,000)         --
  Payment to Related Party                                      (33,333)         --
  Issuance of Note Receivable                                   (50,000)         --
  Purchase of Treasury Stock                                         --     (97,442)
  Purchase of Equipment and Improvements                         (1,379)         --
                                                            ----------- -----------

  Net Cash - Investing Activities                               189,455   1,705,458
                                                            ----------- -----------

Financing Activities:
  Proceeds from Bank Loan                                       190,000          --
  Organizational Costs                                          (62,500)         --
                                                            ----------- -----------

  Net Cash - Financing Activities                               127,500          --
                                                            ----------- -----------

  Net [Decrease] Increase in Cash and Cash Equivalents         (224,534)  1,682,733

Cash and Cash Equivalents - Beginning of Periods              1,885,975     576,157
                                                            ----------- -----------

  Cash and Cash Equivalents - End of Periods                $ 1,661,441 $ 2,258,890
                                                            =========== ===========

Supplemental Disclosure of Non-Cash Investing Activities:
  On March 1, 1996, the Company entered into a Covenant Not to Compete agreement
with a  related  party  for a total of  $100,000.  As of August  31,  1996,  the
remaining $66,667 is to be paid in equal  installments of $33,333 during January
1997 and 1998.

See Notes to Consolidated Financial Statements.

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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, 1996 and the
results of  operations  and cash flows for the nine months ended August 31, 1996
and 1995.

[2] The results of operations for the nine months ended August 31, 1996 and 1995
are not necessarily indicative of the results to be expected for the full year.

[3] Inventory

Inventories consist of:
                                              August 31,
                                                1 9 9 6

Raw Materials                                 $    83,760
Work-in-Process                                     4,690
Finished Goods                                     93,205
                                              -----------

  Total                                       $   181,655
  -----                                       ===========

[4] Earnings Per Share

Earnings  [loss] per share are based on the  weighted  average  number of common
shares  outstanding for the periods  presented,  after adjustment for the shares
issued in the stock acquisition.

[5] 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.


                    .   .   .   .   .   .   .   .   .   .   .



<PAGE>



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




The Company currently has three wholly owned subsidiaries, Sentex Systems, Inc.,
the operating  subsidiary,  and Sentex Acquisitions Corp., a dormant acquisition
subsidiary,  and Sentex Merger Corp.,  the  subsidiary  being used to effect the
Merger described herein. Hereinafter the "Company" shall refer to Sentex Sensing
Technology,  Inc. and its three wholly owned  subsidiaries,  Sentex  Acquisition
Corp.
and Sentex Systems, Inc., and Sentex Merger Corp.

The Company, which primarily conducts its business through Sentex Systems, Inc.,
is engaged in the business of developing,  manufacturing  and selling  automated
devices designed to identify and measure the concentrations of certain chemicals
in air,  water and soil.  The  Company  also sells a portable  and  walk-through
explosives detector, two portable air analyzers, a portable and fixed-site water
monitoring  system and a sensor which measures the total organic content of air.
The Company,  also,  provides technical  assistance and service to its customers
and on occasion,  performs research and development,  on a contractual basis, to
develop  instrumentation  designed  to  fulfill   customer-specific   analytical
requirements.  Currently all of the Company's products employ gas chromatography
as the method of analysis.

As of June 26, 1996 the Company and Monitek  Technologies,  Inc.  [OTC:  [MTEK]]
["Monitek"]  jointly  announced their  respective  approvals of an Agreement and
Plan of Merger [the  "Merger"],  which was amended and restated on July 30, 1996
[the "Merger  Agreement"]  whereby the Company will acquire  Monitek and operate
Monitek as a wholly owned subsidiary.  Both companies are designers,  developers
and manufactures of instruments for analysis or monitoring of liquids,  soil and
air in  industrial,  municipal  and  environmental  industries.  The  companies'
products are sold world-wide.

The Merger Agreement  provides that Monitek's Common Stock will be exchanged for
11,659,681  Sentex  Common  shares,  which  based on the  number  of  shares  of
Monitek's Common Stock outstanding as of today,  equals an exchange of 6.8974890
Sentex  Common  Shares  for each share of  Monitek's  Common  Stock.  The Merger
Agreement  also provides  that all the shares of Monitek's  Class A Common Stock
will be  exchanged  for  Convertible  Notes in the  aggregate  principle  sum of
approximately  $486,000.  Based on the  conversion  rate specific in the Class A
Convertible  Note each share of Monitek's Class A Common Stock will,  subject to
the  restrictions on conversion  discussed  below,  effectively be exchanged for
6.8974890  Sentex Common  Shares,  or an aggregate  amount of $8,640,320  Sentex
Common Shares.

Upon the  completion  of the  Merger,  the number of the Board of  Directors  of
Sentex may be increased from five members to six members. The additional vacancy
will be available for a nominee of Clarion Capital Corporation,  the controlling
shareholder of Monitek ["Clarion"], at their option. Clarion will also receive a
convertible  note in the aggregate  principal amount of $136,414 in exchange for
certain indebtedness owed to it by Monitek [the "Clarion Note"].

The Sentex  Common Shares  exchanged  for shares of Monitek's  Common Stock will
represent  approximately 15% of the issued and outstanding  Sentex Common Shares
at that  time.  Upon  conversion,  the Notes are  convertible  into a maximum of
15,666,080  Sentex  Common  Shares,  which  assuming such shares were issued and
outstanding at the completion of the Merger will be approximately 29%.

The Merger is subject to the  fulfillment of certain  conditions and obligations
of both  companies,  including the approval of the Merger by the majority of the
shareholders  of Monitek  and  Sentex of each  voting  class of Common  Stock of
Monitek.  A Joint Proxy  Statement/Prospectus  was mailed to the shareholders of
the Company and the  stockholders  of Monitek on or about  October 11,  1996.  A
special  meeting for the Company and Monitek  will each be held on November  14,
1996.



<PAGE>


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



Results of Operations

Nine Months Ended August 31, 1996 Compared to August 31, 1995

Total  revenue  decreased,  at  August  31,  1996 to  $874,366  as  compared  to
$1,256,746 at August 31, 1995,  primarily as a result of a significant  decrease
in sales orders and other income, which in 1995 included  non-recurring revenues
of approximately $154,000 [$107,000 from a research and development contract and
$47,000 from a federal income tax refund].  For the nine months ended August 31,
1996 net sales dropped to $807,074 from  $1,059,724 for the  comparative  period
ended  August  31,  1995 in the  prior  fiscal  year.  Cost of  goods  sold as a
percentage  of sales  increased to 43% for the nine months ended August 31, 1996
as compared to 36% during the  comparable  period the prior year.  Gross  profit
dollars for the nine month period  ended  August 31, 1996  decreased to $458,490
from $674,920 during the comparable  period the prior year. The decreased margin
was primarily due to the fixed manufacturing cost impact on the drop in sales.

Orders for the  Company's  products  received but not yet delivered as of August
31, 1996 amounted to $106,820 which  represents a increase of $8,255 from orders
received but not yet delivered as of August 31, 1995 of $98,565.

Operations  resulted in a net loss of $548,499  for the nine months ended August
31,  1996 as  compared to income of $10,538  for the  comparative  period  ended
August 31, 1995 in the prior fiscal year. The loss, when compared to prior year,
was caused primarily by lower sales and non-recurring  revenues that resulted in
a reduction  of gross  profit by $346,160.  In  addition,  Selling,  General and
Administrative expenses increased $264,097 offset by a reduction in Research and
Development  expenses of $95,222 during the comparable  nine month period ending
August 31, 1996 to August 31, 1995.

The sharp increase in Selling,  general and administrative expenses for the nine
months ended August 31, 1996 to $903,951 from $639,854 the comparable period the
prior year was a result of increases in advertising,  legal,  consulting and bad
debt expenses. Many of these expenses were one time expenses associated with the
sale of control  of the  Company  to CPS  Capital  in March 1996 and  subsequent
expenses associated with the pending merger with Monitek and are not anticipated
to re-occur in the future.

Inventory  decreased  at August 31,  1996 to $181,655 as compared to $201,868 at
August 31, 1995 as a result of decreases in raw  materials  and  work-in-process
inventory.

Financial Condition

Current  liabilities  as of August 31, 1996 were $365,841 a large  increase from
$174,041  at the end of August 31,  1995,  due to a note  payable  entered  into
during the third quarter. Working capital decreased to $2,052,735 for the period
ended August 31, 1996 as compared to $2,817,610 at August 31, 1995.

The Company's  financial  condition  has declined  slightly over the past twelve
months due to a lower than expected  sales  performance.  Total  current  assets
amounted to $2,418,576 at August 31, 1996 as compared to $2,991,651 as of August
31, 1995.

Cash and  short-term  investments  amounted to  approximately  $1,760,000  as of
August 31, 1996. The Company has no  significant  commitments at this time which
would require that it expend a significant portion of its' capital. Accordingly,
the amount of funds currently available are expected to be sufficient to fulfill
the Company's  anticipated cash  requirements and other uses throughout the next
year.