##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-QSB
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 0-13328
For the quarterly period ending May 31, 2003

SENTEX SENSING TECHNOLOGY, INC.

|(Exact name of registrant as specified in its charter)
|------------------------------------------------------

|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|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) 687-9133                                     
|                                                   
|(Registrants telephone number including area code)

Securities registered pursuant to Section 12 (b) of the Act:
None

Securities registered pursuant to Section 12 (g) of the Act:
Common Shares, no par value

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 o

Number of shares of Common Shares (No Par Value) of SENTEX SENSING
TECHNOLOGY, Inc., issued and outstanding as of the latest practicable
date is 101,764,911





---

TABLE OF CONTENTS



|                                                                                      |  |  |  |  |  |  |  | 
|------------------------------------------------------------------------------------- |  |  |  |  |  |  |  | 
|CONSOLIDATED BALANCE SHEET                                                           
|CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS                             
|CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE SIX MONTHS                              
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                               
|MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|EXHIBITS AND REPORTS ON FORM 8-K                                                     
|EX-99.1 Certification                                                                
|EX-99.2 Certification                                                                



---



##### Table of Contents






CONSOLIDATED BALANCE SHEET

SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
NOVEMBER 30, 2002 AND MAY 31, 2003

|                    |                                                 |                                                                                              |         |              |           |             |           |            |           | 
|------------------- | ----------------------------------------------- | -------------------------------------------------------------------------------------------- | ------- | ------------ | --------- | ----------- | --------- | ---------- | --------- | 
|                    |                                                 |                                                                                              |         | November 30, |           | May 31     
|                    |                                                 |                                                                                              |         | 2002         |           | 2003       
|                    |                                                 |                                                                                              |         | (Audited)    |           | (Unaudited)
|                    |                                                 |                                                                                              |         |              |           |             |           |           
|                    | ASSETS                                          |                                                                                              |         |              |           |             |           |            |          
|                   
|                   
|                   
|                   
|CURRENT ASSETS      |                                                 |                                                                                              |         |              |           |             |           |           
|                   
|                   
|                   
|                   
|                    | Cash and cash equivalents                       |                                                                                              | $       | 74,633       |           |             | $         | 18,690     |          
|                   
|                   
|                   
|                   
|                    | Accounts receivable                             |                                                                                              |         | 214,952      |           |             |           | 625,106    |          
|                   
|                   
|                   
|                   
|                    | Inventory                                       |                                                                                              |         | 50,792       |           |             |           | 240,383    |          
|                   
|                   
|                   
|                   
|                    | Current portion of notes receivable             |                                                                                              |         | 106,414      |           |             |           | 106,414    |          
|                    |                                                 |                                                                                              |         |              |           |             |           |           
|                    | TOTAL CURRENT ASSETS                            |                                                                                              |         | 446,791      |           |             |           | 990,593    |          
|                   
|                   
|                   
|                   
|FIXED ASSETS        |                                                 |                                                                                              |         |              |           |             |           |           
|                   
|                   
|                   
|                   
|                    | Computer Equipment                              |                                                                                              |         | 2,165        |           |             |           | 2,165      |          
|                   
|                   
|                   
|                   
|OTHER ASSETS        |                                                 |                                                                                              |         |              |           |             |           |           
|                   
|                   
|                   
|                   
|                    | Goodwill                                        |                                                                                              |         | 36,042       |           |             |           | 36,042     |          
|                   
|                   
|                   
|                   
|                    | Restricted stock investment                     |                                                                                              |         | 4,800        |           |             |           | 4,800      |          
|                   
|                   
|                   
|                   
|                    | Note receivable  net of current portion        |                                                                                              |         | 168,488      |           |             |           | 115,281    |          
|                   
|                   
|                   
|                   
|                    | Other Assets                                    |                                                                                              |         |             |           |             |           | 25,153     |          
|                    |                                                 |                                                                                              |         |              |           |             |           |           
|TOTAL ASSETS        |                                                 | $                                                                                            | 658,286 |              |           | $           | 1,174,034 |           
|                    |                                                 |                                                                                              |         |              |           |             |           |           
|                    | LIABILITIES AND STOCKHOLDERS EQUITY            |                                                                                              |         |              |           |             |           |            |          
|                   
|                   
|                   
|                   
|CURRENT LIABILITIES |                                                 |                                                                                              |         |              |           |             |           |           
|                   
|                   
|                   
|                   
|                    | Notes payable:                                  |                                                                                              |         |              |           |             |           |            |          
|                   
|                   
|                   
|                   
|                    |                                                 | Bank                                                                                         |         | $            | 2,500,000 |             |           | $          | 2,500,000 | 
|                   
|                   
|                   
|                   
|                    |                                                 | Related party                                                                                |         |              | 3,373,915 |             |           |            | 3,527,858 | 
|                   
|                   
|                   
|                   
|                    | Accounts payable ($441,671.00 to related party) |                                                                                              |         | 564,338      |           |             |           | 545,501    |          
|                   
|                   
|                   
|                   
|                    | Accrued liabilities                             |                                                                                              |         | 191,407      |           |             |           | 447,835    |          
|                   
|                   
|                   
|                   
|                    | Consulting Contracts Payable                    |                                                                                              |         | 21,249       |           |             |           | 21,249     |          
|                   
|                   
|                   
|                   
|                    | Convertible subordinated notes payable          |                                                                                              |         | 12,423       |           |             |           | 12,423     |          
|                    |                                                 |                                                                                              |         |              |           |             |           |           
|                    | TOTAL CURRENT LIABILITIES                       |                                                                                              |         | 6,663,332    |           |             |           | 7,054,866  |          
|                   
|                   
|                   
|                   
|STOCKHOLERS EQUITY |                                                 |                                                                                              |         |              |           |             |           |           
|                   
|                   
|                   
|                   
|                    | Common stock, no par value                      |                                                                                              |         | 2,867,579    |           |             |           | 2,867,579  |          
|                    |                                                 | Authorized - 200,000,000 shares
Issued - 109,460,911 shares
Outstanding - 101,764,911 shares |         |              |           |             |           |            |           | 
|                   
|                   
|                   
|                   
|                    | Accumulated deficit                             |                                                                                              |         | (8,603,157   | )         |             |           | (8,478,943 | )        
|                   
|                   
|                   
|                   
|                    | Treasury shares at cost, 7,696,000 shares       |                                                                                              |         | (269,468     | )         |             |           | (269,468   | )        
|                    |                                                 |                                                                                              |         |              |           |             |           |           
|                    | TOTAL STOCKHOLDERS EQUITY                      |                                                                                              |         | (6,005,046   | )         |             |           | (5,880,832 | )        
|                   
|                   
|                   
|                   
|                    | TOTAL LIABILITIES AND STOCKHOLDERS EQUITY      |                                                                                              | $       | 658,286      |           |             | $         | 1,174,034  |          
|                    |                                                 |                                                                                              |         |              |           |             |           |           

See Notes to Consolidated Financial Statements

2



---



##### Table of Contents






SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS
ENDED MAY 31, 2002 AND MAY 31, 2003 (UNAUDITED)

|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |         |         |         | 
|---------------------------------------------------- | ------------------------- | -------------- | -------------- | --------- | ------------------ | --------- | ---------------- | ------- | ------- | ------- | ----------- | --------- | ------- | --------- | ----------- | ------- | ------- | ------- | 
|                                                     |                           |                |                |           | Three Months Ended |           | Six Months Ended
|                                                     |                           |                |                |           |                    |           |                 
|                                                     |                           |                |                |           | May 31,            |           | May 31,          |         | May 31, |         | May 31,    
|                                                     |                           |                |                |           | 2003               |           | 2002             |         | 2003    |         | 2002       
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |            
|REVENUES                                             |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Sales                     |                |                | 1,027,077 |                    |           |                  | 443,747 |         |         |             | 2,056,918 |         |           |             | 714,236 |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Interest and other income |                |                | 8,138     |                    |           |                  | 4,940   |         |         |             | 15,907    |         |           |             | 22,036  |        
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|                                                     |                           |                | Total Revenues |           |                    | 1,035,215 |                  |         |         | 448,687 |             |           |         | 2,072,825 |             |         |         | 736,272 | 
|                                                    
|                                                    
|                                                    
|                                                    
|COST OF GOODS SOLD                                   |                           |                | 634,292        |           |                    |           | 367,856          |         |         |         | 1,253,743   |           |         |           | 563,739     |        
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|GROSS PROFIT                                         |                           |                | 400,923        |           |                    |           | 80,831           |         |         |         | 819,082     |           |         |           | 172,533     |        
|                                                    
|                                                    
|                                                    
|                                                    
|OPERATING EXPENSES                                   |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Administration            |                |                | 296,177   |                    |           |                  | 212,116 |         |         |             | 567,062   |         |           |             | 398,208 |        
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|                                                     |                           | Total expenses |                |           | 296,177            |           |                  |         | 212,116 |         |             |           | 567,062 |           |             |         | 398,208 |        
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|PROFIT(LOSS) FROM OPERATIONS                         |                           |                | 104,746        |           |                    |           | (131,285         | )       |         |         | 252,020     |           |         |           | (225,675    | )      
|                                                    
|                                                    
|                                                    
|                                                    
|OTHER EXPENSE                                        |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Interest Expense          |                |                | 63,861    |                    |           |                  | 50,034  |         |         |             | 127,806   |         |           |             | 113,322 |        
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|PROFIT(LOSS) BEFORE PROVISION FOR
INCOME TAX EXPENSE |                           |                | 40,885         |           |                    |           | (181,319         | )       |         |         | 124,214     |           |         |           | (338,997    | )      
|                                                    
|                                                    
|                                                    
|                                                    
|PROVISION FOR INCOME TAX EXPENSE                     |                           |                |               |           |                    |           |                 |         |         |         |            |           |         |           |            |        
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|NET PROFIT(LOSS)                                     |                           | $              | 40,885         |           |                    | $         | (181,319         | )       |         | $       | 124,214     |           |         | $         | (338,997    | )      
|                                                     |                           |                |                |           |                    |           |                  |         |         |         |             |           |         |           |             |        
|NET PROFIT(LOSS) PER SHARE
(BASIC AND DILUTED)       |                           | $              | 0.00           |           |                    | $         | (0.00            | )       |         | $       | 0.00        |           |         | $         | (0.00       | )      
|                                                    
|                                                    
|                                                    
|                                                    
|WEIGHTED NUMBER OF SHARES OUTSTANDING                |                           |                | 101,764,911    |           |                    |           | 101,764,911      |         |         |         | 101,764,911 |           |         |           | 101,764,911 |        

See Notes to Consolidated Financial Statements

3



---



##### Table of Contents






SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE SIX MONTHS
ENDED MAY 31, 2002 AND MAY 31, 2003 (UNAUDITED)

|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |          |          |          |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------- | ----------------------- | ---------------------------------------------- | -------- | ---------------- | -------- | ------- | -------- | -------- | -------- | -
|                                                     |                                                                                                   |                         |                                                |          | Six Months Ended
|                                                     |                                                                                                   |                         |                                                |          |                 
|                                                     |                                                                                                   |                         |                                                |          | May 31,          |          | May 31,
|                                                     |                                                                                                   |                         |                                                |          | 2002             |          | 2003   
|                                                     |                                                                                                   |                         |                                                |          |                  |          |        
|OPERATING ACTIVITIES:                                |                                                                                                   |                         |                                                |          |                  |          |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net profit(loss)                                                                                  |                         | $                                              | (338,998 | )                |          | $       | 124,214  |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Adjustment to reconcile net (loss) income to net
cash provided by (used in) operating
activities: |                         |                                                |          |                  |          |         |          |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Change in assets and liabilities:                                                                 |                         |                                                |          |                  |          |         |          |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   | (Increase) decrease in: |                                                |          |                  |          |         |          |          |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   |                         | Accounts receivable                            |          |                  | (148,750 | )       |          |          | (410,154 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   |                         | Inventories                                    |          |                  | (62,358  | )       |          |          | (189,591 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   |                         | Other assets                                   |          |                  | 53,207   |         |          |          | 28,054   |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   | Increase (Decrease) in: |                                                |          |                  |          |         |          |          |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   |                         | Accounts payable                               |          |                  | (47,121  | )       |          |          | (18,837  | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                                   |                         | Accrued expenses and other current liabilities |          |                  | (9,907   | )       |          |          | 256,428  |  
|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |         
|                                                     |                                                                                                   | TOTAL ADJUSTMENTS       |                                                |          | (214,929         | )        |         |          | (334,100 | )       
|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |         
|                                                     | NET CASH USED BY OPERATING ACTIVITIES                                                             |                         |                                                | (553,927 | )                |          |         | (209,886 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|FINANCING ACTIVITIES:                                |                                                                                                   |                         |                                                |          |                  |          |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net proceeds on note payable  related party                                                      |                         |                                                | 681,262  |                  |          |         | 153,943  |         
|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |         
|NET CASH PROVIDED BY FINANCING ACTIVITIES            |                                                                                                   |                         | 681,262                                        |          |                  |          | 153,943 |         
|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |         
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                                                                                                   |                         | 127,335                                        |          |                  |          | (55,943 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|CASH AND CASH EQUIVALENTS  BEGINNING OF PERIOD      |                                                                                                   |                         |                                               |          |                  |          | 74,633  |         
|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |         
|CASH AND CASH EQUIVALENTS  END OF PERIOD            |                                                                                                   | $                       | 127,335                                        |          |                  | $        | 18,690  |         
|                                                     |                                                                                                   |                         |                                                |          |                  |          |         |         

See Notes to Consolidated Financial Statements

4



---



##### Table of Contents






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 May 31, 2003 and the
results of operations and cash flows for the six months ended May 31, 2003 and
May 31, 2002.

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, 2002 (Commission File No.
2-13328)

(2)  The results of operations for the six months ended May 31, 2003 and May
31, 2002 are not necessarily indicative of the results to be expected for the
full year.

(3)  PROFIT(LOSS) PER SHARE

Profit(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 and having a balance of
$221,695 at May 31, 2003, consists of a single promissory note dated July 1,
2000, due from Metrisa. 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 that began July 1, 2001. The note is
secured by certain assets of Metrisa and is subordinated to Metrisas senior
debt. Metrisa is current on its interest and principal payments to the Company
and management of the Company estimates, at May 31, 2003, the carrying
value of the note approximates fair value. However, Metrisa has recently
experienced operating losses and liquidity problems. If such losses continue
or if Metrisas liquidity does not improve, the estimate of fair value of the
note could significantly and materially change.

At May 31, 2003, principal payments due, based on the Companys fiscal year,
are as follows:

|     |  |   |         | 
|---- |  | - | ------- | 
|2003 |  | $ | 53,206  | 
|    
|    
|    
|    
|2004 |  |   | 106,414 | 
|    
|    
|    
|    
|2005 |  |   | 62,075  | 

In a subsequent event on July 7, 2003 Metrisa was sold to a Canadian company.
On that same date the balance of the Metrisa note was paid in full. The
Company received the funds via wire transfer on July 8, 2003.

5



---



##### Table of Contents



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

(6)  RESTRICTED STOCK INVESTMENT

At May 31, 2003, the Company owns 160,000 shares of Metrisa, Inc. common stock
which represents approximately 11% (not including the effect of dilutive
securities) 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 August 31, 2002.

The Company does not consider the stock to be trading securities, as defined
under Statement of Financial Accounting Standards No. 115, Accounting for
Certain Investments in Debt and Equity Securities. Due to limited or
non-existent trading activity, assessing current market values is difficult.
However, at November 30, 2002, management was able to obtain certain market
value information to assess the carrying value of its interest in Metrisa. The
$374,400 difference between the cost ($379,200) and estimated value ($4,800)
has been recognized as a realized loss on the statement of operations.

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

In relation to the subsequent event described in Note (5) above, the Company
anticipates payment of a yet to be determined price per share for the 160,000
shares of Metrisa stock within the next 30 to 45 days.

6



---



##### Table of Contents






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

On July 2, 2001, the Company purchased Regency Technologies, LLC from Regency
Steel, LLC and other members. Regency Technologies provides a computer
hardware/software competence, and is a system designer and builder of
processors, hard drives and network products. In connection with the
acquisition, the Company issued 1,250,000 Common Shares out of its Treasury, to
the five owners of Regency Technologies, LLC in a private offering. In
addition, Regency Technologies acquires and resells used computer hardware,
computer parts and other capital equipment principally under term contracts
through direct customer contact. This represents an active trading function.

FINANCIAL CONDITION

Working Capital and Liquidity

During the last several fiscal years, the Company has incurred losses and
significant working capital deficits. 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, 2001 and November 30, 2002, a statement that the Companys
recurring losses and significant working capital deficits raised substantial
doubt about the Companys ability to continue as a going concern.

To address the Companys working capital needs, the Company, In July 1998,
established a bank line of credit of $2,000,000, and in August 2001, in
connection with a refinancing, an additional $500,000 was provided, all of
which 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 May 31, 2003, there was an outstanding
borrowing of $3,527,858 on those loans.

Net Operating Losses

The Company has approximately $14,374,000 in net operating losses as of May 31,
2003, which will expire at various dates through the year 2023 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 with Monitek,
approximately $6,265,000 of the $14,374,000 net operating losses may be subject
to these limitations and potentially may not be able to provide any economic
benefit to the Company.

RESULTS OF OPERATIONS

Three Months ended May 31, 2003 Compared to Three Months Ended May 31, 2002

For the second successive quarter, revenues were over one million dollars,
($1,035,215) at a Gross Profit rate approximating 40%. Virtually all of the
revenues came from the trading operation. Revenues for the first quarter of
fiscal year 2002 reflected the beginning of the growth trend which has taken
the Company to its current level of performance.

Operating expenses of $296,177 were in line with revenues.

Net profit for the period was $40,885.

7



---



##### Table of Contents



SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)

Six Months ended May 31, 2003 Compared to Three Months Ended May 31, 2002

Year to Date revenues were in excess of $2,000,000 with profits amounting to
$124,000.

The second quarter was a continuation of what began in late 2002 and
accelerated in the first quarter of 2003.

We again achieved revenues of seven figures and a profitable bottom line in
spite of real sluggishness in the market in general.

Our asset recovery programs are working and creating new client opportunities
that will pay dividends in new business and profitability going forward.

We expect our volumes to grow as the economy picks up and expect the full year
to be our best ever.

CHANGES IN ACCOUNTING STANDARDS

In June 2001, the Financial Accounting Standards Board (FASB) issued SFAS No.
143.  Accounting for Asset Retirement Obligations, which is effective the
first quarter of fiscal year 2003. SFAS No. 143 addresses financial accounting
and reporting for obligations associated with the retirement of long-lived
assets and the associated asset retirement cost. In August 2001, FASB issued
SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets,
which is effective the first quarter of fiscal year 2003. SFAS No. 144
modifies and expands the financial accounting and reporting for the impairment
or disposal of long-lived assets other than goodwill. In April 2002, the FASB
issues SFAS No. 145, Rescission of FASB Statements No. 4, 44 and 64, Amendment
of FASB Statement No. 13 and Technical Corrections, which is effective
beginning in the Companys fiscal year 2003. Under SFAS No. 145, gains and
losses from the extinguishment of debt should be classified as extraordinary
items only if they meet the criteria of Accounting Principles Board Opinion No.
30. SFAS No. 145 also addresses financial accounting and reporting for capital
leases that are modified in such a way as to give rise to a new agreement
classified as an operating lease. In June 2002, the FASB issued SFAS No. 146,
Accounting for Costs Associated with Exit or Disposal Activities, which is
effective for exit or disposal activities initiated after December 31, 2002.
SFAS No. 146 nullifies Emerging Issues Task Force Issue No. 94-3, Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit
an Activity (including Certain Costs Incurred in a Restructuring). Under SFAS
No. 146, a liability is required to be recognized for a cost associated with an
exit or disposal activity when the liability is incurred. SFAS No. 146 applies
to costs associated with an exit activity that does not involve an entity newly
acquired in a business combination or with a retirement or disposal activity
covered by FASB Statements No. 143 and 144. The Company does not believe that
the adoption of these standards will have a significant impact on its financial
position or results of operations.

8



---



##### Table of Contents



SENTEX SENSING TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)

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 Annual Report on Form 10-KSB, 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 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 business, as well as matters that
are specific to the Company and the markets it serves.

Specific risks to the Company include an inability of the Company to
finance its working capital needs. In light of this 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: July 14, 2003 |  | SENTEX SENSING TECHNOLOGY, INC.                                     
|                   
|                    |  | By:  /s/ Robert S. KendallRobert S. Kendall, Chief Executive Officer
|                   
|                    |  | /s/ Julius L. HessJulius L. Hess, Director                          
|                   
|                    |  | /s/ William R. SprowWilliam R. Sprow, Chief Financial Officer       

9



---



##### Table of Contents



CERTIFICATIONS

I, Robert S. Kendall, certify that:

1.     I have reviewed this quarterly report on Form 10-QSB of Sentex Sensing
Technology, Inc.;

2.     Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the
equivalent function):

a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: July 14, 2003

|                                                                |  |  |  | 
|--------------------------------------------------------------- |  |  |  | 
|/s/ Robert S. Kendall, Chief Executive OfficerSignature & Title |  |  |  | 

10



---



##### Table of Contents



I, William R. Sprow, certify that:

1.     I have reviewed this quarterly report on Form 10-QSB of Sentex Sensing
Technology, Inc.;

2.     Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the
equivalent function):

a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrants ability to record,
process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: July 14, 2003

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

Signature & Title | 

11



---



##### Table of Contents






EXHIBITS AND REPORTS ON FORM 8-K



| | a) |  | Exhibit 99.1 Certification Pursuant To 18 U. S. C. Section 1350, As
Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002
| | -- |  | -------------------------------------------------------------------------------------------------------------------------------------
|
| |    |  | Exhibit 99.2 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
Registrants first quarter.                                         

12