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

                                  FORM 10 - QSB

(Mark One)

(X)      Quarterly  report under section 13 or 15(d) of the Securities  Exchange
         Act of 1934.

         For the quarterly period ended March 31, 2003

                                       or

(_)      Transition report under section 13 or 15(d) of the Securities  Exchange
         Act of 1934.

                  For the transition period from _____to _____


                          Commission file number 0-7441

                           SIERRA MONITOR CORPORATION

        (Exact name of small business issuer as specified in its charter)


         California                                             95-2481914
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

                                1991 Tarob Court
                           Milpitas, California 95035
              (Address and zip code of principal executive offices)

                                 (408) 262-6611
                (Issuer's telephone number, including area code)


The number of shares of the issuer's common stock outstanding, as of May 9, 2003
was 10,971,546.

Transitional Small Business Disclosure Format: Yes __; No _X_


<PAGE>

                           PART I: FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                            SIERRA MONITOR CORPORATION

                                   Balance Sheet

                                  March 31, 2003

                                    (Unaudited)

<TABLE>
<S>                                                                   <C>
                             Assets

Current assets:
      Cash                                                            $   611,109
      Trade receivables, less allowance for doubtful accounts           1,405,101
          of approximately $53,000
      Inventories, net                                                  1,398,332
      Prepaid expenses                                                    136,128
      Income taxes receivable                                             153,968
      Deferred income taxes                                               285,294
                                                                      -----------

                    Total current assets                                3,989,932

Property and equipment, net                                               178,374
Deferred income taxes                                                      58,853
Other assets                                                              170,920
                                                                      -----------

                    Total assets                                      $ 4,398,079
                                                                      ===========

                    Liabilities and Shareholders' Equity

Current liabilities:
      Accounts payable                                                $   361,823
      Accrued compensation expenses                                       280,685
      Other current liabilities                                           161,706
                                                                      -----------

                    Total current liabilities                             804,214

Commitments and contingencies

Shareholders' equity:
      Common stock, $0.001 par value; 20,000,000 shares authorized;
      10,971,546 shares issued and outstanding                             10,972
      Additional paid-in capital                                        3,151,189
      Retained earnings                                                   432,724
      Notes receivable from shareholders                                   (1,020)
                                                                      -----------

                    Total shareholders' equity                          3,593,865
                                                                      -----------

                    Total liabilities and shareholders' equity        $ 4,398,079
                                                                      ===========
</TABLE>

See accompanying notes to the condensed financial statements.

<PAGE>

                                    SIERRA MONITOR CORPORATION

                                     Statements of Operations

                                            (Unaudited)


<TABLE>
<CAPTION>
                                                                     For the three months ended
                                                                    ----------------------------
                                                                      March 31,       March 31,
                                                                        2003            2002
                                                                    ------------    ------------
<S>                                                                 <C>                <C>
Net sales                                                           $  1,748,814       2,235,632

Cost of goods sold                                                       692,728         965,557
                                                                    ------------    ------------
                  Gross profit                                         1,056,086       1,270,075
                                                                    ------------    ------------

Operating expenses
      Research and development                                           366,700         425,899
      Selling and marketing                                              626,115         797,567
      General and administrative                                         300,358         316,154
                                                                    ------------    ------------

                                                                       1,293,173       1,539,620
                                                                    ------------    ------------

                  Loss from operations                                  (237,087)       (269,545)

Interest income                                                              471             595
                                                                    ------------    ------------


               Loss before income taxes                                 (236,616)       (268,950)

Income tax benefit                                                        94,647         106,767
                                                                    ------------    ------------

                Net  loss                                           $   (141,969)       (162,183)
                                                                    ============    ============

Basic and diluted net loss available to common
    shareholders per common share                                   $      (0.01)          (0.01)
                                                                    ============    ============

Weighted-average number of shares used in per share computations:
         Basic and diluted                                            10,971,546      10,971,546
                                                                    ============    ============
</TABLE>

See accompanying notes to the condensed financial statements.

<PAGE>

                              SIERRA MONITOR CORPORATION

                               Statements of Cash Flows

                                      (Unaudited)

<TABLE>
<CAPTION>
                                                             For the three months ended
                                                             --------------------------
                                                                 March 31,   March 31,
                                                                  2003        2002
                                                               ---------    ---------
<S>                                                            <C>          <C>
Cash flows from operating activities:
       Net loss                                                $(141,969)   $(162,183)
       Adjustments to reconcile net loss to net cash used in
       operating activities:
              Depreciation and amortization                       76,258       77,629
              Allowance for doubtful accounts                      3,000        2,250
              Deferred income taxes                              (94,647)    (104,596)
              Change in operating assets and liabilities:
                 Trade receivables                               (71,596)    (282,414)
                 Inventories                                      18,310      (83,246)
                 Prepaid expenses                                  8,576       55,079
                 Accounts payable                                 (3,429)     104,134
                 Accrued compensation expenses                    66,262       56,608
                 Other current liabilities                        15,057        6,868
                                                               ---------    ---------

                  Net cash used in operating activities         (124,178)    (329,871)
                                                               ---------    ---------

Cash flows from investing activities -
       Purchases of property and equipment                        (4,268)     (50,266)
                                                               ---------    ---------

Cash flows from financing activities -
       Repayment of notes receivable                                 237        4,751
                                                               ---------    ---------

Net decrease in cash and cash equivalents                       (128,209)    (375,386)

Cash - beginning of period                                       739,318      772,394
                                                               ---------    ---------

Cash - end of period                                           $ 611,109    $ 397,008
                                                               =========    =========


Supplemental cash flow information:
     Cash paid for income taxes                                $   1,525    $   1,398
                                                               =========    =========
</TABLE>


See accompanying notes to the condensed financial statements.

<PAGE>

                           SIERRA MONITOR CORPORATION

                   Notes to the Condensed Financial Statements

                                 March 31, 2003

Basis of Presentation

         The unaudited condensed financial  statements have been prepared by the
Company,  pursuant to the rules and  regulations  of the Securities and Exchange
Commission (the "SEC").  Certain information and footnote  disclosures  normally
included  in  financial   statements  prepared  in  accordance  with  accounting
principles  generally accepted in the United States of America have been omitted
pursuant to such SEC rules and regulations;  nevertheless,  the Company believes
that  the  disclosures  are  adequate  to make  the  information  presented  not
misleading.  These  financial  statements and the notes hereto should be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's  Annual  Report on Form  10-KSB for the year ended  December  31, 2002
which was filed March 26, 2003. In the opinion of the Company,  all adjustments,
including normal recurring adjustments necessary to present fairly the financial
position of Sierra  Monitor  Corporation as of March 31, 2003 and the results of
its  operations  and cash flows for the quarter then ended,  have been included.
The results of operations for the interim period are not necessarily  indicative
of the results for the full year.

Summary of Business

         Sierra  Monitor  Corporation  (the  "Company")  was  founded in 1978 to
design and develop hazardous gas monitoring  devices for protection of personnel
and facilities in industrial work-places. In addition to gas monitoring systems,
the Company also manufactures  microprocessor-based  systems used to monitor and
control  environmental  conditions in small, remote structures used for cellular
and hard wire  telephone  equipment.  The Company  also  manufactures  a line of
products known as  Communications  Bridges.  These products  provide a means for
many industrial  instruments to communicate  with each other even when they have
different  communication  protocols.  Communications  Bridges are sold under the
name FieldServer by the FieldServer Technologies Division of the Company.

         Gas monitoring products  manufactured by the Company are sold primarily
to oil and gas drilling and refining  companies,  chemical  plants,  waste-water
treatment plants,  semiconductor  industry and other  applications which involve
the handling or generation of hazardous gases.  Environment Controllers are sold
to telecommunications companies and their suppliers.  FieldServers are typically
sold to  integration  companies  that  service  building  and  plant  automation
projects.

         The Company's  common stock trades on the OTC Bulletin  Board under the
symbol "SRMC.OB".

Accounting Policies

         a) Revenue Recognition

         Revenue  related to gas detection and monitoring  devices is recognized
when all of the following criteria have been met: (1) persuasive  evidence of an
arrangement  exists;  (2) the fee for the arrangement is fixed or  determinable;
(3) delivery has occurred or services have been rendered; and (4) collectibility
is reasonably assured. Revenue from government contracts is recognized utilizing
the  percentage-of-completion  method.  Contract  revenues  are  recorded as the
related  costs  (including  certain  general and  administrative  costs),  which
contribute to contract performance, are incurred.

         The  Company  recognizes  revenue  from  the  sale of  FieldServers  in
accordance   with  Statement  of  Position   ("SOP")  97-2,   Software   Revenue
Recognition,  as  amended.  Revenue  is  recognized  when  all of the  following
criteria have been met: persuasive  evidence of an arrangement exists;  delivery
has occurred; the fee is fixed or determinable;  and collectibility is probable.
Additionally   the   software   should  not  require


<PAGE>

significant production, modification or customization; otherwise revenues should
be  deferred.  Deferred  revenues  at March 31,  2003 were not  significant.

         b) Reclassifications

         Certain  amounts  presented in the  financial  statements  for the 2002
comparative  period have been  reclassified  to conform to the current  period's
presentation.

         c) Recent Accounting Standards

         Recent accounting pronouncements discussed in the notes to the December
31,  2002 and 2001  audited  financial  statements,  filed  previously  with the
Securities  and Exchange  Commission  in form 10-KSB,  that were  required to be
adopted  during the year ending  December  31,  2003 did not have a  significant
impact  on  the  Company's  financial   statements.

         d) Employee Stock-Based Compensation

         At  March  31,  2003,   the  Company  has  two   stock-based   employee
compensation  plans.  The Company accounts for those plans under the recognition
and  measurement  principles  of  Accounting  Principles  Board  Opinion No. 25,
"Accounting  for Stock Issued to  Employees,"  and related  Interpretations.  No
stock-based employee  compensation cost is reflected in net loss, as all options
granted under those plans had an exercise price equal to the market value of the
underlying  common stock on the date of grant.  The following table  illustrates
the effect on net income and  earnings  per share if the Company had applied the
fair value recognition provisions of Statement of Financial Accounting Standards
No. 123,  "Accounting for  Stock-Based  Compensation,"  to stock-based  employee
compensation.

<TABLE>
<CAPTION>
                                                                                      For The Three Months
                                                                                        Ended March 31,
                                                                                  -------------------------------
                                                                                     2003                 2002
                                                                                  ----------           ----------
<S>                                                                               <C>                  <C>
Net (loss):
      As reported                                                                 $(141,969)           $(162,183)
         Deduct: Total stock-based employee compensation expense
               determined under fair value based method for all awards
                                                                                  $ (46,000)           $ (35,000)
                                                                                  ----------           ----------
         Pro forma                                                                $(187,969)           $(197,183)
                                                                                  ==========           ==========
Basic and diluted net loss per share:
           As reported                                                               $(0.01)              $(0.01)
           Pro forma                                                                 $(0.02)              $(0.02)
</TABLE>

Inventories

A summary of inventories as of March 31, 2003 follows:

Raw Materials                                                         $  775,667
Work-in-process                                                          406,823
Finished goods                                                           215,842
                                                                      ----------
                                                                      $1,398,332
                                                                      ==========

Net Income (loss) per share

         Basic earnings per share ("EPS") is computed using the weighted average
number of common shares outstanding  during the period.  Diluted EPS is computed
using the weighted average number of common and dilutive potential common shares
outstanding  during the period.  Dilutive  potential  common  shares  consist of
common stock  issuable upon  exercise of stock options using the treasury  stock
method.  No  adjustments  to  earnings  were  made  for  purposes  of per  share
calculations.


<PAGE>

         The Company has reported losses for the three-month periods ended March
31, 2003 and 2002.  As a result,  394,444  shares of common stock  issuable upon
exercise of stock  options have been excluded  from the  calculation  of diluted
loss per  share  for the  three  months  ended  March  31,  2002.  There  are no
potentially  dilutive  shares at March 31, 2003.  At March 31,  2003,  and 2002,
outstanding  options to acquire 1,478,500 and 611,00 shares of common stock were
not  considered  potentially  dilutive  common shares due to the exercise  price
being higher than the stock price used in the EPS calculation.

         The following is a reconciliation of the shares used in the computation
of basic  and  diluted  EPS for the  periods  ended  March  31,  2003 and  2002,
respectively:

<TABLE>
<CAPTION>
                                                                                        2003             2002
                                                                                     ----------       ----------
<S>                                                                                  <C>              <C>
Basic EPS - weighted-average number of common shares outstanding                     10,971,546       10,971,546
Effect of dilutive potential common shares - stock options outstanding                        -                -
                                                                                     ----------       ----------
Diluted EPS - weighted-average number of common shares and potential common
    shares outstanding                                                               10,971,546       10,971,546
                                                                                     ==========       ==========
</TABLE>

Comprehensive Income

         The Company has no significant components of other comprehensive income
and, accordingly, comprehensive income is the same as net income for all periods
presented.

Segment Information

         The Company operates in one segment,  industrial  instrumentation.  The
Company's chief operating decision maker, the Chief Executive Officer, evaluates
the performance of the Company and makes operating  decisions based on financial
data consistent with the presentation in the accompanying financial statements.

         In addition,  the CEO reviews the following  information on revenues by
product category for the three months ended March 31:

                                                      2002               2001
                                                   ----------         ----------
Gas detection devices                              $1,221,894         $1,777,642
Environmental controllers                             387,011            289,519
FieldServers                                          239,910            168,472
                                                   ----------         ----------
                                                   $1,748,814         $2,235,632
                                                   ==========         ==========

Line-of-Credit

         At  December  31,  2002,  the Company  was not in  compliance  with one
covenant under its line-of-credit requiring a profit at year-end. In April 2003,
the Company  received a waiver for this  requirement  at December 31,  2002.  No
borrowings have been made under this line-of-credit during 2003.

Lease Commitments

         In April  2003,  the  Company  renegotiated  the lease for its  primary
facilities in Milpitas,  California. The new lease commences on May 1, 2003, has
a term of six years, and requires  monthly  payments of $26,149.  Future minimum
lease payments for all of the Company's  non-cancelable  operating leases are as
follows for the years ending December 31:

2003                            $         383,000
2004                                      314,000
2005                                      314,000
2006                                      314,000
2007                                      314,000
Thereafter                                418,000
                                -------------------
                                $       2,057,000
                                ===================

<PAGE>

         This Form 10-QSB contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.  Statements that are not statements
of historical  fact may be deemed to be  forward-looking  statements.  The words
"believe,"  "expect,"  "intend," "plan," "project," "will" and similar words and
phrases as they relate to the Company also identify forward-looking  statements.
Such statements reflect the current views and assumptions of the Company and are
not guarantees of future  performance.  These  statements are subject to various
risks and  uncertainties.  The Company's actual results could differ  materially
from those  anticipated in these  forward-looking  statements as a result of the
risk factors  described in this Form 10-QSB,  including  those under the heading
"Certain  Factors That May Affect  Future  Results"  and those issues  described
under  the  heading  "Critical  Accounting   Policies."  The  Company  expressly
disclaims  any  obligation  to release  publicly any updates or revisions to any
forward-looking statement to reflect any changes in expectations,  or any change
in events or circumstances on which those statements are based, unless otherwise
required by law.


ITEM 2: MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Results of Operations

         For the three  months ended March 31, 2003 Sierra  Monitor  Corporation
reported net sales of  $1,748,814  compared to  $2,235,632  for the three months
ended March 31, 2002. The results for the first quarter of fiscal 2003 represent
a 22% decrease from the same period in the prior year.

         Sales  of our  gas  detection  systems,  which  generally  account  for
approximately  70% of total  revenue,  were  significantly  lower  in the  first
quarter of 2003  compared to the first  quarter of 2002. In the first quarter of
last year we shipped a large number of gas detection systems for installation in
a new  construction  project.  This year there were no significant  shipments to
major  projects.  In  addition,  sales  of other  gas  detection  products  were
generally  lower as end users  delayed  or  cancelled  projects.  Gas  detection
contributed 62% of revenue in the first quarter of 2003.

         Sales of  environment  controllers to the  telecommunications  industry
increased in the first  quarter of 2003  compared to the first  quarter of 2002,
but  remain at  generally  low  levels  contributing  less than 10% of our total
revenue.

         Sales of FieldServers, our communications bridge, also increased in the
first  quarter of 2003 compared to the first  quarter of 2002.  The  FieldServer
continues to gain acceptance in the building  automation industry where we offer
a building block for interoperability of control systems and sensors.

         Gross  profit  for the  three-month  period  ended  March 31,  2003 was
$1,056,086  compared to $1,270,075  in the same period in the previous  year. In
the current period, the gross margin was approximately 60% of net sales compared
to 56% of net sales in the same period in the  previous  year.  Gross margin can
vary due to the mix of  products  shipped in a given  period  and the  discounts
which may be applied to those shipments.  In the first quarter of 2003, compared
with the first  quarter of 2002, we shipped a higher  percentage of  FieldServer
products  which have  higher  margins  due to their high  software  content.  In
addition,  there were no shipments of heavily  discounted gas detection projects
in the first quarter of 2003.

         Expenses  for  research  and  development,  which  include  new product
development and engineering to sustain existing products,  were $366,700, or 21%
of net sales,  for the three month period ended March 31,  2003,  compared  with
$425,899,  or 19% of net  sales,  in the  comparable  period in 2002.  The lower
research and development  expenses are due, primarily,  to salary reductions and
consulting fee reductions  implemented  during 2002 in response to lower revenue
levels.  We have  continued  software  development


<PAGE>

programs  which  extend  the  FieldServer  software  library  and we  have  also
continued  essential gas  detection  product  development  and  enhancements  of
existing products.

         Selling and  marketing  expenses for the three month period ended March
31, 2003 were  $626,115 or 36% of net sales,  compared to $797,567,  also 36% of
net  sales,  in the  same  period  in the  prior  year.  We pay  commissions  to
independent  sales  representatives  for most gas detection  sales. In the first
quarter  of  2003,  lower  sales of gas  detection  products  resulted  in lower
commission expenses.  Salary reductions,  implemented after the first quarter of
2002,  were offset by an increase in the number of sales  personnel in the first
quarter of 2003.

         General and administrative  expenses for the first quarter of 2003 were
$300,358  or 17% of net sales  compared  to  $316,154 or 14% of net sales in the
same period in the prior year. The lower general and administrative expenses are
due, in part, to lower salary and wage expenses  resulting from our company wide
salary reductions.

         Net loss for the  three-month  period ended March 31, 2003 was $141,969
or  approximately  8% of net  sales,  compared  with  net  loss of  $162,183  or
approximately  7% of net sales for the same  period in the prior  year.  The net
loss is the  result of the low  sales  level.  Our  expense  reduction  actions,
implemented  in the second  quarter of 2002,  and our ongoing  management of all
fixed  expenses  contributed  to a lower net loss in the first  quarter  of 2003
compared to the same period in 2002.

Liquidity and Capital Resources

         Working  capital,  which is  comprised,  primarily,  of cash,  accounts
receivable and  inventories  offset by current  liabilities,  was $ 3,185,711 at
March 31,  2003.  During the period ended March 31,  2003,  our working  capital
decreased  by $69,671  compared to December  31,  2002.  The decrease in working
capital  was the result of the net loss of  $141,969  reduced  by  approximately
$76,258 of  depreciation  and  amortization  of fixed  assets.  Cash on hand,  a
component  of working  capital,  was  $611,109 at March 31,  2003, a decrease of
$128,209  compared to December  31,  2002.  Other  significant  working  capital
component  changes include net trade  receivables which increased by $68,596 and
deferred income taxes which increased by $94,647 in the same period.

         During the second  quarter of 2002 we implemented  specific  actions to
lower expenses due to the lower sales levels which we were  experiencing.  Those
actions  included  employee  reductions,  a general freeze on capital  spending,
reduced  advertising,  and lower salaries and wages for all  employees.  We have
continued  to control  those  expenses  and to  negotiate  other lower  expenses
including professional services and facility rent.

         In the current  fiscal year,  we have not utilized our $500,000 line of
credit  with our  commercial  bank.  After  the close of the  first  quarter  we
obtained a waiver of the line of credit term requiring profitability at year end
for the year 2002. The waiver of that requirement removed the restriction of our
access to those funds.

         Management  believes  that its present  resources,  including  cash and
accounts receivable,  are sufficient to fund its anticipated level of operations
through at least the next twelve months.

         Certain Factors That May Affect Future Results

         The Company's future  operating  results may be affected by a number of
factors,  including  general  economic  conditions  in both foreign and domestic
markets,  cyclical  factors  affecting  our  industry,  lack  of  growth  in our
end-markets,  and our  ability to  develop,  manufacture,  and sell both new and
existing products at a profitable yet competitive price.


<PAGE>

         The  industry in which we compete is highly  competitive  and we expect
such  competition to continue in the future.  Most of our competitors are larger
than our company and have substantially greater financial,  technical, marketing
and manufacturing  resources.  While we have invested in new products, there can
be no assurance that we can continue to introduce new products on a timely basis
or that certain of our products will not be rendered non-competitive or obsolete
by our competitors.

         Our  operations  are  concentrated  in a single  building in  Milpitas,
California. Our operations could be interrupted by fire, earthquake, power loss,
telecommunications failure and other events beyond our control. We do not have a
detailed  disaster  recovery  plan.  In  addition,  we do not  carry  sufficient
business  interruption  insurance to compensate us for losses that may occur and
any losses or damages incurred by us could have a material adverse effect on our
business.

         Our  short-term  liquidity  is  dependent  upon our  ability  to reduce
collection cycles, reduce inventories and manage expenses and cash distribution.
We must also renew or expand  our bank line of credit in June 2003  under  terms
similar to the current terms of the line of credit.

Critical Accounting Policies.

         The  preparation  of financial  statements  and related  disclosures in
conformity with accounting principles generally accepted in the United States of
America  requires  management to make judgments,  assumptions and estimates that
affect the amounts reported in the Company's  consolidated  financial statements
and the accompanying  notes.  The amounts of assets and liabilities  reported on
our balance sheets and the amounts of revenues and expenses reported for each of
our fiscal  periods are affected by estimates  and  assumptions,  which are used
for,  but not  limited to, the  accounting  for  revenue  recognition,  accounts
receivable,  doubtful accounts and inventories. Actual results could differ from
these estimates.  The following critical  accounting  policies are significantly
affected by judgments,  assumptions and estimates used in the preparation of the
consolidated financial statements:

         a) Revenue Recognition

         Our net sales  consist of revenue  from sales of products  net of trade
discounts  and  allowances.   We  generally  obtain  oral  or  written  purchase
authorizations  from our  customers  for a  specified  amount  of  product  at a
specified price and consider  delivery to have occurred at the time of shipment.
We  recognize  revenue  when  evidence  of an  arrangement  exists,  contractual
obligations have been satisfied, title and risk of loss have been transferred to
the customer and collection of the resulting  receivable is reasonably  assured.
We recognize  revenue from the sale of FieldServers in accordance with SOP 97-2,
Software Revenue Recognition, as amended. Management's ability to determine that
such conditions have been met is based on market  experience and judgment of the
specific economic and contractual conditions that exist at the time of shipment.
The Company  does not enter into  multiple-element  arrangements  related to the
sales of FieldServers.

         b) Accounts Receivable and Related Allowances

         Our domestic  sales are generally  made on an open account basis unless
specific  experience  or  knowledge  of the  customer's  potential  inability or
unwillingness  to  meet  the  payment  terms  dictate  secured   payments.   Our
international  sales are generally made based on secure payments  including cash
wire  advance  payments and letters of credit.  International  sales are made on
open account terms where sufficient  historical  experience justifies the credit
risks  involved.  In many of our larger  sales,  the  customers  are  frequently
construction contractors who are in need of our field services to complete their
work and obtain  payment.  Management's  ability to manage the credit  terms and
take  advantage  of the leverage of the need for our services is critical to the
effective  application of credit terms and  minimization of accounts  receivable
losses.


<PAGE>

         We maintain an allowances for doubtful  accounts which is analyzed on a
periodic  basis  to  insure  that it is  adequate  to the  best of  management's
knowledge.  We believe that we have  demonstrated the ability to make reasonable
and reliable  estimates of allowances for doubtful accounts based on significant
historical experience.

         c) Inventories

         Inventories  are  stated at the  lower of cost or  market,  cost  being
determined on the  first-in,  first-out  method.  The Company uses an Enterprise
Requirements  Planning  ("ERP")  software  system which provides data upon which
management can rely to determine  inventory  trends and identify  excesses.  The
carrying  value of  inventory  is reduced to market for slow moving and obsolete
items based on historical experience and current product demand. We evaluate the
carrying value of inventory quarterly. The adequacy of these carrying amounts is
dependent  upon  management's  ability to forecast  demands  accurately,  manage
product changes efficiently, and interpret the data provided by the ERP system.


ITEM 3. CONTROLS AND PROCEDURES

         Gordon R. Arnold,  the  Company's  principal  executive  and  financial
officer,  has evaluated the effectiveness of the Company's  disclosure  controls
and procedures (as defined in Rule 13a-14(c)  under the Securities  Exchange Act
of 1934) as of a date within 90 days of the filing of this report. Based on that
evaluation,  he  has  concluded  that  the  Company's  disclosure  controls  and
procedures are adequate and effective. There have been no significant changes in
the Company's  internal  controls or in other  factors that could  significantly
affect  internal  controls  subsequent  to the date  Mr.  Arnold  completed  his
evaluation.


                           PART II: OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

         (a)      Exhibits.

             Exhibit
              Number        Description
              ------        -----------
               3.1(1)      Articles of Incorporation of the Registrant.
               3.2(2)      Bylaws of the Registrant.
               4.1(3)      Specimen Common Stock certificate of the Registrant.
              99.1         Certification  of Chief  Executive  Officer and Chief
                           Financial Officer pursuant to 18 U.S.C.  Section 350,
                           as   adopted   pursuant   to   Section   906  of  the
                           Sarbanes-Oxley Act of 2002.

                  (1)      Incorporated  by  reference to the  Company's  Annual
                           Report  on  Form  10-K  for  the  fiscal  year  ended
                           December 31, 1989.

                  (2)      Incorporated by reference to the Company's  Quarterly
                           Report on Form 10-QSB (File No. 000-07441) filed with
                           the SEC on August 14, 1998.

                  (3)      Incorporated  by  reference to the  Company's  Annual
                           Report on Form 10-KSB (File No. 000-07441) filed with
                           the SEC on March 27, 2003.

         (b)      Reports on Form 8-K.

                  On January 6, 2003, the Company filed a current report on Form
                  8-K  with  the  SEC   reporting  a  change  in  the  Company's
                  certifying accountant.


<PAGE>

                                    SIGNATURE

In accordance with the requirements of the Exchange Act , the registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                            SIERRA MONITOR CORPORATION
                                            -----------------------------------
                                            Registrant


Date: May 9, 2003                       By: /s/ Gordon R. Arnold
                                            -----------------------------------
                                            Gordon R. Arnold
                                            President
                                            Chief Financial Officer


<PAGE>

      CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

I, Gordon R. Arnold, certify that:

         1.       I have reviewed this quarterly report on Form 10-QSB of Sierra
                  Monitor Corporation;

         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
                  functions):

                  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: May 9, 2003                              By: /s/ Gordon R. Arnold
                                                   ----------------------------
                                                   Gordon R. Arnold
                                                   Chief Executive Officer
                                                   Chief Financial Officer


<PAGE>

                                Index to Exhibits

Exhibit
Number     Description

3.1(1)          Articles of Incorporation of the Registrant.

3.2(2)          Bylaws of the Registrant.

4.1(3)          Specimen Common Stock certificate of the Registrant.

99.1            Certification  of Chief  Executive  Officer and Chief  Financial
                Officer  pursuant to 18 U.S.C.  Section 350, as adopted pursuant
                to Section 906 of the Sarbanes-Oxley Act of 2002.

(1)      Incorporated  by reference to the Company's  Annual Report on Form 10-K
         for the fiscal year ended December 31, 1989.

(2)      Incorporated  by reference to the  Company's  Quarterly  Report on Form
         10-QSB (File No. 000-07441) filed with the SEC on August 14, 1998.

(3)      Incorporated by reference to the Company's Annual Report on Form 10-KSB
         (File No. 000-07441) filed with the SEC on March 27, 2003.