---

UNITED STATESSECURITIES
AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended **August 31, 2007**

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF
THE EXCHANGE ACT\

For the transition period from _________ to
__________________

Commission File Number: 000-29990

SENSE TECHNOLOGIES INC.(Name of Small Business Issuer in its charter)

|Yukon Territory                 | 90010141                  
|------------------------------- | --------------------------
|(state or other jurisdiction of | (I.R.S. Employer I.D. No.)
|incorporation or organization)  |                           

2535 N Carleton Avenue, Grand Island, Nebraska
68803(Address of principal executive offices)

(308) 381-1355Issuers telephone number

Check whether the registrant (1) filed all reports required to
be filed by sections 13 or 15(d) of the Exchange Act during the past 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 [   ]

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). Yes [   ]  No
[X]

The number of outstanding shares of the issuers common stock at
August 31 31, 2007 was 45,575,551 shares.

Transitional Small Business Disclosure Format: YES [  
]  NO [X]

---

SENSE TECHNOLOGIES INC.

INDEX TO FORM 10QSB

|PART I
       FINANCIAL INFORMATION
|------------------------------------
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|                                    
|PART II
       OTHER INFORMATION   
|                                    
|                                    
|                                    
|                                    
|                                    
|SIGNATURES                          

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements











SENSE TECHNOLOGIES INC.

INTERIM FINANCIAL STATEMENTS

August 31, 2007

(Stated in US Dollars)

(Unaudited)

---

SENSE TECHNOLOGIES INC.INTERIM BALANCE SHEET
August 31, 2007 and February 28, 2007(Stated in US Dollars)
(Unaudited)

|                                                                              |   | August 31,  |   |   | February 28 |  
|----------------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|                                                                              |   | 2007        |   |   | 2007        |  
|                                                                              |   |             |   |   |             |  
|**ASSETS**                                                                    |  
|                                                                              |   |             |   |   |             |  
|Current                                                                       |   |             |   |   |             |  
|Inventory                                                                     | $ | 23,725      |   | $ | 76,891      |  
|Prepaids                                                                      |   | 32,765      |   |   | 17,933      |  
|                                                                              |   |             |   |   |             |  
|                                                                              |   | 56,490      |   |   | 94,824      |  
|                                                                              |   |             |   |   |             |  
|Deposit                                                                       |   | 15,699      |   |   | 15,699      |  
|Equipment                                                                     |   | 81,261      |   |   | 44,409      |  
|Intangible assets                                                             |   | 196,609     |   |   | 196,109     |  
|                                                                              |   |             |   |   |             |  
|                                                                              | $ | 350,059     |   | $ | 351,041     |  
|                                                                              |   |             |   |   |             |  
|LIABILITIES                                                                   |  
|                                                                              |   |             |   |   |             |  
|Current                                                                       |   |             |   |   |             |  
|Bank indebtedness                                                             | $ | 14,642      |   | $ | 8,965       |  
|Accounts payable and
      accrued liabilities  Note 3                       |   | 961,387     |   |   | 910,520     |  
|Notes payable  Note 3                                                        |   | 355,000     |   |   | 75,000      |  
|Advances payable  Note
      3                                               |   | 23,550      |   |   | 30,900      |  
|Dividends payable                                                             |   | 155,758     |   |   | 139,962     |  
|Convertible promissory
      notes payable                                    |   | 584,447     |   |   | 584,447     |  
|                                                                              |   |             |   |   |             |  
|                                                                              |   | 2,094,784   |   |   | 1,749,794   |  
|                                                                              |   |             |   |   |             |  
|STOCKHOLDERS'
      DEFICIENCY                                                |  
|                                                                              |   |             |   |   |             |  
|Class A preferred shares, without par
      value, redeemable at $1 per share |   |             |   |   |             |  
|20,000,000 shares authorized,
      315,916 shares issued at August 31,       |   |             |   |   |             |  
|2007
      (February 28, 2007: 315,916)                                       |   | 315,914     |   |   | 315,914     |  
|Common stock, without par value                                               |   |             |   |   |             |  
|100,000,000
      shares authorized, 45,575,551 shares issued at August 31,   |   |             |   |   |             |  
|2007 (February 28, 2007:
      45,575,551)                                    |   | 12,362,142  |   |   | 12,362,142  |  
|Common stock subscribed  Note 2                                              |   | 478,000     |   |   | 440,500     |  
|Promissory note receivable                                                    |   | (585,000    | ) |   | (585,000    | )
|Subscriptions receivable                                                      |   | (891,432    | ) |   | (891,432    | )
|Additional paid-in capital                                                    |   | 62,529      |   |   | 62,529      |  
|Deficit                                                                       |   | (13,486,878 | ) |   | (13,103,406 | )
|                                                                              |   |             |   |   |             |  
|                                                                              |   | (1,744,725  | ) |   | (1,398,753  | )
|                                                                              |   |             |   |   |             |  
|                                                                              | $ | 350,059     |   | $ | 351,041     |  

SEE ACCOMPANYING NOTES

---

SENSE TECHNOLOGIES INC.INTERIM STATEMENTS OF LOSS
for the three and six months ended August 31, 2007 and 2006 (Stated in
US Dollars) (Unaudited)

|                                              |   | Three months ended |   |   | Six months ended |  
|--------------------------------------------- | - | ------------------ | - | - | ---------------- | -
|                                              |   | August 31,         |   |   | August 31,       |  
|                                              |   | 2007               |   |   | 2006             |  
|                                              |   |                    |   |   |                  |  
|Sales                                         | $ | 21,048             |   | $ | 17,992           |  
|Direct costs  Schedule 1                     |   | 92,143             |   |   | 7,559            |  
|                                              |   |                    |   |   |                  |  
|Gross margin                                  |   | (71,095            | ) |   | 10,433           |  
|                                              |   |                    |   |   |                  |  
|Expenses                                      |   |                    |   |   |                  |  
|Advertising and marketing                     |   | 63,817             |   |   | 42,725           |  
|Bad debts                                     |   | -                  |   |   | 896              |  
|Consulting fees                               |   | 800                |   |   | 53,803           |  
|Contract labour                               |   | 2,603              |   |   | 7,656            |  
|Depreciation                                  |   | 2,687              |   |   | 2,687            |  
|Filing fees                                   |   | 293                |   |   | 420              |  
|Financing fees  Note 3                       |   | 6,203              |   |   | 6,717            |  
|Insurance                                     |   | 10,423             |   |   | 13,134           |  
|Interest and bank charges 
      Note 3      |   | 8,018              |   |   | 2,735            |  
|Interest on long-term debt  Note 3           |   | 13,716             |   |   | 16,786           |  
|Legal and accounting  Note
      3           |   | 31,222             |   |   | 26,467           |  
|Office and miscellaneous                      |   | 7,530              |   |   | 8,123            |  
|Rent                                          |   | 16,419             |   |   | 15,827           |  
|Shareholder information and printing          |   | 82                 |   |   | 1,215            |  
|Telephone and utilities                       |   | 1,576              |   |   | 1,346            |  
|Transfer agent fees                           |   | 2,172              |   |   | 7,346            |  
|Travel and automotive                         |   | 2,474              |   |   | 3,195            |  
|                                              |   |                    |   |   |                  |  
|                                              |   | 170,035            |   |   | 211,078          |  
|                                              |   |                    |   |   |                  |  
|Net loss for the period                       | $ | (241,130           | ) | $ | (200,465         | )
|                                              |   |                    |   |   |                  |  
|Basic and diluted loss per share              | $ | (0.01              | ) | $ | (0.01            | )
|                                              |   |                    |   |   |                  |  
|Weighted average number of shares outstanding |   | 39,605,361         |   |   | 36,586,056       |  

SEE ACCOMPANYING NOTES

---

SENSE TECHNOLOGIES INC.INTERIM STATEMENTS OF CASH
FLOWS for the six months ended August 31, 2007 and 2006 (Stated in US
Dollars) (Unaudited)

|                                                                          |   | 2007     |   |   | 2006     |  
|------------------------------------------------------------------------- | - | -------- | - | - | -------- | -
|                                                                          |   |          |   |   |          |  
|Operating Activities                                                      |   |          |   |   |          |  
|Net loss for the period                                                   | $ | (367,676 | ) | $ | (337,227 | )
|Add items not involving
      cash:                                       |   |          |   |   |          |  
|Amortization                                                              |   | 5,373    |   |   | 5,373    |  
|Write-off of inventory                                                    |   | 76,891   |   |   | -        |  
|Changes in non-cash working capital
      balances related to operations: |   |          |   |   |          |  
|Accounts receivable                                                       |   | -        |   |   | (38,767  | )
|Inventory                                                                 |   | (23,725  | ) |   | (8,383   | )
|Deferred financing costs                                                  |   | -        |   |   | (3,542   | )
|Prepaids                                                                  |   | (14,832  | ) |   | (23,903  | )
|Accounts payable                                                          |   | 50,867   |   |   | 82,618   |  
|Advances payable                                                          |   | (7,350   | ) |   | 42,175   |  
|Promissory note payable                                                   |   | -        |   |   | 75,000   |  
|                                                                          |   |          |   |   |          |  
|Cash used in operations                                                   |   | (280,452 | ) |   | (206,656 |  
|                                                                          |   |          |   |   |          |  
|Investing Activities                                                      |   |          |   |   |          |  
|Patent cost                                                               |   | (500     | ) |   | (32,000  | )
|Purchase of equipment                                                     |   | (42,225  | ) |   | -        |  
|                                                                          |   |          |   |   |          |  
|Net cash used in investing activities                                     |   | (42,725  | ) |   | (32,000  | )
|                                                                          |   |          |   |   |          |  
|Financing Activities                                                      |   |          |   |   |          |  
|Notes payable                                                             |   | 280,000  |   |   | -        |  
|Bank indebtedness                                                         |   | 5,677    |   |   | 24,436   |  
|Proceeds from issuance of common stock                                    |   | -        |   |   | 120,000  |  
|Proceeds from common
      share subscriptions                            |   | 37,500   |   |   | 85,000   |  
|                                                                          |   |          |   |   |          |  
|Cash provided by financing activities                                     |   | 323,177  |   |   | 229,436  |  
|                                                                          |   |          |   |   |          |  
|Decrease in cash during the period                                        |   | -        |   |   | (9,220   | )
|                                                                          |   |          |   |   |          |  
|Cash, beginning of period                                                 |   | -        |   |   | 9,220    |  
|                                                                          |   |          |   |   |          |  
|Cash, end of period                                                       | $ | -        |   | $ | -        |  

SEE ACCOMPANYING NOTES

---

SENSETECHNOLOGIESINC.STATEMENT OF STOCKHOLDERS DEFICIENCY for the period ended August
31, 2007 (Stated in US Dollars) (Unaudited )

|                              | Common
      Stock |  |   | Preferred
      Stock |  |  |         |   |   | Promissory |   |   | Common  |  |   |            |   |   |            |   |   |               |  
|----------------------------- | ------------------ |  | - | --------------------- |  |  | ------- | - | - | ---------- | - | - | ------- |  | - | ---------- | - | - | ---------- | - | - | ------------- | -
|                              | Issued             |  |   |                       |  |  | Issued  |   |   |            |   |   | Paid-in |  |   | Note       |   |   | Stock      |   |   | Subscriptions |  
|                              | Shares             |  |   | Amount                |  |  | Shares  |   |   | Amount     |   |   | Capital |  |   | Receivable |   |   | Subscribed |   |   | Receivable    |  
|                              |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  
|                              |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  
|Balance, February 28, 2006    | 42,225,811         |  | $ | 11,580,664            |  |  | 343,050 |   | $ | 343,048    |   | $ | 62,529  |  | $ | (585,000   | ) | $ | 76,000     |   | $ | (772,332      | )
|Pursuant to agreements to a   | 250,000            |  |   | 50,000                |  |  | -       |   |   | -          |   |   | -       |  |   | -          |   |   | (40,000    | ) |   | -             |  
|private placement -           |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  
|at $0.20                      |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  
|- at $0.10                    | 600,000            |  |   | 60,000                |  |  | -       |   |   | -          |   |   | -       |  |   | -          |   |   | -          |   |   | -             |  
|Pursuant to the exercise of   | 383,333            |  |   | 57,500                |  |  | -       |   |   | -          |   |   | -       |  |   | -          |   |   | (15,000    | ) |   | 7,500         |  
|warrants - at $0.15           |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  
|Pursuant to agreements to     |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   | -          |   |   | -             |  
|convert preferred shares      | 116,407            |  |   | 33,758                |  |  | (27,134 | ) |   | (27,134    | ) |   | -       |  |   | -          |   |   |            |   |   |               |  
|into common shares - at $0.29 |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  
|Common share subscriptions    | -                  |  |   | -                     |  |  | -       |   |   | -          |   |   | -       |  |   | -          |   |   | 419,500    |   |   | 30,000        |  
|Common shares issued in       |                    |  |   |                       |  |  |         |   |   |            |   |   |         |  |   |            |   |   |            |   |   |               |  

SEE ACCOMPANYING NOTES

---

SENSETECHNOLOGIESINC.STATEMENT OF STOCKHOLDERS DEFICIENCY 
  for the period ended August 31, 2007 
  (Stated in US Dollars) 
  (Unaudited ) 
  (Continued)

|exchange for consulting  |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|------------------------ | ---------- |  | - | ---------- |  |  | ------- |  | - | ------- |  | - | ------ |  | - | -------- | - |  | ------- |  | - | -------- | - | - | ----------- | - | - | ---------- | -
|services as per an       |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|agreement                | 2,000,000  |  |   | 380,220    |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | -       |  |   | -        |   |   | -           |   |   | 380,220    |  
|for a right to purchase  |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|common shares -          |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|at $0.19                 |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|Cash consideration       |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|thereon                  | -          |  |   | 200,000    |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | -       |  |   | (156,600 | ) |   | -           |   |   | 43,400     |  
|- at                     |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|$0.10                    |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|Dividends                | -          |  |   | -          |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | -       |  |   | -        |   |   | (31,595     | ) |   | (31,595    | )
|Net loss for the year    | -          |  |   | -          |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | -       |  |   | -        |   |   | (1,225,095  | ) |   | (1,225,095 | )
|                         |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|Balance, February 28,    | 45,575,551 |  |   | 12,362,142 |  |  | 315,916 |  |   | 315,914 |  |   | 62,529 |  |   | (585,000 | ) |  | 440,500 |  |   | (891,432 | ) |   | (13,103,406 | ) |   | (1,398,753 | )
|2007                     |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|Dividends                | -          |  |   | -          |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | -       |  |   | -        |   |   | (15,796     | ) |   | (15,796    | )
|Common share             | -          |  |   | -          |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | 37,500  |  |   | -        |   |   | -           |   |   | 37,500     |  
|subscriptions            |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|Net loss for the period  | -          |  |   | -          |  |  | -       |  |   | -       |  |   | -      |  |   | -        |   |  | -       |  |   | -        |   |   | (367,676    | ) |   | (367,676   | )
|                         |            |  |   |            |  |  |         |  |   |         |  |   |        |  |   |          |   |  |         |  |   |          |   |   |             |   |   |            |  
|Balance, August 31, 2007 | 45,575,551 |  | $ | 12,362,142 |  |  | 315,916 |  | $ | 315,914 |  | $ | 62,529 |  | $ | (585,000 | ) |  | 478,000 |  | $ | (891,432 | ) | $ | (13,486,878 | ) | $ | (1,744,725 | )

SEE ACCOMPANYING NOTES

---

| | SENSE TECHNOLOGIES INC.                                        | Schedule 1
| | -------------------------------------------------------------- | ----------
| | SCHEDULE OF DIRECT COSTS                                       |           
| | for the three and six months ended May 31,
      2007 and 2006 |           
| | (Stated in US Dollars)                                         |           
| | (Unaudited)                                                    |           

|                         |   | Three months ended |  |   | Six months ended | 
|------------------------ | - | ------------------ |  | - | ---------------- | 
|                         |   | August 31,         |  |   | August 31,       | 
|                         |   | 2007               |  |   | 2006             | 
|                         |   |                    |  |   |                  | 
|Direct costs             |   |                    |  |   |                  | 
|Cost of sales            | $ | 4,764              |  | $ | -                | 
|Manufacturing expenses   |   | 2,327              |  |   | -                | 
|Research and development |   | 8,161              |  |   | 7,559            | 
|Write-off of inventory   |   | 76,891             |  |   | -                | 
|                         |   |                    |  |   |                  | 
|                         | $ | 92,143             |  | $ | 7,559            | 

SEE ACCOMPANYING NOTES

---

SENSE TECHNOLOGIES INC.NOTES TO THE INTERIM
FINANCIAL STATEMENTS August 31, 2007 (Stated in US Dollars)
(Unaudited)

|Note 1 | Interim Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | While the information presented in the accompanying six
      months to August 31, 2007 financial statements is unaudited, it includes
      all adjustments which are, in the opinion of management, necessary to
      present fairly the financial position, results of operations and cash
      flows for the interim period presented in accordance with accounting
      principles generally accepted in the United States of America. In the
      opinion of management, all adjustments considered necessary for a fair
      presentation of the results of operations and financial position have been
      included and all such adjustments are of a normal recurring nature. It is
      suggested that these interim unaudited financial statements be read in
      conjunction with the Companys audited financial statements for the year
      ended February 28, 2007.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|       | Operating results for the six months ended August 31,
      2007, are not necessarily indicative of the results that can be expected
      for the year ending February 28, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Note 2 | Common Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

| | a) | Escrow:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    | At August 31, 2007, there are 5,970,190 performance
      shares held in escrow by the Companys transfer agent. Included in this
      amount are 3,250,000 escrow shares to be earned out on the basis of one
      share for each $0.50 of cash flow generated by the Company. Once these
      shares are earned out, the remaining 2,720,190 escrow shares are to be
      earned out for each $5.00 of cash flow generated by the Company. The
      release of these shares is subject to the direction or determination of
      the relevant regulatory authorities.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | b) | Commitments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    | Stock-based Compensation Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |    | The Company has granted employees and directors common
      share purchase options. These options were granted with an exercise price
      equal to the market price of the Companys stock on the date of the
      grant.                                                                                                                                                                                                                                                                                                                                                

---

|Note 2 | Common Stock (contd)
|------ | ----------------------

| | b) | Commitments: -
(contd)
| | -- | -----------------------

| |                                |  | August 31, |  |  | August 31, | 
| | ------------------------------ |  | ---------- |  |  | ---------- | 
| |                                |  | 2007       |  |  | 2006       | 
| |                                |  |            |  |  | Weighted   | 
| |                                |  |            |  |  | Average    | 
| |                                |  |            |  |  | Exercise   | 
| |                                |  | Shares     |  |  | Price      | 
| |                                |  |            |  |  |            | 
| | Outstanding and exercisable at |  |            |  |  |            | 
| | beginning of period            |  | 275,000    |  |  | $0.91      | 
| | Expired                        |  | -          |  |  | $     -    | 
| |                                |  |            |  |  |            | 
| | Outstanding and exercisable at |  |            |  |  |            | 
| | end of the period              |  | 275,000    |  |  | $0.91      | 

At August 31, 2007, the following
employee and director common share purchase options were outstanding entitling
the holders thereof the right to purchase one common share for each share
purchase option held:

Number
    Exercise Price
      Expiry Date100,000
    $0.75
    September 26, 2007150,000
    $1.00
    February 1, 200825,000
    $1.00
    March 14, 2008275,000


Subsequent to August 31, 2007, 100,000
common share purchase options exercisable at $0.75 expired unexercised.

Common Stock Subscribed

As at August 31, 2007, the Company has
received $21,000 in respect of private placements of 140,000 common shares at
$0.15 per share and $457,000 in respect of private placements of 4,570,000
common shares at $0.10 per share. As at August 31, 2007, these shares had not
been issued.

---

|Note 3 | Related Party Transactions                                                                                         
|------ | -------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                    
|       | The Company incurred the following items with directors
      and companies with common directors and shareholders:

| |                  |   | Three months ended |  |   | Six months ended | 
| | ---------------- | - | ------------------ |  | - | ---------------- | 
| |                  |   | August 31,         |  |   | August 31,       | 
| |                  |   | 2007               |  |   | 2006             | 
| |                  |   |                    |  |   |                  | 
| | Accounting fees  | $ | -                  |  | $ | 2,670            | 
| | Financing fee    | $ | -                  |  | $ | -                | 
| | Interest expense | $ | 6,791              |  | $ | 5,833            | 

As at August 31, 2007, included in
accounts payable is $29,114 (February 28, 2007: $36,343) owing to an accounting
firm in which a director of the Company is a partner and a shareholder with
respect to unpaid fees and interest on promissory notes, $480,000 (February 28,
2007: $480,000) owing to shareholders of the Company in respect of royalties
payable and $50,992 (February 28, 2007: $50,992) owing to the former president
of the Company in respect of unpaid wages.

As at August 31, 2007, included in
advances payable is $23,550 (February 28, 2007: $30,900) owed to a company
controlled by a director.

As at August 31, 2007, promissory
notes payable of $315,000 (February 28, 2007: $75,000) is due to a
profit-sharing and retirement plan administered by a director of the Company.

---

Item 2. Managements Discussion and Analysis or Plan of
Operation

The following discussion and analysis should be read in
conjunction with our Financial Statements and Notes thereto for the period ended
August 31, 2007 and August 31, 2006.

Overview of Operations

Sense holds a license to manufacture, distribute, market and
sublicense world-wide, a patented technology which is used to produce the
Guardian Alert® backing awareness system for motor vehicles utilizing microwave
radar technology. Sense also holds the worldwide rights to market and sell the
ScopeOut® product. ScopeOut® is a system of specially-designed mirrors which are
placed at specific points on automobiles, trucks, sport utility vehicles or
commercial vehicles to offer drivers a more complete view behind the vehicle.
Drivers using the product are able to have increased visibility when backing out
of parking spaces or garages, and have additional protection from blind spots
during lane changes in traffic. Both products are available on-line at www.sensetech.com.

Manufacturing of both products is outsourced. The Company has
established relationships with multiple large dealership groups and aftermarket
product distributors.

Results of Operations

For the period ended August 31, 2007 as compared to the
period ended August 31, 2006.

Sales for the period ended August 31, 2007 were $30,172 a 61
percent decrease from the period ended August 31, 2006. The Company has been
concentrating on the wholesale and retail launch of its ScopeOut® products, and
has encountered unexpected delays in that process.

Direct costs were $101,610, a 410 percent increase over the
period ended August 31, 2006. The Company realized a negative gross margin
contribution of $71,438, due mainly to writing off the balance of the
first-version design of the SUV ScopeOut® models inventory for conservative
financial statement presentation.

General and administrative expenses were $296,238 for the
period ended August 31, 2007 as compared to $395,205 for the period ended August
31, 2006. The decrease was partially attributable to efforts in reducing costs
until product sales increase.

Liquidity and Capital Resources

At August 31, 2007, the Company had a cash and cash equivalents
on hand deficit of $14,642 compared to a deficit of $24,436 at August 31, 2006.
During the period ended August 31, 2007, the Company funded operations using
existing cash balances, cash flow from operations, and by raising money through
the issuance of Common Stock.

At August 31, 2007, we had a working capital deficit of
$2,038,294 compared to a working capital deficit of $1,552,047 at August 31,
2006. The increase in working capital deficit is largely due to the write off of
ScopeOut® inventory products first-generation designs for conservative financial
statement presentation.

We have not invested in derivative securities or any other financial
  instruments that involve a high level of complexity or risk.

---

Item 3. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

The Companys management, with the participation of the
Companys Chief Executive Officer, who is also acting in the capacity as
principal accounting officer, has evaluated the effectiveness of the Companys
disclosure controls and procedures as of August 31, 2007. Based on this
evaluation, the Companys Chief Executive Officer concluded that the Companys
disclosure controls and procedures are effective for gathering, analyzing and
disclosing the information the Company is required to disclose in the reports it
files under the Securities Exchange Act of 1934, within the time periods
specified in the SECs rules and forms. Such evaluation did not identify any
change in the Companys internal control over financial reporting that occurred
during the quarter ended August 31, 2007 that has materially affected or is
reasonably likely to materially affect the Companys internal control over
financial reporting.

PART II- OTHER INFORMATION

Item 2. Unregistered Sales of Equity Securities and Use of
Proceeds

On July 24, 2007, the Company sold 25,000 common shares at a
price of USD$0.10 per share for total proceeds to the Company of USD$2,500. The
shares were sold under Rule 506 of Regulation D of the U.S. Securities Act of
1933 (the 1933 Act) and are restricted pursuant to Rule 144 promulgated
under the 1933 Act.

Item 6. Exhibits

|1. | Exhibit 31.1  Certification
        Pursuant to Rule 13a-14(a) or 15d-14(a) of the U.S. Securities Exchange
        Act of 1934.                           
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                             
|2. | Exhibit 32.1  Certification
        Pursuant to 18 U.S.C. Section 1350 and Rule 13a-14(b) or 15a-14(b) of
        the U.S. Securities Exchange Act of 1934.



SIGNATURES

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.

|Date: October 15, 2007 | **SENSE TECHNOLOGIES INC.**
|---------------------- | ---------------------------
|                       | (Registrant)               
|                       |                            
|                       |                            
|                       | By:                        
|                       |                            

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