UNITED
STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
 20549 Form 10-Q [(Mark One) [ X ] QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 For the quarterly period
ended November 30, 2008 or [    ] TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 For the transition period
from __________ to ____________ Commission file
number  000-29990 SENSE TECHNOLOGIES INC.(Exact name of
registrant as specified in its charter)  British
Columbia

90010141(State or
other jurisdiction of incorporation or organization)

(IRS Employer
Identification No.)  2535 N
Carleton Avenue, Grand Island, Nebraska(Address of
principal executive offices)   (zip
code)  (308)
381-1355(Registrants
telephone number, including area code)  Not
Applicable(Former name,
former address and former fiscal year, if changed since last
report) Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
     Yes [ X ]     No [    ] Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See definitions of large
accelerated filer, accelerated filer, and smaller reporting company in Rule
12b-2 of the Exchange Act. (Check one):  Large accelerated filer
[  ]

Accelerated filer
[  ]Non-accelerated filer
[  ]
(Do not check if a smaller reporting
company)
Smaller reporting company
[X] Indicate by check mark whether
the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes [  ]     No [X] APPLICABLE ONLY
TO CORPORATE ISSUERS State the number of shares
outstanding of each of the issuers classes of common stock, as of the latest
practicable date: 58,604,651 common shares
issued and outstanding as of January 10, 2009


PART I  -
 FINANCIAL INFORMATION Item 1.  Financial
Statements. It is the opinion of management that the interim financial
statements for the quarter ended November 30, 2008, includes all adjustments
necessary in order to ensure that the interim financial statements are not
misleading. Our interim financial statements are stated in United States
dollars and are prepared in accordance with United States generally accepted
accounting principles. Sense Technologies Inc. Interim Financial
Statements for the period ended November 30, 2008      ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
1_______________________________________________________________________________________________________________    Item 2.  Managements Discussion and
Analysis of Financial Condition and Results of Operations. FORWARD-LOOKING STATEMENTS  This quarterly report
contains forward-looking statements as that term is defined in Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended.  These statements relate to future events
or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as may, should, expects,
plans, anticipates, believes, estimates, predicts, potential or
continue or the negative of these terms or other comparable terminology. These
statements are only predictions and involve known and unknown risks,
uncertainties and other factors, including the risks in the section entitled
Risk Factors, which may cause our or our industrys actual results, levels of
activity, performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied by
these forward-looking statements. Although we believe that the expectations
reflected in the forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements. Except as
required by applicable law, including the securities laws of the United States,
we do not intend to update any of the forward-looking statements to conform
these statements to actual results.  Our interim financial
statements are stated in United States dollars and are prepared in accordance
with United States generally accepted accounting principles. The following
discussion should be read in conjunction with our interim financial statements
and the related notes that appear elsewhere in this quarterly report. The
following discussion contains forward-looking statements that reflect our plans,
estimates and beliefs. Our actual results could differ materially from those
discussed in the forward-looking statements. Factors that could cause or
contribute to such differences include those discussed below and elsewhere in
this quarterly report, particularly in the section entitled Risk Factors of
this quarterly report.  As used in this
quarterly report, the terms we, us and our means  Sense Technologies
Inc., unless otherwise indicated.  Corporate History  Sense Technologies, Inc.
(Sense) was incorporated under the laws of the Province of British Columbia,
Canada, on May 25, 1988 under the name Wizard Resources Ltd.  Our corporate
name was changed to Graham Gold Mining Corporation on October 11, 1988 and
subsequently to Sense Technologies Inc. on October 27, 1997 in connection with
the acquisition of our current business.  On December 14, 2001, we changed
our jurisdiction of organization from British Columbia to the Yukon Territories.
 On November 15, 2007, we changed our jurisdiction of organization from the
Yukon Territory back to British Columbia.  Our shares are currently
quoted on the Over-the-Counter market.  We were previously listed on the
both the Canadian Venture Exchange (now called the TSX Venture Exchange) and the
Nasdaq SmallCap Market.  We voluntarily delisted our shares from the
Canadian Venture Exchange on October 3, 2001.  On April 25, 2002 our stock
was delisted from the Nasdaq Small Cap Market as we were unable to meet
quantitative listing requirements.  Our administrative office is located at
2535 N. Carleton Avenue, Grand Island, Nebraska . Industry Overview  We compete in the
automotive backing awareness and safety industry. Our products are designed to
protect people from death or injury and property from damage that can result
from a collision with a vehicle that is backing up or changing lanes.  In
those circumstances, vehicles have blind spots that limit the ability of the
operator to see obstacles or people that are towards the rear or behind the
vehicle.  This has repeatedly resulted in death, injury and property
damage, which has in turn prompted several companies to develop and manufacture
backing awareness sensing products. The National Highway Traffic Safety
Administration reported that approximately 400 people die in the United States
annually from accidents involving vehicles backing up.  In addition,
property damage and personal injury claims resulting from back-up accidents all
suggest a market need for backing awareness safety devices.  While there are no known
products that are similar to our ScopeOut® product, there are a number of
backing awareness products available that compete with our Guardian Alert®
product.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
2_______________________________________________________________________________________________________________     Various backing
awareness products are currently being installed by automobile manufacturers and
dealers as optional equipment on consumer and commercial vehicles. However,
backing awareness products can range in sophistication and effectiveness.
 Such products include loud beeping alerts that sound when a vehicle is
placed in reverse gear.  A beeping alert is limited in effectiveness as it
does not notify the driver of obstacles behind the vehicle.  Young children
up to four years old typically do not have the capacity to understand what the
beeping noise means or to understand the possibility of injury from remaining
behind a reversing vehicle.  Other awareness products include large round
convex mirrors placed at the rear of a vehicle which provide the driver with a
line of vision across the rear area of their vehicle.  These devices can be
effective for a small class of vehicles such as delivery vans, however are not
practical for most consumer or commercial vehicles due to their size and need
for training.  There are also backing
awareness products, including our Guardian Alert(® Doppler Awareness
System product, that use ultrasound and radar technologies to sense obstacles
and people behind a reversing vehicle.  These electronic sensing and alert
systems will warn a driver to the existence of obstacles behind a vehicle.
Ultrasound backing awareness products are currently being used by some
automobile manufacturers as a factory-installed option on certain new vehicle
lines.  These products are designed primarily to protect the vehicle from
damage in parallel parking situations.  They are designed to detect the
bumper of another vehicle when parking and accordingly will typically not detect
obstacles below ten inches from the ground.  These sensors must be kept
clear of dirt and dust in order to ensure proper functioning.  The system
requires that four ultrasonic sensors be placed at various locations on the rear
bumper.  The sensors extend through the skin of the bumper, thereby
changing the appearance of the exterior of the vehicle.  Backing awareness
systems also exist that use pulse radar to detect obstacles.  These systems
are installed on the exterior of a vehicle thereby affecting aesthetics of the
vehicle, and are typically used for commercial vehicles.  Our Guardian Alert Product  Guardian Alert®  Our Guardian Alert®
Doppler Awareness System backing awareness products use a patented process based
on Doppler radar technology.  Our Doppler radar sensing products offer
several advantages over ultrasonic and pulse radar sensors.  The Guardian
Alert® Doppler Awareness System creates a three-dimensional awareness zone
behind a vehicle that extends from the rear of the vehicle outward for the width
of the vehicle.  Vertically, the awareness zone begins at ground level and
rises up to approximately five feet.  The operator of the vehicle is
alerted should any person or obstacle come within the awareness zone as the
vehicle is reversing.  The Guardian Alert® Doppler Awareness System
consists of a single sensor that can be placed under the skin of a plastic
bumper thereby not altering the appearance of the vehicle.  We also have a
number of other product shapes and installation options to accommodate a wide
range of consumer and commercial vehicles. Our products are designed to be
robust and to operate in almost all weather and road conditions.  In
contrast to ultrasound and some other backing awareness products, our sensor
using the Doppler radar technology is not affected by dust, dirt, snow or other
environmental materials that can cover a sensor.  Our Guardian Alert®
Doppler Awareness System products are based on a patented system using Doppler
radar technology.  We acquired and hold worldwide rights to manufacture and
sell the system.  The Guardian Alert®
Doppler Awareness System consists of a radar transceiver, a flat antenna, a
signal processor, and an audio-visual display unit. The transceiver and antenna
are enclosed in an environmentally sealed, high impact resistant, resin housing
and mounted on the rear of the vehicle. When activated by placing the vehicle in
reverse, the transceiver continuously projects signals and the antenna receives
return signals reflected off of objects within the predefined awareness zone.
Doppler Shift technology is based on the principle that signals return on a
slightly different frequency than they are projected.  The relationship
between the phase of the projected signals and the returning signals is used by
the product to determine the distance between the rear of the vehicle and the
object.  The signal processor then sends a signal to the audio-visual
display unit typically located on the dashboard of the vehicle thereby alerting
the vehicle operator to the presence of a person or object.  The display
unit informs the operator about the presence of an obstacle via a sequence of
green, yellow, and red lights set to illuminate at preset distances such as
twelve feet, five feet and three feet.  In conjunction with the visual
alarm, the audio alarm alerts the driver at corresponding distances with a
pulsating tone changing to a constant tone.  The visual display is
approximately the size of a small box of matches.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
3_______________________________________________________________________________________________________________      The external units are
produced by us using various suppliers.  The external units can be
manufactured in various shapes to suit a wide variety of vehicles.  For
example, we produce a trailer hitch mount version which fits directly into the
receiver on a trailer hitch when not towing.  We also produce a version
that is mounted under the skin of a plastic bumper in order that the aesthetics
of a vehicle are not affected.  Our distribution partner has developed six
design options ranging from a license plate mount, to sensors protected by steel
casings for commercial applications.  The focus of our current
business strategy is the commercialization of our Guardian Alert® Doppler
Awareness Systemproducts.  There are a number of product
extensions and new applications that we may develop in the future as we grow.
 These products include side blind spot awareness and docking aids for
industrial safety and velocity sensing applications.  Production of
our Guardian Alert®Doppler
Awareness System  We outsource the
manufacture of the components of our Guardian Alert® Doppler Awareness System.
 Our objective is to secure high-volume, low-cost production capabilities.
The entire family of products has the same interior components, while the
exterior enclosure and mount is available in a variety of options appropriate
for different types of vehicles.  The display unit and the
radar sensor components of our products are manufactured by Microwave Solutions
Limited of Hertfordshire, England.  Our cabling is available from a number
of local sources.  Assembly and packaging is done in North Carolina.
 We currently believe that production of our products is more cost
effective by outsourcing the manufacturing and assembly of the components.  Market and Marketing of our Guardian
Alert® Doppler Awareness System  The end user of our
Guardian Alert® Doppler Awareness System product is the safety
conscious vehicle owner or operator seeking to minimize the risk of loss
associated with backing accidents.  Users of backing awareness sensing
products, may purchase the product as a factory installed option from the
vehicle manufacturer, purchase the product after-market or directly from
distributor for installation in commercial or fleet vehicles, or purchase as an
after-market consumer add-on to their vehicle.  Accordingly, the target
market for our Guardian Alert® Doppler Awareness Systemproduct can
be identified as follows:  · Manufacturers of
vehicles, including cars, sport utility vehicles, light trucks, heavy vehicles
and equipment, and original equipment suppliers to these manufacturers. · Owners of commercial
fleet vehicles and government departments and agencies using fleet vehicles. · Consumer outlets of
after-market automotive accessories, including dealerships, automotive service
shops and automotive retailers, direct sales via the Internet and
infomercials.  The North American
automotive manufacturers segment has been growing consistently for the last
several years beginning with the emergence of the minivan as a force in the
market and continuing with the more recent trend towards sport utility vehicles.
We believe this segment and the large luxury sedan segment provide the best
markets for our products. Our primary efforts will initially be focused on the
mid to higher end of this market that is expected to be less price sensitive and
more interested in new technologies. We are actively marketing to decision
makers in the original equipment market through manufacturers.  Our
marketing emphasis has, however, been to the higher margin market including
dealerships and consumer outlets.  Dealerships provide an opportunity to
add our product to a vehicle after it leaves the manufacturer, but before it is
sold.  The 200 million vehicles
currently on US roads also provide a number of opportunities for marketing our
backing awareness products. There are also eight million large trucks owned by
commercial enterprises and approximately 4.5 million fleet vehicles on
dealership service plans, which provide a significant point of sale opportunity.
Millions of vehicles each year are repaired at collision centers, which could
offer the product in conjunction with the repair of a rear bumper. Additionally,
most new car warranties require regular oil changes, which are often performed
at dealerships. These visits will provide additional point of sale opportunities
for dealerships that are already stocked with Guardian Alert® Doppler Awareness
Systems.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
4_______________________________________________________________________________________________________________      Our product can result
in economic benefit as well as improved vehicle safety to fleet operators and
consumers in these markets. Based on our research and experience in the fleet
market tells us that fleet operators and risk managers place a greater emphasis
on statistical economic analysis than consumers. Equipping fleets of vehicles
requires a significant capital expenditure that needs to be evaluated relative
to the fleet owner's other needs and limited capital.  We believe that
consumers weigh cost, safety benefit to persons and property and aesthetic
appeal in making a decision to purchase a backing awareness product.  We
believe that the products ease of demonstration and high degree of functionality
can provide a consumer with an appreciation of the benefits in protection of
property and person.  We estimate the cost of a system installed on a
consumer vehicle would generally range from $300 to $700, which we believe would
appeal to most new-vehicle buyers that are interested in the safety and
protection aspect of the product.  In perspective, the cost of the product
is less than typical insurance deductibles and therefore avoiding one incident
would allow the product to pay for itself. In addition to actual repair cost,
Guardian Alert ® Doppler Awareness Systempurchasers also receive the
benefit of saving the considerable time and inconvenience of having their
vehicle repaired and processing insurance claims.  Our product can also be
installed beneath the plastic skin of a bumper, thereby not altering the
appearance of the vehicle.  Sense has designed
distinct pricing strategies for each of its three primary markets according to
the following principles:  · The product should be
priced at a level readily acceptable to SUV and light truck purchasers; · Attractive margin must
be made available to OEMs and distribution partners; · Fleet products must
offer attractive ROI to owners; and · Margins to Sense will
increase faster with higher volume than higher pricing.  We believe our price
points are somewhat better than competing products and additionally provide us
with immediate operating margin contribution.  Over the long-term, as
volumes grow to higher levels, there will be sufficient opportunity to lower
manufacturing costs.  Competition and Our Competitive
Advantages  The backing awareness
industry includes manufacturers of active sensing devices using ultrasonic,
infrared and radar technology to detect the presence of obstacles or persons
behind a reversing vehicle.  There are also a number of passive systems
such as convex rear cross-view mirrors, rearward facing television cameras and
reversing sound alerts.  While we compete with all backing awareness
devices, we view our primary source of competition as being in the active
sensing market.  Passive devices require driver training and are
susceptible to driver error as they do not actively warn a driver of the
presence of obstacles or people behind the vehicle.  We have identified
seven competitors in the active sensor market: Echo Vision, Hindsight 20/20,
Bosch, Delphi, Valeo, Rostra and Groenveld which is manufactured by Gintec LTD
in Israel.  We believe the Guardian
Alert® Doppler Awareness System is superior to any competing technology in each
active sensor category.  Our system is the only patented Doppler radar
device available.  Among Doppler radar products, our Guardian Alert®
Doppler Awareness System is the only product that uses a single sensor, which we
believe results in easier and less expensive installation. Ease of installation
is a primary concern among vehicle dealers which provides us with a competitive
advantage over other Doppler radar sensing and ultrasonic products.  Other systems use
infrared or ultrasonic sensors.  Infrared sensors project infrared beams
and detect reflected infrared light from objects in the scanned zone behind the
vehicle, which in turn activates an audio or visual alarm. Ultrasonic Systems
work on the principle of emitting an ultrasonic sound burst and detecting a
reflected energy wave returned to the source by contact with an object in the
detection zone, again activating an alarm.  Both systems require a clean
sensor in order to function properly, and accordingly performance can be
affected by environmental conditions.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
5_______________________________________________________________________________________________________________     We believe our product
has competitive advantages over ultrasonic systems.  Ultrasonic systems
have emerged as a factory installed option on some vehicle lines.  Due to
the four precisely tuned sensors and the in-bumper design requirements of these
systems it is not practical to install them outside of the factory on cars or
light trucks. The most important distinguishing characteristic between the
Guardian Alert® Doppler Awareness System and ultrasonic systems is that
ultrasonic systems are designed primarily to detect the bumper of another
vehicle while parallel parking. They do not provide coverage all of the way to
the ground and therefore tend to offer the vehicle operator a false sense of
security. Additionally, since the sensors cannot see through a bumper, the
systems cannot be mounted behind the skin of the bumper, which affects the
aesthetic appearance of the vehicle.  We also believe our
product has competitive advantages over infrared systems as those systems
require a clear line of site with the obstacle in order to function properly,
which means effectiveness may diminish with environmental conditions such as
dirt or bright light.  The infrared and ultra
sonic technologies were independently tested and evaluated along with a
microwave radar system by the U.S. Bureau of Mines (Bureau of Mines
Circular/1986) in a study of back-up driver's aid systems for mining vehicles.
Infrared Systems were found to be the least reliable for detecting objects in
the rear blind area. Bright sunlight and reflections from bright objects could
trigger false alarms and their range depends upon the reflectivity of the
detected object. Also, the narrow beam pattern necessitates the use of arrays of
sensors to scan the desired zone, increasing system cost and complexity and
decreasing reliability. Furthermore, both of the competitive technologies are to
some degree affected by adverse weather conditions such as rain, fog, snow, ice
or wind. The Bureau of Mines Study found that the microwave radar system was not
affected by weather conditions.  Our product is robust,
uses a single sensor that is not affected by most environmental conditions, and
provides a full range of detection behind the vehicle, including near ground
level.   We have also priced our product competitively or below most
other competing products.  Our ScopeOut® Product  ScopeOut®  ScopeOut® is a system of
specially designed mirrors which are placed at specific points on automobiles,
trucks, vans, sport utility vehicles and commercial vehicles, to offer drivers a
more complete view of the blind spots located toward the rear of the
vehicle.  Drivers 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.  ScopeOut®s high-tech aerodynamic mirrors
help drivers see approaching traffic and more easily detect a host of potential
hazards behind the vehicle that might otherwise be blocked from view.  This after-market
automotive device installs easily on vehicles within minutes, and it provides
drivers with 270 degrees of rear visibility, allowing drivers to see a panoramic
view behind them. Two models are available, one for cars and one designed to fit
most sport utility vehicles, trucks, minivans, station wagons or hatchbacks.
Either model fits a wide variety of vehicles, can be installed with no special
equipment, and can be removed at any time without altering or damaging the
vehicle.  We have an exclusive
worldwide license agreement to manufacture and market the ScopeOut® adjustable
mirrors system. The product is a stand-alone or complementary product to the
existing Guardian Alert® product line.  Production of our ScopeOut®
Product  All of our manufacturing
and engineering is being out-sourced to a firm located in Phoenix, Arizona.
 The product is ready for immediate commercial production and sales.  Market and Marketing of our ScopeOut®
Product  The potential market for
ScopeOut® is owners or operators of cars, vans, SUVs and trucks worldwide.
  There are over 200 million vehicles on the road at any given time,
and 16 to 18 million new vehicles being built and sold each year.  In
combination with our Guardian Alert®, we have the only Surround Safety System
that addresses all the blind spots encountered around the rear of most vehicles
at a cost that permits us to set price points that are affordable for most
consumers.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
6_______________________________________________________________________________________________________________      There are a number of
ways to market this product, either individually, or as a combination.  Marketing outlets
include, but are not limited to, the following:  · New and used
auto dealers · AAA
Insurance · AARP · Mass
merchandisers · Drugstore
chains · Insurance
companies · Rental car
companies · Electronics
stores · Supermarket
chains · Independent
auto aftermarket stores · OEM
market · Internet and
infomercials · QVC and
HSN We are presently
building a National Representative Organization that will allow for our products
to be introduced to all the various markets.  Competition and Our Competitive
Advantages  Based on our research,
we have found no products comparable in pricing and design to ScopeOut® that
addresses the hazard created with vehicles backing out blind in parking lots and
driveways, while offering an additional lane-changing safety feature.  Our Patents, Trademarks &
Licenses  Patents & Trademarks  The following countries
have granted patent rights respecting the Guardian Alert® Doppler Awareness
System backing awareness system: United States, Canada, Australia, South Africa,
Taiwan, the United Kingdom, Korea and Japan.  The Guardian Alert® Doppler
Awareness System is a registered trademark.  We have also received a
US Patent on our trailer hitch mount sensor product that easily installs in the
receiver-hitch on any vehicle equipped with such a hitch. The ScopeOut® product is generally covered by US Patent Numbers
6,715,893 and 6,799,857, with various other patent applications currently
pending, all of which are included in the exclusive license agreement.  Licenses & Royalties  We hold non-exclusive
worldwide rights to develop, manufacture, market and license the Guardian Alert®
Doppler Awareness System technology and products.  We hold these rights
pursuant various license agreements with the Driver Alert Group, the original
group of patent holders and Stinson & Associates, a holder of certain rights
under license from Driver Alert Group. These license agreements provide us with
the right to market the products to all federal, state, local and foreign
governments and agencies, including the postal service, the rights to enter into
manufacturing and marketing agreements with automotive and other manufacturers
worldwide, and generally the rights to any other markets including school buses,
construction equipment and mining equipment.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
7_______________________________________________________________________________________________________________      Pursuant to these
licenses, we are required to make royalty payments to the licensors and meet
sales targets as follows:  a) $6.00(US) per unit on
the first one million units sold; b) thereafter, the greater
of $4.00(US) per unit sold or 6% of the wholesale selling price on units sold;
and c) 50% of any fees paid to
Sense in consideration for tooling, redesign, technical or aesthetic development
or, should the licensors receive a similar fee, the licensors will pay 50% to
Sense.  Prior to 2004, the
Company had held an exclusive license and patent rights.  Under the terms
and conditions of maintaining the exclusive rights, the Company was required to
manufacture and sell a minimum number of units as follows:  (i) 30,000 units by the end
of the calendar year containing the second anniversary of the date of
commencement of commercial production; (ii) a cumulative total of
60,000 units by the end of the calendar year containing the third anniversary of
the date of commencement of commercial production; (iii) a cumulative total of
110,000 units by the end of the calendar year containing the fourth anniversary
of the date of commencement of commercial production; (iv) a cumulative total of
210,000 units by the end of the calendar year containing the fifth anniversary
of the date of commencement of commercial production; and (v) an additional 125,000
units by the end of each calendar year thereafter.  In order to retain the
exclusive right to manufacture, market and distribute the Guardian Alert, the
Company had been required, upon being assigned the license, to manufacture and
sell various minimum numbers of units by certain milestone dates.  As a
result of not being able to meet the minimum milestone requirements under the
license agreement, during the year ended February 28, 2004, the Company
determined that it did not wish to retain the exclusive right to manufacture,
market and distribute the Guardian Alert unit and ceased accruing the minimum
royalty due to the licensor. Any product sales subsequent to this date are
considered to be part of the minimum royalty until such time that amounts exceed
the minimum royalty accrued.  We entered into a
sub-license agreement with S&S Distributing, LLC of Elkhorn, Nebraska
whereby S&S acquired certain rights to develop market and distribute
Guardian Alert® Doppler Awareness System products in 1998, but it is no longer
in effect.  The sub-license agreement provided for certain minimum
purchases of products from Sense, and certain expenditure requirements for
development and marketing.  The sub-license also provided that any new
versions of the sensing device that are developed by S&S will be made
available for manufacture and distribution by Sense.  S&S is continuing
to sell Sense units.  Pursuant to a consulting
and engineering agreement with Maple Consulting, we agreed to pay a royalty of
$0.50 for each Guardian Alert® Doppler Awareness System sold that was designed
pursuant to the agreement, up to a maximum of 200,000 units.  We hold a world-wide
exclusive and perpetual license with ScopeOut® products pursuant to a license
agreement with Palowmar Industries, LLC and Lowell Martinson.  Our ScopeOut® license
called for $150,000 to be paid over two years (paid) along with a royalty of 10%
of wholesale price for each ScopeOut® unit sold, but not less than $2.00 per
unit.  In order to maintain the exclusive license for the ScopeOut®
products, in accordance with the license agreement with Palowmar Industries,
LLC, we are required to pay royalties to the licensor based on the following
minimum quantities of units sold:  (i) 30,000 units per year beginning in years 1-2 (ii) 60,000 units per year beginning in years 3-4 (iii) 100,000 units per year
beginning in years 5 and above.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
8_______________________________________________________________________________________________________________      We have not been able to
pay the minimum royalty requirement as noted above but we have accrued the
required minimum royalty annually and we have an agreement with the licensor to
extend the requirement for payment to October 31, 2008.  (a) Governmental
Approval  Because our Guardian
Alert product is an emitting device, the Federal Communications Commission (FCC)
we were required to obtain equipment authorization which was granted on October
31, 1995.  The microwave signals emitted by the device can potentially
interfere with radar detectors and other existing emitting systems. All FCC
tests have been completed and a FCC certification in the name of Sense
Technologies Inc. has been obtained. There are no other material regulatory
approvals required for Sense to achieve its stated business objectives  RESULTS OF OPERATIONS  You should read the
following discussion of our financial condition and results of operations
together with the unaudited interim financial statements and the notes to the
unaudited interim financial statements included in this quarterly report.
 This discussion contains forward-looking statements that reflect our
plans, estimates and beliefs.  Our actual results may differ materially
from those anticipated in these forward-looking statements  For the nine months ended November 30, 2008 and
November 30, 2007  Net Loss  Our net loss for the nine months ended
November 30, 2008 was $717,288 as compared to a net loss of $718,041 for the
nine months ended November 30, 2007.  Sales and Direct Costs  Sales for the nine
months ended November 30, 2008 were $118,538, which represents a 99% increase
from sales of $59,611 for the nine months ended November 30, 2007.  Sales
increased due to product timing needs of two of our large customers.  While
this is a large increase over last year, it is well insufficient to cover our
expenses.  Direct costs for the
nine months ended November 30, 2008 were $151,046 a decrease of 32% from the
direct costs of sales of $199,994 for the nine months ended November 30, 2007,
which included an inventory write off of $76,891. One of the most significant
components of direct costs is the minimum royalty we accrue in order to maintain
our exclusive license for the ScopeOut® products. Commencing with our fiscal
year beginning March 1, 2008, we are accruing the ScopeOut® royalty on a
quarterly basis. Accordingly, we have restated the results the operations for
the nine months ended November 30, 2007 to reflect the operations had we accrued
the minimum royalty in that period. For each of the three month period ended
November 30, 2008 and November 30, 2007, we accrued $30,000 in respect of
required minimum royalty in order to maintain our exclusive right to manufacture
and market the ScopeOut® products.  Operating Expenses  Total operating expenses
for the nine months ended November 30, 2008 were $684,780 which represents an
18% increase in total operating expenses of $577,658 for the nine months ended
November 30, 2007.  Advertising and marketing expenses and interest and
financing fees constitute the major components of our total operating
expenses.  Advertising and
marketing expenses for the nine months ended November 30, 2008 were $179,385,
which represents a 3% decrease in advertising and marketing expenses of $184,238
for the nine months ended November 30, 2007.   The Company is
continuing to emphasize marketing of the ScopeOut® products.  Interest and financing
fees expense for the nine months ended November 30, 2008 was $121,872, an
increase of 72% from the November 30, 2007 interest and financing fees expense
of $70,780. The increase in interest and financing fees expense is largely
attributable to the cost of cash necessary to finance operations.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
9_______________________________________________________________________________________________________________      LIQUIDITY AND CAPITAL RESOURCES  Our companys principal
cash requirements are for operating expenses, including inventory purchases,
which we anticipate will rise as our sales increase.  Capital Resources  As of November 30, 2008,
we had cash of $890.  As of November 30, 2008, we had a working capital
deficiency of $3,104,706 compared with a working capital deficiency of
$2,701,908 as of February 29, 2008, which represents an increase in our working
capital deficiency of $402,798.  The increase in the working capital
deficiency is primarilydue to incurring more debt for the nine months ended
November 30, 2008.  We have suffered
recurring losses. The ability of our company to meet our financial liabilities
and commitments is primarily dependent upon the continued extension of credit by
our creditors, the continued financial support of our directors and
shareholders, the continued issuance of equity to new shareholders, and our
ability to achieve and maintain profitable operations. Management believes that our companys cash and cash equivalents
and cash provided by operating activities will not be sufficient to meet our
working capital requirements for the next twelve month period.  We estimate
that we will require approximately $1,500,000 over the next twelve month period
ending November 30, 2009 to fund our operating cash shortfall.  We are hopeful that
internal cash flow will cover our cash requirements, but otherwise plan to raise
additional capital as required to meet the balance of our estimated funding
requirements through August 31, 2009, through either or a combination of:  (1) issuance
of promissory notes payable (2) private
placements of our common shares (3) cash flow from
operations  The issuance of
additional equity securities by us could result in a significant dilution in the
equity interests of our current stockholders. Obtaining commercial loans,
assuming those loans would be available, will increase our liabilities and
future cash commitments. In respect of our cash requirements, we plan to raise
$500,000 from equity investors via private placements of our common stock to
finance our initial inventory purchases. Should our inventory not turn over as
anticipated, we will need to raise additional funds through a combination of
debt issuances and equity offerings. Given our lack of sales in recent years,
projecting cash flow from operations is inherently uncertain.  Any funds we
generate from operations must, in part, be used to pay down our debt obligations
which total $3,256,013 as at November 30, 2008. Our convertible promissory notes
payable totalling $584,447 and various accounts payable are significantly in
arrears.  While we anticipate being successful in obtaining our required
financing, there is no assurance we will be able to do so at terms we find
acceptable.   Additionally, we rely upon the continuing support and
patience of creditors in connection with current and in-arrears amounts owed to
them.  The failure to obtain sufficient financing or continued support of
the creditors could result in our company ceasing operations. There is substantial doubt about our ability to continue as a
going concern as the continuation of our business is dependent upon obtaining
further long-term financing, successful and sufficient market acceptance of our
current product offerings and any new product offerings that we may introduce,
the continuing successful development of our product offerings and related
technologies, and, finally, achieving a profitable level of operations.
 The issuance of additional equity securities by us could result in a
significant dilution in the equity interests of our current stockholders.
 Obtaining commercial loans, assuming those loans would be available, will
increase our liabilities and future cash commitments. Due to the uncertainty of our ability to meet our current
operating and capital expenses, in their report on our audited financial
statements for the year ended February 29, 2008, our independent auditors
included an explanatory paragraph regarding substantial doubt about our ability
to continue as a going concern. Our financial statements contain additional note
disclosures describing the circumstances that lead to this disclosure by our
independent auditors.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
10_______________________________________________________________________________________________________________     Cash Flow Used
in Operating Activities Operating activities used cash of $458,415 for the nine months
ended November 30, 2008 as compared to $481,985 for the nine months ended
November 30, 2007.  The cash used in operating activities for the nine
month period ended November 30, 2008, was primarily attributable to our net loss
for the period. We anticipate that operating expenses will increase through the
remainder of the 2009 fiscal year.  We intend to incur higher operating
costs to fund increased sales and marketing activities over the next two
years. Cash Flow Provided by
Financing Activities Financing activities provided cash of $458,317 for the nine months
ended November 30, 2008 as compared to $528,071 for the nine months ended
November 30, 2007.  The cash received during the respective periods were
proceeds from certain advances and subscriptions received. Capital Expenditures We do not have any material commitments for capital expenditures
and management does not anticipate that our company will spend additional
material amounts on capital expenditures in the near future. Off-Balance
Sheet Arrangements Our company has no outstanding derivative financial instruments,
off-balance sheet guarantees, interest rate swap transactions or foreign
currency contracts.  Our company does not engage in trading activities
involving non-exchange traded contracts. CRITICAL
ACCOUNTING POLICIES Our discussion and analysis of our financial condition and results
of operations are based upon our financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States.  The preparation of these financial statements requires us to make
estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and
liabilities. We believe that the estimates, assumptions and judgments involved
in the accounting policies described below have the greatest potential impact on
our financial statements, so we consider these to be our critical accounting
policies.  Because of the uncertainty inherent in these matters, actual
results could differ from the estimates we use in applying the critical
accounting policies.  Certain of these critical accounting policies affect
working capital account balances, including the policies for revenue
recognition, allowance for doubtful accounts, inventory reserves and income
taxes.  These policies require that we make estimates in the preparation of
our financial statements as of a given date. Within the context of these critical accounting policies, we are
not currently aware of any reasonably likely events or circumstances that would
result in materially different amounts being reported. Revenue
Recognition Revenue from the sales of our products, is recognized when the
product is delivered, the selling price is fixed and determinable, the resulting
receivable is deemed collectible by management and any uncertainties with regard
to customer acceptance are insignificant.  Products are generally shipped
FOB shipping point with rights of return and revenues are not recognized until
such time that all of the criteria of Statement of Financial Accounting Standard
(SFAS) 48 Revenue Recognition When Right of Return Exists are met.
 We consider factors including customer type, fees and our ability to
reasonably estimate returns in determining whether revenue can be recognized
from these sales. We generally warrant our products against defects in materials
and workmanship.  The estimated costs of warranty obligations and sales
returns and other allowances are recognized at the time of revenue recognition
based on contract terms and prior claims experience.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
11_______________________________________________________________________________________________________________     Allowance for Doubtful Accounts We make ongoing estimates relating to the collectability of our
accounts receivable and maintain a reserve for estimated losses resulting from
the inability of specific customers to meet their financial obligations to us.
 In determining the amount of the reserve, we consider our historical level
of credit losses and make judgments about the creditworthiness of significant
customers based on ongoing credit evaluations.  Since we cannot predict
future changes in the financial stability of our customers, actual future losses
from uncollectible accounts may differ from our estimates.  If the
financial condition of our customers were to deteriorate, resulting in their
inability to make payments, a larger reserve may be required.  In the event
we determined that a smaller or larger reserve was appropriate, we would record
a credit or a charge to selling and administrative expense in the period in
which we made such a determination. Inventory Reserves We also make ongoing estimates relating to the market value of
inventories, based upon our assumptions about future demand and market
conditions.  If we estimate that the net realizable value of our inventory
is less than the cost of the inventory recorded on our books, we record a
reserve equal to the difference between the cost of the inventory and the
estimated net realizable market value.  This reserve is recorded as a
charge to cost of goods sold.  If changes in market conditions result in
reductions in the estimated market value of our inventory below our previous
estimate, we would increase our reserve in the period in which we made such a
determination and record a charge to cost of goods sold. Income
Taxes As part of the process of preparing our financial statements, we
are required to estimate our income taxes in each of the jurisdictions in which
we operate.  This process involves us estimating our actual current tax
exposure together with assessing temporary differences resulting from differing
treatment of items, such as deferred revenue, for tax and accounting purposes.
 These differences result in deferred tax assets and liabilities, which are
included in our balance sheets.  We must then assess the likelihood that
our deferred tax assets will be recovered from future taxable income and, to the
extent we believe that recovery is not likely, we must establish a valuation
allowance.  To the extent we establish a valuation allowance or increase
this allowance in a period, we must include an expense within the tax provision
in the Statement of Operations. Significant management judgment is required in determining our
provision for income taxes, deferred tax assets and liabilities and any
valuation allowance recorded against our net deferred tax assets.
 Management continually evaluates our deferred tax asset as to whether it
is likely that the deferred tax assets will be realized.  If management
ever determined that our deferred tax asset was not likely to be realized, a
write-down of that asset would be required and would be reflected in the
provision for taxes in the accompanying period. Recently Issued Accounting
Standards FAS 141R In December 2007, the Financial Accounting Standards Board
(FASB) issued Statement of Financial Accounting Standard (SFAS) No. 141
(revised 2007), Business Combinations (FAS 141R), which replaces FASB
Statement No. 141. FAS 141R establishes principles and requirements for how an
acquirer recognizes and measures in its financial statements the identifiable
assets acquired, the liabilities assumed, any non controlling interest in the
acquiree, and the goodwill acquired. FAS 141R also establishes disclosure
requirements which will enable users to evaluate the nature and financial
effects of the business combination.  FAS 141R is effective as of the
beginning of an entitys fiscal year that begins after December 15, 2008, which
will be our fiscal year beginning March 1, 2009. We are currently evaluating the
impact of the provisions of FAS 141R  SFAS No. 157  In September 2006, the
FASB issued SFAS No. 157, Fair Value Measurements (FAS 157). FAS 157 defines
fair value, establishes a framework for measuring fair value in accordance with
generally accepted accounting principles, and expands disclosures about fair
value measurements. FAS 157 became effective for the financial statements issued
for the fiscal year beginning March 1, 2008. There was no material impact to our
 financial statements upon adoption of this new pronouncement..  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
12_______________________________________________________________________________________________________________      SFAS No. 159  In February 2007, the
FASB issued FAS No. 159, "The Fair Value Option for Financial Assets and
Financial Liabilities-Including an amendment of FASB Statement No.  115",
("FAS 159") which permits entities to choose to measure many financial
instruments and certain other items at fair value at specified election
dates.  A business entity is required to report unrealized gains and losses
on items for which the fair value option has been elected in earnings at each
subsequent reporting date.  This statement is expected to expand the use of
fair value measurement.  FAS 159 became effective for the financial
statements issued for the fiscal year beginning March 1, 2008. There was no
material impact to our financial statements upon adoption of this new
pronouncement. FAS 161  In March 2008, the FASB
issued SFAS 161 Disclosures about Derivative Instruments and Hedging Activities
 an amendment of SFAS 133.  This Statement requires enhanced disclosures
about an entitys derivative and hedging activities and thereby improves the
transparency of financial reporting. This Statement is effective for financial
statements issued for fiscal years and interim periods beginning after November
15, 2008, which will be our fiscal year beginning March 1, 2009. This Statement
encourages, but does not require, comparative disclosures for earlier periods at
initial adoption.  The Company is currently evaluating the impact that the
adoption of SFAS 161 might have on its financial position or results of
operations. Item 3.
 Quantitative and Qualitative Disclosures About Market Risk. Not Applicable. Item 4T.  Controls and
Procedures. We have effected a restatement of our financial results for the
six months ended August 31, 2007 which was derived from the restatement of our
annual results for the year ended February 28, 2007. The Restatement This restatement was effected to correct an error in our
accounting treatment of accruing the minimum royalty payable due under the
ScopeOut® license. Prior to March 1, 2008, we had been accruing the minimum
royalty in accordance with the license on an annual basis whereas we should have
been accruing the royalty on a quarterly basis in conjunction with our quarterly
reporting periods. We maintain disclosure controls and procedures that are designed
to ensure that information required to be disclosed in our reports filed under
the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the time periods specified in the SECs rules and
forms, and that such information is accumulated and communicated to our
management, including our president, secretary and treasurer (who is acting as
our principal executive officer, principal financial officer and principle
accounting officer) to allow for timely decisions regarding required disclosure.
 In designing and evaluating our disclosure controls and procedures, our
management recognizes that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the
desired control objectives, and our management is required to apply its judgment
in evaluating the cost-benefit relationship of possible controls and
procedures. Based on the evaluation, our Chief Executive Officer after
evaluating the effectiveness of our disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), have concluded that,
subject to the inherent limitations as noted below and in our annual report on
Form 10-KSB, as of August 31, 2008 our disclosure controls and procedures were
not effective due to the existence of several material weaknesses in our
internal control over financial reporting, as discussed below.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
13_______________________________________________________________________________________________________________     Limitations on
Effectiveness of Controls Our Chief Executive Officer does not expect that our disclosure
controls or our internal control over financial reporting will prevent all
errors and all fraud. A control system, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a control
system must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, no evaluation of controls can
provide absolute assurance that all control issues and instances of fraud, if
any, within our company have been detected. These inherent limitations include
the realities that judgments in decision-making can be faulty, and that
breakdowns can occur because of a simple error or mistake. Additional controls
can be circumvented by the individual acts of some persons, by collusion of two
or more people, or by management override of the controls. The design of any
system of controls also is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions;
over time, controls may become inadequate because of changes in conditions, or
the degree of compliance with the policies or procedures may deteriorate.
Because of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be detected. Material Weaknesses
Identified  In connection with the preparation of our
financial statements for the year ended February 29, 2008, certain significant
deficiencies in internal control became evident to management that represent
material weaknesses, including:  (i)
Insufficient
segregation of duties in our finance and accounting functions due to
limited personnel. During the year ended February 29, 2008, we had limited
staff that performed nearly all aspects of our financial reporting
process, including, but not limited to, access to the underlying
accounting records and systems, the ability to post and record journal
entries and responsibility for the preparation of the financial
statements. This creates certain incompatible duties and a lack of review
over the financial reporting process that would likely result in a failure
to detect errors in spreadsheets, calculations, or assumptions used to
compile the financial statements and related disclosures as filed with the
SEC. These control deficiencies could result in a material misstatement to
our interim or annual consolidated financial statements that would not be
prevented or detected;(ii)
There is a
lack of sufficient supervision and review by our corporate
management;(iii)
Insufficient
corporate governance policies. Our corporate governance activities and
processes are not always formally documented. Specifically, decisions made
by the board to be carried out by management should be documented and
communicated on a timely basis to reduce the likelihood of any
misunderstandings regarding key decisions affecting our operations and
management; and(iv)
Our company's
accounting personnel does not have sufficient technical accounting
knowledge relating to accounting for income taxes and complex US GAAP
matters. Management corrected any errors prior to the release of our
company's May 31, 2008 and February 29, 2008 financial
statements. Plan for
Remediation of Material Weaknesses We intend to take
appropriate and reasonable steps to make the necessary improvements to remediate
these deficiencies. We intend to consider the results of our remediation efforts
and related testing as part of our year-end 2009 assessment of the effectiveness
of our internal control over financial reporting. We have implemented certain remediation
measures and are in the process of designing and implementing additional
remediation measures for the material weaknesses described in this annual
report. Such remediation activities include the following:  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
14_______________________________________________________________________________________________________________      (1) We will
document a formal code of ethics (2) We will
revise processes to provide for a greater role of independent board members in
the oversight and review until such time that we are adequately capitalized to
permit hiring additional personnel to address segregation of duties issues. (3) We will
continue to update the documentation of our internal control processes,
including formal risk assessment of our financial reporting processes. (4) We will seek
to establish a relationship with a firm of certified public accountants to
assist in the preparation of financial statements and with whom to consult on
complex US GAAP matters. Changes in
Internal Controls over Financial Reporting There were no
changes in our internal control over financial reporting during the three months
ended November 30, 2008 that have materially affected or are reasonably likely
to materially affect, our internal control over financial reporting. PART
II  -  OTHER INFORMATION Item 1.  Legal
Proceedings. As of January 10, 2009, our company is not a party to any pending
legal proceeding and no legal proceeding is contemplated or threatened as of the
date of this quarterly report.  No director, officer or affiliate of our
company, or any registered or beneficial shareholder, is an adverse party or has
a potential interest adverse to our company. Item 1A.  Risk
Factors. RISK FACTORS Much of the information included in this quarterly report includes
or is based upon estimates, projections or other forward looking statements.
Such forward looking statements include any projections or estimates made by us
and our management in connection with our business operations. While these
forward-looking statements, and any assumptions upon which they are based, are
made in good faith and reflect our current judgment regarding the direction of
our business, actual results will almost always vary, sometimes materially, from
any estimates, predictions, projections, assumptions or other future performance
suggested herein. Such estimates, projections or other forward looking statements
involve various risks and uncertainties as outlined below. We caution the reader
that important factors in some cases have affected and, in the future, could
materially affect actual results and cause actual results to differ materially
from the results expressed in any such estimates, projections or other forward
looking statements.  Prospective investors should consider carefully the
risk factors set out below. RISKS RELATED TO OUR
BUSINESS We have had negative cash
flows from operations since inception. We will require significant additional
financing, the availability of which cannot be assured, and if our company is
unable to obtain such financing, our business may fail. To date, we have had negative cash flows from operations and have
depended on sales of our equity securities and debt financing to meet our cash
requirements. Our ability to develop and commercialize our technologies will be
dependent upon our ability to raise significant additional financing. If we are
unable to obtain such financing, we will not be able to fully develop our
business.  Specifically, we will need to raise additional funds to:  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
15_______________________________________________________________________________________________________________      - support our planned growth and carry
out our business plan; - continue progress in our research and
development programs; - protect our intellectual
property; - hire top quality personnel for all
areas of our business; - address competing technological and
market developments; - establish additional collaborative
relationships; and - manufacture and distribute the
ScopeOut® products. We may not be able to obtain additional equity or debt financing
on acceptable terms as required.  Even if financing is available, it may
not be available on terms that are favorable to us or in sufficient amounts to
satisfy our requirements.  If we require but are unable to obtain
additional financing in the future, we may be unable to implement our business
plan and our growth strategies, respond to changing business or economic
conditions, withstand adverse operating results and compete effectively.
 More importantly, if we are unable to raise further financing when
required, we may be forced to scale down our operations and our ability to
generate revenues may be negatively affected. We have a history of losses
which raise substantial doubt about our ability to continue as a going
concern. We incurred a net loss of $374,706 for the three months ended
November 30, 2008.  At November 30, 2008, the accumulated deficit was
$16,214,623.  We can offer no assurance that we will operate profitably or
that we will generate positive cash flow in the future.  In addition, our
operating results in the future may be subject to significant fluctuations due
to many factors not within our control, such as the level of competition and
general economic conditions. Due to the nature of our business and the early stage of our
development, our securities must be considered highly speculative.  We are
engaged in the business of manufacturing and distributing ScopeOut® products. We
have not realized a profit from our operations to date and there is little
likelihood that we will realize any profits in the near future. Any
profitability in the future from our business will be dependent upon the
successful commercialization of the ScopeOut® patent, which itself is subject to
numerous risk factors as set forth herein. We expect to continue to incur development costs and operating
costs.  Consequently, we expect to incur operating losses and negative cash
flows until our technology gains market acceptance sufficient to generate a
sustainable level of income from the commercialization of the ScopeOut® patent.
 Our history of losses raises substantial doubt about our ability to
continue as a going concern, as described in the explanatory paragraph in the
independent registered public accounting firms report on the financial
statements of our company for the year ended February 29, 2008.  If the
going concern assumption was not appropriate for these financial statements,
then adjustments would be necessary to the carrying value of assets and
liabilities, the reported loss and the balance sheet classification used. Our company
relies upon the successful research and development of new products but we can
offer no assurance that our research and development efforts will produce
positive results or keep pace with our competitors. Research and development activities are inherently uncertain, and
we could encounter practical difficulties in commercializing our research and
development results.  Our expenditures on research and development may not
produce corresponding benefits.  Other companies are developing a variety
of competingproducts that could produce products that prove more
cost-effective or have better performance than our current or future ScopeOut®
products.  As a result, our products may be rendered obsolete by the
technological advances of others, which could reduce our net sales and market
share.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
16_______________________________________________________________________________________________________________     It could prove
costly for us to effectively compete in the intensely competitive automotive
safety products  industry, which failure could negatively impact our
financial results. Many companies which are candidates to market our products are
large, sophisticated and completing  business relationships with them
proves to be time-consuming..  Additionally, the strength of our patents
and software encryption may dictate whether such companies choose to utilize our
products in their business plans or simply attempt to copy our products and
compete with us.  In certain cases, we attempt to obtain agreements with
such companies to not improperly disclose information about our products, but
not all companies are willing to enter such an agreement. We may lose our
competitiveness if we are not able to protect our proprietary technology and
intellectual property rights against infringement, and any related litigation
may be time-consuming and costly. Our success and ability to compete depends to a significant degree
on our proprietary technology.  If any of our competitors copy or otherwise
gain access to our proprietary technology or develop similar technologies
independently, we may not be able to compete as effectively.  The measures
we have implemented to protect our proprietary technology and other intellectual
property rights are currently based upon a combination of provisional patent
applications, patents, trademarks and trade secrets.  These measures,
however, may not be adequate to prevent the unauthorized use of our proprietary
technology and our other intellectual property rights.  Further, the laws
of foreign countries may provide inadequate protection of such intellectual
property rights.  We may need to bring legal claims to enforce or protect
such intellectual property rights.  Any litigation, whether successful or
unsuccessful, may result in substantial costs and a diversion of our companys
resources. In addition, notwithstanding our rights to our intellectual property,
other persons may bring claims against us alleging that we have infringed on
their intellectual property rights or claims that our intellectual property
rights are not valid.  Any claims against us, with or without merit, could
be time consuming and costly to defend or litigate, divert our attention and
resources, result in the loss of goodwill associated with our business or
require us to make changes to our technology. Our products may subject us
to product liability exposure and our product liability insurance may not be
sufficient to cover these claims. Use of our products may expose us to product liability claims in
the event they cause injury or harm our customers or third parties businesses.
 Although we have product liability insurance, it is possible that our
insurance coverage could be insufficient to fully cover potential claims.
 Due to our limited financial resources, we may not be able to satisfy any
liability resulting from these claims, which would negatively affect our
financial condition. If we fail to effectively
manage the growth of our company and the commercialization of our product line,
our future business results could be harmed and our managerial and operational
resources may be strained. As we proceed with the development of our product line and the
expansion of our marketing and commercialization efforts, we expect to
experience significant growth in the scope and complexity of our business.
 We will need to add staff to market our services, manage operations,
handle sales and marketing efforts and perform finance and accounting functions.
 We anticipate that we will be required to hire additional personnel in
order to successfully advance our operations.  This growth is likely to
place a strain on our management and operational resources.  The failure to
develop and implement effective systems, or to hire and retain sufficient
personnel for the performance of all of the functions necessary to effectively
service and manage our potential business, or the failure to manage growth
effectively, could have a material adverse effect on our business and financial
condition.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
17_______________________________________________________________________________________________________________     RISKS RELATED
TO OUR COMMON STOCK A decline in
the price of our common stock could affect our ability to raise further working
capital and adversely impact our ability to continue operations. A prolonged decline in the price of our common stock could result
in a reduction in the liquidity of our common stock and a reduction in our
ability to raise capital. Because a significant portion of our operations have
been and will be financed through the sale of equity securities, a decline in
the price of our common stock could be especially detrimental to our liquidity
and our operations.  Such reductions may force us to reallocate funds from
other planned uses and may have a significant negative effect on our business
plan and operations, including our ability to develop new products and continue
our current operations.  If our stock price declines, we can offer no
assurance that we will be able to raise additional capital or generate funds
from operations sufficient to meet our obligations.  If we are unable to
raise sufficient capital in the future, we may not be able to have the resources
to continue our normal operations. The market price for our common stock may also be affected by our
ability to meet or exceed expectations of analysts or investors. Any failure to
meet these expectations, even if minor, may have a material adverse effect on
the market price of our common stock. If we issue
additional shares in the future, it will result in the dilution of our existing
shareholders. Our board of directors may choose to issue additional common
shares to provide additional financing in the future. The issuance of any such
shares will result in a reduction of the book value and market price of the
outstanding shares of our common stock. If we issue any such additional shares,
such issuance will cause a reduction in the proportionate ownership and voting
power of all current shareholders. Further, such issuance may result in a change
of control of our corporation. Trading of our
stock may be restricted by the Securities Exchange Commissions penny stock
regulations, which may limit a stockholders ability to buy and sell our
stock. The Securities and Exchange Commission has adopted regulations
which generally define penny stock to be any equity security that has a market
price (as defined) less than $5.00 per share or an exercise price of less than
$5.00 per share, subject to certain exceptions.  Our securities are covered
by the penny stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
accredited investors.  The term accredited investor refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse.  The penny stock rules require a broker-dealer, prior to
a transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission, which provides information about penny stocks and the
nature and level of risks in the penny stock market.  The broker-dealer
also must provide the customer with current bid and offer quotations for the
penny stock, the compensation of the broker-dealer and its salesperson in the
transaction and monthly account statements showing the market value of each
penny stock held in the customers account.  The bid and offer quotations,
and the broker-dealer and salesperson compensation information, must be given to
the customer orally or in writing prior to effecting the transaction and must be
given to the customer in writing before or with the customers confirmation.
 In addition, the penny stock rules require that prior to a transaction in
a penny stock not otherwise exempt from these rules, the broker-dealer must make
a special written determination that the penny stock is a suitable investment
for the purchaser and receive the purchasers written agreement to the
transaction.  These disclosure requirements may have the effect of reducing
the level of trading activity in the secondary market for the stock that is
subject to these penny stock rules.  Consequently, these penny stock rules
may affect the ability of broker-dealers to trade our securities.  We
believe that the penny stock rules discourage investor interest in and limit the
marketability of our common stock.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
18_______________________________________________________________________________________________________________     The Financial Industry
Regulatory Authority, or FINRA, has adopted sales practice requirements which
may also limit a stockholders ability to buy and sell our stock. In addition to the penny stock rules described above, FINRA has
adopted rules that require that in recommending an investment to a customer, a
broker-dealer must have reasonable grounds for believing that the investment is
suitable for that customer.  Prior to recommending speculative low priced
securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customers financial status,
tax status, investment objectives and other information.  Under
interpretations of these rules, FINRA believes that there is a high probability
that speculative low priced securities will not be suitable for at least some
customers.  FINRA requirements make it more difficult for broker-dealers to
recommend that their customers buy our common stock, which may limit your
ability to buy and sell our stock and have an adverse effect on the market for
our shares. Our common stock is illiquid
and the price of our common stock may be negatively impacted by factors which
are unrelated to our operations. Our common stock currently trades on a limited basis on the OTC
market.  Trading of our stock through the OTC market is frequently thin and
highly volatile.  There is no assurance that a sufficient market will
develop in our stock, in which case it could be difficult for shareholders to
sell their stock.  The market price of our common stock could fluctuate
substantially due to a variety of factors, including market perception of our
ability to achieve our planned growth, quarterly operating results of our
competitors, trading volume in our common stock, changes in general conditions
in the economy and the financial markets or other developments affecting our
competitors or us.  In addition, the stock market is subject to extreme
price and volume fluctuations.  This volatility has had a significant
effect on the market price of securities issued by many companies for reasons
unrelated to their operating performance and could have the same effect on our
common stock. Item 2.  Unregistered
Sales of Equity Securities and Use of Proceeds  Recent Sales of
Unregistered Securities On September 22, 2008,
one investor under Rule 506 of Regulation D, subscribed for 200,000 common
shares at a price of $.05 per share for total proceeds to the Company of
$10,000.  The shares are restricted pursuant to Rule 144 promulgated under
the U.S. Securities Act of 1933.  On October 9, 2008, one
investor under Rule 506 of Regulation D, subscribed for 200,000 common shares at
a price of $.05 per share for total proceeds to the Company of $10,000.
 The shares are restricted pursuant to Rule 144 promulgated under the U.S.
Securities Act of 1933.  On October 29, 2008, one
investor under Rule 506 of Regulation D, subscribed for 500,000 common shares at
a price of $.05 per share for total proceeds to the Company of $25,000.
 The shares are restricted pursuant to Rule 144 promulgated under the U.S.
Securities Act of 1933.  Item 3.  Defaults Upon
Senior Securities. None. Item 4.  Submission of
Matters to a Vote of Security Holders. None. Item 5.  Other
Information None.  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
19_______________________________________________________________________________________________________________     Item 6.  Exhibits  Exhibit
No.
Description
of Exhibit
Manner of
Filing3.1
The Articles of
Continuance
Incorporated
by reference as Exhibit 3.1 to the Companys Form 10-KSB, filed with the
SEC on May 24, 2002 (2002 Form 10-KSB)3.2
By-Laws
Incorporated
by reference as Exhibit 3.2 to the 2002 Form 10-KSB3.3
Articles of
Amendment
Incorporated
by reference to as Appendix A to the Companys Schedule 14A  Definitive
Proxy Statement, filed with the SEC on June 17, 2002 (Schedule
14A)10.1
Amended Stock Option
Agreement dated October 2, 2001 between Bruce E. Schreiner and the
Company.
Incorporated
by reference as Exhibit 10.1 to the 2002 Form 10-KSB10.2
Two (2) Amended Stock
Option Agreements both dated October 2, 2001 between Cynthia L. Schroeder
and the Company.
Incorporated
by reference as Exhibit 10.2 to the 2002 Form 10-KSB10.3
2002 Stock Option
Plan
Incorporated
by reference as Appendix B to the 2002 Schedule 14A10.4
License agreement with
Palowmar Industries, LLC and Lowell Martinson, inventor respecting the
ScopeOut® product.
Incorporated
by reference as Exhibit 10.4 to the 2006 Form 10-KSB(31)
Rule 13a-14(a)/15d-14(a)
Certifications31.1*
Section 302 Certification
under Sarbanes-Oxley Act of 2002 of Bruce Schreiner(32)
Section 1350
Certifications32.1*
Section 906 Certification
under Sarbanes-Oxley Act of 2002 of Bruce Schreiner*  Filed
herewith  ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
20_______________________________________________________________________________________________________________     SIGNATURES Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized. SENSE TECHNOLOGIES
INC.. By:  /s/
Bruce Schreiner Bruce Schreiner,
President(Principal Executive Officer and Principal Financial Officer
and Principal Accounting Officer)January 20, 2009             ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
21_______________________________________________________________________________________________________________     Exhibit 31.1  CERTIFICATION PURSUANT TO RULE 13a-14(a) OR
15d-14(a) OF THE U.S SECURITIES EXCHANGE ACT OF
1934  I, Bruce E. Schreiner, certify that:  1. I have reviewed this
report of the fiscal quarter ended November 30, 2008 of Sense Technologies,
Inc.  2. Based on my knowledge,
this report does not contain any untrue statement of material fact or omit to
state a material fact necessary in order 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 report;  3. Based on my knowledge,
the financial statement, and other financial information included in this
report, fairly present in all material respects the financial condition, results
of operations and cash flows of the small business issuer as of, and for, the
periods presented in this report;  4. The small business
issuers other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15e)) for the small business issuer and have:  a) designed such
disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the small business issuer, including its consolidated
subsidiaries, is made know to us by others within those entities, particularly
during the period in which the annual report is being prepared;  b) designed such internal
control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted
accounting principles; and  c) evaluated the
effectiveness of the small business issuers disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation.  5. The small business
issuers other certifying officers and I have disclosed, based on our most
recent evaluation of internal control over financial reporting, to the small
business issuers auditors and the audit committee of small business issuers
board of directors (or persons performing the equivalent function):  a. all significant
deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonable likely to adversely affect
the small business issuers ability to record, process, summarize and report
financial information; and  b. any fraud, whether or
not material, that involves management or other employees who have a significant
role in the small business issuers control over financial reporting.  By: /s/ Bruce
E. Schreiner Bruce E. Schreiner Dated January 20,
2009 President and Principal
Financial Officer   ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
22_______________________________________________________________________________________________________________      Exhibit 32.1  CERTIFICATION PURSUANT TO 18 U.S.C. SECTION
1350 AND RULE 13a-14(b) OR RULE
15d-14(b) OF THE U.S SECURITIES EXCHANGE ACT OF
1934   In connection with the Quarterly Report of
Sense Technologies Inc. (the Company) on Form 10-Q for the fiscal quarter
ended November 30, 2008 as filed with the Securities and Exchange Commission
(the Report), the undersigned, in the capacities and on the dates indicated
below, hereby certifies pursuant to 18 U.S.C. Section 1350, and Rule 13a-14(b),
that to his knowledge:  1. The Report fully
complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and  2. The information
contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.    By: /s/ Bruce E. Schreiner  Bruce E. Schreiner President and Principal Financial
Officer Dated January 20, 2009                 ______________________________________________________________________________________________________________Sense
Technologies Inc. Form 10Q Page
23_______________________________________________________________________________________________________________