---

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 November 30, 2006

[   ] 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 issuer (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
November 30, 2006 was 45,575,551 shares.

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

---

SENSE TECHNOLOGIES INC.

INDEX TO FORM 10-QSB

|**PART I  FINANCIAL INFORMATION** | 3      
|---------------------------------- | -------
|                                   |        
|                                   | Item 1.
|                                   |        
|                                   | Item 2.
|                                   |        
|                                   | Item 3.
|                                   |        
|**PART II  OTHER INFORMATION**    | 15     
|                                   |        
|                                   | Item 2.
|                                   |        
|                                   | Item 6.
|                                   |        
|**SIGNATURES**                     | 16     

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

---













SENSE TECHNOLOGIES INC.

INTERIM FINANCIAL STATEMENTS

November 30, 2006

(Stated in U.S. Dollars)

(Unaudited)

---

SENSE TECHNOLOGIES INC.INTERIM BALANCE SHEET
November 30, 2006 and February 28, 2006 (Stated in U.S. Dollars)
(Unaudited)

|                                                                                   |   | November 30, |   |   | February 28, |  
|---------------------------------------------------------------------------------- | - | ------------ | - | - | ------------ | -
|                                                                                   |   | 2006         |   |   | 2006         |  
|**ASSETS**                                                                         |   |              |   |   |              |  
|                                                                                   |   |              |   |   |              |  
|Current                                                                            |   |              |   |   |              |  
|Cash                                                                               | $ | 5,614        |   | $ | 9,220        |  
|Accounts receivable                                                                |   | 4,108        |   |   | 7,449        |  
|Inventory                                                                          |   | 143,320      |   |   | 130,687      |  
|Prepaids                                                                           |   | 23,134       |   |   | 17,526       |  
|                                                                                   |   |              |   |   |              |  
|                                                                                   |   | 176,176      |   |   | 164,882      |  
|Deposit                                                                            |   | 20,350       |   |   | 15,699       |  
|Equipment                                                                          |   | 46,840       |   |   | 54,899       |  
|Intangible assets                                                                  |   | 195,636      |   |   | 163,636      |  
|                                                                                   |   |              |   |   |              |  
|                                                                                   | $ | 439,002      |   | $ | 399,116      |  
|                                                                                   |   |              |   |   |              |  
|LIABILITIES                                                                        |  
|                                                                                   |   |              |   |   |              |  
|Current                                                                            |   |              |   |   |              |  
|Accounts payable and
      accrued liabilities  Note 3                            | $ | 909,556      |   | $ | 810,610      |  
|Advances payable                                                                   |   | 94,850       |   |   | 30,875       |  
|Promissory note payable                                                            |   | 105,000      |   |   | -            |  
|Dividends payable                                                                  |   | 140,767      |   |   | 114,991      |  
|Convertible promissory
      notes payable                                         |   | 584,447      |   |   | 584,447      |  
|                                                                                   |   |              |   |   |              |  
|                                                                                   |   | 1,834,620    |   |   | 1,540,923    |  
|                                                                                   |   |              |   |   |              |  
|STOCKHOLDERS'
      DEFICIENCY                                                     |  
|                                                                                   |   |              |   |   |              |  
|Class A preferred shares, without par
      value, redeemable at the option of the |   |              |   |   |              |  
|Company at $1 per share, convertible into common stock at
      $0.29 for each     |   |              |   |   |              |  
|preferred share, cumulative dividends
      payable at the annual rate of $0.10    |   |              |   |   |              |  
|per share, 20,000,000 shares authorized, 309,292 shares
      issued at            |   |              |   |   |              |  
|November 30, 2006 (February 28, 2006:
      343,050)                               |   | 309,290      |   |   | 343,048      |  
|Common stock, without par value, 100,000,000 shares
      authorized,              |   |              |   |   |              |  
|45,575,551 issued at November 30, 2006
      (February 28, 2006: 42,225,811)       |   | 12,362,142   |   |   | 11,580,664   |  
|- Note 2                                                                           |   |              |   |   |              |  
|Common stock subscribed                                                            |   | 215,500      |   |   | 76,000       |  
|Promissory note receivable                                                         |   | (585,000     | ) |   | (585,000     | )
|Subscriptions receivable                                                           |   | (934,832     | ) |   | (772,332     | )
|Additional paid-in capital                                                         |   | 62,529       |   |   | 62,529       |  
|Deficit                                                                            |   | (12,825,247  | ) |   | (11,846,716  | )
|                                                                                   |   |              |   |   |              |  
|                                                                                   |   | (1,395,618   | ) |   | (1,141,807   | )
|                                                                                   |   |              |   |   |              |  
|                                                                                   | $ | 439,002      |   | $ | 399,116      |  

SEE ACCOMPANYING NOTES

---

SENSE TECHNOLOGIES INC.INTERIM STATEMENTS OF LOSS
for the three and nine months ended November 30, 2006 and 2005 (Stated
in U.S. Dollars) (Unaudited)

|                                                |   | Three months ended |   |   | Nine months ended |  
|----------------------------------------------- | - | ------------------ | - | - | ----------------- | -
|                                                |   | November 30,       |   |   | November 30,      |  
|                                                |   | 2006               |   |   | 2005              |  
|                                                |   |                    |   |   |                   |  
|Sales                                           | $ | 16,616             |   | $ | 7,128             |  
|Direct costs  Note 3                           |   | 16,756             |   |   | 44,074            |  
|                                                |   |                    |   |   |                   |  
|Gross margin                                    |   | (140               | ) |   | (36,946           | )
|                                                |   |                    |   |   |                   |  
|Expenses                                        |   |                    |   |   |                   |  
|Advertising and marketing                       |   | 16,140             |   |   | 53,275            |  
|Amortization                                    |   | 2,686              |   |   | 2,765             |  
|Bad debts (recovered)                           |   | 30,249             |   |   | (9,817            | )
|Consulting fees                                 |   | 452,730            |   |   | 173,622           |  
|Contract labour                                 |   | 3,682              |   |   | -                 |  
|Filing fees                                     |   | 687                |   |   | 561               |  
|Financing fees  Note 3                         |   | 4,713              |   |   | -                 |  
|Insurance                                       |   | 13,636             |   |   | 13,361            |  
|Interest and bank charges                       |   | 1,931              |   |   | 344               |  
|Interest on convertible promissory notes        |   |                    |   |   |                   |  
| Note 3                                        |   | 15,769             |   |   | 15,447            |  
|Legal and accounting  Note 3                   |   | 29,004             |   |   | 36,488            |  
|Office and miscellaneous                        |   | 3,696              |   |   | 16,965            |  
|Rent                                            |   | 16,212             |   |   | 12,933            |  
|Shareholder information and
      printing      |   | -                  |   |   | 3,358             |  
|Telephone and utilities                         |   | 1,772              |   |   | 1,407             |  
|Transfer agent fees                             |   | 2,552              |   |   | 3,433             |  
|Travel and automobile                           |   | 19,929             |   |   | 6,549             |  
|                                                |   |                    |   |   |                   |  
|                                                |   | 615,388            |   |   | 330,691           |  
|                                                |   |                    |   |   |                   |  
|Loss before other items                         |   | (615,528           | ) |   | (367,637          | )
|                                                |   |                    |   |   |                   |  
|Other items:                                    |   |                    |   |   |                   |  
|Loan fee                                        |   | -                  |   |   | -                 |  
|Interest income                                 |   | 13,163             |   |   | 13,162            |  
|Provision for accrued interest
      receivable |   | (13,163            | ) |   | (13,162           | )
|                                                |   |                    |   |   |                   |  
|Net loss for the period                         | $ | (615,528           | ) | $ | (367,637          | )
|                                                |   |                    |   |   |                   |  
|Basic and diluted loss per share                | $ | (0.01              | ) | $ | (0.01             | )
|                                                |   |                    |   |   |                   |  
|Weighted average number of shares               |   |                    |   |   |                   |  
|outstanding                                     |   | 38,170,273         |   |   | 35,995,666        |  

SEE ACCOMPANYING NOTES

---

SENSE TECHNOLOGIES INC.INTERIM STATEMENTS OF CASH
FLOWS for the nine months ended Nobember 30, 2006 and 2005 (Stated in
U.S. Dollars) (Unaudited)

|                                                   |   | 2006     |   |   | 2005     |  
|-------------------------------------------------- | - | -------- | - | - | -------- | -
|                                                   |   |          |   |   |          |  
|Operating Activities                               |   |          |   |   |          |  
|Net loss for the period                            | $ | (952,755 | ) | $ | (615,094 | )
|Add items not involving
      cash:                |   |          |   |   |          |  
|Common shares
      issued for consulting services |   | 380,220  |   |   | 170,000  |  
|Common shares issued for a loan fee                |   | -        |   |   | 4,000    |  
|Amortization                                       |   | 8,059    |   |   | 7,762    |  
|Changes in non-cash
      working capital balances |   |          |   |   |          |  
|related to operations:                             |   |          |   |   |          |  
|Accounts receivable                                |   | 3,341    |   |   | 8,153    |  
|Inventory                                          |   | (12,633  | ) |   | (303,077 | )
|Prepaids                                           |   | (5,608   | ) |   | (30,923  | )
|Deposit                                            |   | (4,651   | ) |   | -        |  
|Accounts payable                                   |   | 98,946   |   |   | (17,596  | )
|Advances payable                                   |   | 63,975   |   |   | (24,100  | )
|Promissory note payable                            |   | 105,000  |   |   | (33,092  | )
|License fee
      payable                          |   | -        |   |   | (56,250  | )
|Dividends payable                                  |   | -        |   |   | 30,866   |  
|                                                   |   |          |   |   |          |  
|Net cash used in operations                        |   | (316,106 | ) |   | (859,351 | )
|                                                   |   |          |   |   |          |  
|Investing Activities                               |   |          |   |   |          |  
|Acquisition of equipment and furniture             |   | -        |   |   | (10,657  | )
|Patent cost                                        |   | (32,000  | ) |   | (4,587   | )
|                                                   |   |          |   |   |          |  
|Net cash used in investing activities              |   | (32,000  | ) |   | (15,244  | )
|                                                   |   |          |   |   |          |  
|Financing Activities                               |   |          |   |   |          |  
|Subscriptions receivable                           |   | 37,500   |   |   | (37,500  | )
|Dividends                                          |   | -        |   |   | (30,866  | )
|Common shares issued for cash                      |   | 167,500  |   |   | 352,588  |  
|Common shares
      subscribed                     |   | 139,500  |   |   | 480,800  |  
|                                                   |   |          |   |   |          |  
|Net cash provided by financing activities          |   | 344,500  |   |   | 765,022  |  
|                                                   |   |          |   |   |          |  
|Decrease in cash during the period                 |   | (3,606   | ) |   | (109,573 | )
|                                                   |   |          |   |   |          |  
|Cash, beginning of period                          |   | 9,220    |   |   | 131,313  |  
|                                                   |   |          |   |   |          |  
|Cash, end of period                                | $ | 5,614    |   | $ | 21,740   |  
|                                                   |   |          |   |   |          |  
|Non-cash Transactions  Note 4                     |   |          |   |   |          |  

SEE ACCOMPANYING NOTES

---

SENSETECHNOLOGIESINC.STATEMENT OF STOCKHOLDERS DEFICIENCY for the period ended November
30, 2006 (Stated in U.S. Dollars) (Unaudited )

Common
        Stock
      
      
      Preferred
        Stock
      
      
      
      
      
      Promissory
      
      
      CommonIssued
      
      
      
      
      
      Issued
      
      
      
      
      
      Paid-in
      
      
      Note
      
      
      Stock
      
      
      Subscriptions
      
      
      AccumulatedShares
      
      
      Amount
      
      
      Shares
      
      
      Amount
      
      
      Capital
      
      
      Receivable
      
      
      Subscribed
      
      
      Receivable
      
      
      Deficit
      
      
      TotalBalance, February 28, 2005
      
      22,875,158
      
      
      8,228,246
      
      
      1,593,027
      
      
      1,593,025
      
      
      62,529
      
      
      (585,000
      )
      
      232,200
      
      
      -
      
      
      (10,317,455
      )
      
      (786,455
      )Pursuant to agreements to convertpreferred shares into commonshares                                                
         - at $0.29
      
      4,310,085
      
      
      1,249,977
      
      
      (1,249,977
      )
      
      (1,249,977
      )
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -Pursuant to the conversion ofpreferred share dividends             
        - at $0.13
      
      1,184,767
      
      
      154,021
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      154,021Pursuant to the exercise of warrants-
        at $0.15
      
      3,710,000
      
      
      556,500
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (7,500
      )
      
      -
      
      
      549,000Pursuant to an agreement to issueshares for a loan fee                        
         - at $0.05
      
      80,000
      
      
      4,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      4,000Pursuant to consulting services-
        at $0.20
      
      25,000
      
      
      5,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      5,000-
        at $0.33
      
      500,000
      
      
      165,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      165,000Pursuant to legal services           
         - at $0.20
      
      50,000
      
      
      10,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      10,000Pursuant to a private placement-
        at $0.05
      
      5,304,000
      
      
      265,200
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (211,200
      )
      
      (30,000
      )
      
      -
      
      
      24,000Less: issue costs
      
      -
      
      
      (7,112
      )
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (7,112
      )-
        at $0.15
      
      200,001
      
      
      30,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      30,000-
        at $0.20
      
      925,000
      
      
      185,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      185,000-at
        $0.24
      
      3,061,800
      
      
      734,832
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (734,832
      )
      
      -
      
      
      -Dividends
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (39,442
      )
      
      (39,442
      )Common share subscriptions
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      55,000
      
      
      -
      
      
      -
      
      
      55,000Net loss for the year
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (1,489,819
      )
      
      (1,489,819
      )Balance, February 28, 2006
      
      42,225,811
      
      
      11,580,664
      
      
      343,050
      
      
      343,048
      
      
      62,529
      
      
      (585,000
      )
      
      76,000
      
      
      (772,332
      )
      
      (11,846,716
      )
      
      (1,141,807
      )


SEE ACCOMPANYING NOTES

---

Continued

SENSETECHNOLOGIESINC.
STATEMENT OF STOCKHOLDERS DEFICIENCY for the period ended November 30,
2006 (Stated in US Dollars) (Unaudited )

Common
        Stock
      
      
      Preferred
        Stock
      
      
      
      
      
      Promissory
      
      
      CommonIssued
      
      
      
      
      
      Issued
      
      
      
      
      
      Paid-in
      
      
      Note
      
      
      Stock
      
      
      Subscriptions
      
      
      AccumulatedShares
      
      
      Amount
      
      
      Shares
      
      
      Amount
      
      
      Capital
      
      
      Receivable
      
      
      Subscribed
      
      
      Receivable
      
      
      Deficit
      
      
      TotalBalance, February 28, 2006
      
      42,225,811
      
      
      11,580,664
      
      
      343,050
      
      
      343,048
      
      
      62,529
      
      
      (585,000
      )
      
      76,000
      
      
      (772,332
      )
      
      (11,846,716
      )
      
      (1,141,807
      )Pursuant to a private placement-
        at $0.10
      
      600,000
      
      
      60,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      109,500
      
      
      -
      
      
      -
      
      
      169,500-
        at $0.20
      
      250,000
      
      
      50,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (40,000
      )
      
      -
      
      
      -
      
      
      10,000Pursuant to the exercise of warrants-
        at $0.15
      
      383,333
      
      
      57,500
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (7,500
      )
      
      -
      
      
      -
      
      
      50,000Pursuant to agreements to convertpreferred shares into commonshares                                                 
        - at $0.29
      
      116,407
      
      
      33,758
      
      
      (33,758
      )
      
      (33,758
      )
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -Common shares issued in exchangefor consulting services as per anagreement for a right to purchasecommon shares                                
         - at$0.19
      
      2,000,000
      
      
      380,220
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      380,220Cash consideration thereon-
        at $0.10
      
      -
      
      
      200,000
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (200,000
      )
      
      -
      
      
      -Common share subscriptions
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      77,500
      
      
      37,500
      
      
      -
      
      
      115,000Dividends
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (25,776
      )
      
      (25,776
      )Net loss for the period
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      -
      
      
      (952,755
      )
      
      (952,755
      )Balance, November 30, 2006
      
      45,575,551
      
      $
      12,362,142
      
      
      309,292
      
      $
      309,290
      
      $
      62,529
      
      $
      (585,000
      )
      $
      215,500
      
      $
      (934,832
      )
      $
      (12,825,247
      )
      $
      (1,395,618
      )


SEE ACCOMPANYING NOTES

---

SENSE TECHNOLOGIES INC.NOTES TO THE INTERIM
FINANCIAL STATEMENTS November 30, 2006 (Stated in U.S. Dollars)
(Unaudited)

|Note 1 | Interim Reporting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       | While the information presented in the accompanying nine
      months to November 30, 2006 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, 2006.
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|       | Operating results for the nine months ended November 30,
      2006 are not necessarily indicative of the results that can be expected
      for the year ending February 28, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Note 2 | Common Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

| | a) | Escrow:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | At November 30, 2006, 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:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | Right-to-Purchase Common Shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | During the period ended November 30, 2006, the Company
      granted the right to purchase 2,000,000 common shares at $0.10 per share
      for a period of two years in exchange for consulting services subject to
      completion of certain milestone achievements.                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    | This Right-to-Purchase, accounted for in accordance with
      the provisions of Statement of Financial Accounting Standards No. 123R,
      Share-based Payments, was valued at $380,220 using the Black-Scholes
      fair value pricing model with the following
assumptions:                                                                                                                                                                                                                                                                                             

---

Sense Technologies Inc. Notes to the Interim Financial
Statements November 30, 2006 (Stated in U.S. Dollars)  Page
2(Unaudited)

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

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

| | Volatility              | 174.49%
| | ----------------------- | -------
| | Expected life           | 2 years
| | Dividend yield          | 0.00%  
| | Risk-free interest rate | 3.91%  

During the period ended November 30,
2006, the milestones were achieved and the right to purchase the 2,000,000
common shares was fully exercised.

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.

November 30, 2006
    
    
    November 30, 2005Weighted
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    AverageExercise
    
    
    
    
    
    ExerciseShares
    
    
    Price
    
    
    Shares
    
    
    PriceOutstanding and exercisable
      atbeginning of period
    
    350,000
    
    
    $1.12
    
    
    1,200,000
    
    
    $1.53Expired
    
    (25,000
    )
    
    $1.03
    
    
    (325,000
    )
    
    $1.03Outstanding and exercisable
      at end ofthe period
    
    325,000
    
    
    $1.12
    
    
    875,000
    
    
    $1.72


At November 30, 2006, 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 Date50,000
    $2.30
    January 10, 2007100,000
    $0.75
    September 26, 2007150,000
    $1.00
    February 1, 200825,000
    $1.00
    March 14, 2008325,000


---

Sense Technologies Inc. Notes to the Interim Financial
Statements November 30, 2006 (Stated in U.S. Dollars)  Page
3(Unaudited)

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

| | b) | Commitments:  (contd) Common Share Purchase
      Warrants
| | -- | ------------------------------------------------------------

| |                        |             | Exercise |                 
| | ---------------------- | ----------- | -------- | ----------------
| |                        | Number      | Price    | Expiry Date     
| |                        |             |          |                 
| | Balance, beginning of  |             |          |                 
| | period                 | 3,500,000   | $0.15    | November 4, 2006
| | Less: expired          | (3,500,000) |          |                 
| |                        |             |          |                 
| | Balance, end of period | -           |          |                 

Common Stock Subscribed

As at November 30, 2006, the Company
has received $21,000 in respect of private placements of 140,000 common shares
at $0.15 per share and $194,500 in respect of private placements of 1,945,000
common shares at $0.10 per share. As at November 30, 2006, 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 |  |   | Nine Months Ended | 
| | --------------------------- | - | ------------------ |  | - | ----------------- | 
| |                             |   | November 30,       |  |   | November 30,      | 
| |                             |   | 2006               |  |   | 2005              | 
| |                             |   |                    |  |   |                   | 
| | Accounting fees             | $ | -                  |  | $ | 13,220            | 
| | Financing fee               | $ | -                  |  | $ | -                 | 
| | Interest                    | $ | 4,713              |  | $ | -                 | 
| | Direct costs - research and |   |                    |  |   |                   | 
| | development                 | $ | -                  |  | $ | 35,000            | 

As at November 30, 2006, included in
accounts payable is $17,534 (February 28, 2006: $5,413) owing to an accounting
firm in which a director of the Company is a partner and the same director with
respect to unpaid fees and expenses, $17,500 (February 28, 2006: $Nil) owing to
a company controlled by a director, $480,000 (February 28, 2006: $480,000) owing
to shareholders of the Company in respect of royalties payable and $50,992
(February 28, 2006: $50,992) owing to the former president of the Company in
respect of unpaid wages.

---

Sense Technologies Inc. Notes to the Interim Financial
Statements November 30, 2006 (Stated in U.S. Dollars)  Page
4(Unaudited)

|Note 4 | Non-cash Transactions                                                                                                                                                                                                                 
|------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                       
|       | Investing and financing activities that do not have a
      direct impact on current cash flows are excluded from the statement of
      cash flows. The following transactions were excluded from the statements
      of cash flows:
|       |                                                                                                                                                                                                                                       
|       | During the period ended November
      30, 2006:                                                                                                                                                                                      

| | i)  | the Company issued 2,000,000 common shares at $0.19 per
      share for a total of $380,220 in exchange for consulting
  services.                                            
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                               
| | ii) | the Company issued 116,407 common shares at $0.29 per
      common share for a total of $33,758 pursuant to an agreement to exchange
      preferred shares for common shares.

During the period ended November 30,
2005, the Company:

| | i)   | issued 5,494,852 common shares pursuant to agreements to
      convert 1,249,977 preferred shares valued at $1,249,977 and preferred
      share dividends payable of $154,021.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                
| | ii)  | issued 25,000 common shares at $0.20 per share for a
      total of $5,000 in exchange for consulting services.                                                                
| |      |                                                                                                                                                                                
| | iii) | issued 80,000 common shares at $0.05 per share for a
      total of $4,000 pursuant to an agreement to issue shares as a fee for a
      loan.                                 

|Note 5 | Comparative Figures                                                                                                                                                           
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                               
|       | Certain of the comparative figures for the nine months
      ended November 30, 2005 have been reclassified to conform with the
      presentation used in the current period.

---

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
November 30, 2006 and November 30, 2005.

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 November 30, 2006 as compared to the
period ended November 30, 2005.

Sales for the period ended November 30, 2006 were $94,505, a
315 percent increase over the period ended November 30, 2005. The Company has
been concentrating on the wholesale and retail launch of its ScopeOut®
products.

Direct costs were $36,667, a 34 percent decrease over the
period ended November 30, 2005, which included $48,475 of expensed research and
development costs. The Company realized a positive gross margin contribution of
$57,838.

General and administrative expenses were $1,010,593 for the
period ended November 30, 2006 as compared to $578,241 for the period ended
November 30, 2005. The increase was partially attributable to extra costs
incurred in preparation of launching the ScopeOut® products into the wholesale
and retail marketplace.

Liquidity and Capital Resources

At November 30, 2006, the Company had cash and cash equivalents
on hand of $5,614 compared to $21,740 at November 30, 2005. During the period
ended November 30, 2006, the Company funded operations using existing cash
balances, cash flow from operations, and by raising money through the issuance
of Common Stock.

At November 30, 2006, we had a working capital deficit of
$1,658,444 compared to a working capital deficit of $529,365 at November 30,
2005. The increase in working capital deficit is largely due to the write off of
Guardian Alert® inventory products and components as required by the Company's
auditors.

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 November 30, 2006. 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 November 30, 2006 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

1.          
On June 29, 2006, 333,333 shares were issued pursuant to the exercise of share
purchase warrants. The warrants were exercised at $0.15 USD per share for
aggregate proceeds to the Company of $50,000 USD. The shares are restricted
pursuant to Rule 144 promulgated under the U.S. Securities Act of
1933.

2.          
On June 29, 2006, one investor under Rule 506 of Regulation D, subscribed for an
aggregate of 100,000 common shares at a price of $0.10 USD per share for total
proceeds to the Company of $10,000 USD. The shares are restricted pursuant to
Rule 144 promulgated under the U.S. Securities Act of 1933.

3.          
On September 7, 2006, 116,407 shares were issued pursuant to the conversion of
27,134 Class A Preferred Shares and the subscription, under Rule 506 of
Regulation D, equal to the amount of accrued dividends payable by the Company at
$0.29 per share. The shares are restricted pursuant to Rule 144 promulgated
under the U.S. Securities Act of 1933.

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: January 19, 2007 | SENSE TECHNOLOGIES INC.
|---------------------- | -----------------------
|                       |                        
|                       |                        
|                       | By:                    
|                       |                        
|                       |                        

---