10-Q
  Commission
        File Number:     2-71136
 
 DETONICS
        SMALL ARMS LIMITED
 (Exact
        name of registrant as specified in it's charter)
 
 Washington
              
              91-1150122(State
                  or other Jurisdiction of incorporation or organization)
              
              (IRS
                  Employer ID No.)
 
 14508
        SE
        51st, Bellevue, WA  98006
 (Address
        and zip code of principal executive offices)
 
 Registrant's
        telephone number, including area code:  (425) 746-6761
  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:    ̈
 
 DOCUMENTS
        INCORPORATED BY REFERENCE
 
 Form
        S-1,
        Detonics Small Arms Limited, Commission File No. 2- 71136, but excluding
        the
        balance sheet of Detonics Small Arms Limited together with the report of
        independent certified public accountants, is incorporated by
        reference.
  
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            1
 PART
          I -
          FINANCIAL INFORMATION
 
 Item
                    1:
                Financial
                    Statements
 
 See
          Appendix A
 
 Item
                    2:
                Management's
                    Discussion and Analysis of the Financial Condition and Results
                    of
                    Operations
 
 No
          royalties or other income were booked in the third quarter of 2007.
 
 The
          partnership originally had licensed the manufacturing and sale of its products
          to Detonics Manufacturing Corporation (DMC) a subsidiary of Energy Sciences
          Corporation, (ESC).  DMC, ESC and the Partnership entered Chapter 11
          bankruptcy proceedings on April 29, 1986.  In late 1987, the
          Bankruptcy Court approved a sale of all of DMC's assets to a new entity,
          formed
          by outside third parties, called New Detonics Manufacturing Corporation,
          (NDMC).
          By subsequent majority vote of the limited partners of the Partnership,
          a new
          license was entered into between the Partnership and NDMC, which called
          for
          royalties to begin in late 1991 at the rate of 4% of gross sales.  No
          partnership income was expected before that time.
 On
        May
        13, 1988, ESC's bankruptcy was dismissed and all remaining assets were
        repossessed by the sole secured creditor of ESC, the firm of Murphy &
Elgot.  These assets are primarily amounts owed to ESC by the
        partnerships and the rights to produce products owned by the
        partnerships.  The general partners had discussions with Mr. Murphy,
        (who was also counsel for ESC and the partnerships), on the elimination of
        most
        or all the debt owed by the Partnership to ESC, (and, therefor to Murphy
&
Elgot).
 
 As
        previously reported, the general partners learned in late 1991 that production
        of firearms at NDMC was suspended in 1991.  The general partners have
        subsequently been advised that Murphy & Elgot, the sole secured creditors of
        the original DMC, have moved to have the "soft" assets (the name "Detonics"
        and
        the right to manufacture the Detonics designs) which were assigned to NDMC
        by
        the Bankruptcy Court be returned to Murphy & Elgot and Moore. This occured
        in September 1992.  Mr. Murphy passed away in 1997. The general
        partners have had discussions with Mr. Elgot regarding future attempts to
        recommercialize the products and he indicated he would approve any
        recommercialization plan that the general partners would be able to
        obtain.  The general partners had been discussing such plans with a
        third party.  Royalty amounts of 5% of gross sales have been verbally
        agreed to, but no written agreement had been prepared or signed as of December
        31, 2002.  It was learned in April 2003 that this plan would not take
        place. Mr. Ahern continued to explore other financing sources and the
        partnership has signed a three year agreement with Mr. Ahern giving him the
        exclusive right to seek funding or a partner to reestablish production. There
        can be no guarantee that it will be possible to arrange for production of
        any of
        the Partnership's products.
 
 Mr.
        Ahern
        was successful in finding a backer and a new company named Detonics USA LLC
        was
        formed (not owned by the partnership) The partnership signed a license agreement
        with Detonics USA LLC which involves a royalty of about 5% of gross sales
        of
        each of the partnership's products manufactured and sold, appropriately divided
        among all the firearms partnerships and shared with Mark Elgot and Richard
        Moore
        in the ratio of 35% to Elgot and Moore combined and 65% to the partnership(s)
        whose products ahve been sold.  There can be no assurance that
        Detonics USA will succeed and that royalties will be paid.
 
 Sid
        Woodcock, co-General Partner of the partnership was V.P. of Research &
Development.  Michel Maes, also co-General and Managing Partner of the
        partnership, is a principal and co-owner of an electronics
        company.  Mr. Maes is not a stock holder and has not played an active
        role in Detonics USA LLC.
 
 The
        General Partners were recently made aware that Detonics USA had been sold
        but
        that shortly thereafter the sale had been voided. A new party has approached
        the
        Partnership directly and indicated interest in taking over the
        project.  No final agreement has been signed yet.
  The
        General Partners have been in touch with Detonics USA to determine the status
        of
        the company, their plans for the future and the payment of any royalties
        due but
        have not heard anything definitive yet.
  Page
            2
  PART
        II -
        OTHER INFORMATION
 
 Item
                  1:
              Legal
                  Proceedings
 
 The
        staff
        of the Securities and Exchange Commission's Division of Enforcement recommended
        to the Commission that it authorize the staff to file a civil injunction
        action
        against the Partnership and Messrs. Maes and Steffey to require timely filing
        of
        reports with the commission.  Such an injunction was entered on June
        25, 1986. All subsequent reports have been timely filed.
 
 On
        October 16, 1989 the U.S. Bankruptcy Court ordered the conversion of the
        partnership's Chapter 11 to a Chapter 7.  On May 11, 1990, the
        partnership filed an amended motion to dismiss the Chapter 7.  The
        motion was granted on June 21, 1990 and the partnership is no longer in
        bankruptcy.
 
 In
        March
        1993, the partnership received a "Notice of Beginning of Administrative
        Proceeding" from the Internal Revenue Service.  The issue was a
        possible finding that the partnership "burned out" and is subject to
        recapture.  The general partners are of the position that the products
        and the partnership remain viable.  In July, 1993, the general
        partners received notification from the IRS that they did not intend to make
        any
        changes as a result of that Administrave Proceeding.  The IRS has the
        right to bring the subject up again.
 
 Item
                  2:
              Changes
                  In Securities: None
 
 Item
                  3:
              Defaults
                  Upon Senior Securities: None
 
 Item
                  4:
              Submission
                  Of Matters To A Vote Of Security Holders:
                  None
 
 Item
                  5:
              Other
                  Information: None
 
 Item
                  6:
              Exhibits,
                  Financial Statement Schedules, and Reports on Form
                  8-K
 
 a)
              Documents
                  filed as part of this Report: Unaudited financial
                  statement.
 
 b)
              Reports
                  on Form 8-K: None.
 
 Item
                  9:
              Disagreements
                  on Accounting and Financial Disclosure
                  Matters
 
 DSAL
        has
        no independent accountant at present, in accordance with Rule 3-11 of Regulation
        S-X
 
 Item
                  9A
              Controls
                  and Procedures
 
 The
        Partnership's disclosure controls and procedures are designed to ensure that
        information required to be disclosed in reports that are filed or submitted
        under the Securities Exchange Act of 1934, as amended, is recorded, processed,
        summerized and reported within the time periods specified in the rules and
        forms
        of the Securities and Exchange Commission.  Disclosure controls and
        procedures include, without limitation, controls and proceedures designed
        to
        ensure that information required to be disclosed by an issuer in the reports
        that it files or submits under the Act is accumulated and communicated to
        the
        issuer's management including its principal executive and principal financial
        officers, or persons performing similar functions (the Managing General
        Partner), as appropriate to allow timely decisions regarding required
        disclosure.
  Page
            3
  The
        Managing General Partner has reviewed the effectiveness of the Partnership's
        disclosure controls and procedures as of the end of the period covered by
        this
        Form 10-Q report and have concluded that the disclosure controls and proceedures
        are effective.
  There
        were no changes in our internal control over financial reporting during the
        three months ended Septembere 30, 2007 that have materially affected, or
        are
        reasonably likely to materially affect, our internal control over financial
        reporting.
  9B
              Other
                  Information
 
 None
  Page
            4
  Appendix
        A
 
 DETONICS
        SMALL ARMS LIMITED
 BALANCE
        SHEET
 Sept.
        30,
        2007
 (UNAUDITED)
 
 ASSETSCash
              
              $
              0Royalties
                  Receivable
              
              
              0TOTAL
                  CURRENT ASSETS
              
              $
              0Intangible
                  Assets Less Amortization
              
              
              0Receivable
                  from Affiliates Less Allowance
              
              
              0TOTAL
                  ASSETS
              
              $
              0LIABILITIES
                  AND PARTNERS' EQUITYAccounts
                  Payable
              
              $
              0Taxes
                  Payable
              
              
              0TOTAL
                  CURRENT LIABILITIES
              
              
              0Payable
                  to Affiliates
              
              
              672,769TOTAL
                  LIABILITIES
              
              
              672,769Partners'
                  Capital(672,769
              )TOTAL
                  LIABILITIESAND
                  PARTNER'S EQUITY
              
              
              0
  Page
            5
  DETONICS
        SMALL ARMS LIMITED
 STATEMENT
        OF INCOME
 FOR
        THE
        QUARTER ENDING
 Sept.
        30,
        2007
 (UNAUDITED)
 
 Royalty
                  Revenue
              
              $
              0Expenses
              
              
              0Net
                  Income (Loss)
              
              $
              0
  NOTE:
        The
        products owned by the Partnership were licensed to New Detonics
        Manufacturing Corporation (NDMC).  Under the terms of that
        license, royalties were not scheduled to be paid to the Partnership
        until late 1991.  NDMC suspended production of all firearms
        and the license with NDMC has been terminated.  A new license
        agreement was signed with Detonics USA in August 2004.
   Page
            6
  DETONICS
        SMALL ARMS LIMITED
 STATEMENT
        OF CASH FLOWS
 FOR
        THE
        QUARTER ENDING
 Sept.
        30,
        2007
 (UNAUDITED)
 
 Net
                  Cash Provided By Operating Activities
              
              $
              0Net
                  Cash Used By Investing Activities
              
              
              0Net
                  Cash Provided By Financing Activities
              
              
              0Net
                  Increase In Cash
              
              $
              0Cash
                  At Beginning Of Period
              
              $
              0Cash
                  At End Of Period
              
              $
              0
  Page
            7
  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.
 DETONICS
                    SMALL ARMS LIMITED(Registrant)10/10/07
                
                /S/  Michel
                    E. Maes, Managing General Partner(Date)
                
                (Signature)







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