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

                                   FORM 10-QSB


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



FOR THE QUARTERLY
PERIOD ENDED SEPTEMBER 30, 2007                  COMMISSION FILE NUMBER: 0-10707
             ------------------                                          -------


                              THERMODYNETICS, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


            DELAWARE                                     06-1042505
-------------------------------             ------------------------------------
(State or other Jurisdiction of             (I.R.S. Employer Identification No.)
 Incorporation or Organization)

     651 DAY HILL ROAD, WINDSOR, CT             06095           860-683-2005
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)      (Zip Code)      (Telephone Number)


--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report.)

Check whether the issuer has (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 registrar is a shell company (as defined in
Rule 12b-2 of the Exchange Act).                    Yes [ ]  No [X]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.

           Class                               Outstanding at September 30, 2007
--------------------------------------         ---------------------------------
Common stock $.01 Par Value                            4,046,361 Shares


Transitional Small Business Disclosure Format       Yes ( ) No (x)


                                   Page - 1 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES


                                      INDEX
                                      -----



                                                                     Page Number
                                                                     -----------

PART I       FINANCIAL INFORMATION

   Item 1.   Financial Statements

             Consolidated Balance Sheets
                September 30, 2007 and March 31, 2007.................      3

             Consolidated Statements of Income
                Three Months Ended September 30,
                2007 and 2006.........................................      4

             Consolidated Statements of Income
                Six Months Ended September 30,
                2007 and 2006.........................................      5

             Consolidated Statements of Cash Flows
                Six Months Ended September 30,
                2007 and 2006.........................................      6

             Notes to Consolidated Financial Statements...............     7-10

   Item 2.   Management's Discussion and Analysis or
                Plan of Operation ....................................     11-13

   Item 3.   Controls and Procedures .................................      13


PART II      OTHER INFORMATION

   Item 1.   Legal Proceedings........................................      14

   Item 2.   Unregistered Sales of Equity Securities and Use
                of Proceeds...........................................      14

   Item 3.   Defaults Upon Senior Securities...........................     14

   Item 4.   Submission of Matters to a Vote of Security Holders.......     14

   Item 5.   Other Information.........................................     14

   Item 6.   Exhibits and Reports on Form 8-K..........................     14

SIGNATURE PAGE .......................................................      14


                                   Page - 2 -
<PAGE>


                        PART I:     FINANCIAL INFORMATION
                        -------     ---------------------

ITEM 1. FINANCIAL STATEMENTS.
        --------------------

                      THERMODYNETICS, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (in 000's)

<TABLE>
<CAPTION>
                                          ASSETS
                                          ------
                                                                 September 30,
                                                                     2007       March 31, 2007
                                                                 -------------  --------------
                                                                  (Unaudited)      (Audited)
CURRENT ASSETS
--------------
<S>                                                                <C>             <C>
  Cash                                                             $    333        $    659
  Accounts Receivable, Net                                            2,720           2,840
  Inventories                                                         3,897           3,416
  Prepaid Expenses and Other Current Assets                             396             121
  Marketable Securities                                                 299             216
                                                                   --------        --------
    Total Current Assets                                              7,645           7,252
                                                                   --------        --------

PROPERTY, PLANT AND EQUIPMENT
-----------------------------
  Property, Plant and Equipment - At Cost                            15,228          15,025
  Less: Accumulated Depreciation                                      7,611           7,390
                                                                   --------        --------
    Property, Plant, and Equipment - Net                              7,617           7,635
                                                                   --------        --------

OTHER ASSETS
------------
  Intangible Assets - Net of Amortization                                93              93
  Investment in Unaffiliated Company                                     95              95
  Deferred Income Taxes                                                 980             980
  Deposits and Other                                                     70             106
                                                                   --------        --------
    Total Other Assets                                                1,238           1,274
                                                                   --------        --------

TOTAL ASSETS                                                       $ 16,500        $ 16,161
                                                                   ========        ========

                           LIABILITIES AND STOCKHOLDERS' EQUITY
                           ------------------------------------

CURRENT LIABILITIES
-------------------
  Accounts Payable                                                 $  1,975        $  2,095
  Accrued Taxes and Expenses                                            772             975
  Current Portion of Long-Term Debt                                     174             229
  Notes Payable - Bank                                                   13               0
                                                                   --------        --------
    Total Current Liabilities                                         2,934           3,299
                                                                   --------        --------

DEFERRED INCOME TAXES                                                   346             335
LONG-TERM DEBT                                                        2,126           1,966
LONG-TERM LIABILITIES OF DISCONTINUED OPERATIONS                      2,782           2,782
MINORITY INTEREST IN SUBSIDIARY                                       3,171           3,164

STOCKHOLDERS' EQUITY
--------------------
  Common Stock, Par Value $.01/Share,
    Authorized 25,000,000 shares, issued 4,046,361 shares at
    9/30/07 and 3/31/07                                                  40              40
  Additional Paid-in Capital                                          7,116           7,116
  Retained Earnings (Deficit)                                        (2,079)         (2,543)
  Accumulated Other Comprehensive Income                                 64               2
                                                                   --------        --------
    Total Stockholders' Equity                                        5,141           4,615
                                                                   --------        --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                         $ 16,500        $ 16,161
                                                                   ========        ========
</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                   Page - 3 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                    FOR THE THREE MONTHS ENDED SEPTEMBER 30,
                   (UNAUDITED)IN (000's) EXCEPT PER SHARE DATA

<TABLE>
<CAPTION>
                                                              2007             2006
                                                              ----             ----

<S>                                                       <C>              <C>
Net Sales                                                 $     7,207      $     5,865

Cost of Goods Sold                                              5,230            4,785
                                                          -----------      -----------

Gross Profit                                                    1,977            1,080

Selling, General & Administrative Expenses                      1,485              809
                                                          -----------      -----------

Income From Operations                                            492              271
                                                          -----------      ----------

Other Income (Expense)
   Interest Expense, Net                                          (41)             (64)
   Gain on Sale of Subsidiary Stock                                 0                0
   Other - Net                                                     (3)              31
                                                          -----------      -----------
   Total Other Income (Expense)                                   (44)             (33)
                                                          -----------      -----------

Minority Interest in Subsidiary                                   152               86
                                                          -----------      -----------
Income Before Income Taxes                                        296              152

Provision for Income Taxes                                         70               73
                                                          -----------      -----------
Income From Continuing Operations                                 226               79

Discontinued Operations:
Loss from Discontinued Operations Before Income Taxes               0                0
Income Tax Benefit                                                  0                0
                                                          -----------      -----------
Loss From Discontinued Operations                                   0                0
                                                          -----------      -----------
Net Income                                                        226               79

Other Comprehensive Income, net of tax:
Unrealized holding gains arising during the period                 40                0
                                                          -----------      -----------
Comprehensive Income                                      $       266      $        79
                                                          ===========      ===========

Earnings per Share-

Earnings per Share From Continuing Operations             $       .06
                                                                           $       .02

Earnings per Share From Discontinued Operations                     0                0
                                                          -----------      -----------
Total Earnings per Share                                  $       .06      $       .02
                                                          ===========      ===========


Weighted Average Shares Outstanding- Basic                  4,046,361        4,027,361
                                                          ===========      ===========
Weighted Average Shares Outstanding- Diluted                4,046,361        4,027,361
                                                          ===========      ===========
</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                   Page - 4 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                     FOR THE SIX MONTHS ENDED SEPTEMBER 30,
                   (UNAUDITED)IN (000's) EXCEPT PER SHARE DATA

<TABLE>
<CAPTION>
                                                                 2007             2006
                                                                 ----             ----
<S>                                                          <C>              <C>
Net Sales                                                    $    14,458      $    11,545

Cost of Goods Sold                                                10,509            9,106
                                                             -----------      -----------

Gross Profit                                                       3,949            2,439

Selling, General & Administrative Expenses                         2,849            1,773
                                                             -----------      -----------

Income From Operations                                             1,100              666
                                                             -----------      -----------

Other Income (Expense)
   Interest Expense, Net                                             (80)            (144)
   Gain on Sale of Subsidiary Stock                                    0            2,666
   Other - Net                                                        (5)             (15)
                                                             -----------      -----------
     Total Other Income (Expense)                                    (85)           2,507
                                                             -----------      -----------

Minority Interest in Subsidiary                                      333              128
                                                             -----------      -----------
Income Before Income Taxes                                           682            3,045

Provision for Income Taxes                                           237              215
                                                             -----------      -----------
Income From Continuing Operations                                    445            2,830

Discontinued Operations:
Loss from Discontinued Operations Before Income Taxes                  0               (9)
Income Tax Benefit                                                     0                0
                                                             -----------      -----------
Loss From Discontinued Operations                                      0               (9)
                                                             -----------      -----------
Net Income                                                           445            2,821

Other Comprehensive Income, net of tax:
Unrealized holding gains from investments arising during
the period                                                            62                0
                                                             -----------      -----------
   Comprehensive Income                                      $       507      $     2,821
                                                             ===========      ===========
Earnings per Share-
Earnings per Share From Continuing Operations Before
One Time Gain on Sale of Stock                               $       .11      $       .04
Earnings per Share From One Time Gain on Sale of Stock                 0              .66
                                                             -----------      -----------

Earnings per Share From Continuing Operations                        .11              .70
Earnings per Share From Discontinued Operations                        0                0
                                                             -----------      -----------
Total Earnings per Share                                     $       .11      $       .70
                                                             ===========      ===========

Weighted Average Shares Outstanding- Basic                     4,046,361        4,021,201
                                                             ===========      ===========
Weighted Average Shares Outstanding- Diluted                   4,046,361        4,021,201
                                                             ===========      ===========
</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                   Page - 5 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     FOR THE SIX MONTHS ENDED SEPTEMBER 30,

                                   (UNAUDITED)
                                   IN (000'S)

<TABLE>
<CAPTION>
                                                                        2007         2006
                                                                        ----         ----
OPERATING ACTIVITIES:
---------------------
<S>                                                                   <C>          <C>
  Net income                                                          $   445      $ 2,821
         Adjustments to reconcile net income to net cash provided
         by (used in) operating activities:

  Depreciation and amortization                                           221          196
  Gain on sale of stock of subsidiary                                      -0-      (2,666)
  Net change in minority interest in equity of subsidiary                   7          128
  Deferred tax provision (benefit)                                         11           43
  Changes in operating assets and liabilities:
    Increase (decrease) in accounts payable                              (120)          49
    Decrease (increase) in prepaid expenses and other assets             (239)         (48)
    Decrease (increase) in accounts receivable                            120         (451)
    Decrease (increase) in inventories                                   (481)        (652)
    Increase (decrease) in accrued taxes and expenses                    (203)         (25)
Cash provided from discontinued operations                                -0-            9
                                                                      -------      -------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                      (239)        (596)
                                                                      -------      -------

INVESTING ACTIVITIES;
---------------------
  Purchases of property, plant and equipment, net                        (203)        (262)
  Proceeds from sale of stock of subsidiary                               - 0-       6,755
  Purchase of marketable securities                                       (21)          -0-
                                                                      -------      -------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                      (224)       6,493
                                                                      -------      -------

FINANCING ACTIVITIES
--------------------
  Net proceeds (payments) on revolving debt                                13          287
  Net borrowings (payments) on long-term debt                             105         (320)
  Proceeds from stock sale used to repay debt                              -0-      (4,619)
  Compensation expense from stock options                                  19           -0-
  Cash used in financing activities of discontinued operations             -0-          -0-
                                                                      -------      -------

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                       137       (4,652)
                                                                      -------      -------

INCREASE (DECREASE) IN CASH                                              (326)       1,245
CASH AT BEGINNING OF PERIOD                                               659           -0-
                                                                      -------      -------
CASH AT END OF PERIOD                                                 $   333      $ 1,245
                                                                      =======      =======
</TABLE>


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                                   Page - 6 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
         FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
         --------------------------------------------------------------
                                   (UNAUDITED)

NOTE 1: BASIS OF PRESENTATION
        ---------------------

The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments), which are, in the opinion of management, necessary for a fair
statement of results for the interim periods. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States of America
have been condensed or omitted. The results of operations for the three and six
months ended September 30, 2007 and 2006 are not necessarily indicative of the
results to be expected for the full year.

NOTE 2: SALE OF MINORITY INTEREST IN SUBSIDIARY
        ---------------------------------------

On May 8, 2006, the Company completed the sale of a minority interest of its
subsidiary, Turbotec Products Plc (the "Plc"), whereby approximately 43.68% of
that company was sold pursuant to an offering on the AIM Market of the London
Stock Exchange. Prior to the offering, the Plc was established in the United
Kingdom as a holding company for the Company's operating subsidiary, Turbotec
Products, Inc. Pursuant to the offering, the Company and the Plc jointly sold a
total of 5,594,366 ordinary shares of the Plc at the price of 85 pence per
ordinary share, resulting in gross proceeds of 4,755,211 British Pounds. Under
the terms of the offering the two companies shared equally in the net proceeds
after fees and expenses. From the net proceeds received, an aggregate of
approximately $4,616,000 was used by the companies to repay term and revolving
bank debt.

Under a Relationship Agreement (RA), the Company and its Board of Directors (the
"Board") have agreed not to exercise its voting rights, except with the consent
of the nominated advisor and Plc in favor of any resolution to give the board of
the Plc authority under British law to allot shares in the Plc or to remove or
reduce any pre-emption rights that Plc shareholders may have. The RA contains
further provisions regarding an annual administration fee; restrictions on
related party transactions; non-competition provisions; restrictions on
appointments to the board of the Plc and mutual confidentiality and reporting
undertakings. The Company and the Plc established independent officers and
directors and the two boards of directors act independently.

COMMERCIAL LEASES:

The Company and Turbotec Products, Inc. entered into formal real estate leases
effective May 8, 2006, for approximately 54,500 square feet at 651 Day Hill
Road, Windsor, CT, and approximately 17,000 square feet at 50 Baker Hollow Road,
Windsor, CT. The leases commenced April 1, 2006 with a five-year term, and one
extension option for three years, and a second extension option for two years.
Rent charges with respect to the 651 Day Hill Road property are equal to seven
dollars per square foot in years one and two, escalating annually thereafter
through each of the extension terms; monthly fixed rent in year one equals
$31,792, escalating to $42,010 monthly in year ten, assuming both lease
extensions are exercised. Rent charges with respect to the 50 Baker Hollow Road
property are equal to $5.50 per square foot in year one, escalating annually
thereafter through each of the extension terms; monthly fixed rent in year one
equals $7,792, escalating to $10,979 monthly in year ten, assuming both lease
extensions are exercised.


                                   Page - 7 -
<PAGE>

NOTE 3: DISCONTINUED OPERATIONS
        -----------------------

In July 2005, the Company and its Vulcan Industries, Inc. subsidiary (Vulcan),
received a notice of default from an equipment finance institution and its bank.

On July 18, 2005, the Company consummated an agreement with a major customer and
its bank whereby the customer purchased certain Vulcan manufacturing equipment
by paying the balance on the related outstanding debt due the equipment finance
institution plus half of the balance due on a term loan to the City of Sturgis,
Michigan (Sturgis). The equipment finance institution and Sturgis each released
the Company and Vulcan from any further obligation. The Company and its bank (as
the only remaining secured creditor) entered into an agreement whereby the bank
waived the existing defaults on all debt instruments (except those relating to
the Vulcan debt which continued) and modified a financial covenant to exclude
Vulcan from the compliance calculation.

In August 2005, the Company discontinued the operations of Vulcan and began
liquidating its remaining assets and paid all sums received to the bank. At
September 30, 2005 all operating assets of Vulcan had been liquidated and the
Company and the bank restructured the balance of the secured debt resulting from
the Vulcan closure.

NOTE 4: INVENTORIES
        -----------

Inventories (in 000's)consist of the following at:

                                           September 30, 2007     March 31, 2007
                                           ------------------     --------------
         Raw materials                          $ 2,365              $ 2,224
         Work-in-process                            136                  123
         Finished goods                           1,431                1,104
         Less: Reserves                             (35)                 (35)
                                                -------              -------
                                                $ 3,897              $ 3,416
                                                =======              =======

Inventories are valued at the lower of cost or market, with cost determined on a
standard cost basis which approximates a first-in, first-out basis.

NOTE 5: EARNINGS PER SHARE
        ------------------

The Company has adopted Statement of Accounting Standards No. 128, "Earnings per
Share" (SFAS 128). Earnings per share for the three and six month periods ended
September 30, 2007 and September 30, 2006 have been computed in accordance with
this pronouncement, based on the weighted average of outstanding shares during
the periods.

The weighted average numbers of shares outstanding used in the calculations are
as follows:

<TABLE>
<CAPTION>
                                      Three Months Ended Sept. 30   Six Months Ended Sept 30
                                           2007          2006          2007          2006
                                           ----          ----          ----          ----
<S>                                     <C>           <C>           <C>           <C>
Weighted Average Shares - (Basic)       4,046,361     4,027,361     4,046,361     4,021,201
Assumed Conversion of Stock Options           -0-           -0-           -0-           -0-
                                        ---------     ---------     ---------     ---------
 Weighted Average Shares- (Diluted)     4,046,361     4,027,361     4,046,361     4,021,201
                                        =========     =========     =========     =========
</TABLE>


                                   Page - 8 -
<PAGE>

NOTE 6: INCOME TAXES
        ------------

In accordance with "Statement of Accounting Standards No. 109, Accounting for
Income Taxes" (SFAS 109), the primary components of the Company's deferred tax
assets and liabilities and the related valuation allowance are as follows (in
000's):

                                             September 30, 2007   March 31, 2007
                                             ------------------   --------------

         Assets:
           Uniform capitalization adjustment       $    38           $     4
           Net operating loss carryforward           1,633             1,112
           Research and development credit              61                69
           Other                                       341               479
                                                   -------           -------
                                                     2,073             1,664

         Liabilities:
           Accelerated depreciation                 (1,091)           (1,019)
                                                   -------           -------
                                                       982               645

         Less: Valuation reserve                      (348)               -0-

         Net deferred tax asset                    $   634           $   645
                                                   =======           =======

At September 30, 2007, the Company had net operating carryforwards of
approximately $1,633,000 expiring in years beginning 2012.

NOTE 7: CASH FLOW INFORMATION AND NON CASH INVESTING ACTIVITIES
        -------------------------------------------------------

The following supplemental information is disclosed pursuant to the requirements
of Financial Accounting Standards Board's "Statement of Accounting Standards No
95, Statement of Cash Flows".

                                                    6 Months Ended September 30,
                                                    ----------------------------
                                                             (in 000's)
                                                             ----------

                                                         2007          2006
                                                         ----          ----
         Cash payments for interest                      $ 80          $ 80



NOTE 8: FINANCIAL ACCOUNTING STANDARDS
        ------------------------------

In July 2002, the Public Company Accounting Reform and Investor Protection Act
of 2002 (the Sarbanes-Oxley Act) was enacted. Section 404 stipulates that public
companies must take responsibility for maintaining an effective system of
internal control. The Act requires public companies to report on the
effectiveness of their control over financial reporting and obtain an attest
report from their independent registered public accountant about management's
report. The Company is not required to comply with section 404 of the Act until
the fiscal year ending March 31, 2008.

In September 2006, the FASB issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes (an interpretation of FASB Statement No. 109),"
which is effective for fiscal years beginning after December 15, 2006. FIN 48
clarifies the accounting for uncertainty in income taxes recognized in financial
statements and prescribes a recognition threshold and measurement attribute for
the financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. The Company will adopt FIN 48 as of April
1, 2007. The cumulative effect upon adoption will be reported as an adjustment
to opening retained earnings. The Company has estimated that the cumulative


                                   Page - 9 -
<PAGE>

effect of adopting FIN 48 will not have a material impact on the financial
statements of the Company.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This
Statement defines fair value, establishes a framework for measuring fair value
under generally accepted accounting principles and expands disclosures about
fair value measurements. This Statement will be effective for the Company in
fiscal year 2009. The Company is currently evaluating the impact this Statement
will have on the Company's financial position, results of operations and cash
flows.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial Assets and Financial Liabilities." This Statement permits the
measurement of certain financial instruments at fair value. This Statement will
be effective for the Company in fiscal year 2009. The Company is currently
evaluating the impact this Statement will have on the Company's financial
position, results of operations and cash flows.


                                  Page - 10 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES

       ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

RESULTS OF OPERATIONS
---------------------

Operations in the six months ended Sep. 30, 2007 achieved a record $14.5 million
in revenue, with $7.2 million recorded in both of the last 2 three month
periods. Operating income was $1.1 million in the six months vs. $666,000 and
net income from continuing operations was $445,000 vs. $164,000 (excluding the
one time gain on sale of the stock in the 2006 Turbotec IPO). Earnings per
share, on the same basis, were $.11 vs. $.04 in the six months and $.06 vs. $.02
for the September three month periods of fiscal 2008 and 2007.

These improved results of operations are attributable to continued shipments of
coaxial coils to water source heat pump OEMs and to tubing sales to boiler
tubing customers as well as manufacturing improvements. The fallout from the
subprime loans affecting the housing market has not reduced shipments of water
source heat pump coils, but has significantly reduced swimming pool heater coil
purchases. While the long term effects of the housing slowdown has yet to be
played out, and as the heat pump OEMs are experiencing reductions in backlog,
the expectation is that revenues for the second half of fiscal 2008 (March year)
will not match the pace of the first half. Further the three months ending
December are traditionally slower than the first half due to seasonal and
inventory adjustments at year end. The expectations for next year's revenue base
are similarly uncertain.

In the factory, a continuing program of lean manufacturing projects has created
an improvement in gross profit margins which were also favorably impacted by new
pricing policies. The increased cost of raw materials during the preceding
periods had created imbalances that depressed operating margins until the new
pricing formulas were introduced. The combined effect of the lean and pricing
initiatives improved margins in the fiscal 2008 six months to 27.3% vs. 21.1% a
year earlier.

Selling, general and administrative expenses increased due to a variety of
overhead expenses that were primarily needed within the Turbotec organization,
including the need for corporate governance activities in the UK; the UK
expenses were further impacted by the unfavorable exchange rate between the
pound sterling and the dollar.

Significant risk factors and economic considerations include the cost of energy
and incentives provided by producers, sellers and municipalities to encourage
the use of more efficient equipment; interest rates that can stimulate or
depress purchasing demand; the cost and availability of materials used in
production; regulatory directives relating to energy consumption, conservation
and environmental issues; the exchange rates relating to the dollar; and the
possibility of a slowing economy, particularly in housing, as relates to the
Company's customer base.


                                  Page - 11 -
<PAGE>

         LIQUIDITY AND CAPITAL RESOURCES
         -------------------------------

Working capital increased to $4.7 million at September 30, 2007 vs. $4.0 million
at March 31, 2007 and cash continues to be invested in short term instruments.
Improved collections from customers reduced the outstanding accounts receivable
level even though sales increased significantly. The inventory increase is
primarily due to the valuation of the goods as raw material prices increased
while the piece quantity is comparable at both September 30 and March 31, 2007.

Long term debt increased somewhat as Turbotec financed current year expenditures
for plant and equipment under its capital equipment revolving line of credit
that has traditionally been converted to a term loan at year end.

Both the Company and its Turbotec subsidiary have independent lines of credit
with their banks and both companies are adequately financed for the foreseeable
future.

Capital expenditures were comparable in the six month periods of both the 2007
and 2008 fiscal years. Additional capital investments will likely be required to
support the new markets of heat reclamation and titanium based heat exchangers.

Increases in operating costs continue to play a significant role in day-to-day
operations as competitive pricing pressures have restricted the ability to fully
recover all added expenses. Turbotec has instituted price increases where
appropriate and has adjusted its methods to pass on a greater portion of raw
material price increases to customers. Additionally, improvements in
manufacturing processes and procedures have offset a portion of increasing costs
while continuing lean manufacturing programs and other efficiency related
activities should generate further cost reductions during the year. The regional
labor markets for qualified skilled and semi-skilled employees is weak and a
shortage of experienced technical support and engineering staff is anticipated
for the foreseeable future. Employment related costs continue to escalate and
the impact on future periods is unknown at this time although opportunities to
reduce these expenses are currently being explored.

FORWARD LOOKING STATEMENTS
--------------------------

         This report contains certain forward-looking statements regarding the
Company, its business prospects and results of operations that are subject to
certain risks and uncertainties posed by many factors and events that could
cause the Company's actual business, prospects and results of operations to
differ materially from those that may be anticipated by such forward-looking
statements. Factors that may affect such forward-looking statements include,
without limitation: the Company's ability to successfully and timely develop and
finance new projects, the impact of competition on the Company's revenues, and
changes in unit prices, supply and demand for the Company's tubing product line
especially in applications serving the commercial, industrial and residential
construction industries.

         When used, words such as "believes," "anticipates," "expects,"
"continue", "may", "plan", "predict", "should", "will", "intends" and similar
expressions are intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this report. The Company undertakes no obligation to
revise any forward-looking statements in order to reflect events or
circumstances that may subsequently arise. Readers are urged to carefully review
and consider the various disclosures made by the Company in this report, news
releases, and other reports filed with the Securities and Exchange Commission
that attempt to advise interested parties of the risks and factors that may
affect the Company's business.


                                  Page - 12 -
<PAGE>

ITEM 3     CONTROLS AND PROCEDURES

(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES -

         Management believes that the Company's disclosure controls and
procedures, as defined in the Securities Exchange Act of 1934 (the "Exchange
Act"), as of the end of the reported period are effective to timely provide the
material information required to be disclosed by the Company in reports that it
files or submits under the Exchange Act.

(b) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING -

         There were no significant changes made and no corrective actions taken
in the Company's internal controls over financial reporting or in other factors
that have materially affected, or are reasonably likely to materially affect,
the Company's internal control over financial reporting that occurred during the
quarter ended for this report.


                                  Page - 13 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES


                           PART II - OTHER INFORMATION
                           ---------------------------


ITEM 1.  LEGAL PROCEEDINGS.

         There are no material legal proceedings known or threatened against the
Company.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

         There were no unregistered sales of equity securities of the Company
during the three month period covered by this Form 10-Qsb report.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

         There have been no defaults of any terms of the Company's securities.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

         No matters were submitted to a vote of the Securities Holders of the
Company during the quarterly period for which this report is filed.

ITEM 5.  OTHER INFORMATION.

         None

ITEM 6.  EXHIBITS.

         Rule 13a-14(a) / 15d-14(a) Certifications:
            o   Exhibit 31(a)  Certification of Chief Executive Officer.
            o   Exhibit 31(b)  Certification of Chief Financial Officer.

         Section 1350 Certifications:
            o   Exhibit 32(a)  Certification of Chief Executive Officer.
            o   Exhibit 32(b)  Certification of Chief Financial Officer.


                                  Page - 14 -
<PAGE>

                      THERMODYNETICS, INC. AND SUBSIDIARIES


                                 SIGNATURE PAGE
                                 --------------






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.






                                      THERMODYNETICS, INC.



Date: November 8, 2007                By:  /s/  Robert A. Lerman
                                           -------------------------------------
                                           Robert A. Lerman
                                           President and Chief Executive Officer


Date: November 8, 2007                By:  /s/  John F. Ferraro
                                           -------------------------------------
                                           John F. Ferraro
                                           Treasurer and Chief Financial Officer


                                  Page - 15 -