---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

(Mark One)

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

For the quarterly period ended September 30, 2007

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

For the transition period from __________ to __________

Commission file number 000-50011

LAMPERD LESS LETHAL INC.(Exact name of small business issuer as specified in its
charter)

|Nevada                                           | 98-0358040                       
|------------------------------------------------ | ---------------------------------
|(State or other jurisdiction of incorporation or | (IRS Employer Identification No.)
|organization)                                    |                                  

1200 Michener Road, Sarnia, Ontario, Canada N7T 7H8(Address of principal executive offices)

(519) 344-4445(Issuer's telephone number)

Not Applicable(Former name, former address
and former fiscal year, if changed since last report)

Check whether the issuer (1) filed all reports required to be
filed by Section 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 [   ]

APPLICABLE ONLY TO CORPORATE REGISTRANTS

State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: 55,368,040
common shares issued and outstanding as of August 9, 2007

Transitional Small Business Disclosure Format (Check one): Yes
[   ]   No [X]

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

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2



PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

It is the opinion of management that the consolidated interim
financial statements for the quarter ended September 30, 2007 includes all
adjustments necessary in order to ensure that the consolidated interim financial
statements are not misleading.

Contents

|Condensed
      Consolidated Balance Sheets                                         
|------------------------------------------------------------------------------------
|Condensed
      Consolidated Statements of Changes in Stockholders Equity (Deficit)
|Condensed
      Consolidated Statements of Operations                               
|Condensed
      Consolidated Statements of Cash Flows                               
|Notes
      to Condensed Consolidated Financial Statements                          

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3

LAMPERD LESS LETHAL INC.CONDENSED CONSOLIDATED
BALANCE SHEETS (Canadian Funds)

|                                                              |   | September 30, 2007 |   |   | December 31, 2006 |  
|------------------------------------------------------------- | - | ------------------ | - | - | ----------------- | -
|                                                              |   | (Unaudited)        |   |   | (Audited)         |  
|ASSETS                                                        |   |                    |   |   |                   |  
|Current Assets                                                |   |                    |   |   |                   |  
|Cash and cash equivalents                                     | $ | 57,008             |   | $ | 1,443             |  
|Accounts receivable                                           |   | 27,111             |   |   | 70,095            |  
|Inventories (Note 3)                                          |   | 121,084            |   |   | 120,559           |  
|Sundry                                                        |   | 11,397             |   |   | 6,278             |  
|Total Current Assets                                          |   | 216,600            |   |   | 198,375           |  
|Equipment and leaseholds - net (Note 4)                       |   | 256,064            |   |   | 255,721           |  
|Intangibles(Note 5)                                           |   | 29,620             |   |   | 33,217            |  
|TOTAL ASSETS                                                  | $ | 502,284            |   | $ | 487,313           |  
|                                                              |   |                    |   |   |                   |  
|LIABILITIES                                                   |   |                    |   |   |                   |  
|Current Liabilities                                           |   |                    |   |   |                   |  
|Accounts payable                                              | $ | 385,173            |   | $ | 345,197           |  
|Accrued liabilities                                           |   | 94,594             |   |   | 65,200            |  
|Promissory notes and advances due to                          |   |                    |   |   |                   |  
|Shareholders and employees (Note 10)                          |   | 412,181            |   |   | 76,167            |  
|Total Current Liabilities                                     |   | 891,948            |   |   | 486,564           |  
|                                                              |   |                    |   |   |                   |  
|CONTINGENCIES AND COMMITMENTS(Note 11)                        |   |                    |   |   |                   |  
|                                                              |   |                    |   |   |                   |  
|STOCKHOLDERS EQUITY (DEFICIT)                                |   |                    |   |   |                   |  
|Common Stock(Note 8)                                          |   |                    |   |   |                   |  
|Authorized 1,000,000,000 common shares,
      $0.001(USD) per |   |                    |   |   |                   |  
|share par value                                               |   |                    |   |   |                   |  
|Issued and outstanding 55,368,040 common
      shares at      |   |                    |   |   |                   |  
|September 30, 2007 and 53,820,158 at December
      31, 2006  |   | 67,697             |   |   | 65,947            |  
|Additional paid - in capital                                  |   | 2,499,949          |   |   | 2,331,588         |  
|Retained Deficit                                              |   | (2,957,310         | ) |   | (2,396,786        | )
|Total Stockholders Equity (Deficit)                          |   | (389,664           | ) |   | 749               |  
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY                    |   |                    |   |   |                   |  
|(DEFICIT)                                                     | $ | 502,284            |   | $ | 487,313           |  

See accompanying notes to condensed consolidated financial statements





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4

LAMPERD LESS LETHAL INC.CONDENSED CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT)(Canadian
Funds)(Unaudited)

Number of
      
      
      Common
      
      
      Additional
      
      
      Retained
      
      
      TotalCommon
      
      
      Stock
      
      
      Paid-in Capital
      
      
      Deficit
      
      
      StockholdersShares
      
      
      
      
      
      
      
      
      
      
      
      Equity(Deficit)Balance December 31, 2006 (audited)
      $
      53,820,158
      
      $
      65,947
      
      $
      2,331,588
      
      $
      (2,396,786
      )
      $
      749Issuance of common shares (Note 8)
      
      422,982
      
      
      488
      
      
      53,233
      
      
      
      
      
      53,721Restated Net Loss for the quarter endedMarch 31, 2007 (Note 12)
      
      
      
      
      
      
      
      
      
      
      (254,057
      )
      
      (254,057
      )Restated Balance March 31, 2007
      
      54,243,140
      
      
      66,435
      
      
      2,384,821
      
      
      (2,650,843
      )
      
      (199,587
      )Issuance of common shares (Note 8)
      
      1,124,900
      
      
      1,262
      
      
      115,128
      
      
      
      
      
      116,390Net Loss for the period
      
      
      
      
      
      
      
      
      
      
      (181,789
      )
      
      (181,789
      )Balance June 30, 2007
      
      55,368,040
      
      
      67,697
      
      
      2,499,949
      
      
      (2,832,632
      )
      
      (264,986
      )Net Loss for the period
      
      
      
      
      
      
      
      
      
      
      (124,678
      )
      
      (124,678
      )Balance September 30, 2007
      $
      55,368,040
      
      $
      67,697
      
      $
      2,499,949
      
      $
      (2,957,310
      )
      $
      (389,664
      )


See accompanying notes to condensed consolidated financial
statements

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5

LAMPERD LESS LETHAL INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Canadian Funds) (Unaudited)

|                                    |   | For the Three |   |   | For the Three |   |   | For the Nine  |   |   | For the Nine  |  
|----------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------- | - | - | ------------- | -
|                                    |   | Month Period  |   |   | Month Period  |   |   | Month Period  |   |   | Month Period  |  
|                                    |   | Ended         |   |   | Ended         |   |   | Ended         |   |   | Ended         |  
|                                    |   | September 30, |   |   | September 30, |   |   | September 30, |   |   | September 30, |  
|                                    |   | 2007          |   |   | 2006          |   |   | 2007          |   |   | 2006          |  
|                                    |   |               |   |   |               |   |   |               |   |   |               |  
|REVENUE                             | $ | 99,930        |   | $ | 109,250       |   | $ | 178,760       |   | $ | 306,703       |  
|                                    |   |               |   |   |               |   |   |               |   |   |               |  
|COST OF GOODS SOLD                  |   | 81,753        |   |   | 83,263        |   |   | 156,503       |   |   | 257,085       |  
|GROSS MARGIN                        |   | 18,177        |   |   | 25,978        |   |   | 22,257        |   |   | 49,618        |  
|EXPENSES                            |   |               |   |   |               |   |   |               |   |   |               |  
|Selling, general and administrative |   | 127,217       |   |   | 189,924       |   |   | 531,590       |   |   | 689,993       |  
|Research and development            |   | -             |   |   | 4,273         |   |   | 11,254        |   |   | 4,273         |  
|Depreciation and amortization       |   | 15,638        |   |   | 10,295        |   |   | 39,937        |   |   | 29,400        |  
|                                    |   |               |   |   |               |   |   |               |   |   |               |  
|TOTAL EXPENSES                      |   | 142,855       |   |   | 204,492       |   |   | 582,781       |   |   | 723,666       |  
|                                    |   |               |   |   |               |   |   |               |   |   |               |  
|NET LOSS                            | $ | (124,678      | ) | $ | (178,505      | ) | $ | (560,524      | ) | $ | (674,048      | )
|                                    |   |               |   |   |               |   |   |               |   |   |               |  
|LOSS PER SHARE(Note 7)              |   | (0.00         | ) |   | (0.00         | ) |   | (0.01         | ) |   | (0.01         | )
|                                    |   |               |   |   |               |   |   |               |   |   |               |  
|WEIGHTED AVERAGE NUMBER             |   |               |   |   |               |   |   |               |   |   |               |  
|OF COMMON                           |   |               |   |   |               |   |   |               |   |   |               |  
|**SHARES OUTSTANDING**(Note 7)      |   | 55,368,040    |   |   | 51,434,783    |   |   | 54,653,287    |   |   | 51,200,549    |  

See accompanying notes to condensed consolidated financial
statements

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6

LAMPERD LESS LETHAL INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Canadian Funds) (Unaudited)

|                                                                      |   | For the Nine       |   |   | For the Nine       |  
|--------------------------------------------------------------------- | - | ------------------ | - | - | ------------------ | -
|                                                                      |   | Month Period Ended |   |   | Month Period Ended |  
|                                                                      |   | September 30, 2007 |   |   | September 30, 2006 |  
|CASH FLOWS PROVIDED BY (USED IN):                                     |   |                    |   |   |                    |  
|OPERATING ACTIVITIES                                                  |   |                    |   |   |                    |  
|Net Loss for the period                                               | $ | (560,524           | ) | $ | (674,048           | )
|Depreciation and amortization                                         |   | 39,937             |   |   | 29,400             |  
|Net change in non-cash operating assets
      and liabilities:        |   | (520,587           | ) |   | (644,648           | )
|Accounts receivable                                                   |   | 42,984             |   |   | (37,320            | )
|Inventories                                                           |   | (525               | ) |   | 41,936             |  
|Sundry                                                                |   | (5,119             | ) |   | 93,541             |  
|Accounts payable                                                      |   | 39,976             |   |   | 170,540            |  
|Accrued liabilities                                                   |   | 29,394             |   |   | -                  |  
|Deferred revenue                                                      |   | -                  |   |   | 4,604              |  
|Net cash used in
      operating activities                           |   | (413,877           | ) |   | (371,347           | )
|                                                                      |   |                    |   |   |                    |  
|INVESTING ACTIVITIES                                                  |   |                    |   |   |                    |  
|Additions to equipment and intangibles                                |   | (36,683            | ) |   | (17,716            | )
|Net cash used in
      investing activities                           |   | (36,683            | ) |   | (17,716            | )
|FINANCING ACTIVITIES                                                  |   |                    |   |   |                    |  
|Proceeds from promissory
      notes and advances due to shareholders |   | 336,014            |   |   | 23,992             |  
|Proceeds from share issuance                                          |   | 170,111            |   |   | 67,932             |  
|Net cash provided
      by financing activates                        |   | 506,125            |   |   | 91,924             |  
|CHANGE IN CASH AND CASH EQUIVALENTS                                   |   | 55,565             |   |   | (297,139           | )
|CASH AND CASH EQUIVALENTS, beginning of
      period                  |   | 1,443              |   |   | 310,610            |  
|                                                                      |   |                    |   |   |                    |  
|CASH AND CASH EQUIVALENTS, end of
      period                        | $ | 57,008             |   | $ | 13,471             |  

Cash paid for interest in the nine month period ended September
30, 2007 and September 30, 2006 was $ 4,560 and $5,740 respectively. No cash was
paid for income taxes in the nine months ended September 30, 2007 and 2006.

See Note 8 for supplemental information for non-cash transactions

See accompanying notes to condensed consolidated financial statements.

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7

**LAMPERD LESS LETHAL INC.** NOTES TO
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS September 30, 2007 and
2006 (Canadian Funds) (Unaudited)

|1. | BASIS OF PRESENTATION AND DESCRIPTION OF
  BUSINESS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | History:The Company was incorporated under
      the laws of the State of Nevada under the name "Sinewire Networks Inc." on
      October 4, 2001. On March 21, 2005, the Company changed its name to
      "Lamperd Less Lethal Inc." The name change was recorded by the Secretary
      of State of the State of Nevada on March 21, 2005, and took effect with
      the National Association of Securities Dealers Inc. (NASD)
      Over-the-Counter Bulletin Board at the opening for trading on March 31,
      2005 under the new stock symbol "LLLI".                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Products:The Company is a developer and
      manufacturer of civil defense products that are designed as a less lethal
      alternative to conventional weapons. In addition, the Company also
      manufactures or acquires for resale shields, service equipment, training
      gear and accessories primarily designed for use by military and law
      enforcement organizations. The Company also provides less lethal training
      to police, military and private sector security personnel.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Consolidation:These unaudited condensed
      consolidated financial statements of Lamperd Less Lethal Inc. (referred to
      herein as we, our, Lamperd or the Company) have been prepared in
      accordance with generally accepted accounting principles for interim
      financial information and with the instructions to Form 10-QSB and item
      310(b) of Regulation S-B. Accordingly, they do not include all of the
      information and footnotes required by generally accepted accounting
      principles for complete financial statements. In the opinion of management
      of the Company, all adjustments (consisting of normal recurring accruals)
      considered necessary for a fair presentation have been included. Operating
      results for the nine month period ended September 30, 2007 are not
      necessarily indicative of the results that may be expected for the year
      ending December 31, 2007. For further information, refer to the
      consolidated financial statements and footnotes thereto included in the
      Companys annual report Form 10-KSB for the year ended December 31,
      2006.                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Going concern:Even though the Company is
      moving forward with its business plans, it is likely that significant
      losses will continue into the foreseeable future. Accordingly, the Company
      may not realize significant revenue or become profitable within the next
      twelve months which would require additional financing to fund its short
      and long-term cash needs. The Company is and will be dependent for the
      foreseeable future on debt financing, loans from related parties, and
      private placement of common stock for additional financing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | These condensed consolidated financial statements have
      been prepared in accordance with United States generally accepted
      accounting principles that are applicable to a going concern, meaning that
      the company will be able to realize it assets and discharge it liabilities
      in the normal course of operations. Given the operating loss sustained to
      date and the fact that the Company has not to the date of these condensed
      consolidated financial statements raised adequate additional financing to
      fund expected future losses, the Companys ability to realize its assets
      and discharge its liabilities depends on continued support from the
      shareholders in the form of loans and from raising additional debt or
      equity. The use of United States generally accepted accounting principles
      that are applicable to a going concern therefore, may not be appropriate
      because there is doubt that the Company can operate as a going concern.
      These condensed consolidated financial statements do not reflect
      adjustments that would be necessary if the going concern assumption were
      not appropriate.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|2. | SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | For further information regarding the Companys
      accounting policies, refer to the consolidated financial statements and
      footnotes related thereto included in the Companys annual report Form
      10-KSB for the year ended December 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | RECLASSIFICATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Certain reclassifications have been made to prior period
      balances in order to conform to the current periods
  presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

|3. | INVENTORIES
|-- | -----------

| |                 |   | September 30, 2007 |  |   | December 31, 2006 | 
| | --------------- | - | ------------------ |  | - | ----------------- | 
| | Description     |   | (Unaudited)        |  |   | (Audited)         | 
| |                 |   |                    |  |   |                   | 
| | Raw Material    | $ | 25,454             |  | $ | 40,519            | 
| | Work in Process |   | 72,846             |  |   | 53,466            | 
| | Finished Goods  |   | 22,784             |  |   | 26,574            | 
| |                 |   |                    |  |   |                   | 
| | TOTAL           | $ | 121,084            |  | $ | 120,559           | 

---



8

|4. | EQUIPMENT AND LEASEHOLDS  at
cost
|-- | ----------------------------------

Description
    September 30, 2007 (Unaudited)
    December 31, 2006 (Audited)Office Equipment
    $ 23,547
    $ 23,547Manufacturing Equipment (i)
    218,509
    216,509Protective & Demonstration Equipment
    78,045
    43,362Computer Equipment
    9,565
    9,565Leasehold Improvements
    24,577
    24,577TOTAL
    354,243
    317,560Accumulated Depreciation
    98,179
    61,839Net Carrying Value
    $ 256,064
    $ 255,721


| | (i) | Included in the manufacturing equipment is $98,223
      related to equipment, which was not put into commercial use as of
      September 30, 2007. Accordingly, no depreciation has been recorded on this
      equipment in accordance with the Companys accounting policy.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                
| |     | Depreciation expense for the 3 month period ended
      September 30, 2007 and 2006 was $ 14,408 and $ 8,570, respectively.
      Depreciation expense for the 9 month period ended September 30, 2007 and
      2006 was $ 36,340 and $ 25,540, respectively.                 

---

9

|5. | INTANGIBLES
|-- | -----------

| |                          |   | September 30, 2007 |  |   | December 31, 2006 | 
| | ------------------------ | - | ------------------ |  | - | ----------------- | 
| | Description              |   | (Unaudited)        |  |   | (Audited)         | 
| | Licenses                 | $ | 22,122             |  | $ | 22,122            | 
| | Trademarks & Copyrights  |   | 822                |  |   | 822               | 
| | Patents                  |   | 17,373             |  |   | 17,373            | 
| |                          | $ | 40,317             |  | $ | 40,317            | 
| | Accumulated amortization |   | 10,697             |  |   | 7,100             | 
| |                          |   |                    |  |   |                   | 
| | Total                    | $ | 29,620             |  | $ | 33,217            | 

Amortization expenses for the 3 months
period ended September 30, 2007 and 2006 was $ 1,230 and $ 1,725, respectively.

Amortization expenses for the 9 months
period ended September 30, 2007 and 2006 was $ 3,597 and $ 3,860, respectively.

Future amortization expense applicable
to the above intangibles is:

2007 remainder
    $ 1,3222008
    $ 4,9192009
    $ 4,9192010
    $ 4,9192011
    $ 2,014Thereafter
    $ 11,527


|6. | FINANCIAL INSTRUMENTS                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company is engaged in the sale of less lethal
      products, other protective gear, and accessories typically to a small
      number of major customers, although the composition of this group of
      customers changes from year to year. The Company performs ongoing credit
      evaluation of its customers' financial condition and therefore, generally,
      requires no collateral.    
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company is subject to currency risk through its
      activities in the United States of America. Unfavorable changes in the
      exchange rate may affect the operating results of the Company.                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The Company does not actively use derivative instruments
      to reduce its exposure to foreign currency risk. However, dependant on the
      nature, amount and timing of foreign currency receipts and payments, the
      Company may enter into forward exchange contracts to mitigate the
      associated risks. There were no forward exchange contracts outstanding at
      September 30, 2007.
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                           
|   | The carrying amounts of the Company's financial assets
      and liabilities including cash and cash equivalents, accounts receivable,
      investment tax credit recoverable, accounts payable and accrued
      liabilities approximate fair value due to the short-term maturity of these
      items.                                                                                                

---

10

|7.  | LOSS PER SHARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Loss per share is calculated on the basis of the weighted
      average number of common shares outstanding for the nine months ended
      September 30, 2007 totaling 54,653,287 shares (September 30, 2006 
      51,200,549).                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Diluted loss per share is not calculated as the effect
      would be non-dilutive.                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|8.  | COMMON STOCK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Authorized - 1,000,000,000 voting common shares, par
      value US $0.001                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Issued and outstanding common shares at September 30,
      2007  55,368,040 and at December 31, 2006  53,820,158                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In June 2007, the Company approved the issuance of common
      shares effective on June 30, 2007 to a Director and Officer of the Company
      in lieu of payment of loans outstanding at June 30, 2007. As a result,
      374,900 shares have been reflected as being issued at the end of the day
      value of the Companys stock price of USD $.08 in order to satisfy the
      debt of $29,992.                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On May 1, 2007 the Company issued 750,000 shares of
      common stock of the Corporation to an investor at a price of USD $0.10 per
      share which included a common stock purchase warrant entitling the holder
      the ability to acquire up to 1,000,000 common shares of the Corporation at
      USD $.08 per share for 3 years.                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In January 2007, the Company approved the issuance
      effective March 31, 2007 of common shares to a Director and Officer of the
      Company in lieu of payment of loans outstanding at March 31, 2007. As a
      result, 422,982 shares have been reflected as being issued based on the
      end of day value of the Companys stock price of USD $.11 in order to
      satisfy the debt of $53,721.                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | On April 14, 2005, the Company issued 1,500,000 shares to
      an investor at a price of USD $1 per share. Each unit consisted of one
      treasury common share of Lamperd and two common shares purchase warrants.
      The resulting 3 million warrants are exercisable at a price per share of
      USD $1.25 for twelve months following April 14, 2005 and USD $1.40
      thereafter. No warrants were exercised in the quarter ended September 30,
      2007.                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|9.  | INCOME TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | At September 30, 2007, the Company had cumulative net
      operating loss carry-forward of approximately $3.1 million for the
      Canadian subsidiary and $104,000 for the United States parent company.
      These amounts will expire in various years through 2015 to 2017 in Canada
      and 2021 through 2025 in the United States. The related deferred tax
      assets have been completely offset by a valuation allowance. The Company
      has no deferred tax liabilities.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|10. | RELATED PARTY TRANSACTIONS, DUE TO SHAREHOLDERS AND
      EMPLOYEES                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Related party transactions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | (i) A company controlled by a Director and Vice President
      of the Company is the primary subcontractor of parts for the Companys
      weapon launcher systems. The Company made a payment of $2,120 to this
      supplier in the nine month period ended September 30, 2007 for the
      manufacturing of various components, and purchases for the Company. At
      September 30, 2007, Lamperd owes this company $6,327.                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (ii) On April 23, 2005, the Company entered into separate
      consulting agreements with two Directors and Vice Presidents of the
      Company to provide services for a total of $3,000 each per month. By
      waiver, the directors voluntarily suspended their fees pending the
      commencement of future profitability and review by the Board. The waiver
      has continued throughout the quarter ended September 30, 2007.                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (iii) The Company rents premises from a corporation
      controlled by its Vice President and Director. For nine months ended
      September 30, 2007 and 2006 rent of $ 66,600 each period was charged and
      expensed by the Company related to this contract.                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (iv) The Company purchased legal consulting services from
      a shareholder of the Company for $ 18,500 during the nine month period
      ended September 30, 2007 (Nil in the same period in 2006) of which $ 9,500
      is unpaid at September 30, 2007.                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Promissory notes and advances due to shareholders and
      employees:                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | (v) On December 7, 2006 two shareholders advanced $
      25,000 each under terms specified in promissory notes, each of which bear
      interest at 15% per annum to be paid in a lump sum at date of maturity,
      December 7, 2007. Both loans are unsecured and contain a penalty provision
      on failure to pay on the maturity date equal to 17% of the unpaid
      amount.                                                                                                    

---

11

|    | (vi) On April 12, 2007, a shareholder advanced $ 30,000
      bearing an interest rate of 15% per annum, to be repaid in a lump sum at
      date of maturity, April 11, 2008, and is unsecured with a penalty
      provision on failure to pay on the maturity date equal to 17% of the
      unpaid balance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (vii) At various dates in 2007, a shareholder, director
      and officer advanced a total of $ 100,368 to the Company of which $ 45,000
      of these advances are secured by a note to be first charged against assets
      of the Company bearing an interest rate of 12% per annum effective April
      1, 2007 and due on demand. The remaining balances of the loans are
      unsecured, non interest bearing and due on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (viii) In February 2007, the Company entered into a
      demand promissory note bearing interest of 8% per annum with a shareholder
      in the amount of $50,000. This note had a lenders fee of $6,000 netting
      $44,000 to the Company. Payments on the note commence July 1, 2007 of not
      less than $10,000 and shall be payable monthly thereafter until principal
      and interest are fully paid. The lender has the right to demand full
      repayment of principal and interest at any time. None of these payments
      have been paid as of September 30, 2007.                                                                                                                                                                                                                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (ix) On March 12, 2007, two shareholders each advanced $
      10,000 to the Company at an interest rate of 15% per annum, principal and
      interest due in full on the anniversary date of the loan. The loans are
      unsecured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (x) At September 30, 2007, the Company owes a shareholder
      and officer $ 55,886 for unpaid wages.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (xi) On May 31, 2007, the Company entered into a demand
      promissory note with a shareholder in the amount of $ 80,000, interest (at
      10% per annum) and principal payments to be made in monthly installments
      commencing June 30, 2007 of not less than $ 750. The lender has the right
      to demand full repayment of principal and interest at any time. A lenders
      fee of $ 5,000 was charged on the transaction. No principal payments have
      been made on the loan as of September 30, 2007.                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (xii) On April 12, 2007, the Company entered into a
      promissory note with a shareholder in the amount of $2,000, interest at
      12% per annum and due April 12, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | (xiii) At September 30, 2007, the Company owes employees,
      a director and a shareholder a total of $ 23,926 for unpaid expenses and
      services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|11. | CONTINGENCIES AND COMMITMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Because of the nature of the Companys products, it is
      possible that the Company could be subject to lawsuits and claims with
      respect to product liability litigation in the future. The Companys
      ability to defend itself in the event of such litigation will depend upon
      the existing resources at that time. During the second quarter of 2006 the
      Company cancelled its product liability insurance coverage for cost
      considerations. On May 1, 2007, the Company purchased new product
      liability coverage. On July 26, 2007 the Company cancelled its product
      liability coverage. The Company cannot make assurances that resources will
      be available in the foreseeable future to cover any potential product
      liability litigation or claims should any arise during the period that the
      Company was self-insured.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | Litigation: Legal proceedings were commenced against the
      Company by Mintz & Partners, former auditors, for failure to pay what
      they allege is owed. Management is in dispute over the amount owed and has
      accrued in the financial statements at June 30, 2007 the amount the
      Company feels is appropriate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In July 2007, a Contract Agreement was executed with an
      individual to perform services as a Chief Systems Engineer at a monthly
      remuneration of $ 3,500 USD. The Company also entered into an Intellectual
      Property (I.P.) Assignment Agreement with this person whereby the Company
      is assigned specific intellectual property rights owned by the individual
      in exchange for a promissory note for $ 150,000 USD. The promissory note
      will become due and repayable upon sale and collection of 50 Firearms
      Training Systems. In the event of non-payment, interest of 10% per annum
      on the promissory note is to be paid until such time the principal amount
      is repaid.                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    | In July 2007, the Company entered into a second
      Intellectual Property (I.P.) Assignment Agreement with another individual
      whereby the Company is assigned specific intellectual property rights
      owned by the individual in exchange for a promissory note for $ 150,000
      USD. The promissory note will become due and repayable upon sale and
      collection of 50 Firearms Training Systems. In the event of non-payment,
      interest of 10% per annum on the promissory note is to be paid until such
      time the principal amount is repaid.                                                                                                                                                                                                                                                                                                              

---

12

|12. | RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL
        STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | The Companys previously issued financial
        statements have been restated to report the effects of a Board of Directors
        Resolution in August 2005 to issue 250,000 common shares of the Company
        to a Director of the Company for certain services provided to the Corporation
        in lieu of cash payment. Management has determined that the transaction
        should have been accounted for in 2005 despite the fact that the shares
        were not issued until February 28, 2007.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | The effect on the previously issued September
        30, 2006 financial statements resulting from the above are as follows:                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | The weighted average number of common shares outstanding at September
          30, 2006 is 51,200,549 versus 50,950,549 as previously reported. There
          is no effect on the reported Loss Per Share.                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | A restatement of the March 31, 2007 quarterly
        report was necessary where amounts totalling $28,070 should have been
        included in inventory but were expensed in error in the first quarter
        of 2007. The effect of this error was that the loss as previously reported
        of $282,127 has been restated to a loss of $254,057. There is no effect
        on the loss per share as reported.                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13. | STOCK OPTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | On June 30, 2007 the Company entered into
        three separate Stock Option Agreements with an employee, a Director/shareholder
        and a consultant/shareholder for 250,000, 200,000 and 200,000 treasury
        shares respectively. The exercise price for each option is $0.08 USD and
        50% of the amount of the total options available is vested at June 30,
        2007 with the balance being vested on December 31, 2007. All of these
        options expire June 30, 2012.                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | In July 2007, the Company entered a Stock
        Option Agreement with a contract employee whereby the individual can purchase
        up to 250,000 common shares of the Company from treasury at $.10 USD a
        share. The options become vested as follows: July 20, 2007  125,000
        shares; December 30, 2007 - 62,500 shares; and June 30, 2008 - 62,500
        shares. The options expire July 20, 2012.                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | In July 2007, the Company entered a Stock
        Option Agreement with another supplier whereby the individual can purchase
        up to 150,000 common shares of the Company from treasury at $.10 USD a
        share. The options become vested as follows: July 20, 2007  75,000
        shares; December 30, 2007  37,500 shares; and June 30, 2008 
        37,500 shares. The options expire July 20, 2012.                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | None of the stock options referred to above
        have been exercised as of September 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                   

---

13

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

Introduction

Our financial statements are stated in Canadian dollars (CDN$)
and are prepared in conformity with generally accepted accounting principles in
the United States of America for interim financial statements.

As used in this quarterly report, the terms "we", "us", "our
company" and "Lamperd" mean Lamperd Less Lethal Inc. and our wholly owned
subsidiary 1476246 Ontario Limited, unless otherwise indicated. All dollar
amounts refer to Canadian dollars unless otherwise indicated.

THE FOLLOWING DISCUSSION AND ANALYSIS PROVIDES INFORMATION
WHICH OUR MANAGEMENT BELIEVES IS RELEVANT TO AN ASSESSMENT AND UNDERSTANDING OF
OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION. THIS DISCUSSION SHOULD BE
READ TOGETHER WITH OUR FINANCIAL STATEMENTS AND THE NOTES TO FINANCIAL
STATEMENTS WHICH ARE INCLUDED IN THIS REPORT, AND WITH OUR COMPANY'S FORM
10-KSB.

Forward-Looking Statements

This quarterly report contains forward-looking statements as
that term is defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. These
statements relate to future events or our future financial performance. In some
cases, you can identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, including the risks in the
section entitled "Risk Factors", that may cause our or our industry's actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements. Except as required by
applicable law, including the securities laws of the United States, we do not
intend to update any of the forward-looking statements to conform these
statements to actual results.

Our Corporate History

We were incorporated under the laws of the State of Nevada
under the name Sinewire Networks Inc. on October 4, 2001. On March 21, 2005,
we changed our name to Lamperd Less Lethal Inc. The name change was recorded
by the Secretary of State of the State of Nevada on March 21, 2005, and took
effect with NASD Inc.s Over-the-Counter Bulletin Board at the opening for
trading on March 31, 2005 under our new stock symbol LLLI.

Our Business

Our company is a developer, reseller and manufacturer of civil
defence products that are designed as a less lethal alternative to conventional
weapons. The products include weapon systems and munitions that are designed to
incapacitate as opposed to kill opponents, and at the same time, ensure the
safety of the personnel using the products. In addition, our company
manufactures or acquires for resale, shields, service equipment, training gear
and accessories. The products are primarily designed for the use by military and
law enforcement organizations. Our company also offers less lethal training to
police, military, utility companies and private sector security personnel.
Training can be provided by experienced military and police contractors in
addition to trained civilian contractors which are retained as required by our
company with permission from their respective agencies. The training programs
offered by our company incorporate the most current less lethal techniques and
equipment, including our own products.

The launchers consist of a hand held model called the Defender
I, a longer version called the Defender II, a revolving shotgun launcher
called the RSG-20, Homeland Defender 2 shot, and the Military Peace Keeper, or
MPK version, that combines lethal and less lethal technologies in one launcher.
The launchers fire 5 rounds except for our new product the Homeland Defender
which fires 2 rounds. The five types of munitions developed for use by the
launchers, as well as certain conventional weapons, consist of sock rounds, WASP
synthetic rounds, distractionary rounds, liquid incapacitant rounds, and
training rounds.

Our market is primarily comprised of military forces and law
enforcement organizations in Canada and the United States. In Canada, our
products are primarily sold to distributors who distribute its products to end
users on an exclusive basis. We have been granted a Canadian Business Firearms
License, which allows the company to manufacture, repair, store, import, export
and sell its proprietary products.

---

14

Our products are sold in the United States through a network of
distributors. Our munitions have been approved by the Joint Less-lethal Weapons
program in the United States. The program was established in order to provide
certain personnel with a variety of non-lethal weapons products. In furtherance
of the marketing and sales of our products, we have been assigned a NATO
Commercial and Government Entity Code which enables us to sell military supplies
to NATO member countries.

On July 16, 2007, we entered into a letter of intent dated July
5, 2007 to enter into a joint manufacturing agreement with Lumenyte
International Corporation to develop an undercarriage camera inspection system.

Our Products

Launchers

We have developed five proprietary projectile launchers. Each
of the launchers is compatible with our line of proprietary less lethal
munitions including the WASP composite rounds, sock rounds, training rounds,
distractionary rounds and liquid incapacitant rounds. Four launchers fire 5
rounds and one launcher fires 2 rounds. The ability of an operator to fire more
than a single round provides greater security in hostile situations.

|1. | Defender I: The Defender I is our standard launcher
      product. The launcher fires munitions from a cylinder that holds five
      rounds. The launcher is a compact and lightweight product that fires 20
      gauge rounds.                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                 
|2. | Defender II: The Defender II is a longer version than the
      Defender I and also fires munitions from a cylinder that holds 5 rounds.
      The launcher fires 20 gauge rounds and has a longer barrel which provides
      for improved accuracy and greater effectiveness at longer
ranges.
|   |                                                                                                                                                                                                                                                                                                 
|3. | RSG-20: The RSG-20 is a revolving shotgun version
      developed for the United States market and designed to fire five 20 gauge
      cartridges.                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                 
|4. | Military Peace Keeper: The MPK version combines lethal
      and less lethal technologies in one launcher and fires five rounds. The
      launcher is lightweight and contains a laser system for increased
      accuracy.                                                                    
|   |                                                                                                                                                                                                                                                                                                 
|5. | Homeland Defender: The Homeland Defender is our 2 shot
      launcher. This launcher is light weight and small enough to be carried as
      second weapon.                                                                                                                                     

Munitions

We manufacture six types of proprietary munitions used by the
launchers. Each of the munitions is made in 20 gauge, 12 gauge, 37mm and 40mm
and 50 calibre sizes. In addition, our munitions are compatible with other 20
gauge, 12 gauge, 37mm, 40mm and 50 calibre conventional weapons delivery
systems. The munitions are designed to ensure the safety of the operator and
incapacitate rather than kill an opponent.

WASP Composite Rounds

The WASP round is our most technologically advanced product.
The round consists of a projectile made from a rubber composite material that
does not harden in colder climates and possesses energy dissipation attributes,
resulting in a safer and more accurate projectile. The composite material allows
it to be used in temperatures ranging from minus 50 degrees Celsius to 100
degrees Celsius. The chemical composition of the projectile dissipates energy
upon impact, thus inflicting a level of force that is sufficient to temporarily
incapacitate but not kill the intended opponent. The projectile is patent
pending in Canada and the United States. The projectile was developed in
partnership with the University of Western Ontario. The University of Western
Ontario granted us an exclusive world-wide license to the technology pursuant to
a license agreement dated January 30, 2005. The license agreement is effective
for the term the patent rights are protected, subject to certain conditions. In
consideration for the grant of license, weve agreed to pay all out-of-pocket
expenses incurred by the University of Western Ontario, assume responsibility
for future patent prosecution and rights and pay the University a royalty
commencing on April 1, 2006 of three percent of revenue directly attributable to
the projectile. The royalty is subject to minimum royalty obligations of $5,000
per year for each of the second and third years following the entry into the
license agreement, $10,000 per year for the fourth to sixth years, and $20,000
thereafter. Our Company has accrued $3,750 as of September 30, 2007 in
connection with the 2007 royalty obligation.

Sock Rounds

The sock round fires a pouch or beanbag projectile filled
with lead pellets. Each sock round contains a proprietary tail attached to the
end of the round which stabilizes the round for increased accuracy. The
composition of the projectile allows for the dissipation of energy upon impact
which reduces the chances of injury of the intended target. The projectile is
intended to be

---

15

aimed at the abdomen and hits the intended target with
sufficient force to knock the opponent down, but generally not enough to cause
permanent injury.

Distractionary Rounds

The distractionary round is an alternative to conventional stun
grenades and provides a bright flash combined with a 135 decibel noise, used to
disorient and temporarily blind opponents without causing permanent damage.

Liquid Incapacitant Rounds

Incapacitant rounds fire either a liquid or powder form of
pepper spray designed to temporarily blind and incapacitate opponents without
the need for officer contact. Firing the incapacitant rounds from a launcher
provides greater safety to the operator and provides more range than traditional
spray delivery methods.

Training Rounds

Training rounds are non-lethal munitions used by military and
law enforcement organizations to carry out training exercises amongst themselves
in preparation for hostile or combat situations.

Additional Products

We manufacture and distribute products in addition to launchers
and munitions, including the Specialized Mobil Armed Robot Technology System or
SMART System which combines the Defender launcher technology with an integrated
human-robot interface control platform. The SMART System is designed to deliver
less lethal, lethal and chemical weapon systems. Communication is facilitated by
a 360 degree camera and a proprietary sighting system mounted to the robotic
platform. The product can also be customized in accordance with the requirements
of the end-user. Our Firearm Training System, (FTS) is a simulation training
systems, to develop both fundamental basic and judgmental skills for lethal /
less lethal applications through computerized video hit projections. This
product scenario can be customized to the customer needs.

Results of Operations

Nine months ended September 30, 2007 compared to the nine
month period ended September 30, 2006

Our company posted losses of $ 560,524 for the nine months
ended September 30, 2007 compared to losses of $ 674,048 for the nine month
period ended September 30, 2006. The principal components of the losses were $
531,590 of selling, general and administrative expenses for the nine months
ended September 30, 2007 and $ 689,993 for the nine months ended September 30,
2006.

Our operating expenses for the nine months ended September 30,
2007 were $ 582,781 compared to $ 723,666 for the nine month period ended
September 30, 2006. The decrease was largely the result of the cancellation of
the Companies insurance policy and reductions in payroll wages.

Our gross margin for the nine months ended September 30, 2007
was $ 22,257 compared to a gross margin of $ 49,618 for the nine months ended
September 30, 2006.

Liquidity and Capital Resources

Since April 14, 2005, we have been engaged in the business of
developing and manufacturing of civil defense products that are designed as a
less lethal alternative to conventional weapons, while we have been generating
modest revenues. Our principal capital resources have been acquired through the
issuance of common stock.

Accounts receivable decreased $ 42,984 as of September 30, 2007
as compared to December 31, 2006. The decrease was the result of fewer sales and
a decrease in the value of the US dollar.

At September 30, 2007, we had a working capital deficiency of $
675,348 compared to $ 288,189 at December 31, 2006.

While we expect to meet our financial obligations, the
continuation of our business is dependent upon obtaining further financing, a
successful program of acquisition and development, and, finally, achieving a
profitable level of operations. The issuance of additional equity securities by
us could result in a significant dilution in the equity interests of our current
stockholders. Obtaining commercial loans, assuming those loans would be
available, will increase our liabilities and future cash commitments.

---

16

There are no assurances that we will be able to obtain further
funds required for our continued operations. As noted herein, we are pursuing
various financing alternatives to meet our immediate and long-term financial
requirements. There can be no assurance that additional financing will be
available to us when needed or, if available, that it can be obtained on
commercially reasonable terms. If we are not able to obtain the additional
financing on a timely basis, we will be unable to conduct our operations as
planned, and we will not be able to meet our other obligations as they become
due. In such event, we will be forced to scale down or perhaps even cease our
operations.

Going Concern

Our company has shown losses since inception. Management is
anticipating that sales of launcher and ammunitions will increase in the next
quarter with volume growing in the next two quarters. The continuation of our
business is dependent upon obtaining further financing, a successful program of
acquisition and development, and, finally, achieving a profitable level of
operations. The issuance of additional equity securities by us could result in a
significant dilution in the equity interests of our current stockholders.
Obtaining commercial loans, assuming those loans would be available, will
increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further
funds required for our continued operations. As noted herein, we are pursuing
various financing alternatives to meet our immediate and long-term financial
requirements. There can be no assurance that additional financing will be
available to us when needed or, if available, that it can be obtained on
commercially reasonable terms. If we are not able to obtain the additional
financing on a timely basis, we will be unable to conduct our operations as
planned, and we will not be able to meet our other obligations as they become
due. In such event, we will be forced to scale down or perhaps even cease our
operations.

Research and Development

Our companys research and development efforts are focused on
enhancing our less lethal products including: (i) periodic redesign of products
and incorporation of new technologies to improve performance and
manufacturability; (ii) design of new product lines for additional specialized
applications; and (iii) expansion and adoption of existing products to
accommodate the requirements of customer needs. Research and development efforts
are conducted in-house.

Purchase of Significant Equipment

No significant purchases are being planned for the next 12
months.

Personnel

As of September 30, 2007, we have 4 full-time employees. Of
those employees, none are covered by collective bargaining agreements.

Application Of Critical Accounting
Policies

Our unaudited consolidated condensed financial statements and
accompanying notes have been prepared in conformity with generally accepted
accounting principles in the United States of America for interim financial
statements. Preparing financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets, liabilities,
revenue, and expenses. These estimates and assumptions are affected by
management's application of accounting policies. We believe that understanding
the basis and nature of the estimates and assumptions involved with the
following aspects of our financial statements is critical to an understanding of
our financials.

The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the balance sheet. Actual
results could differ from those estimates.

Basic loss per share has been calculated based on the weighted
average number of shares of common stock outstanding during the period.

We do not expect the adoption of recently issued accounting
pronouncements to have a significant impact on our results of operations,
financial position or cash flow.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements as of September 30,
2007.

---

17

RISK FACTORS

Much of the information included in this quarterly report
includes or is based upon estimates, projections or other "forward looking
statements". Such forward looking statements include any projections or
estimates made by us and our management in connection with our business
operations. While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections, assumptions
or other future performance suggested herein.

Such estimates, projections or other "forward looking
statements" involve various risks and uncertainties as outlined below. We
caution the reader that important factors in some cases have affected and, in
the future, could materially affect actual results and cause actual results to
differ materially from the results expressed in any such estimates, projections
or other "forward looking statements".

Risks Related To Our Business

We operate in a highly-competitive industry and our failure
to compete effectively may adversely affect our ability to generate revenue.

Management is aware of similar products which compete directly
with our products and some of the companies developing these products have
significantly greater financial, technical and marketing resources, larger
distribution networks, and generate greater revenue and have greater name
recognition than us. These companies may develop products superior to those of
our company. Such competition will potentially affect our chances of achieving
profitability, and ultimately adversely affect our ability to continue as a
going concern. Some of our competitors conduct more extensive promotional
activities and offer lower prices to customers than we do, which could allow
them to gain greater market share or prevent us from increasing our market
share. In the future, we may need to decrease our prices if our competitors
continue to lower their prices. Our competitors may be able to respond more
quickly to new or changing opportunities, technologies and customer
requirements. To be successful, we must carry out our business plan, establish
and strengthen our brand awareness through marketing, effectively differentiate
our product line from those of our competitors and build our distribution
network. To achieve this we may have to substantially increase marketing and
research and development in order to compete effectively. Such competition will
potentially affect our chances of achieving profitability, and ultimately
adversely affect our ability to continue as a going concern. Due to minimal
revenue and lack of cash flow we cancelled the product liability insurance
policy in July of 2006. We have subsequently reinstated our product liability
insurance on May 1, 2007. On July 26, 2007, the Company cancelled its product
liability coverage. We cannot make assurances that resources will be available
in the foreseeable future to cover any potential product liability litigation or
claims should any arise during the period that our company was self-insured.

Rapid technological changes in our industry could render our
products non-competitive or obsolete and consequently affect our ability to
generate revenues.

Currently, we derive substantially all of our revenues from the
sale of civil defence products and related products using less lethal
alternatives to conventional weapons, including launchers and munitions. Such
products are characterised and affected by rapid technological change, evolving
industry standards and regulations and changing client preferences. Our success
will depend, in significant part, upon our ability to make timely and
cost-effective enhancements and additions to our technology and to introduce new
products and services that meet customer demands. We expect new products and
services to be developed and introduced by other companies that compete with our
products and services. The proliferation of new and established companies
offering less lethal alternative products may reduce demand for our particular
products. There can be no assurance that we will be successful in responding to
these or other technological changes, to evolving industry standards or
regulations or to new products and services offered by our current and future
competitors. In addition, we may not have access to sufficient capital for our
research and development needs in order to develop new products and services.

We could lose our competitive advantages if we are not able
to protect our proprietary technology and intellectual property rights against
infringement, and any related litigation could be time-consuming and costly.

Our success and ability to compete depends in part on our
proprietary technology incorporated in our products. If any of our competitors
copy or otherwise gain access to our proprietary technology or develop similar
technologies independently, we would not be able to compete as effectively. We
consider our technologies invaluable to our ability to continue to develop and
maintain the goodwill and recognition associated with our brand. The measures we
take to protect our technologies, and other intellectual property rights, which
presently are based upon registered trade marks in addition to trade secrets,
may not be adequate to prevent their unauthorized use. Although we rely, in
part, on contractual provisions to protect our trade secrets and proprietary
know-how, there is no assurance that these agreements will not be breached, that
we would have adequate remedies for any breach or that our trade secrets will
not otherwise become known or be independently developed by competitors.
Further, the laws of foreign countries may provide inadequate protection of
intellectual property rights. We may need to bring legal claims to enforce or
protect our intellectual property rights. Any litigation, whether successful or
unsuccessful, could result in

---

18

substantial costs and a diversion of corporate resources. In
addition, notwithstanding any rights we have secured to our intellectual
property, other persons may bring claims against us claiming that we have
infringed on their intellectual property rights, including claims that our
intellectual property rights are not valid. Adverse determinations in litigation
in which we may become involved could subject us to significant liabilities to
third parties, require us to grant licenses to or seek licenses from third
parties and prevent us from manufacturing and selling our products. Any claims
against us, with or without merit, could be time-consuming and costly to defend
or litigate, divert our attention and resources, result in the loss of goodwill
associated with our trademarks or require us to make changes to our
technologies. Furthermore, we cannot assure you that any pending patent
application made by us will result in an issued patent, or that, if a patent is
issued, it will provide meaningful protection against competitors or competitor
technologies.

We may not be able to hire and retain qualified personnel to
support our growth and if we are unable to retain or hire such personnel in the
future, our ability to improve our products and implement our business
objectives could be adversely effected.

To continue our growth, we will need to recruit additional
senior management personnel, including persons with financial and sales
experience. In addition, we must hire, train and retain a significant number of
other skilled personnel, including persons with experience in less lethal
munitions engineering and manufacturing. We have encountered competition for
these personnel. We may not be able to find or retain qualified personnel, which
will have a material adverse impact on our business.

Our growth could be impaired if we are not able to develop
and maintain the relationships we need to implement our international strategy.

Our growth will depend, in large part, on the success of our
international distribution strategy. We have limited experience in marketing and
selling our products outside of Canada and the United States. We will depend on
partnerships and/or joint ventures in international markets to help us build our
international operations and distribution networks. We will depend upon
international partners to provide marketing and relationship building expertise,
and a base of existing customers. If we are unable to develop and maintain these
relationships, or to develop additional relationships in other countries, our
ability to penetrate, and successfully compete in foreign markets will be
adversely affected.

We intend to expand our business internationally, and
therefore, we are subject to additional financial and regulatory risks.

Our current and future international operations are and will be
subject to various risks, including: foreign import controls (which may be
arbitrarily imposed and enforced and which could interrupt our supplies or
prohibit customers from purchasing our products); exchange rate fluctuations;
the necessity of obtaining government approvals for both new and continuing
operations; and legal systems of decrees, laws, taxes, regulations,
interpretations and court decisions that we are not familiar with. One component
of our strategy is to expand our operations into selected international markets.
Foreign countries in which we are actively marketing include the United States
and we intend to commence marketing efforts in the United Kingdom in the near
future. We, however, may be unable to execute our business model in this market
or new markets. Further, foreign providers of competing products and services
may have a substantial advantage over us in attracting consumers and businesses
in their country due to earlier established businesses in that country, greater
knowledge with respect to the cultural differences of consumers and businesses
residing in that country and/or their focus on a single market. As a result, we
expect to experience higher costs as a percentage of any revenues that we may
generate in the future in connection with the development and maintenance of
international sales. In pursuing our international expansion strategy, we face
several additional risks, including:

- foreign laws and regulations, which may vary country by
country, that may impact how we conduct our business;

- higher costs of doing business in foreign countries;

- potential adverse tax consequences if taxing authorities in
different jurisdictions worldwide disagree with our interpretation of various
tax laws or our determinations as to the income and expenses attributable to
specific jurisdictions, which could result in our paying additional taxes,
interest and penalties;

- technological differences that vary by marketplace, which we
may not be able to support;

- longer payment cycles and foreign currency fluctuations; and

- economic downturns.

We propose to operate in areas where local government policies
regarding foreign entities and the regulation of less lethal products are often
uncertain. We cannot, therefore, be certain that we are in compliance with, or
will be protected by, all relevant local laws and taxes at any given point in
time. A subsequent determination that we failed to comply with relevant local
laws and taxes could have a material adverse effect on our business, financial
condition, results of operations and liquidity. One or more of these factors
could adversely affect our future international operations and, consequently,
could have a material adverse effect on our business, financial condition,
results of operation and liquidity.

---

19

Many of our customers have fluctuating budgets, which may
cause substantial fluctuations in our results of operations.

The potential customers for our products may include federal,
state, municipal, foreign and military, law enforcement and other governmental
agencies. Government tax revenues and budgetary constraints, which fluctuate
from time to time, can affect budgetary allocations from these customers. Many
domestic and foreign government agencies have in the past experienced budget
deficits that have led to decreased spending in defence, law enforcement and
other military and security areas. Any future revenues that our company may
generate may be subject to substantial periodic fluctuations because of these
and other factors affecting military, law enforcement and other governmental
spending. A reduction of funding for federal, state, municipal, foreign and
other governmental agencies could have a material adverse effect on any future
revenues that we may generate.

Our WASP synthetic round is costly to compound, and our
company may not be able to find other subcontractors who are willing to supply
our company with this service.

The WASP synthetic round is made from a proprietary rubber
compound and is costly to compound. It may be difficult to find other
contractors willing to compound our material. If we are unable to find
contractors willing to compound and deliver our material, our revenues will be
reduced.

Risks Related To Our Industry

The products we sell are inherently risky and could give
rise to product liability and other claims.

The products that we manufacture are typically used in
applications and situations that involve a high level of risk of personal
injury. Failure to use our products for their intended purposes, failure to use
or care for them properly, or their malfunction, or, in some limited
circumstances, even correct use of our products, could result in serious bodily
injury or death. Given this potential risk of injury, proper maintenance of our
products is critical. Our products consist of less lethal products such as
launchers, munitions, pepper sprays and distraction devices. The manufacture and
sale of less-lethal products may be the subject of product liability claims
arising from the design, manufacture or sale of such goods. If these claims are
decided against our company and we are founds liable, we may be required to pay
substantial damages and our insurance costs, if any, may increase significantly
as a result. Also, a significant or extended lawsuit could also divert
significant amounts of managements time and energy. We cannot assure you that
our insurance coverage, if any, would be sufficient to cover the payment of any
potential claim. In addition, we cannot assure you that this or any other
insurance coverage will continue to be available or, if available, that we will
be able to obtain it at a reasonable cost. Any material uninsured loss could
have a material adverse effect on our business, financial condition and results
of operations.

We are subject to extensive government regulation, and our
failure or inability to comply with these regulations could materially restrict
our operations and subject us to substantial penalties.

We are subject to many requirements with respect to the sale in
foreign and/or domestic countries of certain of our products. In addition, we
are obligated to comply with a variety of federal, state and local regulations,
both domestically and abroad, governing certain aspects of our operations and
workplace. The inability of our company to comply with such regulations may
limit our operations and subject us to substantial penalties and fines.

Risks Related To Our Common Stock

A decline in the price of our common stock could affect our
ability to raise further working capital and adversely impact our operations.

A prolonged decline in the price of our common stock could
result in a reduction in the liquidity of our common stock and a reduction in
our ability to raise capital. Because our operations have been financed through
the sale of equity securities, a decline in the price of our common stock could
be especially detrimental to our liquidity and our continued operations. Any
reduction in our ability to raise equity capital in the future would force us to
reallocate funds from other planned uses and would have a significant negative
effect on our business plans and operations, including our ability to develop
new products and continue our current operations. If the stock price declines,
there can be no assurance that we can raise additional capital or generate funds
from operations sufficient to meet our obligations. We believe the following
factors could cause the market price of our common stock to continue to
fluctuate widely and could cause our common stock to trade at a price below the
price at which you purchase your shares:

- actual or anticipated variations in our quarterly operating
results;

- announcements of new services, products, acquisitions or
strategic relationships by us or our competitors;

- trends or conditions in the less lethal products industry;

---

20

- changes in accounting treatments or principles;

- changes in earnings estimates by securities analysts and in
analyst recommendations;

- changes in market valuations of other less lethal product
companies; and

- general political, economic, regulatory and market
conditions.

The market price for our common stock may also be affected by
our ability to meet or exceed expectations of analysts or investors. Any failure
to meet these expectations, even if minor, could materially adversely affect the
market price of our common stock.

If we issue additional shares in the future, it will result
in the dilution of our existing shareholders.

Our certificate of incorporation authorizes the issuance of
1,000,000,000 shares of common stock. Our board of directors has the authority
to issue additional shares up to the authorized capital stated in the
certificate of incorporation. Our board of directors may choose to issue some or
all of such shares to acquire one or more businesses or to provide additional
financing in the future. The issuance of any such shares will result in a
reduction of the book value or market price of the outstanding shares of our
common stock. If we do issue any such additional shares, such issuance also will
cause a reduction in the proportionate ownership and voting power of all other
shareholders. Further, any such issuance may result in a change of control of
our corporation.

If a market for our common stock does not develop,
shareholders may be unable to sell their shares.

There is currently a limited market for our common stock, which
trades through the Over-the-Counter Bulletin Board quotation system. Trading of
stock through the Over-the-Counter Bulletin Board is frequently thin and highly
volatile. There is no assurance that a sufficient market will develop in the
stock, in which case it could be difficult for shareholders to sell their
stock.

Trading of our stock may be restricted by the Securities and
Exchange Commissions penny stock regulations which may limit a stockholders
ability to buy and sell our stock.

The Securities and Exchange Commission has adopted regulations
which generally define penny stock to be any equity security that has a market
price (as defined) less than $5.00 per share or an exercise price of less than
$5.00 per share, subject to certain exceptions. Our securities are covered by
the penny stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
accredited investors. The term accredited investor refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission which provides information about penny stocks and the nature
and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction and
monthly account statements showing the market value of each penny stock held in
the customers account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer orally or in
writing prior to effecting the transaction and must be given to the customer in
writing before or with the customers confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt
from these rules; the broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive the
purchasers written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of our common stock.

The Financial Industry Regulatory Authority (formerly
National Association of Securities Dealers Inc),hereafter referred to as NASD,
has adopted sales practice requirements, which may limit a stockholders ability
to buy and sell our shares.

In addition to the penny stock rules described above, the
NASD has adopted rules requiring that in recommending an investment to a
customer, a broker-dealer must have reasonable grounds for believing that the
investment is suitable for that customer. Prior to recommending speculative
low-priced securities to their non-institutional customers, broker-dealers must
make reasonable efforts to obtain information about the customers financial
status, tax status, investment objectives and other information. Under
interpretations of these rules, the NASD believes that there is a high
probability that speculative low-priced securities will not be suitable for at
least some customers. The NASD requirements make it more difficult for
broker-dealers to recommend that their customers buy our common stock, which may
limit our shareholders ability to buy and sell our stock and which may have an
adverse effect on the market for our shares.

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21

Most of our assets and a majority of our directors and
officers are outside the United States, with the result that it may be difficult
for investors to enforce within the United States any judgments obtained against
us or any of our directors or officers.

Although we are organized under the laws of the State of
Nevada, our principal executive office is located in Sarnia, Ontario, Canada.
Outside the United States, it may be difficult for investors to enforce
judgments against us obtained in the United States in any such actions,
including actions predicated upon civil liability provisions of federal
securities laws. In addition, some of our officers and directors reside outside
the United States, and a majority of the assets of these persons and our assets
are located outside of the United States. As a result, it may not be possible
for investors to effect service of process within the United States upon such
persons or to enforce against us or such persons judgments predicated upon the
liability provisions of the United States securities laws. There is substantial
doubt as to the enforceability against us or any of our directors and officers
located outside the United States in original actions or in actions of
enforcement of judgments of United States courts or liabilities predicated on
the civil liability provisions of United States federal securities laws.

ITEM 3. CONTROLS AND PROCEDURES.

As required by Rule 13a-15 under the Exchange Act, as of the
end of the period covered by this report, being September 30, 2007, we have
carried out an evaluation of the effectiveness of the design and operation of
our company's disclosure controls and procedures. This evaluation was carried
out under the supervision and with the participation of our management,
including our president, principal executive officer and principal accounting
officer. Based upon that evaluation, our president, principal executive officer
and principal accounting officer concluded that our disclosure controls and
procedures are effective as of the end of the period covered by this report.
There have been no changes in our internal controls over financial reporting
that occurred during our most recent fiscal quarter that have materially
affected, or are reasonably likely to materially affect our internal controls
over financial reporting.

Disclosure controls and procedures are controls that are
designed to ensure that information required to be disclosed in our company's
reports filed or submitted under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange Commission's rules and forms. Disclosure controls and procedures
include, without limitation, controls and procedures designed to ensure that
information required to be disclosed in our reports filed under the Exchange Act
is accumulated and communicated to management, including our president and chief
executive officer as appropriate, to allow timely decisions regarding required
disclosure.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

On February 1, 2007 a Statement of Claim was filed against our
company by Mintz & Partners LLP for the amount of $103,248. Our company is
disputing this amount and plans on defending itself and counter claiming against
Mintz. Our company and Mintz are in a settlement discussion. Proceedings have
being requested to be held in the City of Toronto, in the Province of Ontario at
the Ontario Superior Court of Justice. There are no changes to this lawsuit as
of September 30, 2007.

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

On March 31, 2007, we issued 671,516 shares of common stock to
a company controlled by our vice president, for services rendered in lieu of a
cash payment. The common stock was issued to one U.S. person (as that term is
defined in Regulation S of the Securities Act of 1933) relying on the exemptions
from registration provided by Section 4(2) of the Securities Act of 1933 and
upon Rule 506 of Regulation D of the Securities Act of 1933.

On May 1, 2007, we issued 750,000 shares of common stock of our
company at a purchase price of $0.10 per share for gross proceeds of $75,000.
The common stock was issued to one U.S. person (as that term is defined in
Regulation S of the Securities Act of 1933) relying on the exemptions from
registration provided by Section 4(2) of the Securities Act of 1933 and upon
Rule 506 of Regulation D of the Securities Act of 1933. In addition, we issued
1,000,000 share purchase warrants. Each share purchase warrant is exercisable
until May 1, 2010 at an exercise price of US$0.08 per share.

On June 30, 2007, we issued 374,900 shares of common stock to a
company controlled by our vice president, for services rendered in lieu of a
cash payment. The common stock was issued to one U.S. person (as that term is
defined in Regulation S of the Securities Act of 1933) relying on the exemptions
from registration provided by Section 4(2) of the Securities Act of 1933 and
upon Rule 506 of Regulation D of the Securities Act of 1933.

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22

On June 30, 2007, we granted stock options to three (3)
employees to purchase an aggregate of 900,000 shares of our common stock at an
exercise price of $0.08 per share, exercisable until June 30, 2012. We issued
the stock options to two (2) non-U.S. persons (as that term is defined in
Regulation S of the Securities Act of 1933), in an offshore transaction relying
on Regulation S and/or Section 4(2) of the Securities Act of 1933 and to one (1)
U.S. person (as that term is defined in Regulation S of the Securities Act of
1933) relying on the exemptions from registration provided by Section 4(2) of
the Securities Act of 1933 and upon Rule 506 of Regulation D of the Securities
Act of 1933.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

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

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

The following exhibits, required by Item 601 of Regulation S-B,
are being filed as part of this quarterly report, or are incorporated by
reference where indicated:

|Exhibit | Description                                                                                                                                                                                                                                                                                                                                                                                               
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|3.      | Articles of
      Incorporation and By-laws:                                                                                                                                                                                                                                                                                                                                                              
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|3.1     | Articles of Incorporation (incorporated by reference from
      our Registration Statement on Form SB-2, filed on March 27, 2002).                                                                                                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|3.2     | Restated Articles of Incorporation (incorporated by
      reference from our Registration Statement on Form SB-2, filed on March 27,
      2002).                                                                                                                                                                                                                                                         
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|3.3     | Bylaws (incorporated by reference from our Registration
      Statement on Form SB-2, filed on March 27, 2002).                                                                                                                                                                                                                                                                                           
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|3.4     | Certificate of Amendment filed with the Nevada Secretary
      of State on January 31, 2005. (Incorporated by reference from our Current
      Report on Form 8-K, filed on February 1, 2005).                                                                                                                                                                                                            
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|3.5     | Certificate of Amendment filed with the Nevada Secretary
      of State on March 21, 2005 (Incorporated by reference from our Current
      Report on Form 8-K, filed on March 31, 2005).                                                                                                                                                                                                                 
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|10.     | Material Contracts                                                                                                                                                                                                                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|10.1    | Share Exchange Agreement dated March 18, 2005, among our
      company under our former name Sinewire Networks Inc., 1476246 Ontario
      Limited doing business as Lamperd Less Lethal, Patrick Ward, Hani Zabaneh
      and the principal shareholders as set out in the share exchange agreement
      (incorporated by reference from our Current Report on Form 8-K, filed on
      March 31, 2005).
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|10.2    | Employment Agreement dated January 1, 2005 between
      1476246 Ontario Limited and Barry Lamperd (incorporated by reference from
      our Current Report on Form 8-K, filed on May 13, 2005).                                                                                                                                                                                                          
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|10.3    | Addendum to Employment Agreement made January 1, 2005
      between 1476246 Ontario Limited and Barry Lamperd (incorporated by
      reference from our Current Report on Form 8-K, filed on May 13, 2005).                                                                                                                                                                                               
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|10.4    | Asset Transfer Agreement dated January 1, 2005 between
      1476246 Ontario Limited and Pinetree Law Enforcement Products Ltd.
      (incorporated by reference from our Current Report on Form 8-K, filed on
      May 13, 2005).                                                                                                                                                                       
|        |                                                                                                                                                                                                                                                                                                                                                                                                           
|10.5    | License Agreement dated January 20, 2005 between 1476246
      Ontario Limited and The University of Western Ontario (incorporated by
      reference from our Current Report on Form 8-K, filed on May 13, 2005).                                                                                                                                                                                        

---

23

|Exhibit | Description                                                                                                                                                                                                                                                                            
|------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                                                                                                                                                        
|10.6    | Voting Agreement
        dated March 1, 2005 between Barry Lamperd, DArcy Bell, Dominic DiCarlo,
        Bruce Strebinger, Mercer Investments Inc. and 1476246 Ontario Limited
        (incorporated by reference from our Current Report on Form 8-K, filed
        on May 13, 2005).
|        |                                                                                                                                                                                                                                                                                        
|10.7    | Consulting Agreement
        dated April 23, 2005 between 1476246 Ontario Limited and Dominic DiCarlo
        (incorporated by reference from our Current Report on Form 8-K, filed
        on May 13, 2005).                                                                          
|        |                                                                                                                                                                                                                                                                                        
|10.8    | Consulting Agreement
        dated April 23, 2005 between 1476246 Ontario Limited and 1476232 Ontario
        Limited (incorporated by reference from our Current Report on Form 8-K,
        filed on May 13, 2005).                                                                  
|        |                                                                                                                                                                                                                                                                                        
|10.9    | Letter of Intent
        dated May 18, 2005 between Lamperd Less Lethal Inc. and Taylors
        & Co. Inc. (incorporated by reference from our Current Report on Form
        8-K filed on May 27, 2005).                                                                            
|        |                                                                                                                                                                                                                                                                                        
|10.10   | Geographic Exclusive
        Commissioned Sales Agent Agreement dated as of August 2, 2005 (incorporated
        by reference from our Current Report on Form 8-K filed on August 8, 2005).                                                                                            
|        |                                                                                                                                                                                                                                                                                        
|21.     | Subsidiaries
        of the Small Business Issuer                                                                                                                                                                                                                                      
|        |                                                                                                                                                                                                                                                                                        
|21.1    | 1476246 Ontario
        Limited                                                                                                                                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                        
|14.     | Code of Ethics                                                                                                                                                                                                                                                                         
|        |                                                                                                                                                                                                                                                                                        
|14.1    | Code of Business
        Conduct and Ethics (incorporated by reference from our Annual Report on
        Form 10-KSB, filed on March 30, 2004).                                                                                                                                        
|        |                                                                                                                                                                                                                                                                                        
|31.     | 302 Certification                                                                                                                                                                                                                                                                      
|        |                                                                                                                                                                                                                                                                                        
|31.1*   | Section
        302 Certification under Sarbanes-Oxley Act of 2002 of Barry Lamperd.                                                                                                                                                                                                   
|        |                                                                                                                                                                                                                                                                                        
|32.     | 906 Certification                                                                                                                                                                                                                                                                      
|        |                                                                                                                                                                                                                                                                                        
|32.1*   | Section 906 Certification
      under Sarbanes-Oxley Act of 2002 of Barry Lamperd.                                                                                                                                                                                                     

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24

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.



LAMPERD LESS LETHAL INC.



By: /s/*Barry Lamperd*
         Barry Lamperd 
         President and Director 
         (Principal Executive Officer, Principal
  Financial Officer 
         and Principal Accounting Officer)

Date:November 14, 2007

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