UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549 Form 10-QSB (Mark One) xQUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period endedJune 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 organization)
        
        (IRS Employer Identification No.)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.     YesxNo [   ] 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 [
        ]
        Nox Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [
        ]
        Nox      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 June 30, 2007 includes all adjustments necessary in order to ensure that the consolidated interim financial statements are not misleading.   Contents
        PageCondensed Consolidated Balance Sheets
        3Condensed Consolidated Statements Of Changes In Stockholders Equity (Deficit)
        4Condensed Consolidated Statements of Operations
        5Condensed Consolidated Statements of Cash Flows
        6Notes to Condensed Consolidated Financial Statements
        7       3   LAMPERD LESS LETHAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Canadian Funds)  ASSETS
        June 30, 2007
(Unaudited)
        
        December 31, 2006
(Audited)Current AssetsCash and cash equivalents
        $              12,556
        
        $             1,443Accounts receivable
        28,648
        
        70,095Inventories    (Note 3)
        139,162
        
        120,559Sundry
        9,077
        
        6,278Total Current Assets
        189,443
        
        198,375Equipment and leaseholds - net   (Note 4)
        270,472
        
        255,721Intangibles(Note 5)
        30,850
        
        33,217TOTAL ASSETS
        $           490,765
        
        $         487,313LIABILITIESCurrent LiabilitiesAccounts payable
        $         363,933
        
        $         345,197Accrued liabilities
        71,534
        
        65,200Promissory notes and advances due to
shareholders (Note 10)
        320,284
        
        76,167Total Current Liabilities
        755,751
        
        486,564CONTINGENCIES AND COMMITMENTS(Note 11)STOCKHOLDERS EQUITY (DEFICIT)Common Stock(Note 8)Authorized 1,000,000,000 common shares, $0.001(USD) per share par valueIssued and outstanding 55,368,040 common shares at June 30, 2007 and 53,820,158 at December 31,2006
        67,697
        
        65,947Additional paid - in capital
        2,499,949
        
        2,331,588Retained Deficit
        (2,832,632)
        
        (2,396,786)Total Stockholders Equity (Deficit)
        (264,986)
        
        749TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
        $         490,765
        
        $        487,313 See accompanying notes to condensed consolidated financial statements       4   LAMPERD LESS LETHAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (DEFICIT) (Canadian Funds) (Unaudited)  Number of
Common Shares
        
        Common
Stock
        
        Additional
Paid-in Capital
        
        Retained
Deficit
        
        Total  Stockholders 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 14)
        
        
        
        
        
        
        (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)   See accompanying notes to condensed consolidated financial statements           5   LAMPERD LESS LETHAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Canadian Funds) (Unaudited)   For the ThreeMonth Period EndedJune 30, 2007
        
        For the Three
Month Period Ended
June 30, 2006
        
        For the Six
Month Period Ended
June 30,  2007
        
        For the Six
Month Period EndedJune 30,  2006REVENUE
        $
        34,005
        $
        141,084
        $
        78,830
        $
        197,453COST OF GOODS SOLD
        
        39,042
        
        102,304
        
        74,750
        
        173,822GROSS MARGIN
        
        (5,037)
        
        38,780
        
        4,080
        
        23,631EXPENSESSelling, general and administrative
        
        154,063
        
        260,829
        
        404,373
        
        500,069Research and development
        
        9,001
        
        -
        
        11,254
        
        -Depreciation and amortization
        
        13,688
        
        10,175
        
        24,299
        
        19,105TOTAL EXPENSES
        
        176,752
        
        271,004
        
        439,926
        
        519,174NET LOSS
        $
        (181,789)
        $
        (232,224)
        $
        (435,846)
        $
        (495,543)LOSS PER SHARE(Note 7)
        
        (0.00)
        
        (0.01)
        
        (0.01)
        
        (0.01)WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING(Note 7)
        
        54,750,007
        
        51,250,000
        
        54,289,988
        
        51,081,492 See accompanying notes to condensed consolidated financial statements         6   LAMPERD LESS LETHAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Canadian Funds) (Unaudited)  For the Six
Month Period Ended
June 30,  2007
        
        
        For the Six
Month Period Ended
June 30, 2006CASH FLOWS PROVIDED BY (USED IN):OPERATING ACTIVITIESNet loss for the period
        $
        (435,846)
        
        $
        (495,543)Depreciation andamortization
        
        24,299
        
        
        19,105Net change in non-cash operating assets and liabilities:
        
        (411,547)
        
        
        (476,438)Accounts receivable
        
        41,447
        
        
        (66,984)Inventories
        
        (18,603)
        
        
        21,839Sundry
        
        (2,799)
        
        
        97,897Accounts payable
        
        18,736
        
        
        114,499Accrued liabilities
        
        6,334
        
        
        -Deferred revenue
        
        -
        
        
        2,147Net cash used in operating activities
        
        (366,432)
        
        
        (307,040)INVESTING ACTIVITIESAdditions to equipment and intangibles
        
        (36,683)
        
        
        (14,584)Net cash used in investing activities
        
        (36,683)
        
        
        (14,584)FINANCING ACTIVITIESProceeds from promissory notes and advances due to shareholders
        
        244,117
        
        
        17,772Proceeds from issuance of common stock (Note 8)
        
        170,111
        
        
        -Net cash provided by financing activities
        
        414,228
        
        
        17,772CHANGE IN CASH AND CASH EQUIVALENTS
        
        11,113
        
        
        (303,852)CASH AND CASH EQUIVALENTS, beginning of period
        
        1,443
        
        
        310,610CASH AND CASH EQUIVALENTS, end of period
        $
        12,556
        
        $
        6,758  Cash paid for interest in the six month period ended June 30, 2007 and June 30, 2006  was$12,517 and  $NIL respectively.  No cash was paid for income taxes in the six months ended June 30, 2007 and 2006 See Note 8 for supplemental information for non-cash transactions  See accompanying notes to condensed consolidated financial statements.      7   LAMPERD LESS LETHAL INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS June 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 six month period ended June 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.      8  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  Descriptions
        
        June 30, 2007
(Unaudited)
        
        December 31, 2006
(Audited)Raw Material
        $
        33,104
        $
        40,519Work in Process
        
        83,003
        
        53,466Finished Goods
        
        23,055
        
        26,574TOTAL
        $
        139,162
        $
        120,559  4.
        EQUIPMENT AND LEASEHOLDS  at cost Consists of:  June 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
        83,771
        61,839Net Carrying Value
        $                 270,472
        $                 255,721 (i)
        Included in the manufacturing equipment is $98,223 related to equipment, which was not put into commercial use as at June 30, 2007.  Accordingly, no depreciation has been recorded on this equipment in accordance with the companies accounting policy. Depreciation expense for the 3 months period ended June 30, 2007 and 2006 was $12,458 and $8,464, respectively. Depreciation expense for the 6 months period ended June 30, 2007 and 2006 was $21,932 and $16,887, respectively.      9    5.
        INTANGIBLES  June 30, 2007
(Unaudited)
        December 31, 2006
(Audited)Licenses
        $    22,122
        $    22,122Trademarks & Copyrights
        822
        822Patents
        17,373
        17,373$    40,317
        $    40,317Accumulated amortization
        9,467
        7,100Total
        $     30,850
        $        33,217 Amortization expenses for the 3 months period ended June 30, 2007 and 2006 was $1,230 and $1,725, respectively. Amortization expenses for the 6 months period ended June 30, 2007 and 2006 was $2,367 and $2,242, respectively. Future amortization expense applicable to the above intangibles is:  2007 remainder
        $ 2,5522008
        $ 4,9192009
        $ 4,9192010
        $ 4,9192011
        $ 2,014Thereafter
        $11,527  6.
        FINANCIAL INSTRUMENTS (a) Credit Risk 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) Currency Risk 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 June 30, 2007. (c) Fair Value of Financial Assets and Liabilities 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 six months ended June 30, 2007 totaling 54,289,988 shares (June 30, 2006  51,381,492). 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 June 30, 2007  55,368,040 and at December 31, 2006  53,820,158 In June 2007, the Company approved the issuance at June 30, 2007 of common shares 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 on the end of the day value of the Companys stock price of $.08 USD in order to satisfy the debt of $29,922. On May 1, 2007 the Company issued 750,000 units common stock of the Corporation to an investor at a price of $0.10 a unit which included a common stock purchase warrant entitling the holder the ability to acquire up to 1,000,000 common stock of the Corporation at $.08 per share for 3 years. In January 2007, the Company approved the issuance at 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 $.11 USD in order to satisfy the debt of $53,721. On April 14, 2005, the Company issued 1,500,000 units to an investor at a price of $1 per unit.  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 US $1.25 for twelve months following April 14, 2005 and US $1.40 thereafter. No warrants were exercised in the quarter ended June 30, 2007. 9.
        INCOME TAXES At June 30, 2007, the Company had cumulative net operating loss carry-forward of approximately $3 millionfor 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 AND OWING TO SHAREHOLDERS 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 six month period ended June 30, 2007 for the manufacturing of various components, and purchases for the Company.  At June 30, 2007, the Company owes the supplier $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      11  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 June 30, 2007. (iii) The Company rents premises from a corporation controlled by itsVice President and Director.  For six months ended June 30, 2007 and 2006 rent of $44,400 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 $9,000 during the six month period ended June 30, 2007 (Nil in the same period in 2006). Promissory notes and advances due to shareholders: (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. (vi) On April 12, 2007, $30,000 promissory note is outstanding to a shareholder bearing an interest rate of 15% per annum to be paid in a lump sum at date of maturity, April 11, 2008, and is unsecured and contains penalty provision on failure to pay on the maturity date equal to 17% of the unpaid balance. (vii) At various dates in 2007, a Director and Officer advanced a total of $45,000 to the Company.  These loans are secured by a first charged against assets of the Company bearing an interest rate of 12% effective April 1, 2007 and due on demand. (viii) In February 2007, the Company entered into a demand promissory note bearing interest at 8% 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 principle and interest are fully paid. The lender has the right to demand full repayment of principle and interest at any time. (ix) On March 12, 2007, two shareholders each advanced $11,153 to the Company at an interest rate of 15%, principle and interest due in full on the anniversary date of the loan. The loans are unsecured. (x)  At June 30, 2007, the Company owes a shareholder and officer $36,734 for unpaid wages. (xi) On May 31, 2007, the Company entered into a demand promissory note with a shareholder in the amount of $84,000, interest (at 10%) 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 principle and interest at any time. A lenders fee of $5,000 was charged on the transaction. (xii) On April 12, 2007, the Company entered into a promissory note with a shareholder in the amount of $2,244, interest at 12% and due April 12, 2009. 11.
        COMMITMENTS AND CONTINGENCIES 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      12  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. 12.
        SUBSEQUENT EVENTS 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 also entered a Stock Option Agreement with this individual 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 into a second Intellectual Property (I.P.) Assignment Agreement with a 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. In July 2007, the Company also entered a Stock Option Agreement with this individual 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. 13.
        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 June 30, 2006 financial statements resulting from the above are as follows: 
        The weighted average number of common shares outstanding at June 30, 2006 is 51,081,492 versus 50,831,492 as previously reported. There is no effect on the reported Loss Per Share. 14.
        RESTATEMENT OF MARCH 31, 2007 QUARTERLY REPORT Amounts totaling $28, 070 should have been included in inventory but were expensed in the first quarter in error. The effect of this error is 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   15.
        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 $0.08 USD and 50% of the amount of the total options available is vested at June 30, 2007 with the balance being vested on December 31, 2007.   All of these options expire June 30, 2012.      14   ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION. Introduction Our financial statements are stated in Canadian dollars (CDN$) 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 and manufacturer of civil defense 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 also 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     15  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. 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.      16   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.  As of the report date $7,500 remain due under the terms of this contract. 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 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.      17   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 Six months ended June 30, 2007 compared to the six month period ended June 30, 2006 Our company posted losses of $435,846 for the six months ended June 30, 2007 compared to losses of $495,543 for the six month period ended June 30, 2006. The principal components of the losses were $404,373 of selling, general and administrative expenses for the six months ended June 30, 2007 and $500,069 for the six months ended June 30, 2006. Our operating expenses for the six months ended June 30, 2007 were $439,926 compared to $519,174 for the six month period ended June 30, 2006. Our gross margin for the six months ended June 30, 2007 was $4,080 compared to a gross margin of $23,631 for the six months ended June 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 $41,447 as of June 30, 2007 as compared to December 31, 2006.  The decrease was the result of fewer sales and the decrease value of the US dollar. At June 30, 2007, we had working capital deficiency of $566,308 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. 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.      18   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. While we have sufficient funds to operate through the next quarter, 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 re-design 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 planned for the next 12 months. Personnel As of June 30, 2007, we have 5 full-time employees and 1 part-time employee.  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.      19   Off-Balance Sheet Arrangements We have no off-balance sheet arrangements as of June 30, 2007. 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.  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 defense products and related products using less lethal alternatives to conventional weapons, including launchers and munitions.  Such products are characterized 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     20  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 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.      21   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. 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 defense, 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.      22   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;      23   -
        trends or conditions in the less lethal products industry;-
        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.     24  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 National Association of Securities Dealers Inc., or 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. 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 June 30, 2007, we have continued 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 and within the possible scope of companies our size, 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.      25   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. 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. 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:      26    Exhibit
        Description3.
        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 Contracts10.1
        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).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 Mary 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).       27    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 Issuer21.1
        1476246 Ontario Limited14.
        Code of Ethics14.1
        Code of Business Conduct and Ethics (incorporated by reference from our Annual Report on Form 10-KSB, filed on March 30, 2004).31.
        302 Certification31.1*
        Section 302 Certification under Sarbanes-Oxley Act of 2002 of Barry Lamperd.32.
        906 Certification32.1*
        Section 906 Certification under Sarbanes-Oxley Act of 2002 of Barry Lamperd.       28   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:  August 13, 2007