|    |
|--------------|

**U.S.        Securities and Exchange Commission **

**Washington,        D.C. 20549 **

**FORM        10-QSB **

| **x** | **Quarterly                  Report Pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ** ̈** | **Transition                  Report Pursuant to Section 13 of 15(d) of the Securities Exchange                  Act of                  1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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**SENSOR        SYSTEM SOLUTIONS, INC.**

** **
**(Exact        name of small business issuer as specified in its charter)**

|                                                                                                    |   |                                                                    |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
| NEVADA                                                                                                  |   | **98-0226032**                                                          |
| **(State                  or other jurisdiction of****incorporation                  or organization)** |   | **(IRS                  Employer Identification                  No.)** |

** **
**(Address        of principal executive offices) **

**(Issuer’s        telephone number) **

----

**59,279,241        **

|    |
|--------------|

----

| PART                    I.  | FINANCIAL                    INFORMATION                                                                                                                                                                                                                                                                                                                                           |     |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    1.  | Condensed                    Consolidated Financial Statements:                    (unaudited)                                               |     |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
|                        | Condensed                    Consolidated Balance Sheets as of March 31, 2005 (unaudited)                    and December                    31, 2004.                                                                                                                                                                                                                             | 1        |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
|                        | Condensed                    Consolidated Statements of Operations for the three-months ended                    March 31,                    2005 and 2004 (unaudited)                                                                                                                                                                                                            | 2        |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
|                        | Condensed                    Consolidated Statement of Changes in Stockholders’ Deficiency for the                    three-months ended March 31, 2005 (unaudited)                                                                                                                                                                                                          | 3        |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
|                        | Condensed                    Consolidated Statements of Cash Flows for the three-months ended                    March 31,                    2005 and 2004 (unaudited)                                                                                                                                                                                                            | 4        |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
|                        | Notes                    to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                                                                                                                                                                | 5        |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    2.  | Management’s                    Discussion and Analysis or Plan of Operations                                                                                                                                                                                                                                                                                                |  10 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    3.  | Controls                    and Procedures                                                                                                                                                                                                                                                                                                                                         |  18 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| PART                    II. | OTHER                    INFORMATION                                                                                                                                                                                                                                                                                                                                               |     |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    1.  | Legal                    Proceedings                                                                                                                                                                                                                                                                                                                                               |  18 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    2.  | Changes                    In Securities and Small Business Issuer Purchases of Equity                    Securities                                                                                                                                                                                                                                                               |  19 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    3.  | Defaults                    Upon Senior Securities                                                                                                                                                                                                                                                                                                                                 |  20 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    4.  | Submission                    Of Maters To a vote Of Security Holders                                                                                                                                                                                                                                                                                                              |  20 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    5.  | Other                    Information                                                                                                                                                                                                                                                                                                                                               |  20 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| Item                    6.  | Exhibits                                                                                                                                                                                                                                                                                                                                                                           |  20 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |
| SIGNATURES                  |                                                                                                                                                                                                                                                                                                                                                                               |  21 |
|                        |                                                                                                                                                                                                                                                                                                                                                                               |     |

----

**PART        I **

**FINANCIAL        INFORMATION**

**Item        1. Financial Statements.**

**SENSOR          SYSTEM SOLUTIONS, INC. AND SUBSIDIARY**

**CONDENSED          CONSOLIDATED BALANCE SHEETS**

**As          of March 31, 2005**
**(Unaudited)**

**and          December 31, 2004**

| **ASSETS**                                                                                                                            |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|
| **CURRENT                    ASSETS**                                                                                                 |   |   | March                    31, 2005(Unaudited) |   |   | December                    31,2004 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Cash                                                                                                                                  |   | $ | 47,716 |   | $ | 17,115 |   |
| Accounts                    receivable                                                                                                |   |   | 131,065 |   |   | 100,530 |   |
| Inventory                                                                                                                             |   |   | 212,522 |   |   | 220,445 |   |
| Prepaids                    and other current assets                                                                                  |   |   | 4,872 |   |   | 24,552 |   |
| Total                    current assets                                                                                               |   |   | 396,175 |   |   | 362,642 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Property                    and equipment**,**net                                                                                     |   |   | 294,801 |   |   | 320,717 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Other                    assets                                                                                                       |   |   | 54,112 |   |   | 54,112 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Total                    assets                                                                                                       |   | $ | 745,088 |   | $ | 737,471 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **LIABILITIES                    AND STOCKHOLDERS' DEFICIENCY**                                                                       |   |   |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **CURRENT                    LIABILITIES**                                                                                            |   |   |   |   |   |   |   |
| Accounts                    payable and accrued expenses                                                                              |   | $ | 691,659 |   | $ | 720,817 |   |
| Notes                    payable                                                                                                      |   |   | 363,386 |   |   | 263,922 |   |
| Notes                    payable, related parties                                                                                     |   |   | 335,575 |   |   | 718,133 |   |
| Current                    portion of capital lease obligations                                                                       |   |   | 7,819 |   |   | 7,819 |   |
| Current                    portion of deferred rent concession                                                                        |   |   | 4,756 |   |   | 5,259 |   |
| Total                    current liabilities                                                                                          |   |   | 1,403,195 |   |   | 1,715,950 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **LONG-TERM                    LIABILITIES**                                                                                          |   |   |   |   |   |   |   |
| Capital                    lease obligations, net of current portion                                                                  |   |   | 32,336 |   |   | 34,199 |   |
| Deferred                    rent concession, net of current portion                                                                   |   |   | 9,515 |   |   | 10,513 |   |
|                                                                                                                                  |   |   | 41,851 |   |   | 44,712 |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Commitments                    and contingencies                                                                                      |   |   | - |   |   | - |   |
|                                                                                                                                  |   |   |   |   |   |   |   |
| **STOCKHOLDERS'                    DEFICIENCY**                                                                                       |   |   |   |   |   |   |   |
| Preferred                    stock, $.001 par value, 20,000,000shares                    authorized, none outstanding                 |   |   | - |   |   | - |   |
| Common                    stock, $.001 par value, 180,000,000 shares                    authorized, 59,279,241 issued and outstanding |   |   | 59,279 |   |   | 3,977 |   |
| Common                    stock to be issued (15,404,871 shares)                                                                      |   |   | 878,512 |   |   | 2,100,000 |   |
| Additional                    paid-in capital                                                                                         |   |   | 6,674,202 |   |   | 4,867,790 |   |
| Deferred                    compensation                                                                                              |   |   | (75,458 | ) |   | (186,400 | ) |
| Accumulated                    deficit                                                                                                |   |   | (8,236,493 | ) |   | (7,808,558 | ) |
| Total                    stockholders' deficiency                                                                                     |   |   | (699,958 | ) |   | (1,023,191 | ) |
|                                                                                                                                  |   |   |   |   |   |   |   |
| Total                    liabilities and stockholders’ deficiency                                                               |   | $ | 745,088 |   | $ | 737,471 |   |

----

**SENSOR            SYSTEM SOLUTIONS, INC. AND SUBSIDIARY**

**CONDENSED            CONSOLIDATED STATEMENTS OF OPERATIONS**

**For            three months ended March 31, 2005 and 2004 (Unaudited)**

|                                                                      |   |    |       |    |   |
|---------------------------------------------------------------------------|--------|--------------|------------|--------------|--------|
|                                                                      |   |  2005   |       |  2004   |   |
|                                                                      |   |         |       |         |   |   |   |
| Sales,                    net                                             |   | $            | 205,015    |         | $      | 107,279 |   |
|                                                                      |   |         |       |         |   |   |   |
| Cost                    of goods sold                                     |   |         | 147,274    |         |   | 105,665 |   |
|                                                                      |   |         |       |         |   |   |   |
| Gross                    profit                                           |   |         | 57,741     |         |   | 1,614 |   |
|                                                                      |   |         |       |         |   |   |   |
| Operating                    expenses                                     |   |         | 330,555    |         |   | 174,342 |   |
| Amortization                    of discount on notes payable              |   |         | 155,121    |         |   | 60,612 |   |
| Total                    operating expenses                               |   |         | 485,676    |         |   | 234,954 |   |
|                                                                      |   |         |       |         |   |   |   |
|                                                                      |   |         |       |         |   |   |   |
| Net                    loss                                               |   | $            | (427,935   | )            | $      | (233,340 | ) |
|                                                                      |   |         |       |         |   |   |   |
| Loss                    per common share, basic and diluted               |   | $            | (.01       | )            | $      | (.09 | ) |
|                                                                      |   |         |       |         |   |   |   |
| Weighted                    average shares outstanding, basic and diluted |   |         | 43,302,999 |         |   | 2,486,539 |   |
|                                                                      |   |         |       |         |   |   |   |

----

**SENSOR            SYSTEM SOLUTIONS, INC. AND SUBSIDIARY**

**CONDENSED            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’            DEFICIENCY**

**For            three months ended March 31, 2005 (Unaudited) **

|                                                                                                           |   | Common                        Stock |       | Common                        Stock to be issued |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------------------------------------------------|--------|--------|--------|--------|------------|--------------------------------------------------|--------|----------------------|--------|--------------------|-----------|--------|--------|
|                                                                                                                |   | Shares                              |       | Amount                                           |   | Shares |   | Amount |       | Additionalpaid-in                        capital |   | Deferredcompensation |   | Accumulateddeficit |      | Total  |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Balance                        January 1, 2005                                                                 |   |                                | 3,976,868  |                                             | $      | 3,977  |   |   | 7,700,000  |                                             | $      | 2,100,000            |   | $                  | 4,867,790 |   | $      | (186,400 | ) | $ | (7,808,558 | ) | $ | (1,023,191 | ) |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Forfeit                        of stock options                                                                |   |                                | -          |                                             |   | -      |   |   | -          |                                             |   | -                    |   |               | (99,000   | )      |   | 99,000 |   |   | - |   |   | - |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Issuance                        of common stock                                                                |   |                                | 7,500,000  |                                             |   | 7,500  |   |   | (7,500,000 | )                                                |   | (1,800,000           | )      |               | 1,792,500 |   |   | - |   |   | - |   |   | - |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Warrants                        exercised byshareholders                        from merger                    |   |                                | 47,802,373 |                                             |   | 47,802 |   |   | -          |                                             |   | -                    |   |               | (47,802   | )      |   | - |   |   | - |   |   | - |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Exercise                        of warrants fordebt                        outstanding                         |   |                                | -          |                                             |   | -      |   |   | 14,793,290 |                                             |   | 262,500              |   |               | -         |   |   | - |   |   | - |   |   | 262,500 |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Settlement                        of debt for stock                                                            |   |                                | -          |                                             |   | -      |   |   | 411,581    |                                             |   | 316,012              |   |               | -         |   |   | - |   |   | - |   |   | 316,012 |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Intrinsic                        value of common stockwarrants                        issued with note payable |   |                                | -          |                                             |   | -      |   |   |       |                                             |   | -                    |   |               | 160,714   |   |   | - |   |   | - |   |   | 160,714 |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Amortization                        of deferredCompensation                                                    |   |                                | -          |                                             |   | -      |   |   |       |                                             |   | -                    |   |               | -         |   |   | 11,942 |   |   | - |   |   | 11,942 |   |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Net                        loss                                                                                |   |                                | -          |                                             |   | -      |   |   |       |                                             |   | -                    |   |               | -         |   |   | - |   |   | (427,935 | ) |   | (427,935 | ) |
|                                                                                                           |   |                                |       |                                             |   |   |   |   |       |                                             |   |                 |   |               |      |   |   |   |   |   |   |   |   |   |   |
| Balance                        March 31, 2005                                                                  |   |                                | 59,279,241 |                                             | $      | 59,279 |   |   | 15,404,871 |                                             | $      | 878,512              |   | $                  | 6,674,202 |   | $      | (75,458 | ) | $ | (8,236,493 | ) | $ | (699,958 | ) |

----

**SENSOR            SYSTEM SOLUTIONS, INC. AND SUBSIDIARY**

**CONSOLIDATED            STATEMENTS OF CASH FLOWS**

|                                                                                                              |   |   | 2005     |   |   | 2004     |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------|--------|
|                                                                                                              |   |   |     |   |   |     |   |
| Cash                    flows from operating activities:                                                          |   |   |     |   |   |     |   |
| Net                    loss                                                                                       |   | $      | (427,935 | )      | $      | (233,340 | )      |
| Adjustments                    to reconcile net loss to net cash used in operating                    activities: |   |   |     |   |   |     |   |
| Depreciation                    and amortization                                                                  |   |   | 25,916   |   |   | 28,480   |   |
| Amortization                    of discount on notes payable                                                      |   |   | 155,121  |   |   | 60,612   |   |
| Amortization                    of deferred compensation                                                          |   |   | 11,942   |   |   | 12,375   |   |
| Changes                    in operating assets and liabilities:                                                   |   |   |     |   |   |     |   |
| Accounts                    receivable                                                                            |   |   | (30,535  | )      |   | 9,413    |   |
| Inventories                                                                                                       |   |   | 7,923    |   |   | 38,600   |   |
| Prepaids                    and other current assets                                                              |   |   | 19,680   |   |   | (57,076  | )      |
| Deferred                    rent                                                                                  |   |   | (1,500   | )      |   |     |   |
| Accounts                    payable and accrued expenses                                                          |   |   | 21,852   |   |   | 6,071    |   |
| Net                    Cash Used In Operating Activities                                                          |   |   | (217,536 | )      |   | (134,865 | )      |
|                                                                                                              |   |   |     |   |   |     |   |
| Cash                    flows from investing activities:                                                          |   |   |     |   |   |     |   |
| Purchase                    of property and equipment                                                             |   |   | -        |   |   | (1,346   | )      |
|                                                                                                              |   |   |     |   |   |     |   |
| Cash                    flows from financing activities:                                                          |   |   |     |   |   |     |   |
| Proceeds                    from notes payable                                                                    |   |   | 250,000  |   |   | 250,000  |   |
| Principal                    payments on capital leases                                                           |   |   | (1,863   | )      |   | -        |   |
| Net                    Cash Provided By Financing Activities                                                      |   |   | 248,137  |   |   | 250,000  |   |
|                                                                                                              |   |   |     |   |   |     |   |
| Net                    increase in cash and cash equivalents                                                      |   |   | 30,601   |   |   | 113,789  |   |
|                                                                                                              |   |   |     |   |   |     |   |
| Cash                    and cash equivalents, beginning of the year                                               |   |   | 17,115   |   |   | 10,711   |   |
|                                                                                                              |   |   |     |   |   |     |   |
| Cash                    and cash equivalents, three months ended                                                  |   | $      | 47,716   |   | $      | 124,500  |   |
|                                                                                                              |   |   |     |   |   |     |   |
| Supplemental                    disclosure of cash flow information                                               |
| Cash                    paid for:                                                                                 |   |   |     |   |   |     |   |
| Interest                                                                                                          |   | $      | 5,179    |   | $      | 1,148    |   |
| Taxes                                                                                                             |   | $      | 800      |   | $      | 800      |   |
| Non-cash                    investing and financing activities:                                                   |   |   |     |   |   |     |   |
| Forfeiture                    of stock options                                                                    |   | $      | 99,000   |   | $      | -        |   |
| Accrued                    interest added to notes payable principal                                              |   |   | 51,013   |   |   | -        |   |
| Discount                    related to warrants and convertible notes                                             |   |   | 160,714  |   |   | 60,612   |   |
| Exercise                    of warrants for debt outstanding                                                      |   |   | 262,500  |   |   | -        |   |
| Conversion                    of notes payable                                                                    |   |   | 316,012  |   |   | -        |   |

----

**SENSOR            SYSTEMS SOLUTIONS, INC.**

**CONDENSED            NOTES TO FINANCIAL STATEMENTS**

**FOR            THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)**

----

**SENSOR            SYSTEMS SOLUTIONS, INC.**

**CONDENSED            NOTES TO FINANCIAL STATEMENTS**

**FOR            THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)**

|                                                             |   |  Three                    months ended March                    31: |     |
|------------------------------------------------------------------|--------|--------------------------------------------------------------------------|----------|
|                                                             |   |                                                                     | 2005     |   |   | 2004 |   |
| Net                    loss                                      |   | $                                                                        | (427,935 | ) | $ | (233,340 | ) |
| Add:                    Stock-based expense included in net loss |   |                                                                     | 11,942   |   |   | 12,375 |   |
| Deduct:                    Fair value based stock-based expense  |   |                                                                     | (14,720  | ) |   | (14,720 | ) |
| Pro                    forma net loss                            |   | $                                                                        | (425,157 | ) | $ | (235,685 | ) |
|                                                             |   |                                                                     |     |   |   |   |   |
| Basic                    and diluted earnings per share:         |   |                                                                     |     |   |   |   |   |
| As                    reported                                   |   | $                                                                        | (.01     | ) | $ | (0.09 | ) |
| Pro                    forma under SFAS No. 123                  |   | $                                                                        | (.01     | ) | $ | (0.09 | ) |
|                                                             |   |                                                                     |     |   |   |   |   |

----

**SENSOR            SYSTEMS SOLUTIONS, INC.**

**CONDENSED            NOTES TO FINANCIAL STATEMENTS**

**FOR            THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)**

* *

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | March                    31,2005(unaudited) |   |   | December                    31,2004 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|-------------------------------------|--------|
| Two                    lines of credit, unsecured, interest payable monthly at 8.75%                    and 10.0%                    per annum, due on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $      | 92,983                                      |   | $      | 92,983                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                        |   |   |                                |   |
| Note                    Payable, unsecured, interest payable monthly at Prime + 3% per                    annum                    (prime rate at March 31, 2005 was 5.75%), due on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 40,000                                      |   |   | 40,000                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                        |   |   |                                |   |
| Note                    payable, unsecured, interest payable monthly at 10% per annum,                    payable as                    a percentage of any future private or public stock                    offerings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 90,000                                      |   |   | 90,000                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                        |   |   |                                |   |
| Three                    notes payable, secured by all assets of the Company, interest                    at 8% per                    annum, payable at various maturities through February 21, 2006.                    At                    December 31, 2004, there were two notes payable totaling $90,000.                    On                    February 22, 2005, a note payable for $200,000 was issued. At                    maturity,                    the notes are convertible at the holder’s option at a conversion price                    equal to 70% of the weighted average price of the common stock                    for the 30                    trading days immediately preceding the conversion date. In addition,                    each                    note has warrants attached that, once the note is converted into                    stock,                    allow the holder to purchase stock at 85% of the weighted average                    price of                    the common stock for the 30 trading days immediately preceding                    the                    conversion date. The aggregate intrinsic value of the beneficial                    conversion feature of these notes and warrants, valued at $186,428                    (of                    which $128,571 is related to the note issued in 2005), has been                    recorded                    as loan discount costs and is being amortized over the life of                    the                    respective note as additional interest cost. |   |   | 290,000                                     |   |   | 90,000                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                        |   |   |                                |   |
| Less                    remaining debt discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (149,597                                    | )      |   | (49,061                             | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                        |   |   |                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 363,386                                     |   | $      | 263,922                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |                                        |   |   |                                     |   |

----

**SENSOR            SYSTEMS SOLUTIONS, INC.**

**CONDENSED            NOTES TO FINANCIAL STATEMENTS**

**FOR            THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | March                    31,2005(unaudited) |   |   | December                    31,2004 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------|--------|--------|-------------------------------------|--------|
| Note                    payable to the sister of the Company’s Chief Executive Officer, secured by                    all assets of the Company, interest at 14.25% per annum, due                    December 31,                    2004. The note payable was originally issued by Advanced Custom                    Sensors,                    Inc. (ACSI), which merged with the Company in 2004. In connection                    with the                    note payable, ACSI issued a warrant expiring September 17, 2008,                    to                    purchase 190,665 shares of ACSI’s common stock at $.50 per share (The ACSI                    warrant is convertible into 5,372,940 shares of the Company’s stock) The                    intrinsic value of the warrant ($190,665) has been recorded as                    loan                    discount costs and are being amortized over the life of the note                    as                    additional interest cost. The Company is currently negotiating                    an                    extension of this note.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 190,665                                     |   | $      | 190,665                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
| Note                    payable to the sister of the Company’s Chief Executive Officer, secured by                    all assets of the Company, interest at 10.0% per annum, due March                    15,                    2005. The note payable was originally issued by ACSI in 2003,                    at which                    time ACSI issued a warrant expiring September 17, 2008, to purchase                    100,000 shares of stock at $.50 per share (the ACSI warrant is                    convertible                    into 2,817,215 shares of the Company’s common stock). The intrinsic value                    of the original warrant ($100,000) recorded as loan discount                    cost, and was                    amortized over the life of the original note as additional interest                    cost.                    The original note was due September 16, 2004. On September 16,                    2004, a new                    note was issued to replace the original note. At maturity, the                    new note is                    convertible at the holder’s option at a conversion price equal to 80% of                    the weighted average price of the common stock for the 30 trading                    days                    immediately preceding the conversion date. In addition, the note                    has                    warrants attached that, once the note is converted into stock,                    allow the                    holder to purchase stock at 85% of the weighted average price                    of the                    common stock for the 30 trading days immediately preceding the                    conversion                    date. The intrinsic value of the beneficial conversion feature                    of the note                    and warrants, valued at $48,125, has been recorded as loan discount                    costs                    and is being amortized over the life of the note as additional                    interest                    cost. The Company is currently negotiating an extension of this                    note.                                                                                                                                                                                                                                            |   |   | 110,000                                     |   |   | 110,000                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
| Note                    payable to an employee of the Company, secured by all assets                    of the                    Company, interest at 8.0% per annum, due November 11, 2005. At                    maturity,                    the note is convertible at the holder’s option at a conversion price equal                    to 70% of the weighted average price of the common stock for                    the 30                    trading days immediately preceding the conversion date. In addition,                    the                    note has warrants attached that, once the note is converted into                    stock,                    allow the holder to purchase stock at 85% of the weighted average                    price of                    the common stock for the 30 trading days immediately preceding                    the                    conversion date. The intrinsic value of the beneficial conversion                    feature                    of the note and warrants, valued at $12,857, has been recorded                    as loan                    discount costs and is being amortized over the life of the note                    as                    additional interest cost.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 20,000                                      |   |   | 20,000                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
| Note                    payable to shareholder, secured by all assets of the Company,                    interest at                    8.0% per annum, due February 11, 2005. At maturity, the note                    is                    convertible at the holder’s option at a conversion price equal to 70% of                    the weighted average price of the common stock for the 30 trading                    days                    immediately preceding the conversion date. In addition, the note                    has                    warrants attached that, once the note is converted into stock,                    allow the                    holder to purchase stock at 85% of the weighted average price                    of the                    common stock for the 30 trading days immediately preceding the                    conversion                    date. The intrinsic value of the beneficial conversion feature                    of the note                    and warrants, valued at $32,143, has been recorded as loan discount                    costs                    and is being amortized over the life of the note as additional                    interest                    cost.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 50,000                                      |   |   | -                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
| Note                    payable, secured by accounts receivable of the Company, interest                    at 10%,                    due February 11, 2005. The note payable was originally issued                    by ACSI. In                    connection with the note payable, ACSI issued a warrant to purchase                    500,000 shares of stock at$.50 per share (the ACSI warrant is                    convertible                    into 14,088,865 shares of the Company’s common stock). The note was                    payable to Sino-American, Inc., a company controlled by Mr. Hanlin                    Chen, a                    director of the Company. On March 15, 2005, the warrant was exercised                    for                    $250,000 of the debt outstanding. The balance of the note payable                    and                    accrued interest ($300,000) was exchanged for 390,228 shares                    of the                    Company’s common stock at approximately $0.77 per share, which                    approximated the market value of the stock on March 15, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | -                                           |   |   | 500,000                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
| Notes                    payable, secured by all assets of the Company, interest at 8%                    per annum,                    due October 1, 2005. The note payable was originally issued by                    ACSI in                    2003, at which time ACSI issued a warrant to purchase 25,000                    shares of                    stock at $.50 per share (the ACSI shares are convertible into                    704,425                    shares of the Company’s common stock). The intrinsic value of the original                    warrant was valued at $25,000, recorded as loan discount cost,                    and was                    amortized over the life of the original note as additional interest                    cost.                    The original note was due September 16, 2004. On October 2, 2004,                    a new                    note was issued to replace the original note. At maturity, the                    new note                    was convertible at the holder’s option at a conversion price equal to 70%                    of the weighted average price of the common stock for the 30                    trading days                    immediately preceding the conversion date. In addition, the new                    note has a                    warrant attached that, once the new note is converted into stock,                    allows                    the holder to purchase stock at 85% of the weighted average price                    of the                    common stock for the 30 trading days immediately preceding the                    conversion                    date. The intrinsic value of the beneficial conversion feature                    of the new                    note and new warrant, valued at $17,679, has been recorded as                    loan                    discount costs and is amortized over the life of the new note.                    On March                    18, 2005, the ACSI warrant was exercised for $12,500 of the debt                    outstanding. The balance of the note payable and accrued interest                    ($16,012) was exchanged for 21,353 shares of the Company’s common stock at                    approximately $0.77 per share, which approximated the market                    value of the                    stock on March 15, 2005. |   |   | -                                           |   |   | 27,500                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
| Less                    remaining debt discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (35,090                                     | )      |   | (130,032                            | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |                                        |   |   |                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 335,575                                     |   | $      | 718,133                             |   |

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**SENSOR            SYSTEMS SOLUTIONS, INC.**

**CONDENSED            NOTES TO FINANCIAL STATEMENTS**

**FOR            THREE MONTHS ENDED MARCH 31, 2005 AND 2004 (UNAUDITED)**

----

**Item        2. Management’s Discussion And Analysis or Plan of        Operation.**

**Cautionary        Statement **

***Statements        in this report on Form 10-QSB that are forward-looking are based on current        expectations. Actual results may differ materially. Forward-looking statements        involve numerous risks and uncertainties including, but not limited to, the        possibility that the demand for our products may decline as a result of possible        changes in general and industry specific economic conditions, the effects        of        competitive pricing and such other risks and uncertainties as are described        in        this report on Form 10-QSB and other documents previously filed or hereafter        filed by us from time to time with the Securities and Exchange Commission.        All        forward-looking statements speak only as of the date made, and we undertake        no        obligation to update these forward-looking statements***
***.***

***OVERVIEW***

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***PLAN        OF OPERATION***

| §   | **Increase                  the revenue of existing sensor component business**.                  The majority of our sensor component manufacturing will be moved                  to our                  joint venture in China to help reduce the cost of our products.                  We will                  invest to increase our production capacity and will qualify offshore                  suppliers to meet the increasing demands. We will invest                  in                  sales and marketing in order to expand our customer base and to                  secure                  more OEM projects. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | **Develop                  sensor solution business.**                  With the rapid advances in technology                  and wireless telecommunication in the last decade,                  we can now                  offer total sensor solutions at a very affordable price. These                  sensor                  solutions are modules containing sensing elements, signal conditioning                  circuitry, software for calibration and interface, and capability                  of                  wireless and/or networking. These sensor solutions will provide                  information continuously to decision makers in all phases of business                  operation. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | **Penetrate                  automotive sensor market through China.**                  By                  leveraging the marketing channel of our joint venture partner,                  we will                  have access to the automotive market in China immediately. Over                  the                  next three years  we plan to increase our                  production                  capacity, product offerings, and our development staff.                  We anticipate                  that we will be able to import automotive sensors produced by our                  joint                  venture to North America and Europe by                  2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | **Strategic                  acquisition**: We                  plan to grow our business through strategic acquisitions.                  We will                  actively seek equity or debt funding to bring in the necessary                  resources                  to execute this plan. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Three        months Ended March 31, 2005 and 2004***

**Revenues**

----

**Gross        Profit **

**Total        Operating expenses**

**Net        Loss**

***FINANCIAL        CONDITION, LIQUIDITY, CAPITAL RESOURCES***

**Going        Concern**

----

**Commitments        and Contingencies**

| Three                  months ended March 31,            |   | Amount |    |
|----------------------------------------------------------|--------|--------|---------|
| 2005                                                     |   | $      | 9,549   |   |
| 2006                                                     |   |   | 12,732  |   |
| 2007                                                     |   |   | 12,732  |   |
| 2008                                                     |   |   | 12,732  |   |
| 2009                                                     |   |   | 3,543   |   |
|                                                     |   |   | 51,288  |   |
| Amount                  representing interest            |   |   | (11,133 | ) |
| Present                  value of minimum lease payments |   |   | 40,155  |   |
| Less:                  Current portion                   |   |   | (7,819  | ) |
|                                                     |   | $      | 32,336  |   |

----

| Three                  months ended March 31, |   |   |    |
|-----------------------------------------------|--------|--------|---------|
| 2005                                          |   | $      | 72,748  |   |
| 2006                                          |   |   | 104,906 |   |
| 2007                                          |   |   | 91,520  |   |
|                                          |   |   |    |   |
|                                          |   | $      | 269,174 |   |

**Inflation        and Changing Prices**

***CRITICAL        ACCOUNTING POLICIES***

**Revenue        Recognition**

**Stock        - based compensation**

**Inventories**

***Recent        Accounting Pronouncements***

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* *

***RISKS        RELATED TO OUR BUSINESS***

***We        have had negative cash flows from operations. Our business operations may        fail        if our actual cash requirements exceed our estimates, and we are not able        to        obtain further financing.***

| ·   | we                  incur unexpected costs in completing the development of our technology                  or                  encounter any unexpected technical or other                  difficulties; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | we                  incur delays and additional expenses as a result of technology                  failure; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | we                  are unable to create a substantial market for our product and services;                  or |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | we                  incur any significant unanticipated                  expenses. |
|--------------------|------------------------------------------------------------------------------------|

----

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

***If        we issue additional shares in the future this may result in dilution to our        existing stockholders.***

***We        have a history of losses and negative cash flows, which is likely to continue        unless our products gain sufficient market acceptance to generate a commercially        viable level of sales.***

***Unless        we can establish significant sales of our current products, our potential        revenues may be significantly reduced.***

----

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

***Our        products may become obsolete and unmarketable if we are unable to respond        adequately to rapidly changing technology and customer        demands.***

***If        we fail to effectively manage our growth our future business results could        be        harmed and our managerial and operational resources may be        strained***
*.*

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*OFF        BALACE SHEET ARRANGMENTS*

**Item        3. Controls And Procedures**

(a) *Evaluation        of Disclosure Controls and Procedures.*

*Changes        in Internal Controls.*

**PART        II**

**OTHER        INFORMATION**

**Item        1.**
**        Legal Proceedings.**

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**Item        2.**
**        Changes In Securities and Small Business Issuer Purchases of Equity        Securities.**

| 1.             | On                  May 24, 2004, Sensor System Solutions (formerly known as Spectre                  Industries, Inc.,) a Nevada corporation, entered into an agreement                  and                  plan of merger (the Merger) with Advanced Custom Sensors, Inc.                  (ACSI).                  Sensor issued 2,584,906 shares of its common stock and warrants                  (the                  Merger Warrants) to purchase up to 47,802,373 shares of its common                  stock                  to the shareholders of ACSI in exchange for all the issued and                  outstanding                  shares of ACSI. On January 29, 2005, warrants for 47,802,373 shares                  of                  common stock were exercised. The company recorded $47,802, the                  par value                  of the stock issued, as an increase in common stock and a reduction                  to                  additional paid in capital in                  the accompanying financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 2.   | On                  February 9, 2005, the Company filed an S-8                  under the Securities Act of 1933, to register an aggregate of 3,000,000                  shares of our common stock consisting of 1,500,000 shares of our                  common                  stock that we have agreed to issue to each of Ian Grant, a director                  and                  our former President and Matthew Markin, a director pursuant to                  a written                  stock compensation agreement with each of them. The purpose of                  the stock                  compensation agreement is to secure for our company and Messrs.                  Grant and                  Markin, our independent directors, the benefits arising from capital                  stock                  ownership by such directors or officers of, and consultants or                  advisors                  to, our company and subsidiary corporations who have contributed                  to our                  company in the past and who are expected to contribute to our company's                  future growth and success. These 3,000,000 shares are part of the                  7,500,000 shares granted to the five shareholders in Spectre on                  December                  4, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 3.   | Note                  payable, secured by accounts receivable of the Company, interest                  at 10%,                  due February 11, 2005. The note payable was originally issued by                  ACSI. In                  connection with the note payable, ACSI issued a warrant to purchase                  500,000 shares of stock at$.50 per share (the ACSI warrant is convertible                  into 14,088,865 shares of the Company’s common stock). The note was                  payable to Sino-American, Inc., a company controlled by Mr. Hanlin                  Chen, a                  director of the Company. On March 15, 2005, the warrant was exercised                  for                  $250,000 of the debt outstanding. The balance of the note payable                  and                  accrued interest ($300,000) was exchanged for 390,228 shares of                  the                  Company’s common stock at approximately $0.77 per share, which                  approximated the market value of the stock on March 15, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 4.   | Notes                  payable, secured by all assets of the Company, interest at 8% per                  annum,                  due October 1, 2005. The note payable was originally issued by                  ACSI in                  2003, at which time ACSI issued a warrant to purchase 25,000 shares                  of                  stock at $.50 per share (the ACSI shares are convertible into 704,425                  shares of the Company’s common stock). The intrinsic value of the original                  warrant was valued at $25,000, recorded as loan discount cost,                  and was                  amortized over the life of the original note as additional interest                  cost.                  The original note was due September 16, 2004. On October 2, 2004,                  a new                  note was issued to replace the original note. At maturity, the                  new note                  was convertible at the holder’s option at a conversion price equal to 70%                  of the weighted average price of the common stock for the 30 trading                  days                  immediately preceding the conversion date. In addition, the new                  note has a                  warrant attached that, once the new note is converted into stock,                  allows                  the holder to purchase stock at 85% of the weighted average price                  of the                  common stock for the 30 trading days immediately preceding the                  conversion                  date. The intrinsic value of the beneficial conversion feature                  of the new                  note and new warrant, valued at $17,679, has been recorded as loan                  discount costs and is amortized over the life of the new note.                  On March                  18, 2005, the ACSI warrant was exercised for $12,500 of the debt                  outstanding. The balance of the note payable and accrued interest                  ($16,012) was exchanged for 21,353 shares of the Company’s common stock at                  approximately $0.77 per share, which approximated the market value                  of the                  stock on March 15, 2005. |

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**Item        3.**
**        Defaults Upon Senior Securities.**

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

**Item          5.**
**          Other Information.**

| 1.     | On                  February 14, 2005, the Company approved the joint venture agreement                  with                  China Automotive Systems, Inc.                                                                                           |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                    |
| 2.     | On                  March 20, 2005, the Company approved the loan conversions of Sino-American                  and Pei Jen Hsu and forwent the warrant exercise charge of $4,780                  for the                  original ACSI shareholders. |

**Item 6.         Exhibits**

| 31.1   |    | Certification                  pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002 |
|--------|--------------|-----------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                      |
| 32.1   |    | Certification                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002 |

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**SIGNATURES**

|                                     |                                                                                                             |                    |
|------------------------------------------|------------------------------------------------------------------------------------------------------------------|-------------------------|
|                                     | SENSOR                SYSTEM SOLUTIONS, INC.                                                                     |
|                                |                                                                                                        |               |
| Dated: June                22, 2005 |                                                                                                             | /s/ Michael Young  |
|                                     |                                                                                                                  |
|                                     | Name:                Michael YoungTitle: Chief Executive Officer and Principal Accounting                Officer |

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