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| x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period ended September  30, 2009; or |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ________ to ________ |
|---|----------------------------------------------------------------------------------------------------------------------------------------------|

| Nevada                                                         |   | 38-3762886                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

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|                            |                                                                                                                                           | PAGE   |
|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                            |                                                                                                                                           |   |
| PART I -- FINANCIAL INFORMATION |
|                            |                                                                                                                                           |   |
| Item 1                          | Financial Statements                                                                                                                           |   |
|                            | Condensed Consolidated Balance Sheets September 30, 2009 (Unaudited) and December 31, 2008 (Audited)                                           | 1      |
|                            | Unaudited Condensed Consolidated Statements of Operations for the nine and  three months ended September 30, 2009 and 2008 | 2      |
|                            | Unaudited Condensed Consolidated Statements of Cash Flows for the nine and three months ended September 30, 2009 and 2008       | 3      |
|                            | Notes to Unaudited Condensed Consolidated Financial Statements                                                                                 | 4      |
|                            |                                                                                                                                           |   |
| Item 2                          | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                          | 11     |
|                            |                                                                                                                                           |   |
| Item 4T                         | Controls and Procedures                                                                                                                        | 15     |
|                            |                                                                                                                                           |   |
| PART II -- OTHER INFORMATION    |
|                            |                                                                                                                                           |   |
| Item 1                          | Legal Proceedings                                                                                                                              | 16     |
| Item 2                          | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                    | 16     |
| Item 3                          | Defaults upon Senior Securities                                                                                                                | 16     |
| Item 4                          | Submission of Matters to a Vote of Security Holders                                                                                            | 16     |
| Item 5                          | Other Information                                                                                                                              | 17     |
| Item 6                          | Exhibits                                                                                                                                       | 17     |
|                            |                                                                                                                                           |   |
| SIGNATURES                      | 18                                                                                                                                             |

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| IDO SECURITY INC. AND SUBSIDIARY                                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                    |
|                                                                                                                                     |   | September 30, |   |   | December 31, |   |
| ASSETS                                                                                                                                   |   | 2009 |   |   | 2008 |   |
| CURRENT ASSETS                                                                                                                           |   | (Unaudited) |   |   |   |   |
|      Cash and cash equivalents                                                                                  |   | $ | 406,953 |   |   | $ | 391,569 |   |
|      Inventories                                                                                                |   |   | 137,488 |   |   |   | 124,708 |   |
|      Prepaid expenses and other current assets                                                                  |   |   | 115,213 |   |   |   | 81,840 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                Total current assets                           |   |   | 659,654 |   |   |   | 598,117 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Property and equipment, net                                                                                                              |   |   | 63,748 |   |   |   | 44,875 |   |
| Goodwill                                                                                                                                 |   |   | 1,955,002 |   |   |   | 1,955,002 |   |
| Deferred financing costs, net                                                                                                            |   |   | 7,461 |   |   |   | 17,068 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                Total assets                                   |   | $ | 2,685,865 |   |   | $ | 2,615,062 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIENCY                                                                                                 |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                                                                                                      |   |   |   |   |   |   |   |   |
|      Accounts payable and accrued liabilities                                                                   |   | $ | 1,875,020 |   |   | $ | 1,727,440 |   |
|      Bank line of credit                                                                                        |   |   | 266,251 |   |   |   | 161,181 |   |
|      Convertible promissory notes                                                                               |   |   |   |   |   |   |   |   |
|              (net of discount of $1,238,827 and $2,236,792)             |   |   | 4,956,848 |   |   |   | 3,526,160 |   |
|  Redeemable Series A Cumulative Convertible Preferred Stock                                                                         |   |   |   |   |   |   |   |   |
|             (net of discount of $2,390.494 and $0)                           |   |   | 2,733,869 |   |   |   | - |   |
|      Loan payable, related party                                                                                |   |   | 44,826 |   |   |   | 44,826 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                Total current liabilities                      |   |   | 9,876,814 |   |   |   | 5,459,607 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| NON-CURRENT LIABILITIES                                                                                                                  |   |   |   |   |   |   |   |   |
|     Convertible promissory notes                                                                                     |   |   |   |   |   |   |   |   |
|             (net of discount of $220.997 and $236,413)                       |   |   | 117,128 |   |   |   | 30,225 |   |
| Redeemable Series A Cumulative Convertible Preferred Stock                                                                               |   |   |   |   |   |   |   |   |
|             (net of discount of $262,241 and $0)                             |   |   | 136,196 |   |   |   | - |   |
|     Accrued severance pay                                                                                            |   |   | 170,023 |   |   |   | 178,205 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                Total  liabilities                   |   |   | 10,300,161 |   |   |   | 5,668,037 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Redeemable Series A Cumulative Convertible Preferred Stock                                                                               |   |   |   |   |   |   |   |   |
|             (net of discount of $0 and $1,874,740)                           |   |   | - |   |   |   | 791,660 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Contingency                                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIENCY                                                                                                                 |   |   |   |   |   |   |   |   |
|     Preferred stock                                                                                                  |   |   |   |   |   |   |   |   |
|       19,935,000 shares authorized; none outstanding                                                       |   |   | - |   |   |   | - |   |
|     Common stock, $.001 par value;                                                                                   |   |   |   |   |   |   |   |   |
|   2,000,000,000 and 100,000,000 shares authorized; 1,982,917,590                                                                    |   |   |   |   |   |
|         and 46,083,070 issued and outstanding, respectively                                      |   |   | 1,982,918 |   |   |   | 46,083 |   |
|      Additional paid-in capital                                                                                 |   |   | 17,824,805 |   |   |   | 19,306,867 |   |
|      Stock subscription receivable                                                                              |   |   | (25 | ) |   |   | (25 | ) |
|      Accumulated other comprehensive loss                                                                       |   |   | (331 | ) |   |   | (331 | ) |
|      Deferred stock based compensation                                                                          |   |   | (16,178 | ) |   |   | (55,007 | ) |
|      Accumulated deficit                                                                                        |   |   | (27,405,484 | ) |   |   | (23,142,222 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                Total stockholders' deficiency                 |   |   | (7,614,296 | ) |   |   | (3,844,635 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                Total liabilities and stockholders' deficiency |   | $ | 2,685,865 |   |   | $ | 2,615,062 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |

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| IDO SECURITY INC. AND SUBSIDIARY                                                                    |
|-----------------------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                     |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                |   | Nine Months |   |   | Nine Months |   |   | Three Months |   |   | Three Months |   |
|                                                                                                |   | Ended |   |   | Ended |   |   | Ended |   |   | Ended |   |
|                                                                                                |   | September 30, |   |   | September 30, |   |   | September 30, |   |   | September 30, |   |
|                                                                                                |   | 2009 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                                                                                                |   | (Unaudited) |   |   | (Unaudited) |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                            |   | $ | 61,339 |   |   | $ | 136,759 |   |   | $ | - |   |   | $ | 103,075 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                                       |   |   | 45,808 |   |   |   | 58,039 |   |   |   | - |   |   |   | 46,631 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                                        |   |   | 15,531 |   |   |   | 78,720 |   |   |   | - |   |   |   | 56,444 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Research and development expenses                                     |   |   | 187,166 |   |   |   | 306,709 |   |   |   | 87,383 |   |   |   | 87,418 |   |
|      Selling, general and administrative expenses                          |   |   | 945,614 |   |   |   | 1,821,615 |   |   |   | 347,917 |   |   |   | 359,018 |   |
|      Stock based compensation - selling, general and administrative        |   |   | 141,141 |   |   |   | 587,806 |   |   |   | 12,943 |   |   |   | 21,621 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                                                            |   |   | 1,273,921 |   |   |   | 2,716,130 |   |   |   | 448,243 |   |   |   | 468,057 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                                                |   |   | (1,258,390 | ) |   |   | (2,637,410 | ) |   |   | (448,243 | ) |   |   | (411,613 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization of debt and preferred stock discount,                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      beneficial conversion features, dividends and deferred finance costs) |   |   | (3,009,661 | ) |   |   | (3,061,831 | ) |   |   | (1,522,585 | ) |   |   | (1,316,665 | ) |
| Interest income                                                                                     |   |   | 20 |   |   |   | 1,817 |   |   |   | 11 |   |   |   | 14 |   |
| Foreign currency translation                                                                        |   |   | 4,769 |   |   |   | (34,680 | ) |   |   | (11,913 | ) |   |   | 2,078 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                            |   |   | (4,263,262 | ) |   |   | (5,732,104 | ) |   |   | (1,982,730 | ) |   |   | (1,726,186 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends and deemed dividends                                                      |   |   | (855,184 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to common stockholders                                                        |   | $ | (5,118,446 | ) |   | $ | (5,732,104 | ) |   | $  | (1,982,730 | ) |   | $ | (1,726,186 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted loss per share:                                                                   |   | $ | (0.01 | ) |   | $ | (0.14 | ) |   | $  | 0.00 |   |   | $ | (0.04 | ) |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic and diluted                                                                 |   |   | 920,150,573 |   |   |   | 41,444,489 |   |   |   | 1,943,631,229 |   |   |   | 43,009,894 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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IDO SECURITY INC. AND SUBSIDIARYCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS           Nine Months  Nine Months    Ended  Ended    September 30,  September 30,    2009  2008    (Unaudited)  (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES           Net loss $(4,263,262) $(5,732,104)     Adjustments to reconcile net loss to net cash               used in operating activities:                 Depreciation and amortization  26,448   424,511          Amortization of note discount  2,373,322   1,938,773          Amortization of beneficial conversion feature of convertible debt  110,197   303,281          Accretion of interest on notes payable  24,000   22,334          Stock based compensation  141,141   587,806          Stock issued in lieu of interest and other charges  622,273   104,224          Interest related to note payable settlement  18,694   -          Loss on sale of property and equipment  -   22,415          Increase in net liability for severance pay  (8,182)  33,333          Increase (decrease) in cash attributable to changes in operating assets and liabilities               Inventory  (12,780)  (164,288)              Prepaid expenses and other current assets  (33,373)  (39,221)              Accounts payable  134,465   (20,634)              Accrued expenses and other current liabilities  (229,415)  911,393           Net cash used in operating activities  (1,096,472)  (1,608,177)          CASH FLOWS FROM  INVESTING ACTIVITIES                 Proceeds from sale of property and equipment  -   1,006          Purchases of property and equipment  (35,714)  (10,281)          Net cash used in investing activities  (35,714)  (9,275)          CASH FLOWS FROM FINANCING ACTIVITIES                 Proceeds from issuance of secured convertible notes  1,042,500   750,000          Proceeds from escrow agent  -   1,150,000          Payments of deferred finance costs  -   (197,801)         Proceeds from short-term debt      414,500          Proceeds from bank line of credit  105,070   208,250          Repayment of notes payable  -   (1,029,767)          Net cash provided by financing activities  1,147,570   1,295,182           INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  15,384   (322,270)          CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD  391,569   353,701           CASH AND CASH EQUIVALENTS - END OF PERIOD $406,953  $31,431           Supplemental disclosures of cash flow information:               Cash paid for interest $-  $49,266           Non-cash activities          Issuance of common stock for the conversion of                convertible promissory notes and acrued interest $1,203,254  $539,224   Issuance of common stock for cashless exercise of warrants $-  $8,341   Preferred stock dividends and deemed dividends $855,184  $-            See Notes to Condensed Consolidated Financial Statements.  3  IDO SECURITY INC. AND SUBSIDIARYNOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED) NOTE 1 - Basis of presentationThe accompanying unaudited condensed consolidated financial statements of IDO Security Inc. (hereinafter, “IDO” or the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with Rule 8-03 of Regulation S-X. Accordingly, they do not includeall of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2009, are not necessarily indicative of the results that may be expected for the year ending December 31, 2009. These unaudited condensed consolidated financial statements shouldbe read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. At September 30, 2009, the Company had not achieved profitable operations, had accumulated losses of $27 million (since inception), a working capital deficiency of $6 million and expects to incur furtherlosses in the development of its business. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations or management's ability to find sources of additional equity capital. The Company needs to raise additional funds to continue to meet its liquidity needs, realize its business plan and maintain operations.  Inaddition, the Company’s current cash resources are not sufficient to support any unforeseen contingencies that may arise or permit the Company to take advantage of business opportunities that may arise. Management of the Company is continuing its efforts to secure funds through equity and/or debt instruments for its operations. Presently, the Company does not have any financing commitment from any person, and there can be no assurance that additional capital will be available to the Company on commerciallyacceptable terms or at all.The Company has been funding its operations from the net proceeds from the private placement of its convertible securities. In December 2007 and January 2008, the Company received net proceeds of approximately $1 million from the proceeds of the private placement to certain accredited investors (the “2008 Investors”) of its10% Secured Convertible Promissory Notes which are scheduled to mature on December 2009. Between April and November 2008, the Company received from two previous investors and one stockholder, gross loan proceeds totaling $442,355.  In December 2008, the Company raised net proceeds of $548,474 from certain 2008 Investors in a private placement of convertible notes and preferred stock. Between April and September 22, 2009, the Company raised net proceeds of $1,042,500 from certain of the 2008 Investors.See Note 7 - Private Placement of Convertible Promissory Notes.We have evaluated subsequent events through the date that the financial statements were issued on November 16, 2009.Effective July 1, 2009, the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification ("ASC") became the single official source of authoritative, nongovernmental generally accepted accounting principles (“GAAP”) in the United States.  The historical GAAP hierarchy was eliminatedand the ASC became the only level of authoritative GAAP, other than guidance issued by the Securities and Exchange Commission.  Our accounting policies were not affected by the conversion to ASC.  However, references to specific accounting standards in the footnotes to our consolidated financial statements have been changed to refer to the appropriate section of ASC. 4  NOTE 2 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTSIn October 2009, the FASB issued new standards for revenue recognition with multiple deliverables. These new standards impact the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting. Additionally, these new standards modify the manner in which thetransaction consideration is allocated across the separately identified deliverables by no longer permitting the residual method of allocating arrangement consideration. These new standards are effective for us beginning in the first quarter of fiscal year 2011, however early adoption is permitted. We do not expect these new standards to significantly impact our consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying financial statements. NOTE 3 – FAIR VALUE OF FINANCIAL INSTRUMENTSSubstantially all of the Company’s financial instruments, consisting primarily of cash equivalents, accounts payable and accrued expenses, other current liabilities and convertible notes, are carried at, or approximate, fair value because of their short-term nature or because they carry market rates of interest.NOTE 4 - NET LOSS PER SHAREBasic earnings (loss) per share are computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share give effect to dilutive convertible securities, options, warrants and other potential common stock outstanding during the period, only in periodsin which such effect is dilutive. The following securities have been excluded from the calculation of net loss per share, as their effect would be anti-dilutive:      Shares of Common Stock      Issuable upon Conversion/Exercise      as of      September 30,      2009  2008  Warrants    22,175,821  7,448,866  Convertible notes    45,449,309  35,552,907  Stock options    3,490,000  3,490,000  Convertible preferred stock    38,732,613  --  NOTE 5 – INVENTORIESInventories, consisting of completed devices, devices partially completed and components are valued at the lower of cost determined by the moving-average basis or market. The value of the inventories is adjusted for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated marketvalue based upon assumptions about future demand and market conditions.Inventories at September 30, 2009 consisted of components totaling $99,921 and partially completed and completed devices totaling $37,567.  Inventories at December 31, 2008 consisted of components totaling $65,100 and partially completed and completed devices totaling $59,608. 5 NOTE 6 – BANK LINE OF CREDITThe Company’s subsidiary has a line of credit with its bank.  The line bears interest at rates ranging from 9.3% per annum on amounts up to $200,000 of indebtedness and 12.55% on amounts over that. The line is collateralized by substantially all the assets of the subsidiary. As of September 30, 2009 and December 31,2008, $266,251 and $161,181, respectively, was outstanding under the line of credit.  In October 2009, amounts owed under the line of credit were paid in full.NOTE 7 - PRIVATE PLACEMENT OF CONVERTIBLE PROMISSORY NOTESConvertible promissory notes consist of the following:    September 30,    December 31,      2009    2008        (Unaudited)          2008 Notes - secured  and convertible - interest at 10% - see (i) below  $4,362,954    $4,963,050                    December 2008 Notes - secured  and convertible - interest at 10% - see (ii) below    1,032,810      1,066,540                    2009 Notes - secured  and convertible - interest at 10% - see (iii) below    1,138,037      --                    Total    6,533,801      6,029,590                    Less: Discount    (1,459,825)    (2,473,205)      5,073,976      3,556,385  Less Current Portion    (4,956,848)      (3,526,160)                  Total  $117,128    $30,225  (i) 2008 NotesBetween December 5, 2007 and January 24, 2008, the Company raised gross proceeds of $5,404,550 from the private placement  to certain accredited institutional and individual investors (the “2008 Investors”) of its two-year 10% Secured Convertible Promissory Notes (collectively, the “2008 Notes”, each a “2008Note”). Of such amount, $3,916,160 was raised in December 2007 and $1,488,390 was raised in January 2008.    The transactions were effected pursuant to a Subscription Agreement, dated as of December 5, 2007, between the Company and the 2008 Investors.  The Company received net proceeds of $1 million from the proceeds of the 2008 Notes, after the payment of offering related fees and expenses and after the repayment of bridge loans that that came due in November 2007. Certainremaining note holders from a private placement of 2007 Notes and the October 2007 note holders participated in the private placement and the gross proceeds raised include amounts the Company owed to these investors in the approximate amount of $2.6 million that were offset against such investors’ respective purchases of the 2008 Notes. In connection with the issuance of the 2008 Notes, the Company issued to the 2008 Investors, warrants (the “2008 Investor Warrants”) to purchase up to 5,404,550 shares of the Company’s Common Stock, of which warrants for 2,702,275 shares are exercisable at a per share exercise price of $2.00 and warrants for 2,702,275shares are exercisable at a per share exercise price of $3.00. The per share exercise price of the 2008 Investor Warrants were subsequently reduced to $0.15 in connection with the investment in December 2008 Notes discussed below in (ii).  The 2008 Notes are scheduled to mature on December 31, 2009 and were originally convertible into shares of Common Stock at the holder's option at any time at an initial conversion price of $1.00 per share (the “Fixed Conversion Price”), subject to adjustment in the event of certain capital adjustments or similar transactions,such as a stock split or merger and as further described below. Interest on the 2008 Notes accrues at the rate of 10% per annum and is payable upon a required monthly repayment or upon maturity, whichever occurs first, and will continue to accrue until the 2008 Notes are fully converted and/or paid in full. The per share Fixed Conversion Price of the 2008 Notes was subsequently reduced to $0.15 in connection with the investment in December 2008 Notes discussed below in (ii). 6  Commencing on the fourth month anniversary of the issuance of the 2008 Notes and on the same day of each month thereafter until the principal amount of the 2008 Notes has been paid in full, the Company is required to prepay 5% of the aggregate principal amount of the 2008 Notes originally issued, together with all accrued interest due andpayable on the entire outstanding amount up to such repayment date (each such date, a "Scheduled Payment Date"). The amount may be paid either in (i) cash, at 110% of the principal amount due and 100% of all other amounts due or (ii) shares of Common Stock at a rate equal to the lower of (A) the Fixed Conversion Price or (B) 75% of the average of the closing bid price of the Common Stock for the five trading days ending on the trading day immediately preceding the Scheduled Payment Date, provided, that, if suchmonthly amount is to be paid with shares of Common Stock, such payment in shares will be automatically deferred unless the holder gives notice to the Company at least five (5) days before a repayment date that the holder will accept payment of such monthly amount in the form of Common Stock. In addition, under certain conditions, the Company may prepay the amounts outstanding on the 2008 Notes by giving advance notice and paying an amount equal to 115% of the sum of (x) the principal being prepaid plus (y) theaccrued interest thereon. Holders will continue to have the right to convert their 2008 Notes prior to the actual prepayment. For the period January 1, 2009 to September 30, 2009, principal in the total amount of $542,790 and accrued interest totaling $560,349 was repaid in the form of 1,732,727,414 shares of the Company’s Common Stock.At the Company’s 2009 annual general meeting of shareholders, scheduled to be held on December 24, 2009, the shareholders will consider a proposal to increase the authorized and unissued shares of the Company’s Common Stock. The Company currently does not have a sufficient number of shares of common stock available to honorany conversions of the 2008 Notes.  The inability to honor conversions constitutes an Event of Default under the 2008 Notes. However, the pertinent documents provide that any action by the investors upon such default (i.e., acceleration of the debt and other remedies) can only be initiated by the holders of 65% or more of the outstanding principal amount of the notes. Such action has not been commenced by the note holders.  See Note 9 - Derivative Liabilities.The 2008 Investor Warrants are exercisable through the fifth anniversary of the effective date of the Registration Statement referred to below. Holders of the Investor Warrants are entitled to exercise their warrants on a cashless basis if the Registration Statement is not in effect at the time of exercise. The Fixed Conversion Price of the 2008 Notes and the exercise price of the 2008 Investor Warrants are subject to adjustment. Under the agreements with the holders of 2008 Notes, the Company agreed that if the Company made certain sales of its Common Stock (or securities convertible into Common Stock) to any third party at per share conversionprice or exercise price less than the conversion price of the 2008 Notes and/or the exercise price of the 2008 Investor Warrants, adjustments would be made to the conversion price of the then unconverted Notes and to the exercise price of the then unexercised Investor Warrants. The above adjustments do not apply to certain specified transactions, such as the exercise of outstanding options, warrants, or convertible securities, the issuance of securities pursuant to a Company option plans or a non-employee directoroption plan, or the issuance of options to the Company's directors, officers, and employees, and advisors or consultants, and transactions with strategic investors. To secure the Company’s obligations to the 2008 Investors, the Company granted a security interest in substantially all of its assets, including without limitation, its intellectual property. The security interest terminates upon payment or satisfaction of all of Company’s obligations under the 2008 Notes.The Company undertook to file a registration statement by a prescribed period under the Securities Act of 1933, as amended (the “Registration Statement”) with respect to the resale of the Common Stock underlying the 2008 Notes and 2008 Investor Warrants. The Company has not filed the RegistrationStatement and accordingly, the Company owed to the holders of these notes approximately $540,000 in liquidated damages in respect of the delay in the filing of the Registration Statement beyond the time frame specified in the agreements with such holders. At September 30, 2009, the Company owed to the holders of these notes $516,137 in liquidated damages. The non-payment of liquidated damages constitutes an Event of Default under the 2008 Notes. However, the pertinent documents provide that any action bythe investors upon such default (i.e., acceleration of the debt and other remedies) can only be initiated by the holders of 65% or more of the outstanding principal amount of the notes. Such action has not been commenced by the note holders.  The Company does not currently intend to file such registration statement as the shares issuable upon conversion of the 2008 Notes and/or the 2008 Investor Warrants are eligible to be resold under Rule 144. 7  (ii)  December 2008 Notes and Series A Convertible Preferred StockPursuant to an offering dated October 31, 2008 (the "December 2008 Private Placement") to the holders of the 2008 Notes, on December 17, 2008, the Company realized net proceeds of $548,474, after the payment of offering related fees and expenses of $19,250, from a private placement of $1,066,540 in principal amount of Secured ConvertiblePromissory Notes due April 20, 2010 (“collectively the “December 2008 Notes”) and Series A Convertible Preferred Stock, par value $0.001 per share (the "Series A Preferred Stock"). In addition, in connection with the issuance of the December 2008 Notes and the Series A Preferred Stock, the Company issued to the investors warrants (the “Warrants”; together with the December 2008 Notes and the Series A Preferred Stock, the “Purchased Securities”) to purchase in the aggregateup to 7,110,268 shares of the Company’s Common Stock at a per share exercise price equal to $0.25. The Warrants are exercisable through October 31, 2013 at a per share exercise price of $0.25.  The warrants include a ‘cashless exercise’ provision.  The amount raised included $478,816 in principal and accreted interest on loans advanced to the Company between April and November 2008 by two purchasers that were offset against such purchasers’ respective purchases of thePurchased Securities.The December 2008 Notes are convertible into shares of Common Stock at the holder's option at any time at an initial conversion price of $0.15 per share (the “Fixed Conversion Price”), subject to adjustment in the event of certain capital adjustments or similar transactions, such as a stock split or merger and as further describedbelow. Interest on the December 2008 Notes accrues at the rate of 10% per annum and is payable upon a required repayment (discussed below) or upon maturity, whichever occurs first, and will continue to accrue until the December 2008 Notes are fully converted and/or paid in full. From and after an event of default under the December 2008 Notes and for so long as the event of default is continuing, the December 2008 Notes will bear default interest at a rate of the lesser of 15% per annum or the maximum rate permittedby applicable law.Commencing on April 30, 2009, and thereafter on the last day of each subsequent calendar month until the principal amount of the December 2008 Notes has been paid in full, the Company is required to prepay 8.33% of the aggregate principal amount of the December 2008 Notes originally issued, together with all accrued interest due and payableon the entire outstanding amount up to such repayment date. The amount may be paid, at the Company’s election, either in (i) cash, at 110% of the principal amount due and 100% of all other amounts due or (ii) shares of Common Stock at a rate equal to the lower of (A) the Fixed Conversion Price of $0.15 or (B) 75% of the average of the closing bid price of the Common Stock for the ten trading days ending on the trading day immediately preceding the Scheduled Payment Date; provided,that , if such monthly amount is to be paid with shares of Common Stock, it will be automatically deferred unless the holder gives notice to the Company at least five (5) days before a repayment date that the holder will accept payment of such monthly amount in the form of Common Stock. As of September 30, 2009, no principal or interest payments were made.The Company’s obligations under the December 2008 Notes are secured by a security interest in substantially all of its assets pursuant to a prior Security Agreement dated as of December 24, 2007 between it and the purchasers of the 2008 Notes.Holders of the Purchased Securities are subject to certain limitations on their rights to convert the securities. The principal limitation is that the holder may not, with certain limited exceptions, convert into a number of shares that would, together with other shares held by the holder, exceed 4.99% or 9.99% of the then outstanding sharesof the Company after such conversion and/or exercise. 8  Under the subscription agreement of the December 2008 Private Placement, the Company also agreed that other than in connection with certain excepted issuances, if at any time any of the Purchased Securities are outstanding, the Company shall offer, issue or agree to issue (the “Lower Price Issuance”) any Common Stock or securitiesconvertible into or exercisable for shares of Common Stock (or modify any of the foregoing which may be outstanding) to any person or entity at a price per share or conversion or exercise price per share which shall be less than the conversion or exercise price in respect of the Purchased Securities, without the consent of Subscribers holding 66.67% of the outstanding principal amount of the December 2008 Notes, then the Company shall issue, for each such occasion, additional shares of Common Stock to each subscriberrespecting each of the Purchased Securities that remain outstanding at the time of the Lower Price Issuance so that the average per share purchase price of the shares of Common Stock issued to the subscriber (of only the Common Stock or Warrant Shares still owned by the Subscriber) is equal to such other lower price per share and the conversion price and exercise price, as the case may be, of each of the outstanding Purchased Securities shall automatically be reduced to such other lower price.The Company also agreed that until the expiration of the Exclusion Period (defined below) and during the pendency of an Event of Default, except for certain excepted issuances, the Company agreed to not enter into an agreement to nor issue any equity, convertible debt or other securities convertible into common stock or equity of the Companynor modify any of the foregoing which may be outstanding at anytime, without the prior written consent of investors, which consent may be withheld for any reason.   For so long as any of the Purchased Securities is outstanding, except for such excepted issuances, the Company will not enter into any equity line of credit or similar agreement, nor issue nor agree to issue any floating or variable priced equity linked instruments nor any of the foregoing or equity with price reset rights.  The “ExclusionPeriod” ends on the first to occur of (i) April 30, 2009, or (ii) until all the shares issuable upon exercise of the December 2008 Notes and Warrants have been resold or transferred by the subscribers pursuant to Rule 144, without regard to volume limitations.  Under certain circumstances, the Exclusion Period will be tolled.In addition, for a period of one year, investors will have a right of first refusal to participate, in proportion to the their holdings in any proposed sale by the Company of its common stock or other securities or debt obligations, other than with respect to shares issued in connection with mergers, employee stock option plans and capitalraises where the shares issued will not be registered.For the period January 1, 2009 to September 30, 2009, principal in the total amount of $38,191 and accrued interest totaling $61,924 was repaid in the form of 204,107,106 shares of the Company’s Common Stock.Pending an increase in the number of authorized and unissued shares of common stock, the Company currently does not have a sufficient number of shares of common stock available to honor any conversions of the December 2008 Notes.  The inability to honor conversions constitutes an Event of Default under the December 2008 Notes. However,the pertinent documents provide that any action by the investors upon such default (i.e., acceleration of the debt and other remedies) can only be initiated by the holders of 65% or more of the outstanding principal amount of the notes. Such action has not been commenced by the note holders. See Note 9 - Derivative Liabilities.(iii) 2009 Notes and Series A Convertible Preferred StockIn April 2009, the holders of the 2008 Notes and the December 2008 Notes consented to the placement of secured convertible promissory notes (the “2009 Notes”), Series A Preferred Stock and warrants, all on the substantive terms identical to those prevailing with respect to the December 2008 Private Placement discussed at furtherlength in Note 7(ii) above, for aggregate gross proceeds to not exceed $1.5 million.  Between April 28, 2009 and September 22, 2009, the Company raised net proceeds of $1,042,500 ($100,000 was rolled over from the 2008 financing) from the private placement to certain holders of the December 2008 Notes of $1,142,500 in principal amount of 2009 Notes and 28,564 shares of Series A Preferred Stock. Commencing on the six month anniversary of theissuance date of the 2009 Notes, and on the same day of each subsequent calendar month thereafter until the principal amount of the 2009 Notes has been paid in full, the Company is required to prepay 8.33% of the aggregate principal amount of the 2009 Notes originally issued, together with all accrued interest due and payable on the entire outstanding amount up to such repayment date. In connection with such investment, the Company issued to the holders of the 2009 Notes, warrants to purchase in the aggregate up to 7,616,667 shares of the Company’s Common Stock at per share exercise price equal to $0.25. The warrants are exercisable through the fifth anniversary of issuance. Proceeds of these funds were used to fund the Company’s continuing operations. NOTE 8 - CAPITAL TRANSACTIONS Authorized SharesOn December 29, 2008, Company’s Board of Directors and the majority of Company’s stockholders authorized an increase the number of shares of Common Stock from 100,000,000 to 2,000,000,000. The increase became effective in March 2009. 9 Reverse Stock SplitOn December 29, 2008, Company’s Board of Directors and the majority of Company’s stockholders approved an amendment to the Company's certificate of incorporation to effect a reverse stock split at any ratio within an approved range (defined as between 10-to-1 to 50-to-1) at any time on or before December 31, 2009.  Theboard of directors has the sole discretion to determine whether or not to effect the reverse stock split and if so, at what ratio within the approved range. Stock IssuancesFor the period January 1, 2009 through September 30, 2009, principal and accrued interest of Notes totaling $1,203,254 was repaid in the form of 1,936,834,520 shares of the Company’s Common Stock.  See Note 7 - Private Placement of Convertible Promissory Notes. Convertible Preferred StockThe Series A Preferred Stock was authorized in accordance with a Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock filed with the Nevada Secretary of State, effective as of December 11, 2008.   As of June 30, 2009, 34,000 shares of $0.001 par value Series A PreferredStock was authorized.  On July 30, 2009, the Company's certificate of incorporation was amended to increase the number of shares of preferred stock designated as Series A Convertible Preferred Stock to 65,000 shares.  At September 30, 2009 and December 31, 2008, 55,228 and 26,664 shares of Series A Preferred Stock were issued and outstanding.In December 2008, in connection with the issuance of the December 2008 Notes more fully discussed above in Note 6(ii), the Company issued to the purchasers of the December 2008 Notes, 26,664 shares of its Series A Preferred Stock. Each purchaser of the December 2008 Notes received shares of the Company’s Series A Preferred Stock witha stated value of $100 equal to 250% of the principal amount of the December 2008 Notes issued to such investor.In April through September 2009, in connection with the issuance of the 2009 Notes more fully discussed above in Note 6(iii), the Company issued 28,564 shares of Series A Preferred Stock.Shares of Preferred Stock have not been registered and are restricted under the securities laws and pay a dividend of 10% per annum on the stated value. So long as the Series A Preferred Stock is outstanding, unless waived by the holders of 66 2/3% of the Series A Preferred Stock then outstanding, the dividend rate shall increase to 15%.In addition, shares of the Series A Preferred Stock do not vote separately as a class (but do vote on an “as-converted” to common stock basis) and have a liquidation preference equal to the stated value of the shares. Each share of Series A Preferred Stock has a stated value of $100 and is convertible into shares of the Company’s common stock at $0.15 per share.  The dividends are cumulative commencing on the issue date whether or not declared.Commencing on April 30, 2009, and thereafter on the last day of each subsequent calendar month, the Company is required to redeem 8.33% of the aggregate outstanding stated value of the Series A Preferred Stock until the stated value and all accrued dividends have been paid in full. Redemption payments on the Series A Preferred Stock maybe made, at the election of the Company, in cash or shares of Common Stock, in the same manner as provided above with respect to the December 2008 Notes, subject to automatic deferral in the case of payment in shares unless the holder gives notice to the Company of such holder’s agreement to accept payment in shares.  As a result of the redemption provisions, the Series A Preferred Stock was not classified as permanent equity.  To date, no shares of the Series A Preferred Stock havebeen redeemed or converted into shares of the Company’s Common Stock.Commencing on July 1, 2009, the Series A Preferred Stock is now being classified as a liability. As such, all dividends accrued and/or paid and any accretions will now be classified as part of interest expense and will no longer be classified as preferred stock dividends and deemed dividends.  For the nine months ended September30, 2009, dividends totaled $855,184. For the three months ended September 30, 2009, dividends totaled $652,803 and such amount has been included in interest expense.  At September 30, 2009 and December 31, 2008, dividends payable total $287,092 and $44,562, respectively, and are included in accounts payable and accrued liabilities. NOTE 9 - Derivative LiabilitiesIn connection with the issuances of equity instruments or debt, the Company may issue options or warrants to purchase common stock. In certain circumstances, these options or warrants may be classified as liabilities, rather than as equity. In addition, the equity instrument or debt may contain embedded derivative instruments, such as conversionoptions or listing requirements, which in certain circumstances may be required to be bifurcated from the associated host instrument and accounted for separately as a derivative liability instrument. The Company accounts for derivative liability instruments under the provisions of Topic 815, Derivatives and Hedging. During 2009, the Company issued warrants, Series A Preferred Stock and convertible notes under various private placements.  Due to the various issuances, the Company did not have enough available shares of authorized common stock to issue to the various security holders had all of the convertible securities been converted and/orexercised.  As a result, the value of some of the warrants would have to be recognized as a liability.  In addition, the Company evaluated the conversion terms of the notes and Series A Preferred Stock to determine if such terms gave rise to embedded derivatives that would need to be accounted for separately.   The Company determined that the lack of authorized shares to issue if all of the securities were converted resulted in the conversion features being embedded derivativesthat must be bifurcated and recorded as derivative liabilities. In addition, the Company would be required to revalue the derivative liabilities at the end of each reporting period with the change in value reported on the statement of operations. The Company did not account for the derivative liabilities in its financial statements as it was determined to not be material. NOTE 10 – ContingencyOn October 10, 2009, a former officer/director filed an action in the Labor Court in Tel-Aviv against IDO Security Ltd. (“IDO Ltd.”), as well as a director and the General Manager of IDO Ltd.  The action seeks the payment of amounts purportedly due and payable to the officer/director under hisemployment agreement with IDO Ltd. in the approximate amount of 1,481,163 NIS  (approximately $393,000 based on the exchange rate in effect at the time of the filing of this report on Form 10-Q). In connection with the suit, on November 5, 2009, IDO Ltd. received notice that a lien was placed on its assets by the former officer/director. In order to obtain the lien, the former officer/director was required to deposit a bank guarantee for 10% of the amount sought (i.e., 148,116 NIS-- approximately $39,000based on the exchange rate in effect at the time of the filing of this report on Form 10-Q). On November 16, 2009, IDO Ltd. filed an application with the Court to release the lien on IDO Ltd.’s assets. The Company anticipates that a hearing relating to the release of the lien will be held before the end of November 2009. In June 2009, IDO Ltd. filed an action in the Labor Court in Tel-Aviv, Israel, against the officer based on material non-complianceby the officer with the terms of the employment agreement between the former officer and IDO Ltd. The Company believes that these claims are without foundation and that it has meritorious defenses to them. The Company intends to aggressively defend its interests.  10  ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONWe urge you to read the following discussion in conjunction with our condensed consolidated financial statements and the notes thereto included elsewhere herein. CAUTION REGARDING FORWARD-LOOKING STATEMENTS Our prospects are subject to uncertainties and risks. In this Quarterly Report on Form 10-Q, we make forward-looking statements in this Item 2 and elsewhere that also involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and ourindustry, and reflect our beliefs and assumptions based upon information available to us at the date of this report. In some cases, you can identify these statements by words such as “if,” “may,” “might,” “will, “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” and other similar terms. These forward-lookingstatements include, among other things, projections of our future financial performance and our anticipated growth, descriptions of our strategies, our product and market development plans, the trends we anticipate in our business and the markets in which we operate, and the competitive nature and anticipated growth of those markets. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements coulddiffer materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to the risks and uncertainties discussed in our other filings with the SEC, including the risk factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason. OVERVIEWIDO Security Inc. (“we”, “IDO” or the “Company”) is engaged in the design, development and marketing of devices for the homeland security and loss prevention markets that are intended for use in security screening procedures to detect metallic objects concealed on or in footwear, ankles and feet throughthe use of electro-magnetic fields. These devices were designed specifically for applications in the security screening to complement the current methods for the detection of metallic items during security screenings and at security checkpoints in venues such as airports, prisons, schools, stadiums and other public locations requiring individual security screening. Our common stock trades on the OTC Bulletin Board under the symbol IDOI. IDO Security Inc. (formerly known as “The Medical Exchange Inc.”) was incorporated in the State of Nevada on January 23, 2004. On July 25, 2006, we, IDO Security Ltd. (“IDO Ltd.”) and IDO Ltd.’s Selling Shareholders entered into a Securities Purchase Agreement (the “Purchase Agreement”) pursuantto which we purchased, in March 2007, all of the issued and outstanding share capital of IDO Ltd. (the “Acquisition Transaction”). Following the Acquisition Transaction, IDO Ltd. became a wholly-owned subsidiary of the Company and Med Ex adopted the business of IDO Ltd. In June 2007, the Company changed its name to “IDO Security Inc.”We believe that the market for security and inspection products will continue to be positively impacted by the threat of terrorist activities and by new government regulations and appropriations for security and inspection products and procedures. We anticipate that the promulgation of new governmental regulation and standards will establishperformance baselines against which we will be able to direct certain of our continued research and development spending and market our products to customers, worldwide. In addition, we believe that the increasing awareness of security, in general, will bring increased awareness of available products and methods, such as ours, for anti-crime and loss prevention fields.          We have designed and developed a security screening device containing proprietary and patented technology known as the MagShoe. The MagShoe creates specific electro-magnetic fields that can intelligently detect the presence of metallic objects inside a person’s footwear, as well as next to or above the ankles. The proprietary softwareincluded in the MagShoe provides for the collation and delivery of the screening data to the operator for immediate analysis. The MagShoe obviates the need to remove the footwear being inspected. Our technology is designed to distinguish between a person’s left and right shoe, analyzing anomalies for each foot but also for both together, and provides comparative screening results. The technology allows for both the detection and assessment of possible threats from the shoe and ankle area posed by foreignmetal objects based upon the analysis of the detected metal material(s) and their location in shoes. The MagShoe device has been designed to be portable and to integrate into and complement current security screening arrays and systems. The MagShoe has been deployed and is in operation in various countries including Israel, China, Spain, Poland, The Czech Republic, Australia and Germany. Subject to raising additional capital, we expect to actively pursue certain Requests for Proposals ( RFP) for footwear scanners that we are beginning to receive from sources in variouscountries.   We believe that these RFPs further validate the need for our product. In addition, in January 2006, the MagShoe was approved for use by the Department for Transport in the United Kingdom, after field trials were conducted for the Home Office’s Police Scientific Development Branch. In addition, we have been certified by the International Organization for Standardization (“ISO”) under ISO 9001:2000 compliance for the design,development and manufacture of electronic, electro-optic and electro-mechanical systems. In December of 2008, the Company received its certification from the Underwriter’s Laboratory (UL) in the United States, which signifies that the MagShoe is safe for sale in the United States. 11  In July 2009, we introduced a Network Management Control System (NMC-3), facilitating secure, centralized management of multiple MagShoe devices across one or more facilities. The NMC-3 system remotely manages up to 300 MagShoe devices simultaneously from a single site via a secure Ethernet connection, while still allowing each deviceto be operated individually. This provides an accurate and up-to-date view of the entire system state, offering immediate status and oversight relating activity on all installed units, as well as personnel and usage statistics. NMC-3 collects measurement information across the network and stores it in a central database, offering a range of data analysis tools for users to evaluate unit performance over a given time period, up to a full year. The resulting reports can be exported in Microsoft Excel-compatibleformat for simple viewing and assessment. In August 2009, the Transportation Security Administration announced that its goal is to put out an RFP during the next calendar year and to test and evaluate technologies in order to decide on a procurement plan. We plan to follow this procedure closely and to attempt to demonstrate the technological advances made by the current MagShoe in metal and non ferrous metal weapons detection in addition to our record keeping capabilities and cost saving measures. Our subsidiary, IDO Security Ltd., has experienced unforeseen and lengthy delays in obtaining from the Ministry of Defense of the State of Israel the requisite approvals needed for shipment of our MagShoe devices in respect of orders received. These delays have prevented us from making timely deliveries on orders received.  Weare working to obtain the needed approvals and to streamline the process in the future. No assurance can however be given that we will be successful in these efforts. The delay in shipments  have contributed, in part, to lack of revenues for the three months period covered by this report, as revenues are not recorded prior to shipment. We need to raise additional funds on an immediate basis in order to meet our on-going operating requirements and to realize our business plan. In response to the deteriorating global economic conditions that began in 2008, we have taken certain measures in an effort to reduce operating expenses and conserve our cash resources. Beginningin April 2008, we have significantly curtailed our non-essential product design and development. Our senior and other employees have agreed to defer, in part, salaries and benefits. As of November 13, 2009, we had 10 employees working on a full-time basis. We are currently in discussion with certain of our investors regarding the possibility of additional investments in IDO by these investors. No assurance can be given that we will be able to raise the needed capital on commercially acceptable terms or at all.These conditions raise substantial doubt about our ability to continue as a going concern. Subject to raising additional working capital, we intend to pursue our business plan over the next twelve months with respect to product development and enhancement and field testing, as well as initial marketing efforts. We have been expanding our contact base and are aggressively seeking collaborative arrangements worldwide for our MagShoeproduct. In May 2008, we selected a leading contract manufacturer for high volume production of MagShoe and in June 2008, we announced the availability of an elite network of industry leading distributors and systems integrators for the MagShoe device which, together with the high volume production capabilities that we established in the second quarter of 2008, significantly strengthens our infrastructure to commercially manufacture and distribute the MagShoe device. In July 2008, we announced our entry intoa collaborative relationship with Bryant Integrated Technologies, a leading security and consulting firm, to lead our product distribution efforts in the United States, and with Hwan Technology and Trade Co., one of China’s largest distributors of walk-through metal detectors, to lead our distribution efforts in China. Shortly thereafter, we announced our initial sale of the MagShoe Unit (through Bryant) in the United States to a leading commercial cruise line which intends to use the MagShoe device tosignificantly reduce passenger waiting lines while improving security. In addition, as a result of the recent terror attacks in Mumbai, India, we have targeted that area for special attention by our marketing department. This follows a successful test of the MagShoe at both the Mumbai and New Delhi airport several months ago. Recently, in April 2009, we announced the delivery of multiple MagShoe devices to the Xinjiang Airport in Northwestern China as well as initial sales of MagShoe devices to a large UnitedStates based international cruise line where the devices are to be used in the cargo holders so as to primarily prevent theft of valuables. In August 2009, we announced a distribution arrangement in Italy with one of that nation’s recognized providers of system integration for physical and logistical security. RESULTS OF OPERATIONSCOMPARISON OF THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2009 TO THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2008 On March 8, 2007, we completed the acquisition of IDO Ltd. As we were a shell company prior to the acquisition, IDO Ltd. is deemed to be our predecessor.Revenues and costs of goods sold - All revenues were derived from sales of our Magshoe device. Revenues for the nine months ended September 30, 2009 were $61,339. We did not record any revenues during the three months ended September 30, 2009. Revenues for the nine and threemonths ended September 30, 2008 were $136,759 and $103,075, respectively. Costs of goods sold for the nine months and three months ended September 30, 2009 were $45,808 and $-0-.  Costs of goods sold for the nine and three months ended September 30, 2008 were $58,039 and $46,631, respectively.The decrease in revenues and cost of goods sold during the nine and three months ended September 30, 2009 as compared to the corresponding periods in 2008 is primarily attributable to delays experienced by our subsidiary in obtaining requisite approval from the Ministry of Defense of the State of Israel prior to shipment in respectof orders that we received. We are taking all commercially reasonable efforts to obtain the needed approvals and to avoid this problem in the future.  In addition, the Company is focusing its efforts on developing the next generation Magshoe which is scheduled to be launched soon.

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                 Between April 28, 2009 and September 30, 2009, we raised net proceeds of $1,042,500 from the private placement to certain holders of the December 2008 Notes of $1,042,500 in principalamount of Secured Convertible Promissory Notes due 18 months following issuance and 28,564 shares of Series A Preferred Stock. In connection with such investment, we issued to the providers of these funds warrants to purchase in the aggregate up to 7,616,667 shares of our Common Stock at per share exercise price equal to $0.25. The warrants are exercisable through the fifth anniversary of issuance. The placement of the notes, the Series A Preferred Stock and the warrants were effected on substantive termsand condition identical to the placement consummated in December 2008 and discussed above. In April 2009, the holders of the 2008 Notes and the December 2008 Notes consented to the placement of secured convertible notes, Series A Preferred Stock and warrants, all on the substantive terms identical to those prevailing with respect to the December 2008 Private Placement discussed above, for aggregate gross proceeds to not exceed $1.5 million. Proceeds of these funds were used to fund our continuing operations aswell as pay down amounts outstanding under a line of credit with a commercial bank in the approximate amount of $267,000 for the benefit of our subsidiary IDO Security Ltd..

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| ITEM 4T. | CONTROLS AND PROCEDURES |
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| ITEM 1. | LEGAL PROCEEDINGS. |
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| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
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| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
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| ITEM 4. | SUBM1ISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
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| ITEM 5. | OTHER INFORMATION. |
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| ITEM 6. | EXHIBITS. |
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| ExhibitNumber |   | Description                                                                               |
|---------------|--------|-------------------------------------------------------------------------------------------|
|          |   |                                                                                      |
| 31            |   | Certification Pursuant to Rule 13a-14a of the Securities Exchange Act of 1934, as amended |
|          |   |                                                                                      |
| 32            |   | Certification Pursuant to Section 906 of  Sarbanes-Oxley Act of 2002                 |

  

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|                    |   | IDO SECURITY INC.                                                                                                                        |   |
|                    |   |                                                                                                                                     |   |
| Date: NOVEMBER 16, 2009 |   | /s/ MICHAEL GOLDBERG                                                                                                                |   |
|                    |   | MICHAEL GOLDBERGACTING CHIEF EXECUTIVE OFFICER (PRINCIPALEXECUTIVE OFFICER AND PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER) AND PRESIDENT |   |

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